Russia Kickstarts Halal Exports, with Malaysia as a Pioneer Customer

The robust domestic halal industry in Russia, driven by the Damate Group, Russia’s premier turkey producer, has been making significant strides in expanding into new export markets. This advancement was largely buoyed by a marked rise in sales to Asia by an impressive 60% in 2022, highlighting a growing interest in the ASEAN markets for Russian exports.

In a proactive move towards propelling Russia’s halal industry on the global stage, Damate has formulated an ambitious plan to export halal products worth 80 million rubles (equivalent to US$1 million or 4.6 million Malaysia Ringgit) to Malaysia. This strategic step is part of an agreement with the Malaysian firm, 3Bumi Trading, which was inked at the prestigious Russia-Islamic World international economic forum held in Kazan recently.

Under the terms of the agreement, Damate has charted out plans to export a wide range of products including poultry, lamb, and beef. This also extends to their by-products and various processed items. Following the agreement, a contract for shipping a trial batch has already been signed, setting the stage for preparations to dispatch the first full container.

Before the agreement, representatives of 3Bumi had the opportunity to visit Damate’s turkey processing plant in the Penza Region of Russia. They expressed admiration for the top-notch production organization, cutting-edge technology, stringent veterinary and sanitary controls, and efficient halal management system at the plants.

In its pursuit of excellence and adherence to halal norms, Damate is gearing up to undergo halal certification audits. These inspections will be carried out by entities authorized by Malaysia’s Islamic development department, JAKIM, at Damate’s turkey product plants in the Penza and Rostov regions, and its lamb processing plant in the North Caucasus Federal District.

Being part of the ASEAN Free Trade Bloc and having a Double Tax Treaty with Russia gives Malaysia a strategic advantage. Damate envisages Malaysia playing a significant role in its Southeast Asian export strategy. Following an export strategy focused on Asia, Damate managed to boost its exports to a substantial 3.7 billion rubles in 2022, a significant jump of 60%. This progression underscores the growing importance of the Asian market to Damate and the broader Russian export industry.