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Copyright © 2012 International Halal Integrity Alliance . All rights reserved.

BIMP-EAGA/IHI ALLIANCE HALAL INDUSTRY WORKSHOP - POULTRY

REACHING THE MUSLIM CONSUMER

DARHIM D. HASHIM

CEO, IHI ALLIANCE

UNIVERSITY OF AUCKLAND BUSINESS SCHOOL , NEW ZEALAND

ASIA NEW ZEALAND FOUNDATION

12 SEPTEMBER 2012


ABOUT IHI ALLIANCE

HALAL: DEFINITION

THE GLOBAL MUSLIM MARKET

THE HALAL PRODUCTS AND SERVICES INDUSTRY

STANDARDISATION OF HALAL

CONTENT

NO: IHI/PSTN/2012/03/001/mma

ABOUT IHI ALLIANCE


Copyright © 2012 International Halal Integrity Alliance . All rights reserved. NO: IHI/PSTN/2012/03/001/mma Copyright © 2012 International Halal Integrity Alliance . All rights reserved.

INTERNATIONAL HALAL

INTEGRITY ALLIANCE

• Registered on the 30th April 2007, as an

international, non-profit, non-governmental, private-sector business association.

• Created to serve as a platform for providing services to its members, representing their interests and to liaise with governments, organizations and business communities.

• On 11 May 2008, IHI Alliance signed a partnership agreement with the Islamic Chamber of Commerce & Industry to implement a Global Halal program for the OIC

Copyright © 2012 International Halal Integrity Alliance . All rights reserved. NO: IHI/PSTN/2012/03/001/mma Copyright © 2012 International Halal Integrity Alliance . All rights reserved.

STRUCTURE

Principal Representative of

OIC on Halal

Provides input on standard

Organisation of Islamic Cooperation

Islamic Chamber of Commerce & Industry

International Halal Integrity Alliance

COMCEC

Secretariat for OIC Standards Development

Appointed as Halal Authority

HALAL: DEFINITION


6


HALAL – misconceptions

A survey was conducted on a wide cross-section of society of Muslims and non-Muslims in both Muslim minority and majority countries: “What does Halal mean to you?”

• Muslim food

• Ethnic food

• Kebab

• Food that has been blessed by an Imam

• Slaughtering an animal facing Mekkah

7


HALAL - holistic

• Clean, safe to eat

• Food that is permissible for Muslims

to consume

• Food to be consumed by Muslims and

non-Muslims alike “..Oh Mankind, eat what is Halal and

Tayyib (wholesome) from the earth…” (2:168)

• A value chain

• A way of life…

8


HALAL – a “default”

standard

9

General Quranic guidance dictates that all foods are halal except those that are specifically mentioned as haram (unlawful). The unlawful foods are specifically mentioned in The Holy Quran in the following verses: He hath forbidden you only carrion, and blood, and swine flesh, and that which hath been immolated to (the name of) any other than Allah… Chapter II, Verse 173 Forbidden unto you (for food) are carrion and blood and swine flesh, and that which hath been dedicated unto any other than Allah, and the strangled, and the dead through beating, and the dead through falling from a height, and that which hath been killed by (the goring of) horns, and the devoured of wild beasts saving that which ye make lawful (by the death-stroke) and that which hath been immolated unto idols. And (forbidden is it) that ye swear by the divining arrows. This is an abomination… Chapter V, Verse 3



standard

10

Consumption of alcohol and other intoxicants is prohibited according to the following verse: O ye who believe! Strong drink and games of chance, and idols and divining arrows are only an infamy of Satan’s handiwork. Leave it aside in order that ye may succeed. Chapter V, Verse 90



standard

11

In summary, all clean and wholesome foods are permitted for consumption by Muslims except the following categories, including any products derived from them or contaminated with them: • Carrion or dead animals • Flowing or congealed blood • Swine, including all its by-products • Animals slaughtered without pronouncing the name of God on them • Animals killed in a manner that prevents their blood from being fully drained from their bodies • Animals slaughtered while pronouncing a name other than God • Intoxicants of all types, including alcohol and drugs • Carnivorous animals with fangs, such as lions, dogs, wolves, or tigers • Birds with sharp claws (birds of prey), such as falcons, eagles, owls, or vultures • Certain land animals such as frogs and snakes


THE “UNIVERSE” OF

CONSUMER GOODS

12

HARAM

HALAL

THE GLOBAL MUSLIM MARKET



THE RISE OF THE MUSLIM

CONSUMER MARKET

• World Muslim Population – Muslim Population is increasing at the rate of 1.84% (by Carniege Endowment

for International Peace).

– The Muslim population in 2009 is estimated at 1.628 billion

Continent Total Population

2009 Muslim

Population Muslims

by (%)

Africa 967 462.36 47.81

Asia 4,050.6 1,103.75 27.24

Europe 735.2 51.46 7.0

North America 331.7 7.13 2.19

South America 576.85 2.41 0.42

Oceania 33.54 0.50 1.49

Total 6,694.89 M 1,627.61 M 24 %

Source: http://www.islamicpopulation.com, Pop. Data - 2009 CIA World Factbook 14

http://www.islamicpopulation.com/


GLOBAL HALAL MARKET-

MUSLIM CONSUMERS

• Estimated Size of Global Halal Food Market

Source: http://www.islamicpopulation.com, Pop. Data - 2009 CIA World Factbook

Continent World Population

2008 Per capita food

expenditure Halal Market Value

(USD)

Africa 462.36 250 115,590

Asia 1103.75 400 441,500

Europe 51.46 1,250 64,325

North America 7.13 1,750 12,478

South America 2.41 500 1,205

Oceania 0.50 1,500 750

Total 1,627.61 M USD 635,848 M

http://www.islamicpopulation.com/

Source: Mapping the Global Muslim Population (2009) - Pew Research Center


MARKET ASSESSMENT:

GCC COUNTRIES

The total consumption or market size of Halal food products in the GCC countries reached USD38.3 billion in 2004; continued to increase to USD43.8 billion in 2009, and is projected to reach USD44.9 billion in 2010. The self-sufficiency level is generally less than 10 per cent, except Saudi Arabia (40 per cent), which means total imported food can easily stand at USD30 to 35 billion annually.

The GCC (Gulf Cooperation Council) countries, Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Oman, Bahrain and Qatar, have among the highest economy and gross domestic product (GDP) per capita amongst other OIC (Organization of the Islamic Cooperation) member countries.

http://upload.wikimedia.org/wikipedia/commons/6/60/GCC_Flag.svg


SOURCES OF IMPORTED

HALAL MEAT IN GCC

SOURCES OF HALAL MEAT

IMPORTS INTO GCC COUNTRIES

(2007)

SOURCES OF HALAL POULTRY MEAT

IMPORTS INTO GCC COUNTRIES

(2007)

Data taken from THE HALAL JOURNAL’S GLOBAL HALAL FOOD MARKET REPORT / FIRST EDITION / MARKET INTELLIGENCE SERIIES #1 / VOLUME 3

THE HALAL PRODUCTS AND SERVICES INDUSTRY



ORGANISATION OF ISLAMIC

CONFERENCE (OIC)

GLOBAL HALAL CERTIFICATION

AND REGULATORY ISSUES

• In almost all countries, Halal is a religious issue. Hence, the state will not intervene;

• At most, Halal is regulated under the labeling law;

• Halal certification, therefore, is conducted by many agencies/ associations/ councils/ federations, etc;

• No unified Halal standard and its associated logo.


CHALLENGES IN THE HALAL

INDUSTRY

• The Halal market is global…

• BUT Halal is interpreted differently in different countries

• Negative perception of Halal / Islamaphobia

• Lack of availability of Halal certified food in non-OIC countries

• Food science & technologies not sensitive to Halal matters

• Most traded Halal products imported from non-OIC countries

• The OIC is a net overall importer of Halal food

26


CONSUMER AWARENESS

• Research conducted by the World Halal Forum indicated that the awareness level has expanded beyond meat and meat-based products to other food products, even to cosmetics and pharmaceutical products.

• While awareness is increasing, the understanding of ‘Halal’ or ‘what is Halal’ has become polarised which leads to different interpretations causing confusion, misunderstanding and even fraud by certain individuals and bogus associations “selling” Halal certificates (ASIDCOM research).

• The second and third generations of Muslims in western countries have shown a higher Halal awareness level than their elder generation and constantly seeking trusted Halal logo/ labels to ensure integrity

• In the world’s most discerning markets such as in Europe, Muslim consumers also expect issues such as animal welfare, biodiversity, eco-ethical, fair trade and socially responsible, to be taken into account and embodied within the whole Halal production chain.

STANDARDISATION OF HALAL


28


29 29

HALAL STANDARD PERCEPTION

HALAL

HARAM

X

X

X

X

X

X

X

X X

X

X

X

X

X

X

X

X X

X

X

X X

DEFINITIVE LINE?


WHERE DO WE DRAW THE LINE?

30

Cost per unit


“LIBERAL” STANDARD

31

L

C1


“STRICTEST” STANDARD

32

S

C2


“MODERATE” STANDARD

33

M

C3


EVOLUTION OF THOUGHT

DIVINELY

REVEALED

SCRIPTURE

HADITH (TRADITIONS)

MADHABS (SCHOOLS OF

THOUGHT)

IJTIHAD (INTERPRETATIONS)

FATWA

SHI’AH

SUNNI

SAHIH

AL-BUKHARI

HANAFI

MALIKI

HANBALI

SHAFI’I

JA’FAR AL-SADIQ

.

.

.

.

.

.

.

.

12 BRANCHES SAHIH

MUSLIM

SUNAN

ABU DAWUD

SUNAN

IBN MAJAH

SUNAN

AL NASAI

MALAYSIAN

NATIONAL

FATWA COUNCIL

INTERNATIONAL

ISLAMIC FIQH

ACADEMY

INDONESIA

ULEMA COUNCIL

RABITA

(MUSLIM WORLD

LEAGUE)

THE FIQH COUNCIL OF NORTH AMERICA

YUSUF AL-

QARADAWI

IBN RUSHDI

IBN SINA

34


ISLAM BY SCHOOLS OF

THOUGHT (MADHABS)

THE FIQH COUNCIL OF NORTH AMERICA

35


INTERNATIONAL

STANDARDISATION EFFORTS

The International Organisation for Standardisation is the obvious choice, however ISO will not develop any standards based on religious requirements.

Codex Alimentarius Commission have guidelines for the use of the Term “Halal” but stays clear of the most contentious issues.

The World Halal Council is an association of Halal Certification Bodies from around the world predominantly from food exporting countries. One OIC country is a member.

COMCEC is developing an OIC Halal Standard, through participation of member countries, but does not engage major Halal producing nations from Non – OIC countries

36


OIC MANDATE

CHALLENGES OF AN

OIC STANDARD

• Fundamental differences and variances in interpretation of Halal across member states resulting in unresolved issues

• Are member states willing to ratify the standard at the national level?

• Varying levels of development of Halal standards, certification & regulation across member states (most have none)

• What happens to those member countries who already have established national Halal standards?

• Will the rest of the OIC accept a standard that is developed, headquartered and championed in a secular state without its own national Halal standard?

37


INTERNATIONAL STANDARDS

DEVELOPMENT

IHI

Halal Standard

Lab Testing

Logistics

Food

Processing

Food Service

Finance

Pharmaceutical

Cosmetics & toiletries

Slaughter & processing

Animal welfare & handling

Animal feed

IHI Alliance standards development is based on ISO/IEC guidelines for International Standards Development, while adhering to WTO-TBT Code of Good Practice for Standards Development

38

REGULATORY FRAMEWORK


39


FRAMEWORKS FOR HALAL

FOOD REGULATION

Food business operator

Food business operator

COUNTRY MODEL REGULATORY INSTRUMENTS

LEGISLATION (YES/NO)

OFFICIAL STANDARDS (YES/NO)

CERTIFICATION (GOVERNMENT/SEMI-

GOVERNMENT/PRIVATE)

AUSTRALIA PUBLIC - PRIVATE YES NO GOVERNMENT & PRIVATE

AUSTRIA PRIVATE NO YES PRIVATE

BRUNEI PUBLIC YES YES GOVERNMENT

CANADA PRIVATE NO NO PRIVATE

CHINA PUBLIC NO YES GOVERNMENT

FRANCE PUBLIC - PRIVATE

NO NO PRIVATE

INDONESIA PUBLIC – PRIVATE NONE NONE SEMI-GOVERNMENT

MALAYSIA PUBLIC YES YES GOVERNMENT

NEW ZEALAND PUBLIC -PRIVATE YES YES PRIVATE

PHILIPPINES PRIVATE NO YES PRIVATE

SINGAPORE PUBLIC YES YES GOVERNMENT 40


HALAL CBs – CURRENT

SCENARIO

ASIAN 16%

AFRICA 4%

AUSTRALASIA

34%

EUROPE 23%

NORTH AMERICA

19%

SOUTH AMERICA

4%

Total of 34 countries surveyed :107 Organisations

Number of Halal Certification Bodies by Region

Over 300 Halal CBs in

operation, however only

33% are registered

legal bodies

41


WHERE DO WE DRAW

THE LINE?

Halal Certifying Organisations

(300+)

Registered as a legal Entity (107)

Certifying against a recognised standard

Clear and transparent Audit

& Certification procedures

Accredited by a Competent AB

42


INTERNATIONAL

BENCHMARK

ISO/IEC 17011

ISO/IEC Guide

65

ISO/IEC 22000

ISO/IEC

IAF

Accreditation Body

+ MLU

Certification Body

Certification Body

Supplier Supplier Supplier

Accreditation Body

+ MLU

PEER REVIEW

• Standards Malaysia

• UK Accreditation Service

Example

• SQAS (SIRIM) • SGS, Lloyds TUV

Company requiring certification Scheme

Schemes

International Accreditation Forum

Standards and Schemes

43


CURRENT SCENARIO FOR

HALAL CERTIFICATION

Certification Body

Certification Body


Codex ? MS 1500 ? GSO ? CB Standards ? Supplier Supplier

?


44


PROPOSED STRUCTURE

FOR HALAL CERTIFICATION

Accreditation Scheme for Halal CBs

Halal CB Audit &

Certification Guidelines

IHI Alliance IHAF

Accreditation Body

+ MLU

Certification Body

Certification Body


Accreditation Body

+ MLU

PEER REVIEW


Glo

bal

Hal

al S

tan

dar

ds

“International Halal Accreditation

Forum”

45


REGULATIONS AND ISSUES

• DEFINITION OF HALAL VERSUS THE USE OF THE WORD HALAL

A requirement according to Islamic dietary law incorporated into the Halal food regulation

1. General guidelines for the use of the term Halal but the presence of disclaimer

Codex : “The Codex Alimentarius Commission accepts that there may be minor differences

in opinion in the interpretation of lawful animals and in the slaughter act, according to the different Islamic School of Thoughts. As such, these general guidelines are subjected to the interpretation of the appropriate authorities of the exporting countries”

46

MOVING FORWARD


47


48

HOW TO ACHIEVE A GLOBAL

HALAL STANDARD?

Option 1: Harmonise

• This has been attempted (IHI Alliance, OIC COMCEC)

Problem is:

HARMONISE = COMPROMISE

• It is unlikely that Muslim countries or organisations would be readily willing to withdraw from a pre-conceived position.


49


HALAL STANDARD?

Option 2: Universally accepted standard by all Muslims

• No stunning

• No mechanical slaughter knife • Hand slaughter by a Muslim

• Recitation of “Tasmiyyah” on individual animals


50


HALAL STANDARD?

Option 3: “Live and let live”

• Allow for diversity • Accommodate “acceptable differences”

• Consolidate to a few standards only LINK 1 • Grouping possibly to be based on trade blocs (driven perhaps by

regional Free Trade Agreements)


“BLOCS” OF COMMON

STANDARDS

MENA

ASEAN

CENTRAL ASIA


INFORMED CHOICE

52

Meets minimum criteria > Enable affordable goods for masses

Additional criteria > Minimises risk + ambiguity

Strict criteria > Includes holistic values (ethical, sustainable, low carbon footprint etc)

INTERNATIONAL HALAL INTEGRITY ALLIANCE

M-3-20 PLAZA DAMAS, 60 JALAN SRI HARTAMAS 1, SRI HARTAMAS

50480 KUALA LUMPUR, MALAYSIA

www.ihialliance.org / [email protected]

A PARTNER OF

ISLAMIC CHAMBER OF COMMERCE & INDUSTRY

P.O.BOX: 430 JEDDAH 21411, KINGDOM OF SAUDI ARABIA



CONSOLIDATED

STANDARDS

STUN MECHANICAL SLAUGHTER

1

2

3

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