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By default, the meat exported to the GCC must be Halal
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Friday, 01 February, 2019, 08 : 00 AM [IST]
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Amit Kumar Singh and Tripti Kumari
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Introduction
The Gulf Cooperation Council (GCC) consists of six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) with a population of about 53.1 million. The GCC is forecast to be one of the fastest growing regions in Halal meat consumption due to its population growth, rise in incomes, tourism, urbanisation and limited local agricultural production.
The GCC region’s imports of meat and meat products reached US$4.4 billion in 2016 as insufficient domestic meat production could hardly meet the market demand. Frozen/fresh/chilled poultry was the biggest GCC’s meat import, representing 60% of the total meat imports. By default, the meat exported to the GCC must be Halal. Exporters should be aware of the Halal regulations and the process for securing certification that will be recognised in the particular GCC market.
Food Sector in Gulf Countries
The GCC countries have been meeting the food demand of its diverse population largely through imports. Saudi Arabia and the UAE are major importers, collectively accounting for over 80% of the region’s net imports. Despite the present economic downturn, the demand for food, a basic necessity, is likely to continue growing in the face of an expanding consumer base. Saudi Arabia and the UAE are likely to remain the major food consumption centres.
Food is the second-biggest sector in the Gulf countries. Food consumption forecasts to rise from 48.1 million tonne in 2016 to 59.2 million tonne by 2021, due to a rising consumer base and growth in income.
The production of food products and food industry in the Gulf countries makes up about 47% of the national sector of non-resource industry. According to experts, this sector has a latent potential for manufacturers growth.
The food industry of the Gulf countries includes the following sectors: Production of meat and meat products; Dairy and bakery products; Production of refined sugar and vegetable oils; Bottled water and dessert products.
Challenges in Food Sector of GCC
1. Climatic conditions - It is exposed to global food price fluctuations and geopolitical tensions from source countries and trade routes
2. Oil price
3. Infrastructure
Trends of the Food Market
Packaged food; Healthy and organic; Halal market; Food processing segment; Digital technology; Food trucks; International cuisines; Re-exports.
Opportunities of Food Sector
Fruits; Vegetables; Olive Oil (at wholesale level business to business); Fish; Meats (veal, beef, poultry, lamb); Innovative Food Concept/Packagings; Niche Markets (special products).
Difficult Food Products
Pork: high restrictions for
not being Halal; Alcohol: few distributors
Gulf Countries’ Food Market Entry - Important Procedures and Regulations
Food Safety and Food Standards
ESMA (Emirates Authority for Standardization and Metrology): Responsible in cooperation with other members of the GCC standardisation organisation, for either developing or adopting all standards.
Ministry of Climate Change and Environment: It establishes and enforces food safety regulations.
Municipalities: Respective health department is responsible for enforcing the federal food safety standards on locally produced as well as imported foods through its food control section.
Gulf Countries’ Customs
Customs Duties: 5% foreign goods imported from abroad; 50% on alcoholic drinks; 100% on tobacco and derivatives.
Exempted from Customs Duties
Imports for international organisations, diplomatic and consular corps; Imports for the armed forces and internal security forces; Personal effects and used household-ware belongings to Gulf countries nationals residing abroad or foreigners that arrive to reside in the Gulf countries for the first time; Personal effects and gifts brought in by passengers (no more than US$817); Charitable organisation’s needs o GCC Products o Industrial production requirements.
Labelling
Arabic or Arabic/English - Arabic stickers are accepted; Production and expiry dates must be printed on the original manufactured installed label.
Labelling of Special Items
Pork; Alcohol; Pet Food; Items with required nutritional information.
Requirements for non-Halal Food
Permit from Food Control Department; Label: state the ingredients in Arabic and English and state clear it is a non-Halal product; Not to mix Halal and non-Halal products during transportation, storage, preparation or display; Importer/Distributor make sure non-Halal products are only sold to food establishments with permit to handle and sell non-Halal products.
Conclusion
The GCC has an increasing population, limited local agricultural production, a growing demand for imported food products, and a strong re-export market. The GCC countries’ demand for Halal meat in particular, continues to rise both in quantity and quality. With local meat supply and herd expansion being constrained by arid land, feed and water shortages, the GCC will continue to import a significant proportion of meat from the world.
(Singh is M Sc LPM scholar and Kumari is Ph D LPM scholar at ICAR-National Dairy Research Institute, Karnal. They can be contacted at amitkumarsingh5496@ gmail.com)
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