Wuzhong city, in the northwestern Ningxia Hui Autonomous Region, plans to become China's largest industrial park for domestic and foreign Halal products, China Daily said.
The local government is seeking to establish cattle farms, intending to take measures to ensure the authenticity of Halal food production.
Wuzhong has 726,000 Muslims, accounting for 53% of the city's total population. According to the US Pew Research Center, the largest consumers of imported Halal food are the Middle East and North Africa, with annual imports in the Persian Gulf worth about US$10 billion.
In 2014, China exported 6,494 tons of beef (US$59 million), up 11 percentage points year-on-year, mainly due to increased volumes to Kyrgyzstan, Hong Kong and North Korea. Halal shipments to Malaysia and most Middle Eastern markets declined; nevertheless, the Middle East remained the largest customer for Chinese beef in 2010, when beef exported from China hit a record (22,007 tons).
Mutton exports also rose year-on-year in 2014, to 2,212 tons (US$20 million), but remained below the record set in 2010, as domestic demand gradually exceeds supply.
For China, it is important to recognize the growth in domestic and foreign demand for red meat, both Halal and non-Halal, Meat & Livestock Australia said.
However, as progress is made through a period of consolidation and modernization, the cattle and sheep industries in China are expected to overcome structural obstacles while maintaining supply and food safety standards.