Halal certification issue halts NZ meat exports to UAE
Accreditation of certifying body suddenly withdrawn by UAE government.
Meat companies have been unable to export to a key Middle Eastern market for the past month after the body that provides halal certification to most of the industry’s plants had its accreditation withdrawn.
The New Zealand Islamic Development Trust (NZIDT) has been unable to certify meat exports as halal for the United Arab Emirates since its government decided not to renew the trust’s registration as a Halal Certification Body last month.
This has meant meat halal certified by NZIDT for the UAE market – the industry’s second largest in the Persian Gulf after Saudi Arabia, and worth $60 million last year – had been unable to be shipped since the trust’s registration was cancelled on September 24.
“The Ministry for Primary Industries managed to get an exemption for anything that was certified and on the water as of that date but anything beyond that date – inventory that we held or product that was made after that date – has not been able to be shipped,” one large exporter said.
“There was no justification given, they just decided they were going to change and we are all in limbo until we get a new halal approver in place.”
The impact is not confined to just a few industry players.
“Everybody uses the same provider,” the exporter said.
According to MPI, there are two remaining Halal Certification Bodies accredited by the UAE government.
However, neither has extensive coverage of NZ meat plants.
“One certifies just the one red meat plant and the other is new to NZ,” said another exporter.
Negotiations are now being fast-tracked to get contracts quickly in place with the new certifiers so certifications can resume before the new production season gets into full swing.
It is understood the Meat Industry Association is conducting the negotiations on behalf of its exporter members, who are receiving daily updates.
In the meantime exporters are bracing for price increases.
“They are going to be more expensive than the old provider but we have no leverage as every day that goes by is another day with no trade,” one exporter said.
Meat and dairy exporters narrowly avoided another blow to the halal trade after Indonesia last week withdrew plans at the last minute to introduce pre-shipment inspections of halal certificates.
NZ dairy exporters had prepared a joint letter with their United States, European and Australian counterparts to send to Indonesian ambassadors in their respective countries protesting the changes, which they said would create unnecessary uncertainty for exporters as well as adding to costs for Indonesian consumers.
However, the day before the inspections were due to start the Indonesian government backed down and cancelled them.
A planned extension of mandatory halal certification was also deferred for two years to allow further consultation with Indonesia’s trading partners.
Source: https://www.farmersweekly.co.nz/markets/halal-certification-issue-halts-nz-meat-exports-to-uae/
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