reaching the muslim consumer - documentdocs.business.auckland.ac.nz/doc/reaching-the... · reaching...
TRANSCRIPT
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
HALAL – a “default”
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
HALAL – a “default”
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
THE “UNIVERSE” OF
CONSUMER GOODS
12
HARAM
HALAL
THE GLOBAL MUSLIM MARKET
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 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
Copyright © 2012 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 (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.
Copyright © 2012 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
THE HALAL PRODUCTS AND SERVICES INDUSTRY
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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.
Copyright © 2012 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
26
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
28
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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?
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
WHERE DO WE DRAW THE LINE?
30
Cost per unit
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
“LIBERAL” STANDARD
31
L
C1
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
“STRICTEST” STANDARD
32
S
C2
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
“MODERATE” STANDARD
33
M
C3
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
ISLAM BY SCHOOLS OF
THOUGHT (MADHABS)
THE FIQH COUNCIL OF NORTH AMERICA
35
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
39
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
CURRENT SCENARIO FOR
HALAL CERTIFICATION
Certification Body
Certification Body
Supplier Supplier Supplier
Codex ? MS 1500 ? GSO ? CB Standards ? Supplier Supplier
?
Standards and Schemes
44
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Supplier Supplier Supplier
Accreditation Body
+ MLU
PEER REVIEW
Standards and Schemes
Glo
bal
Hal
al S
tan
dar
ds
“International Halal Accreditation
Forum”
45
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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.
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
49
HOW TO ACHIEVE A GLOBAL
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
50
HOW TO ACHIEVE A GLOBAL
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)
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
“BLOCS” OF COMMON
STANDARDS
MENA
ASEAN
CENTRAL ASIA
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.
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
Copyright © 2012 International Halal Integrity Alliance . All rights reserved.