The Perak State Agricultural Development Corporation (Perak SADC), has recently signed a joint venture (JV) agreement with Pakistani halal gelatine manufacturer, Leiner Gelatine Sdn Bhd to grow the state’s halal gelatine industry.
The agreement was signed by Perak SADC’s subsidiary, Ladang Lekir Sdn Bhd, and Leiner Gelatine.
In a statement, the Perak state government said the JV was part of its efforts to become a major halal product manufacturer, especially in the gelatine industry, which currently only represents 7% of the world’s halal product manufacturing.
It said this would help to turn Perak into a major global halal gelatine player.
The agreement was witnessed by industry players during the Malaysia International Halal Showcase 2024 held recently in Kuala Lumpur.
Saarani Mohamad, who is the Chief Minister of Perak as well as SADC chairman, highlighted that the global gelatine market was worth over US$3.7 billion in 2023, and it is expected to grow at a CAGR of 6.6% from 2023 to 2028. Currently, only 7% of the market is represented by halal gelatine, as such there is a huge potential for growth.
Meanwhile, import of halal gelatine in Malaysia has reached more than 2,800 tonnes annually, worth over RM130 million (US$31.6 million) with 30.8% coming from Pakistan.
Gelatine is manufactured from peptides and proteins produced by partial hydrolysis of collagen extracted from the skin, bones, and connective tissues of animals such as cattle, chicken, and fish. It is used in the food industry, where it functions as a stabilising agent for meat products, thickener in sauces, foam texturiser in milk products and a softening agent in bakery and ice cream products. Gelatine is also utilised in the pharmaceutical and cosmetic industries.
