Introduction to The Global Halal Industry and its · PDF fileIntroduction to The Global Halal Industry and its Services ... KFC, Burger King and Taco ... religious compliance and this

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



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


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

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.

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


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.Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

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.


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


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



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.


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


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.


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



MS1500:2004


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


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


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


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


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;


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


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


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


TOTAL RECOGNISED CBs IN MALAYSIA AND INDONESIA

MALAYSIA

50

INDONESIA

3325


LACK OF MUTUAL RECOGNITION

25

GCC

COUNTRIES

52

MALAYSIA

50INDONESIA

33

23 16

25

14


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


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



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


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


ABOUT IHI ALLIANCE


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


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


Thank YouDarhim Dali Hashim

[email protected]

Documents

Introduction to The Global Halal Industry and its · PDF fileIntroduction to The Global Halal Industry and its Services ... KFC, Burger King and Taco ... religious compliance and this