KUALA LUMPUR: Saudee Group Bhd today has signed a distribution agreement with Top Standard Corporation (TSC), a listed Hong Kong company, to supply frozen meats and products to the Chinese markets.
The deal sees TSC guarantee a minimum annual value of US$400,000 or RM1.64 million order initially to attempt to penetrate the halal consumer market in China.
Saudee Group is a local frozen meats and processed foods manufacturer, with full halal certification and an extensive suite of products with a largest and most progressive food processor company in Malaysia.
The agreement allows TSC to distribute all of Saudee Group's brands such as Saudi Gold, Farm's Gold and Deli Deli to Hong Kong, Macao and China.
The Chinese market contains approximately 25 million Muslims throughout the country, with its concentration mainly in the Xin Jiang province, in Western China, and the rest distributed evenly amongst the provinces of Gansu and Yunnan.
The Chinese halal foods market is deemed to be one of the largest growing food industry niche, expected to reach US$17 billion or RM69.7 billion per annum in 2021, second only to Indonesia at US$18 billion or RM73.8 billion.
With the current situation of the Covid-19 pandemic having its genesis in China in 2020, there is an immediate demand for non-locally manufactured halal food and products.
Malaysian halal certification is deemed to be at the highest international standard, and the penetration to the Chinese muslim market is seen to be a natural expansion progression for Saudee Group to embark into.