State of food security across the 57 member OIC countries; Key drivers of food crisis; A unique OIC-wide food and agriculture cluster approach that identifies opportunities for sustainable growth and investments.

1. Food Security & Opportunities in OIC* Markets
Presented at: By:
Rafi-uddin Shikoh
Towards a Halal Economy: The
Power of Values in Global Market E: rafishikoh@dinarstandard.com
W: advisory.dinarstandard.com
April 5th, 2011, Kuala Lumpur
* OIC - Organization of Islamic Conference, 57 member countries

2. Intro/ OIC
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3. • Low-Income, food deficit countries - suffering most. 60-65% of income goes to
food; contrary to developed where it is 10-20%
• Many drivers-- and relevant to developed economies as well. OIC Countries
are some of most impacted.
• Ironically, OIC countries are some of the most agriculturally endowed!

4. Objective
1. State of Global Food Insecurity
1. Current state, impact & drivers
2. Opportunity horizon:
1. OIC* Demographic
2. DinarStandard OIC-wide Industry Clustering
3. Opportunity Hotspots:
1. For industry companies
2. For Investments firms
3. For Major national/ multilateral/ Industry initiatives
* OIC - Organization of Islamic Conference, 57 member countries
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5. Some basic terms and definitions
 Food security: exists when all people, at all times, have
physical, social and economic access to sufficient, safe
and nutritious food
 Undernourishment: describes the status of persons
whose food intake regularly provides less than their
minimum energy requirements
Source: FAO - Food and Agriculture Organization of the United Nations

6. Food Insecurity – Current State
1. Global food prices continue to rise.
 The last six months have seen sharp increases in the global prices of
wheat, maize, sugar and edible oils, with a relatively smaller increase
in rice prices.
 The World Bank‟s food price index increased by 15% between
October 2010 and January 2011.
 From March in 2010, Corn had increased 52%, sugar, 60%,
soybeans, 41%, and wheat 24 percent.
Feb 2011 WB – Food Price Watch
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7. Food Insecurity – Current State
Largest Movers in Domestic Prices, June to December 2010; Many OIC Countries.
WHEAT RICE
Country Change Calorie Country Change Calorie
in price Share (%) in price Share (%)
(%) P (%) P
Kyrgyzstan 54 40 Vietnam 46 59
Bangladesh 45 6 Burundi 41 3
Tajikistan 37 54 Bangladesh 19 70
Mongolia 33 42 Pakistan 19 6
Sri Lanka 31 14 Indonesia 19 50
Azerbaijan 24 57 Mozambique 14 8
Afghanistan 19 .. Cambodia -11 65
Sudan 16 15 Mexico -9 2
Pakistan 16 37
Source: FAO, GIEWS.
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8. Food Insecurity - Impact
As a result of price rises since June 2010 there
is a estimate net increase in extreme
poverty of about 44 million people in
low- and middle-income countries.
Feb 2011 WB – Food Price Watch

9. Food Insecurity - Impact
 Almost 1 billion Undernourished in the world!
Global hunger had been declining, but prices are going up again, and
overall still unacceptably high
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Feb 2011 WB – Food Price Watch

10. Food Insecurity - Impact
Stress on developing economies supply as well.

11. Food Insecurity – 10 Key Drivers
Demand (Population growth,
Affluence)
Agricultural production will have to
Bio-Energy increase by 70% by 2050 to feed a
population of some 9 billion people.
Rising Input prices -- World Bank
National subsidies
Lack of investments
The Foresight Project, report warns
Climate change that in the next 40 years, agricultural
land will be lost to urbanization,
Loss of agricultural land desertification, sea level rise and
increasingly salty water. About 24%
Rich & Poor divide of 11.5 billion hectares of vegetated
land has already undergone human-
Gluttony/ Waste induced soil degradation.
Speculation
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Copyright 2011 –DinarStandard Research & Advisory

12. Food Insecurity – Needed areas of focus
Demand (Population growth,
Affluence)
Bio-Energy Investments in: environmentally
sustainable agricultural productivity,
Rising Input prices
better risk-management tools, less
National subsidies food intensive bio-fuel technologies,
and climate change adaptation
Lack of investments
Climate change
Loss of agricultural land
Values imperative? Social
Rich & Poor divide
entrepreneurship, responsible
Gluttony/ Waste marketing, compassion, community
Speculation service
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Copyright 2011 –DinarStandard Research & Advisory

13. Objective
1. State of Global Food Insecurity
1. Current state, impact & drivers
2. Opportunity horizon:
1. OIC* Demographic
2. DinarStandard OIC-wide Industry Clustering
3. Opportunity Hotspots:
1. For industry companies
2. For Investments firms
3. For Major national/ multilateral/ Industry initiatives
* OIC - Organization of Islamic Conference, 57 member countries
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14. OIC member countries
 57 mostly Muslim majority countries
 Attractive young demographic
 Growing economies
 Inter-connected by:
Islamic Finance:
US$ 1 trillion, 15-20% growth/year
 How do you best identify opportunities
Muslim Lifestyle Market℠: for growth?
US$ 2 trillion+ ‘Halal’ consumer market
 OIC Industry Clusters: (Innovative
Intra-OIC trade mandates
12%-20% methodology - to identify Industry
hotspots for growth and investments)
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15. Region-wide Industry Clusters Model
 Growing global innovation best practice: Complementary business operations no
longer need to be in close proximity to each other. Rather, a complimentary set of
competencies within various regions combine to deliver a more robust Cluster.
Traditional Close Proximity NEW - Multiple Region Linked
Linked Cluster Industry Cluster
Region A
Region D
Region A
Region I Region G
•Services
•Infrastructure
•R&D Region E
•Talent
Region B
Region H
•Distribution
•Manufacture
Region C Region F
•Testing
Hub Node

16. DinarStandard (DS) OIC-wide Industry Clusters
 Within the OIC member countries, different strengths in the value-chain of an Industry
exist within a set of OIC wide special economic zones/ regions.
E.g. OIC-wide Pharmaceutical Cluster Construction Srvcs.
Syria
TURKEY
Palestine
Amman Karachi
Iran Auto Manufacturing
INDONESIA
Cairo
Dubai
Saudi Arabia
Malaysia
Travel/ Logistics
Select Corporations:
• Eczacibasi, Turkey • Zuellig Pharma Bhd, Malaysia
• PT Kalbe Farma, Indonesia • Tabuk Pharmaceutical, Saudi Arabia
• Hikma Pharma., Jordan • Egyptian Int. Pharma. Ind. Co., Egypt
Telecom/IT, Education,
Source: DinarStandard OIC Clustering Model, *Diagram illustrative Textile, Defense, Food..
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17. DS OIC-wide Food & Agriculture Cluster
TURKEY
Kazakhstan
Iran
Morocco Jordan Pakistan
Tunisia
Egypt
KSA UAE
INDONESIA
Ivory Uganda
MALAYSIA
Coast
Nigeria
COUNTRY EXPORTS COUNTRY EXPORTS
Indonesia $19,856,280 Nigeria $2,430,160
Malaysia $16,967,888 Kazakhstan $1,642,431
Turkey $10,701,261 Tunisia $1,370,454
Côte d'Ivoire $4,853,966 Uganda $1,364,879
UAE $3,276,778 Iran $1,297,363
Morocco $3,213,572 Cameroon $1,123,178
Pakistan $3,067,587 Jordan $1,035,505
Egypt
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$2,819,462 Saudi Arabia $1,017,534
Source: DinarStandard OIC Clustering Model Analysis - 2011

18. DS OIC-wide Food & Agriculture Cluster
TURKEY
Kazakhstan
Iran
Morocco Jordan Pakistan
Tunisia
Egypt
KSA UAE
INDONESIA
Ivory Uganda
MALAYSIA
Coast
Nigeria
Select Corporations: Select Corporations:
 Koc Group, Turkey (Congl.)  Savola Group, Saudi Arabia
 Group ONA, Morocco, (Congl.)  Indofood, Indonesia
 Sime Darby, Malaysia  Felda Hold., Malaysia (Priv.)
 Astra Intl, Indonesia (Congl)  KL Kepong Berhad, Malaysia
 Ulker, Turkey Turkiye Seker, Turkey (Govt.)
 IOI Group, Malaysia  PPB Group, Malaysia
Source: DinarStandard OIC Clustering Model Analysis - 2011
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19. Food & Agriculture Ecosystem - Sub-Sectors
Animal & Animal Products Vegetable Products Food processing/manufacturing
(OIC 4% of Global exports)* (OIC 13% of Global exports) (OIC 7% of Global exports)
Live animals Live trees, plants; bulbs, roots… Preparations of meat, of fish…
Meat and edible meat offal Edible vegetables… Sugars and sugar confectionery
Fish… Edible fruit, nuts… Cocoa and cocoa preparations
Dairy produce; birds' eggs; honey… Coffee, tea, maté… Prep.s of cereals, flour, milk…
Other Products of animal origin... Cereals Prep. of vegetables, fruit, nuts...
Oil seeds and oleaginous fruits… Miscellaneous edible preparations
Lac; gums, resins… Beverages
Vegetable plaiting materials… Residues and food industry waste
Vegetable fats and oils…
Service Side
Food service & catering (restaurants, cafes and hotels, hospitals, etc)
Food retailing & wholesale (supermarket, etc)
Food logistics
R & D, Marketing, Financial services, Regulation, Education
* 2009 ITC – World Bank Exports Data
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20. And the earth hath He appointed for His creatures
Wherein are fruit and sheathed palm trees,
Husked grain and scented herb. Which is it of these
favors of your Lord that ye deny?
Qur'an 55:10-13
* OIC - Organization of Islamic Conference, 57 member countries
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21. OIC Industry Cluster – Value Chain
Industry Sub-sectors OIC Industry Clusters
Halal Value Chain New Growth Investment
Alliances Markets Opportunities
Sub-Sector Value Chain
Raw Marketing Distribution End
Production/ Customer
Inputs Operation
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22. Objective
1. State of Global Food Insecurity
1. Current state, impact & drivers
2. Opportunity horizon:
1. OIC* Demographic
2. DinarStandard OIC-wide Industry Clustering
3. Opportunity Hotspots:
1. For industry companies
2. For Investments firms
3. For Major national/ multilateral/ Industry initiatives
* OIC - Organization of Islamic Conference, 57 member countries
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23. Opportunity: Food & Agriculture Companies
OIC Food & Agri Industry Cluster
1. Look at OIC markets in your sector for:
 Growth opportunities.
 Halal food value chain
2. Cluster based M&A, technology transfer,
and J/V opportunities
3. Evaluate opportunities at the “Bottom of
the pyramid,” everybody else is doing it.
4. Increased productivity & global
competitiveness
 Innovations & Technology - Solving problems/
needs..
 Branding & Marketing (German automotive;
Grameen)

24. Opportunity: Investment Firms
1. Food Sector Market Investments - SAMI OIC Industry Clusters
Index
2. OIC Food & Agri Cluster - Investment
pipeline
3. Private Equity/ Venture Capital: Majority of
industry players are not on the Public
markets. Private conglomerates, SME‟s.
4. Sharia Compliant PE Funds: Eg.US$1.3bn
Shari‟ah-compliant fund by UK-based
investment company cru Investment
Management, which focuses on commercial
agriculture in Africa. These investments by cru
expect not only strong returns for investors, but
also some much-needed investments in
agriculture in Sub-Saharan Africa.

25. Opportunity: Investment Firms
• Islamic capital needs to Mergers/ Acquisitions
look at the „Halal‟ food
sectors, with long-term (5-
10yr) investment horizon to
build sustainable brands
(5x-15x returns/ 25-50% Corporate Investments
IRR in food industry)
• Investors need to do
homework and due
diligence (visit plants/
operations) and have
Angel/VC
industry specialist on team.

26. Opportunity: Major Initiatives
1. OIC Food & Agri Clusters Initiative (as corporate
alliances; multi-lateral initiatives; industry body
initiatives)
 Optimizing Halal food value chain of players
 Incubation centers (by sub-segments) around
strength // Formal & informal linkages with OIC
cluster of opportunities// develop global successes
 Consumer awareness campaigns
 Partnering with global values based certification
organization; Fair-trade, organic, going green, etc..
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27. Summary
1. State of Global Food Insecurity
1. Needs: Investment, Productivity, Values
2. Opportunity horizon:
1. DinarStandard OIC-wide Industry Clustering
3. Opportunity Hotspots:
1. Market expansion
2. OIC food & agri cluster investments
3. Major initiatives

28. He said: “The son of Adam does not fill any vessel worse
than his stomach. It is sufficient for the son of Adam to eat a
few mouthfuls, to keep him going. If he must do that (fill his
stomach), then let him fill one third with food, one third with
drink and one third with air.”
Narrated by al-Tirmidhi (1381), Ibn Maajah (3349); classed
as saheeh by al-Albaani in al-Silsilah al-Saheehah (2265).

29. Islamic
Finance
Business Media  Research  Advisory
Muslim Lifestyle
Market
Growth Strategies for
Emerging Muslim
Business Plan Summary Markets
CONFIDENTIAL
OIC
Industries
W: advisory.dinarstandard.com
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