BIMP-EAGA considers cattle among the subregion’s priority commodities, along with shrimp, rice, coconut, and seaweed. Photo credit: Asian Development Bank.
The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is pressing ahead with plans to modernize the cattle industry to cash in on the strong demand for halal meat and dairy products. A collaboration with the Mindanao Development Authority (MinDA) and the private sector is poised to transform BARMM into the country’s hub for halal-certified meat and dairy products, enhancing the region’s economic potential while uplifting the lives of local communities.
According to the Philippine Halal Industry Development Strategic Plan 2023–2028, the country is an emerging market for halal products due to its growing Muslim population. The Philippines has the third-largest Muslim population in Southeast Asia. Yet, it does not produce enough halal-certified goods.
In 2022, imports of halal goods amounted to $120 million, with dairy products accounting for 60% and beef, 15%. The United States supplied 51% of dairy imports and New Zealand, 47%. Top dairy imports included skimmed milk powder (44%), milk fat (29%), lactose powder (10%) buttermilk powder (9%), whey powder (7%), and cream cheese (1%). The country imported 63% of the halal beef from India, followed by Brazil (30%), Australia (5%), and Ireland (2%). Other halal food imports consist of poultry meat and other products (11%), glycose syrup (6%), and animal fats (4%).
Strategic location
BARMM is seen as an ideal location to pilot halal initiatives, as majority of the 12 million Muslims in the country live in Mindanao. Its strategic proximity to the world’s largest halal market, Indonesia, and Brunei Darussalam and Malaysia, which also have large Muslim populations, strengthens BARMM’s position as the country's hub for halal development.
MinDA is developing a coordinated halal mechanism to position Mindanao as a key player in the halal industry, not only in BIMP-EAGA and ASEAN, but also in the global market. This aligns with the country’s goal of becoming a halal food processing and export hub.
The Philippines is bullish about the prospects of the halal industry. The global halal market is expected to expand to $7.7 trillion by 2025—a more than twofold increase from $3.2 trillion in 2015. Under its halal development plan launched in January, the Philippines seeks to attract halal investments worth 230 billion pesos ($3.9 billion) and create 120,000 jobs.
Cattle cooperation program
On 23 January, MinDA and BARMM’s Ministry of Agriculture, Fisheries, and Agrarian Reform (MAFAR) signed a memorandum of cooperation with South East Asian Agri-Tech Livestock Services (SEAALS) Agri-Food Co., Inc. to establish a sustainable livestock development program in BARMM.
Under the cooperation deal, 1,000 breeder cattle from Australia will be imported over the next 3 years. MAFAR will allocate land for livestock farming and feed production while offering logistical and administrative support. “We can establish processing facilities for milk production, enabling BARMM to supply other regions with high-quality halal products,” said BARMM Minister Mohammad S. Yacob.
MinDA will serve as the lead coordinating agency, collaborating with BARMM institutions, national government agencies, and other stakeholders. It will oversee strategic planning, recommend financial resources, and provide advisory support to ensure the program's success. SEAALS, as the private sector partner, will spearhead technical and operational components of the program. This includes conducting site inspections, crafting a detailed project roadmap, and implementing capacity-building initiatives to train local farmers and MAFAR personnel in modern livestock management and sustainable farming practices.
Priority commodity
BARMM’s plan to develop its cattle industry is in line with BIMP-EAGA's vision to become a food basket for ASEAN and the rest of Asia. This entails integrating the agro-industry and fisheries sectors and developing supply and value chains, while ensuring the agribusiness sector is sustainable, competitive, and climate-resilient.
BIMP-EAGA considers cattle among the subregion’s priority commodities, along with shrimp, rice, coconut, and seaweed. All these commodities have the highest perceived potential for trade within and outside the subregion.
A midterm review of BIMP-EAGA's progress noted a 5% increase in the subregion’s cattle production in 2021 to 180,900 metric tons after declining between 2018 and 2020.