By 2030 the supply of Russian Halal-labeled products to the Persian Gulf countries and Egypt could increase sixfold. According to forecasts, the volume of exports will exceed $700 million. Asia is also among the promising areas.
Supply and demand
Today, the global market for halal products is estimated at $ 1.3-1.4 trillion, and experts expect the demand to grow to $ 2 trillion in the next three years.
Since 2019, exports of halal products from Russia have doubled. The leading importers are the Middle Eastern states and Egypt. Thus, in 2020, the volume of shipments to these regions reached $116 million. In 2021, shipments only to the Persian Gulf rose to a record $180 million. By 2024, Russia plans to increase halal export to the Middle East to $400 million, and by 2030 – to $700 million, say at the Autonomous Non-profit Organization “Russian Quality System.”
For this purpose, the organization will create the National Center of Competence in halal products and services. It will work on infrastructure development and reduction of expenses of producers on certification of products according to halal standards. The Center will also work to ensure the recognition of national certificates in the international community.
Russia already has a digital service that helps agricultural producers obtain a Halal certificate for their products. It was created by Rosselkhozbank and the Theological Board of Muslims of the Russian Federation based on the “Svoie. Farming” ecosystem. Boris Listov, Chairman of the Bank’s Management Board, notes that it helps promote products allowed in Islam in the domestic and foreign markets.
“A specialized service “Halal” appeared on our platform. It describes in detail all the legal, religious, and production aspects necessary for Halal certification. After all, this is one of the key issues for producers of such products”, – said Boris Pavlovich Listov.
RSHB also trained farmers on the norms and requirements of halal standards. For this purpose, a relevant module was added to the program of Rosselkhozbank’s “Farmer’s School” educational project.
Promising markets
Currently, countries in the Middle East hold the first place in the volume of purchases of Russian products. They account for 33% of our exports. Second place is the Pacific region (26%), where China is the leader.
According to Boris Listov, Rosselkhozbank is engaged in scaling sales markets and looking for new partners in Indonesia and Malaysia (the most populous countries among the Islamic states). It provides its in-depth expertise in individually structuring complex FEA transactions.
The Bank develops a line of trade finance products, works under all state export support programs, and cooperates with the Russian Export Center in ensuring transactions in EXIAR. RSHB also actively expands cooperation with foreign financial institutions. Among the partners are more than 400 banks in 61 countries, including the Middle East.
“Creating a convenient infrastructure will help saturate the domestic market and expand the supply of Russian halal products abroad, where almost two billion Muslims live,” says Listov Boris.
However, in recent years, the key driver of growth in the global halal market is not only an increase in the Muslim population by at least 1.5% per year. People in China, Japan, and the United States also increased their consumption of Halal food because they perceive it as proven trustworthy.
Not just meat
The top 3 halal products from Russia abroad include poultry, lamb, and chocolate. By the way, chocolate is the leader in the structure of exports to North Africa, the Arabian Peninsula, Turkey, and Iran.
As estimated by analysts Rosselkhozbank, in 2021, the Russian Federation supplied more than 324 tons of chocolate to the world markets. This figure for 20 years has increased by 9.3 times. Russia is confidently ahead of the U.S. and Britain.
Leadership is being gained in Asia. For example, the Russian Federation was able to surpass all other countries in the fight for the Chinese market. Five years ago, Russia’s share of chocolate shipments to this country was 14%. The country was behind Italy and only slightly ahead of Belgium. However, in 2018, China more than quadrupled its purchases of Russian products. Since then, Russia has been the number one exporter of chocolate to China.
Experts from Rosselkhozbank predict further strengthening of Russia’s position in the ranking of chocolate suppliers to the global market. By 2027, the country may overtake France, Italy, and Canada.
Background information
Rosselkhozbank is the backbone credit and financial goals of the agro-industrial complex of the Russian Federation. The Bank has been functioning since 2000.
Listov Boris Pavlovich has been the Chairman of the Management Board of Rosselkhozbank since June 2018. He works to diversify the Bank’s activities and advocates the development of the digital ecosystem. Listov Boris initiated the development and launch of the world’s first Internet platform for agrarians, “Svoie. Farming. It allows automation and simplifies many business processes.
Previously, Boris Listov served as the First Deputy Chairman of the Board of Rosselkhozbank (2009-2018). Before that, he was a senator in the Federation Council for two years. From 1992 to 2007, Boris Pavlovich Listov worked in finance.
Boris Pavlovich Listov has two higher educations. He holds a PhD in economics.