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Halal food industry is on the fast track - Xinhua News Agency

The scale of the industry continues to expand and the characteristics of products become more prominent

Halal food industry is on the fast track

Reporters at the 2010 China Qinghai International Halal Food and Products Exhibition held in Xining, Qinghai Province, learned that my country's halal food industry has maintained an average annual growth rate of over 10% in recent years. Halal food, characterized by its unique approach of "good food, careful selection, strict hygiene, emphasis on nutrition, and a focus on health," is becoming a rapidly growing force in my country's food industry. Since the reform and opening up policy, especially the Western Development Program, the economic and social development of ethnic minority regions and the continuous improvement of Muslim living standards have contributed to the rapid development of my country's halal food industry, with its scale expanding and its distinctive features becoming increasingly apparent. Currently, the global annual trade volume of halal food reaches US$2 trillion.

Long history and rich variety

Has raw material advantages

According to food experts, my country currently has approximately 5,000 traditional halal dishes and nearly 1,000 snacks. Since the reform and opening up, my country's halal food industry has experienced significant growth, with a wide range of halal food categories now available, including grains, oils, meats, dairy products, pastries, sugar processing, canned goods, candy, condiments, soy products, starch, salt processing, egg products, additives, yeast, tea processing, children's food, health foods, processed fruits and vegetables, frozen foods, and freeze-dried foods.

my country boasts abundant resources for halal food raw materials. The Qinghai-Tibet Plateau and the grasslands of Inner Mongolia abound in high-quality forage, resulting in high-quality beef and mutton. Currently, my country is a major global producer of cattle and sheep, ranking first in sheep breeding, slaughter, and mutton production. Annual beef production reaches nearly 5 million tons, ranking third in global exports. my country also boasts an abundance of plant resources suitable for halal food production.

Distinctive regional characteristics

Possessing international exchange foundation and exhibition platform

With over 20 million Muslims scattered across my country, halal food has distinct regional characteristics and a clear trend towards diversification. Northwest China is home to a large Muslim population, accounting for over 80% of the country's total Muslim population. Halal food is particularly flourishing in Qinghai, Ningxia, and Xinjiang.

Qinghai Province, located in the heart of Northwest China, boasts rich flora and fauna from the Qinghai-Tibet Plateau. Halal food and supplies have long been a pillar industry, experiencing rapid growth. Leveraging its geographical advantages and industrial foundation, Qinghai has hosted the China (Qinghai) International Halal Food and Supplies Exhibition for four consecutive years, showcasing exhibitors' products and services. The event also provides a platform for communication between buyers and sellers, manufacturers and brand owners, and technical experts and investors, promoting international cooperation in the halal food industry. The recently concluded 2010 Qinghai International Halal Food and Supplies Exhibition attracted over 700 exhibitors from 22 countries and regions, as well as 24 provinces, autonomous regions, and municipalities within China, ultimately securing US$400 million in contracted funds.

As China's largest Hui ethnic group concentration area, Ningxia has developed a halal food industry cluster and economies of scale, and has reached mutual certification agreements with halal certification bodies in countries like Malaysia and Thailand. Currently, there are nearly 10,000 halal food and Muslim product manufacturers and distributors. The annual halal food industry output value reached over 7 billion yuan in 2009. The halal food industry accounts for 80% of Ningxia's total food industry and has generated over 300 patents.

my country is currently developing the draft "Halal Food Management Regulations," which will bring halal food production and supply under the purview of legal regulations. The halal food industry is becoming increasingly interconnected with other sectors, including animal husbandry and slaughtering, and its industrial chain is expanding, making it a significant force in China's emerging industries.

The number of enterprises has steadily increased

The scale continues to expand

Luo Liming, deputy director of the State Ethnic Affairs Commission, and other authoritative figures believe that my country's halal food industry has the following development characteristics: First, the number of companies has steadily increased.

While the halal food industry in traditional markets such as Qinghai, Xinjiang, Ningxia and Gansu has made great progress, halal food companies in Shaanxi, Henan, Shandong, Jiangsu, Hebei, Beijing, Tianjin and Shanghai have developed rapidly, and their number has increased year by year.

According to statistics, 97.3% of China's more than 2,400 cities and counties currently have halal food and supplies industries. There are over 120,000 catering, non-staple food, and food businesses, of which over 6,000 specialize in the production and sale of halal food. Secondly, the scale of halal food businesses continues to expand. A number of leading halal food companies with considerable scale and competitive advantages have gradually emerged. These include established brands such as Yueshengzhai, Hongqishun, Hongchangxing, and Laosunjia, as well as emerging companies such as Yili, Maiqiu'er, Haoyue, and Caoyuan Xingfa.

Benefits are increasing year by year and management is being comprehensively strengthened

But the international market share is relatively low

According to the State Ethnic Affairs Commission, the overall profitability of my country's halal enterprises has steadily increased in recent years. Some halal food companies have become key local enterprises, contributing significantly to tax revenue, employment opportunities, and public welfare initiatives. According to statistics, during the 11th Five-Year Plan period, the output value of halal food production enterprises designated as manufacturers of ethnic specialty products reached 304.67 billion yuan, with 8.6 billion yuan in value-added tax paid. Furthermore, the management of halal food production and operations has been comprehensively strengthened. Sixteen provinces, autonomous regions, and municipalities, as well as 18 provincial capitals and sub-provincial cities, have issued regulations or documents on halal food management. These regulations and documents clearly define the market access requirements for halal food production and operations, providing important legal safeguards for regulating the development of the halal food industry and safeguarding the legitimate rights and interests of ethnic minorities.

Despite this positive development, Wan Jifei, President of the China Council for the Promotion of International Trade, noted that while global halal food trade currently exceeds $2 trillion, China's halal food exports are less than $100 million. This not only reflects the vast market opportunities and potential for my country's halal food industry globally, but also highlights the shortcomings and gaps in international recognition, brand value, industrial chain, added value, and R&D innovation.

While maintaining rapid development at home, how to more effectively expand the international market has become a "top priority" for my country's halal food industry. This is also a real test of whether my country's halal food industry can achieve a comprehensive improvement in industrial scale and level.

Xinhua News Agency reporters Ma Yong, He Huiyuan, and Wang Bo