IPOH (Sept 17): The Perak state government, through the Perak State Agricultural Development Corporation (Perak SADC), has signed a joint venture (JV) agreement with Pakistani halal gelatine manufacturer Leiner Pak Gelatine Ltd to grow the state’s halal gelatine industry.

The agreement was signed by Perak SADC’s subsidiary, Ladang Lekir Sdn Bhd, and Leiner Gelatine Sdn Bhd, a subsidiary of Leiner Pak Gelatine.

In a statement on Tuesday, 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 enable Perak to develop and grow its halal gelatine industry, turning the state into a major global halal gelatine player.

The state development corporation announced the initiative during the joint venture agreement exchange ceremony held in conjunction with the Malaysia International Halal Showcase 2024 in Kuala Lumpur on Tuesday.

Ladang Lekir was represented by its chairman, Ahmad Yani Aminuddin while Leiner Gelatine was represented by its managing director, Khawaja Ahmed Hassan.

The agreement exchange was witnessed by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and Perak Menteri Besar Datuk Seri Saarani Mohamad.

Saarani, who was also the Perak SADC chairman, highlighted that the global gelatine market was worth over US$3.7 billion (RM15.91 billion) in 2023, and it is expected to grow with a 6.6% compound annual growth rate (CAGR) from 2023 until 2028.

“Only 7% of this represents halal gelatine. With the industry’s vast global potential, Perak, via the SADC, intends to take the steps needed to become a major player in this strategic industry.

“The import of halal gelatine in Malaysia has reached more than 2,800 tonnes annually, worth over RM130 million. From this, 30.8% or RM40 million [of the imports] come from Pakistan,” he said.

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, cosmetic and photography industries.

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