EU boost looms for kingdom's exporters

Exporters of halal food should get a big lift soon as the Commerce Ministry is about to sign deals with the major French retailer Casino Group and the biggest food-retailer in Belgium, Delhaize, to be distributors in the European Union.

Thai officials are visiting France and Belgium to meet with senior executives of the two companies this week. The meetings are being held to finalise the contracts.

Commerce Ministry spokesman Krisda Piampongsant said last week that the two partners would broaden the market for Thai halal food in the European Union. Exports to date have been made in small quantities and solely via importers.

"The ministry will try to export directly to both retail giants, as they have many branches in Europe and other countries. Closer cooperation between both sides should increase the exports of Thai halal food each year, as the EU has a big Muslim population," said Krisda.

Thailand currently has less than 1 per cent by value of the global halal-food market, which, according to the Halal Industry Development Corp, is worth US$570 billion (Bt19.56 trillion).

The EU demand for halal food has increased as its membership has expanded. About 7 to 8 per cent of the EU population is Muslim.

Halal is an expanding market, with average growth of about 50 per cent a year. People in 186 countries consume halal food.

The venture with Casino and Delhaize is also part of the ministry's plan to promote trade in the southern part of the Kingdom, which is a centre of halal food production.

Krisda said the ministry would negotiate with the retail giants to have halal-certified canned food granted access as the first priority.

Krisda said that if the two largest retailers in the EU were to allow Thai food brands on their shelves, halal food firms should see better export opportunities in each market as the EU is known for its high standards when it comes to food sanitation.

The Delhaize Group has a sales network in Europe, North America and Asia and more than 2,705 stores worldwide. The group operates under many brands, including Food Lion, Delhaize, Shop'n Go, Tom&Co, City Delhaize, Caddyhome, Sweetbay and Super INDO.

The Casino Group has more than 9,850 outlets worldwide, mainly in France, the Netherlands and Latin America.