Pakistan exporters race to fulfill Malaysia’s US$200m halal meat deal | USAEMALL.com

The deal represents a significant jump from current export volumes to Malaysia, said economist Ali Salman. 

“To develop an agreement from (almost zero) to US$200 million sounds very ambitious, and may be unrealistic at this point in time,” said the executive director of Pakistani think-tank Policy Research Institute of Market Economy, adding that challenges are ahead.

MEETING MALAYSIA’S HIGH STANDARDS

Producers face multiple hurdles. Malaysia’s food safety requirements – widely regarded as a global benchmark, especially in Halal food standards – demand strict disease control, hygiene and sanitation at slaughterhouses.

Muhammad Junaid, livestock consultant at Pakistan’s Ministry of National Food Security and Research, said only three slaughterhouses in the country are registered with Malaysia’s Department of Veterinary Services. 

“We wish to have more slaughterhouses (registered) to cater for the upcoming increase in slaughter (volumes),” he said. 

Anis Associates said it already adheres to international standards for how its meat is cleaned, cut and stored. Still, certification comes at a cost – US$265 per shipment – which exporters want the government to subsidise. 

REGIONAL COMPETITION 

Competition poses another challenge. Malaysia’s meat market is currently dominated by Australia and New Zealand, with India rapidly increasing its presence by offering lower prices. 

Pakistani exporters warn that India’s cost advantage is eroding their competitiveness. 

However, Pakistan retains an edge in beef exports, as India does not export the meat, giving Pakistani suppliers access to Malaysia’s beef products market. 

Logistics also remains a major obstacle. The government says it is working to upgrade infrastructure and expand temperature-controlled supply chains. 

Islamabad is also using diplomatic channels to help connect Pakistani exporters directly with Malaysian buyers. 

Analysts agree that improvements in standards, certification and logistics could open the door for Pakistan’s halal meat industry to tap into Malaysia’s vast market. 

But success, they say, will depend on how quickly both the government and exporters can overcome these structural challenges.