DA seeks foreign capital for halal food industry hub

The Department of Agriculture is seeking foreign investments for its proposed halal food industry economic hub in Mindanao.

Investments are being sought for at least two big-ticket projects worth P3.04 billion.

The proposed hub will consist of a Halal Economic Zone in Davao City and a halal model poultry farm in Cagayan De Oro City.

The two proposed projects in the South would help transform Mindanao into one of five “super regions” in the country.

In a report to Agriculture Secretary Arthur Yap, assistant secretary Clayton Olalia said the proposed Halal Economic Zone, which will cost at least P2.2 billion to establish. To be located in Davao City, the zone is expected to generate 24,000 new jobs for Muslim Filipinos, and boost the Philippines’ export earnings by at least $200 million per year.

The other investment proposal packaged by the DA is an P840-million project involving the establishment of a halal model poultry farm complete with research laboratories, abattoirs and other modern facilities.

Around 32,000 Muslim farmers and entrepreneurs in Mindanao are expected to benefit from the proposed initiative.

The DA is offering the halal industry investment portfolio to interested investors in the Middle East, Europe, Asia-Pacific and the USA.

“Filipino business groups, too, may consider other investment opportunities such as the production of halal animal feed, establishment of livestock and poultry halal farms, abattoir or slaughterhouse, processing, halal restaurants and food establishments, and halal food laboratory testing facilities,” Olalia said.

The global halal food market is  valued at around $500 billion.

The Philippines could easily earn at least $5 billion a year by tapping just one percent of the lucrative halal market, Olalia said.

“The Philippines has a comparative advantage over many other countries when it comes to developing its halal food industry considering that it is bird flu-free and generally free of the foot-and-mouth disease,” Yap had said.

“Moreover, the Philippines, specifically Mindanao, can count on a reliable supply of feed ingredients like corn, rice, copra meal and fish meal to make its halal food exports credible and genuine,” Yap added.