Halal Industry and its Services Conference24-26 January 2011
Salmiyah-Holiday Inn Hotel alState of Kuwait, Salmiyah,
Introduction to The Global Halal
Industry and its Services
Darhim Dali HashimChief Executive Officer, International Halal Integrity Alliance (IHIA)
مؤتمر الخليج ا�ول لصناعة الحل وخدماته2011يناير 26–24
إن -دولة الكويت، السالمية، فندق ھوليداي
مقدمة حول صناعة الح�ل وخدماته العالمية
دارھيم دالي ھاشم. دالرئيس التنفيذي، مؤسسة التحالف الدولي لتكامل الحل، ماليزيا
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
> THE GLOBAL HALAL MARKET
> ANALYSIS OF GCC MARKET
> CHALLENGES IN THE HALAL INDUSTRY
> HALAL STANDARDS AND CERTIFICATION
> ABOUT IHI ALLIANCE
CONTENT
THE GLOBALHALAL MARKET
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GLOBAL HALAL MARKET -MUSLIM CONSUMERS
• 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 World Population
2008
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 Factbook5
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
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
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GLOBAL FOOD MARKET SIZE &GLOBAL HALAL FOOD MARKET SIZE*
Source: WHF Secretariat/ KasehDia analysis from many institution’s database and field research
* Estimated Figure
Total Global Food Market Size: USD 3,992 Billion
Total Halal Food Market Size: USD 635 Billion
Muslims who make up 24% of population are
only consuming 16% of food globally
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GLOBAL HALAL MARKET -POTENTIALS OF HALAL
• Halal New Potential Growth Clusters (2009)
Source: * Cass Logistics Annual State Logistics Report, Piper Jaffray Research, ** FAO Stats 2007, *** Gulf Daily News 2007,
Moody’s Investors Services, φ Halal Journal 2009, φφ Frsot & Sullivan 2006, φφφ S-Smith, B., Chiozza, E., Edin. M.
New Clusters Potential Values for Halal Market
( Based on 5% of Global Trade)
Logistics USD$ 0.17B *
Agricultural USD$ 41.5B **
Islamic Finance USD$ 25.0B ***
Cosmetics/ Personal Care USD$ 177B φ
Pharmaceuticals USD$ 30.0B φφ
Travel Industry USD$ 0.13B φφφ
Total Values for Halal New Growth
ClustersUSD$ 274.1 Billion
ANALYSIS OF GCC MARKET
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
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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 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 Conference) member
countries.
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IMPORT OF HALAL MEAT AND MEAT-BASED PRODUCTS
BREAKDOWN OF HALAL MEAT
IMPORT INTO GCC (2007)
Note: Total Halal meat imports into GCC in 2007
amounted to USD2.3 billion
TYPES OF HALAL
MEAT IMPORTED
Note: Total meat imported amounted to 1.37 million MT
Data taken from THE HALAL JOURNAL’S GLOBAL HALAL FOOD MARKET REPORT / FIRST EDITION / MARKET INTELLIGENCE SERIIES #1 / VOLUME 3
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
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
CHALLENGES INTHE HALAL INDUSTRY
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ORGANISATION OF ISLAMICCONFERENCE (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.
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
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
15
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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.
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HALAL HAS GONE MAINSTREAM
• McDonald’s in Singapore has seen an influx of eight
million patrons a year after obtaining a Halal
certification.
• Since being certified Halal, KFC, Burger King and Taco
Bell have all seen an increase of 20 per cent in
customers
• Halal logo has now become a symbol of quality and
religious compliance and this makes it sound as the
new green.
• Halal has also been extended to downstream products
and services such as cosmetics and pharmaceuticals,
hygiene products and nutritional supplements, travel,
art, music and books; even marriage and finance
HALAL STANDARDS AND CERTIFICATION
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Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
MS1500:2004
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FRAMEWORKS FOR HALALFOOD 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 GOVERNMENT20
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ISSUES OF CONTENTION IN HARMOISING HALAL STANDARDS
ISSUES SOLUTION
1. GELATINE ?
2. SLAUGHTER BY AHL AL-KITAB ?
3. MECHANICAL SLAUGHTER ?
4. PRE-SLAUGHTER STUNNING ?
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
HALAL CBs – CURRENT SCENARIO
ASIAN
16%AFRICA
4%
EUROPE
23%
NORTH
AMERICA
19%
SOUTH
AMERICA
4%
Total of 34 countries surveyed :107 Organisations
AUSTRALASIA
34%
Number of Halal Certification Bodies by Region
Over 300 Halal
CBs in
operation,
however only
33% are
registered
legal bodies
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
1. The Department of Veterinary Services, Malaysia and the Department of Islamic
Development Malaysia (JAKIM) must inspect all meat products that are to be
transported into the country
2. An inspection must be carried out once every two years.
ROLE OF IMPORTING AUTHORITY - MALAYSIA
Extract:
ANIMALS RULES 1962
In conjunction with approval of exporters of animals derived products, JAKIM also
reviews and approves the relevant Halal CBs
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
RECOGNISED HALAL CBsIN MALAYSIA
South America
8%
Europe
22 CBs
Africa
6%s
North America
6%
Asia
28% CBs
Australia / Oceania
30%
Total No of CBs recognised : 50
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ROLE OF IMPORTING AUTHORITY - INDONESIA
Extracts:
DECREE OF THE INDONESIAN COUNCIL OF ULAMA (ICU)
Regarding
LIST OF APPROVED FOREIGN HALAL CERTIFICATION BODY
D-410/MUI/X/2009
BOARD OF CHAIRMEN OF MAJELIS ULAMA INDONESIA
Considering : a. That one of MUI duty is to protect Indonesian Moslems consumer from
unlawful (non-Halal) food, drinks, medicines, and cosmetics;
b. That to implement the duty of point a, technically MU1 delegates to The
Assessment Institute for Food, Drags, and Cosmetics-ICU (LPPOM MUI)
do together with Fatwa Commission-ICU (Komisi Fatwa-MUI);
c. That to streamline and support duty of LP POM MU1 and Komisi Fatwa-
MU1 for conducting of point a and b, it is necessary to stipulate the list
of approved foreign Halal certification body;
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
RECOGNISED HALAL CBsIN INDONESIA
South America
6%
Europe
18.5%
Africa
2%
North America
24.5%
Asia
24.5%
Australia / Oceania
24.5%
Total No of CBs recognised: 33
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
ROLE OF IMPORTING AUTHORITY - GCC COUNTRIES
Members of the Gulf Cooperation Council (GCC) countries are Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia and United Arab Emirates (UAE)
Approval of Halal CBS responsibility of municipalities; typically CBs gain approval from
UAE govt (previously General Secretariat of Municipalities now Ministry of
Environment) to access GCC region
Principles of the Customs Union
2. The Custom Goods produced in any of the GCC member States shall be accorded national
treatment and shall be allowed to move freely among the member States under the
respective national invoices and the single customs declaration. Re-qualification of
the products of national factories, which was applicable prior to the establishment of
the customs union, has been abolished.
Extracts:
THE CUSTOMS UNION OF THE GCC MEMBER STATES
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RECOGNISED HALAL CBsIN GCC COUNTRIES
South America
12%
Europe
28%s
Africa
12%
North America
12%
Asia
19%
Australia / Oceania
17%
Total No of CBs recognised : 52
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
TOTAL RECOGNISED CBs IN MALAYSIA AND INDONESIA
MALAYSIA
50
INDONESIA
3325
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LACK OF MUTUAL RECOGNITION
25
GCC
COUNTRIES
52
MALAYSIA
50INDONESIA
33
23 16
25
14
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LIST OF CBs RECOGNISED BY MALAYSIA, INDONESIA AND GCC
25
No HCBCountry Logo
1 Australia Australian Halal Food Services (AHFS)
2 Australia
Australia
Australia
Australia
Australia
Netherlands
3
4
5
6
7
Adelaide Mosque Islamic Society of South Australia
Islamic Association of Katanning Inc.
Islamic Co-ordinating Council of Victoria (ICCV)
The Australian Federation of Islamic Councils (AFIC)
The Perth Mosque of Western Australia Inc
Control Office of Halal Slaughtering & Halal Quality
Control
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LIST OF CBs RECOGNISED BY MALAYSIA, INDONESIA AND GCC
No HCBCountry Logo
8 New ZealandFederation of Islamic Associations of New Zealand
(FIANZ)
9 Philippines
Singapore
South Africa
Thailand
USA/Canada
USA
10
11
12
13
14
Islamic Da’wah Council of the Philippines (IDCP)
Islamic Religious Council of Singapore (MUIS)
South African National Halaal Authority (SANHA)
The Central Islamic Committee of Thailand (CICOT)
Islamic Food and Nutritional Council of America
(IFANCA)
Islamic Services of America (ISA)
ABOUT IHI ALLIANCE
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
INTERNATIONAL HALAL INTEGRITY ALLIANCE
• Registered on the 30th April 2007, as aninternational, non-profit, non-governmental,private-sector business association.
• Created to serve as a platform for providingservices to its members, representing theirinterests and to liaise with governments,organizations and business communities.
• On 11 May 2008, IHI Alliance signed apartnership agreement with the IslamicChamber of Commerce & Industry toimplement a Global Halal program for the OIC
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
OIC MANDATE
Principal
Representative of
OIC on Halal
Participates in
Standardisation
Experts Group
Organisation of The Islamic Conference
Islamic Chamber of Commerce &
Industry
International Halal Integrity Alliance
COMCEC
Secretariat for OIC
Standards
Development
Appointed as Halal
Authority
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
ABOUT IHI ALLIANCE
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
WHAT IS IHI ALLIANCE?
• IHI Alliance is NOT a Halal Certification Body
• IHI Alliance was envisioned for the outset to be a non-profit, non-governmental organisation to solve the biggest issues facing the international Halal Industry
• Harmonisation of standards and alignment of Halal certification practices …
TO ENSURE GLOBAL HALAL
INTEGRITY FOR THE CONSUMER
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HALAL INTEGRITY
• Products that are labeled as “Halal” are in fact truly Halal
• Any representations (incl. labeling, verbal, signage etc)
must conform to a Halal standard
• The Halal standard must be endorsed or approved by a
panel of experts including scientists and Shariah scholars
• The standard must be made available and transparent to
everyone
• The standard should be clear in its requirements for all
the relevant stakeholders, especially the manufacturers
to understand and implement effectively
• A robust framework must be in place to consistently
monitor and enforce when necessary.
INTERNATIONAL HALAL INTEGRITY ALLIANCE
16-2, JALAN 27/70A DESA SRI HARTAMAS50480 KUALA LUMPUR, MALAYSIA
www.ihialliance.org / [email protected]
A PARTNER OFISLAMIC CHAMBER OF COMMERCE & INDUSTRY
P.O.BOX: 430 JEDDAH 21411, KINGDOM OF SAUDI ARABIA
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
Thank YouDarhim Dali Hashim
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