American of Saudi Origin Produces Halal Meat in North Dakota

By Phillip Kurata
Washington File Staff Writer

Sells to markets in United States and Middle East

Washington -- An American born in Saudi Arabia and living in the farm state of North Dakota has seen a business opportunity in producing halal meat for the growing Muslim population in the United States.

In cooperation with ranchers near Harvey, North Dakota, Adnan Aldayel built the only fully integrated slaughtering and processing facility in the United States devoted exclusively to the production of halal meat.

"We have the strictest procedure for halal meat production in the world," Aldayel said.

Aldayel, a native of Saudi Arabia, worked in the Saudi oil industry and taught finance and investment in U.S. universities before opening the Dakota Halal plant one year ago. He decided to open the plant in North Dakota partly because his wife is a native of the state.

More than 50 North Dakota ranchers have invested thousands of dollars each in Dakota Halal in hopes of making higher profits. In dealing with the large meat packers, ranchers usually sell their animals for what they're offered, not what they ask for.

"Traditionally, that's what's been wrong in agriculture," said Paul Kallenbach, a North Dakota rancher who raises halal beef. "We always take what we're offered and not what we're asking."

John Cable, another halal cattle rancher, says the animals are fed a vegetarian diet without growth hormones or animal by-products. Most cattle feed in the United States contains processed pork to add protein.

Observant Muslims do not eat pork in any form. The Islamic Society of North Dakota monitors the ranches that produce halal meat to make sure the animals are fed the proper diet and are treated humanely by not keeping them in crowded pens.

Cable said raising cattle on a halal diet costs more, but the animals bring a higher price.

Aldayel said halal meat production offers North Dakota ranchers an opportunity to make a profit while filling a dietary need for Muslims in the United States. He estimates the potential market for halal meat to be $6 billion annually, and said he expects it will take three to five years for Dakota Halal to become profitable.

Dakota Halal's main markets for fresh meat and a line of ready-to-eat foods are in Minneapolis and St. Paul in Minnesota; Detroit, Michigan; and Chicago, Illinois. The company has recently entered the Los Angeles and San Francisco markets and is looking for distributors for the major cities on the East Coast of the United States, which are served by suppliers in Canada, Australia and New Zealand, Aldayel said.

Aldayel said the terrorist attacks on September 11, 2001 had a severe impact on Dakota Halal's business, since many Muslims stayed inside their homes, fearing a backlash of anti-Muslim violence.

In response, President Bush made repeated public statements that Muslims are an integral part of American society, and that the U.S. Justice Department would prosecute anyone who committed anti-Muslim hate crimes.

According to Aldayel, now that Muslims in the United States are returning to their previous shopping patterns, orders for halal meat are rising again.

Wendell Grondahl, the Dakota Halal manager, said the company ships its products via UPS to clients throughout the United States and overseas.

Dakota Halal's main foreign markets are in the Middle East, serving five star hotels in Saudi Arabia and Qatar, Grondahl said.

"We figure we have the best quality of meat in the world. The cattle in the northern U.S. states are known to be genetically superior to anything in the world," Grondahl said.

Currently, Dakota Halal's production is 90 percent fresh meat and 10 percent pre-cooked products. Aldayel said he hopes that eventually 90 percent of the company's output will be pre-cooked foods and fresh meat will account for 10 percent.

More information about Dakota Halal can be found at the website: http://www.dakotahalal.com/