Fama, TH Global to sell products in Middle East
> Duo to target RM7m sales in 3 years in halal food venture
BATU CAVES: The Federal Agricultural Marketing Authority (Fama) and TH Global Services Sdn Bhd (THGS) are collaborating to market halal agro food products from Malaysian entrepreneurs to Saudi Arabia and the Gulf Cooperation Council (GCC), targeting sales of 6.5 million riyals (RM7.4 million) in three years.
The market segment is focused on food catering services (in Tabung Haji kitchens), vending machines at haj pilgrimage hotels and retail channels such as hypermarkets.
Under the first phase, 14 stock-keeping units (SKU) of premixed spices for food catering from three Malaysian companies worth RM1 million will be shipped to Saudi Arabia. Two containers weighing 25 tonnes will arrive at King Abdullah Port on June 28.
THGS CEO Adly Mohamed said the interest in these food products is there, given that it was approached by most of the hypermarkets and hotels in a FamaTHGS mission to Jeddah and Makkah in March. He said there are 12 Tabung Haji kitchens in Makkah and Madinah that is running food catering for pilgrims.
“The Middle East is a market to sell the Muslim community products. In the long term, our vision is to use Middle East as a launchpad to sell Malaysian products to other larger Muslim markets like Europe, as it is currently difficult to get halal products there,” he said at the memorandum of understanding (MoU) signing ceremony between Fama and THGS yesterday.
The second phase of the project is expected by year-end, with an expected shipment of 90 SKU from 30 companies. It will target hypermarkets and vending machines in hotels occupied by pilgrims. This stage will also involved Fama’s subsidiary Fama Corp Sdn Bhd in supplying Agromas products or as an exporter.
Fama director-general Datuk Ahmad Ishak said the venture follows the National Blue Ocean Strategy, urging Malaysian entrepreneurs who are keen to venture overseas to comply to global standards, especially the highest Hazard Analysis and Critical Control Points (HACCP) certification. Under the MoU, Fama aims to have over 100 Malaysian companies with HACCP certifications in three years.
He said many Malaysian companies have the Makanan Selamat Tanggungjawab Industry (MesTI) certification, but not many have the Good Manufacturing Practice certification, and subsequently the highest HACCP certification.
“With the help of the Health Ministry, Matrade (Malaysia External Trade Development Corporation) and Teraju (Bumiputera Agenda Steering Unit), we’re trying to see how to increase the standards of Malaysian products and to obtain HACCP. With these certifications, it will be easier to penetrate international markets,” said Ahmad.
Fama will identify Malaysian companies that have suitable products for Saudi Arabia and the GCC, looking at production capacity and consistent product quality. It will also have product filtering session, assist in product preclearance documents, packaging and labelling according to Saudi Arabia’s relevant authorities and conduct promotional activities to build the market in Jeddah.
THGS, a unit of the national pilgrimage fund Lembaga Tabung Haji, will be the facilitator to bring halal Malaysian products into Saudi Arabia and the GCC, looking into the supply of halal products to hypermarkets and the food services sector in Saudi Arabia, especially Jeddah (as a start). It will also identify potential buyers in Jeddah and the GCC and work with the Jeddah Chamber of Commerce for buyer verification and the latest market information in Saudi Arabia and the GCC, as well as the rules and procedures related to import to Saudi Arabia and the GCC.