Page 48 - Azerbaijan State University of Economics

Ondrej Krocil, Richard Pospisil: Halal products system audit and its importance for the Czech
Republic export strategy

There are some large companies present on the Czech market that hold the halal certificate. It is
for example TRUMF s.r.o., the spices and spice mix producer which exports its products to the
Russian Federation, Kazakhstan and Kyrgyzstan. Hamés.r.o., the canned food producer which
exports to Russia, Libya and Israel. Emcos.r.o. which exports its cereal and muesli products for
example to the Malaysian market.

SWOT analysis of the Czech halal products export to Muslim countries

Strong points

The strong point of the Czech halal products export is the long-term tradition of the agrarian
industry in the Czech Republic and the presence of the large companies on the Czech food
industry market that have the potential to meet the demands of the Muslim consumers. The
Czech export advantage is the focus of the current export strategy which is in favor of the
intensification of the business with the Muslim countries. The Czech Republic lies in the
strategic center of Europe and keeps its independent monetary policy allowing to alter the
exchange rate and thus help the export.

Weak points

Czech food export weak point is the high percentage of products with low added value. In 2016
wheat was the main exported product (6% of the total agrarian export) and the rapeseed oil
(5.6%). Then baker’s products (5%), animal nutrition products (4.7%), chocolate and cocoa
products (4.4%) and then meat products and cheese. Related to halal export, it would be better to
focus on products with higher added value such as processed meat.
Cultural differences are a disadvantage that makes the business toward the Muslim consumers
difficult. There is also a low awareness of the halal certification that is caused by a low
marketing from the side of the Czech government institutions.

Opportunities

There is a large Muslim population of 1.8billion worldwide and a growing demand for halal
products. Therefore, this industry is a great opportunity for Czech exporters in the view of
entering the Muslim markets and competitiveness of Czech companies. The Ministry of the
Foreign Affairs of the Czech Republic estimates that the halal certification could increase the
Czech exporters turnover on the Malaysian market by 15%.

Risks

Czech halal products export could be threatened by political risks. Some Muslim countries are
politically unstable and there are war conflicts threatening the business as the whole. On the
other side there are anti system and populist Czech political parties that view the Islam world in a
negative way.
The scheme below summarizes the above mentioned and other weak and strong points, risks and
opportunities of the Czech halal products export.

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