Being raised Malaysian, the word halal has always piqued curious moments in my mind, particularly while eating out. Other than being able to recognise the classic green halal logo plastered across certain food outlets and produce, I know almost nothing as to the significance of the halal emblem’s meaning that plays such an important role in the food regimen of my Muslim friends.
What is the meaning of halal?
The word halal is actually derived from an Arabic word meaning lawful. It refers to things or actions permitted by Islamic (Shariah) law without punishment imposed on the doer. It is usually used to describe something that a Muslim is permitted to engage in, either to eat, drink or use. The opposite of halal is haram, which is Arabic for unlawful or prohibited. All kinds of food are considered halal except the following, which are haram:
- Swine/pork and its by-products
- Animals improperly slaughtered or dead before slaughtering
- Animals not slaughtered in the name of Allah
- Alcohol and all forms of intoxicating and hazardous drinks
- Carnivorous animals, birds of prey and land animals without external ears
- Pests such as rats, centipedes, scorpions and other similar animals
- Animals forbidden to be killed in Islam such as ants, bees, spiders and woodpecker birds
- Animals which are considered repulsive generally like lice, flies, maggots and other similar animals
- Animals that live both on land and in water such as frogs, crocodiles and other similar animals
- Blood and by-products of blood
- Foods and drinks which contain any of the above haram ingredients or contaminated through contact with any of the above products.
Halal Certification is recognition that the products are permissible under Islamic law. These products are thus edible, drinkable or usable by Muslims. Almost fifteen years ago, in many countries, halal certification was limited to focusing on what went into the product. Since then, there have been many discussions in the halal industry on halal matters. There have also discourses between food scientists, industry players, entrepreneurs, academics, Islamic scholars and students on wide ranging halal topics. There have been interesting debates on general business issues like the exact value of the halal market and marketing strategies. There had been numerous meetings on religious-technical issues such as the techniques used before slaughter, the effect of GMO on halal food and the use of ethyl alcohol in food. These discussions are significant in helping the halal industry to grow. Halal certification too has progressed. Its scope has enlarged from being product-focus to systems-focus. It has now evolved to become a certification program of the management for which food is manufactured, similar to other certification programs like ISO (International Organisation for Standardisation) and HACCP (Hazard Analysis and Critical Control Points). Traditionally, halal certification programmes are adopted by producers of daily groceries like meat, packed, processed or canned food. With the evolution of halal certification programs and to the delight of consumers in some countries, these programs now include food retail establishments like restaurants, cafe, catering and take-out counters. The fourth World Halal Forum (WHF) themed “Achieving Global Halal Integrity” is scheduled to be held from 18th to 19th May 2009 in Kuala Lumpur, Malaysia at the Kuala Lumpur Convention Center. Since it’s inception in 2006, the World Halal Forum has grown from strength to strength, always at the forefront of a challenging industry. It has grown from 463 delegates from 27 countries in 2006, to 980 delegates from 40 countries in 2007, making it the most important event in the Halal Industry Calendar. In the third World Halal Forum in 2008, a resolution was reached, for the International Halal Integrity Alliance (IHI Alliance), to develop and present the Global Halal Standard – a single standard to unify the fragmented industry and ensure global halal integrity. IHI Alliance’s goals were also endorsed by Malaysian former Prime Minister Dato’ Seri Abdullah Ahmad Badawi. In his keynote address at WHF 2008, Abdullah said, “My government has formally endorsed the function and aspirations of the IHI Alliance. I understand that the Organisation of the Islamic Conference (OIC) through the Islamic Chamber of Commerce and Industry (ICCI) is also committed towards making IHI Alliance a strong, credible and respected global halal industry. According to the World Halal Forum (WHF) Deputy Chairman and KasehDia Executive Director Nordin Abdullah, “It has taken us three WHFs to consolidate the global halal industry to the point of where a draft standard and its modules can be developed. This standard will represent the first proactive initiative to be developed by the OIC and it will have a lasting impact on the trade of halal goods and services in the future.
Why is there a need for standards?
Standards systemise things, both in enterprises and with society at large. Standards play a significant role in the development of international trade. The implementation of standards will help improve the collective economy of a region and the economics of the country via intra-regional trade. Secondly, it promotes good multilateral trade relations between countries as well as within intergovernmental organisations (IGOs). For the Muslim world, this IGO is called the Organisation of the Islamic Conference (OIC) comprising of 57 member states spread over four continents. The economy of the OIC stated a combined GDP (at PPP) of USD7,740 billion, the richest country on the basis of GDP per capita at PPP being the United Arab Emirates (UAE). Much of the impetus for the development of the halal industry comes from shifts of awareness and perception; consequently many of these developments are happening at a rapid pace and entire new industry sectors, such as in the field of logistics and security are emerging almost overnight.
What is the potential of a global halal food trade?
Global trade in halal products is estimated to be US$80 billion or some 12 percent of total trade in agricultural food products. With expected increases in population and incomes of halal consumers, this percentage is certain to increase. Furthermore, with the Muslim population at current 1.9 billion and projected to account to 30 percent of the world’s total population by 2025, halal food could easily account for 20 percent of the world’s trade in food products in future. Malaysia has been globally recognised as the world’s halal food hub and it’s the forerunner in this industry. Malaysia is not the only country that covets halal markets. Stiff competition abounds from both Muslim and non-Muslim nations, including Brunei, Thailand, the Philippines, Australia and New Zealand. United Kingdom and France are now the next important producers after Malaysia. Malaysia is in a strong position to be the global halal industry hub with its established reference point as the centre for training, research and development (R&D) and standards. In stating this, Halal Industry Development Corporation (HDC) chief executive officer, Dato’ Seri Jamil Bidin, said that having taken the lead, Malaysia has moved aggressively in the industry over the years. “We started with the development of standards and are now moving into logistics, non-food products and now way ahead of many countries in terms of the halal industry,” he said. Speaking at a Media Conference to announce the 6th Malaysia International Halal Showcase (MIHAS) 2009, which will be held at the Matrade Exhibition and Convention Centre from 6th to 10th May (following the 4th World Halal Forum 2009 on 4th and 5th May 2009), Jamil said the Malaysian halal industry has the potential to contribute 5.8 percent of the gross domestic product (GDP) by 2020, in line with the targets set by HDC under its master plan for the industry. “This is a big industry we are pursuing and we also face stiff competition from some countries. However, we have the edge as we started moving aggressively in this industry way back in the 1980s,” he added. HDC was set up on 18th September 2006, to coordinate the overall development of the halal industry with its focus being the development of standards, audit and certification, capacity building for halal products and services, and to facilitate the growth of Malaysian companies in the global halal market. Consumers are now a lot smarter and more knowledgeable when buying products or receiving services. As a result, today’s market is more of a buyers’ market, where buyers pick and choose products they like or at a price they like. Awareness and interest in halal products has arisen not only among Muslims but non-Muslims as well and there is a cultural shift taking place; consumers’ views on halal products are not only confined to the religious viewpoint but to the confidence that comes with the halal logo. More consumers perceive halal products as healthy, wholesome and hygienic and therefore, are willing to pay more for its added benefits, which ultimately increases the demand for halal products. There is a shortage of supply to the halal market and to fill this vacuum, Malaysia has developed a trade fair which exerts paramount effort to gather far-sighted business entrepreneurs together. The Malaysian International Halal Showcase (MIHAS) acts as the platform to ease the sourcing and marketing of halal products and services to Muslim worldwide. The significance of food supply and particularly the supply of halal food becomes more apparent when we look at the magnitude and rate of population growth in Muslim and Muslim majority countries. There is a pattern of high growth rates in many Muslim populations, such as Saudi Arabia and Kuwait of the United Arab Emirates (UAE). Pakistan alone is projected to have 357 million people by the year 2050. In view of the high food demand and the promising market from Muslims worldwide, many western countries have come forward to supply halal foods to Muslim consumers. These western countries have been successful in doing so because of several factors. Firstly, the supply sources in western countries have the appropriate structures for monitoring and certification of halal food exports. Appropriate structures imply, as a minimum, that there are Islamic societies or agencies in supply countries, which had been approved by halal importing countries and once approved, are listed with the relevant government agencies. The primary role of these organisations is to monitor halal production and processes by ensuring that they have been carried out in accordance with the Islamic Law, or Syariah, and any regulations or orders of public interest by the importing country. Secondly, these western countries, such as Australia and New Zealand, have stringent health monitoring systems, natural endowments in food production and advanced food technology that allow them to provide reliable and uninterrupted supply of good quality Halal foods to Muslim countries, particularly during peak demand periods like Eid Al-Adha (Aidil Adha) and Eid Al-Fitr (Aidil Fitri). This is one of the main reasons why these countries have experienced a marked growth in halal food exports in the last 15 years. The Global Halal meat trade is growing. From 1961 to 2007, total global meat output rose from 71million MT to about 283million MT and the global meat trade jumped from only 3.5 million MT to 22million MT. Poultry is the largest type of traded meat. As a percentage of the total global meat production, global meat trade increased 4.9per cent in 1961 to 7.8 per cent in 2007. In terms of magnitude and proportion, the Halal meat trade is also the same. It has been established that there is a positive correlation between increases in meat trade and income levels. This correlation is also no accident; as the world gets richer, the appetite to trade meat increases. As income increases, countries are moving up the value-chain from wet market-based products to value added products while their foodservice sector becomes stronger. Local tastes, consumer preferences and income levels are now the major driving force in determining the flow and patterns of the global meat trade. As such the halal food market is the largest food market in the world. Among the halal importing countries are those which have one of the highest per capita incomes in the world, have the fastest growing middle classes in the world, import a significant proportion of their food needs and have the highest rates of population growth in the world. Malaysia is focusing its attention on the $5.53 billion UAE food services market by aiming to increase its halal exports. This interest is indicated by more than 20 Malaysian companies participating in last year’s Halal Expo. The UAE plays an important role in Malaysia’s aims to establish a significant presence in the global market, on account of its massive food imports, 80 per cent of which are under the halal category. Other factors that have contributed to this increase in halal food exports include increasing demand for halal imports from Muslim and Muslim majority countries coupled with rising personal incomes and population growth, the growing number of Muslims in western countries and the stimulatory effect of this growth on halal exports, the development of halal monitoring agencies in these countries which facilitate the export of halal foods and the development of structures, rules, processes and procedures by some of the importing countries and their cooperation with exporting countries’ government control agencies and local Islamic organisations to ensure the integrity of halal foods. Halal is now a common concept in most countries. It has been accepted as a way of life, the same way as vegetarian, vegan and Kosher is accepted. There is more halal food being served in banquets now than 10 years ago. There are more food retail establishments claiming to serve zabihah meat (meat derived from proper Islamic slaughter process) than five years ago. And in many countries, there are definitely more fresh halal choices in the supermark
ets for consumers than two years ago. But are they really indeed halal? Who will ensure that the meat is indeed zabihah all the time? Is halal just about zabihah meat? What about the “beer batter” in those fish and chips? What about the Riesling in that fresh mussel broth? Or the Shaoxing Chinese wines in the stir-fry take-outs? These are the questions which halal certification programs in food retail establishments are conceived to address and should address. These programs are supervised by an independent competent party to ensure transparent and credible certification. The program is to ensure that all that is served in the menu is halal. This includes the starters, the sides, the desserts and the beverages. What goes into each menu is supervised, too. This includes the raw materials, the liquids, the flavors, the fats and the garnishes. They are stored in conditions where contamination from non-halal items is prohibited. The menu are put together in a non-halal free environment and served to consumers in a total halal food experience. For every change of raw materials and menu, there are management systems in place to ensure that such changes are according to Halal guidelines and approved by Halal supervisors. And a documentation system is required to be maintained for easy tracking and verification. To many it seems impossible to have all the raw materials that go into the menu halal- certified. The growth of halal-certified products has been recorded to begin since 1978. Between then and now, halal-certified products had expanded from meat and meat-based products to confectionary, desserts, processed food, flavors, batters, sauces and many others. Many alternative ingredients to what traditionally was non-halal have been developed over the last three decades. Due to the massive demand for such products, prices has been kept at a very competitive level, thus, restaurants can keep costs down. Competent halal certifiers will be able to guide and facilitate the restaurant owners and managers to adopt this program. From a business perspective, not many programmes can make more economic sense than going halal. To tap into an additional market segment while maintaining the current one is just sensible business, especially when the additional segment is a lucrative one. For the Muslim-owned and operated eateries, successful halal certification program is evidence of the seriousness of its owners in meeting the dietary needs of its customers. This will provide its customers with high levels of assurance that the menu served is truly halal. To consumers, adoption of this programme by restaurants, fast-food chains and caterers is simply a delight. Being able to enjoy halal sirloin roast in gravy with potatoes, haute cuisine like halal pot au feu and Blanquette de veau or even, the all-common triple patty burger, will be worth looking forward to. With halal status assured at all times every time, the halal food experience will be worth coming back for. With such progress in the supervision of halal and halal certification, it will be of no surprise that soon foie gras and duck confit will be prepared and served in a halal certified restaurant. In fact, it may have already happened.