ERT 433 Halal Proce ssing Bahari Mdm Rohazitang

ERT 433 Halal Proce ssing Bahari Mdm Rohazitang, Uni. MAP ess Engineeri 9/2020 Semester 2, 201 School of Bioproc

International and Domestic Trade in Halal Products 2

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(~ 20 millions) 5

How can my company get the additional edge in the marketplace? Japan How can I comply with the import requirements of the Muslim countries? Growing population of Muslims across the globe India Australia Brazil HALAL MARKETS AND DEMOGRAPHICS South Africa New Zealand 6

- HALAL MARKETS AND DEMOGRAPHICS More accessible world - improved transportation and communication systems. Global supermarket, Muslims scattered throughout the world, including in non Muslim country, and immigrations, tourism. Increase demand for halal foods and products in countries around the world. Muslim consumers are creating an educated demand for halal foods and products. In the past, many Muslim countries met most of their food requirements domestically or imported them from other Muslim countries. However, population increases are outpacing food supply, and Muslim countries now import food from agriculturally advanced countries Changes in the food habit of people 7

Global Halal Market • • ~ 2 billion Muslims & halal consumers • All major U. S. poultry processors export to these markets, whereas secondary suppliers provide beef. • The primary sources of beef - imported from Australia and New Zealand, whose governments are very supportive of halal programs (Chaudry, 1997). • Marketing efforts to supply certified halal products throughout the world are gaining momentum. Presently, Southeast Asia and the Middle East are the two strong markets for halal products (Riaz, 1998). 8

Global Halal Market • • Southeast Asia is home to > 300 million halal consumers. • For export to many of the Association of South East Asian Nations (ASEAN), even the simplest of vegetable products must be certified. • In this region, even non-Muslim consumers perceive halal as a symbol of quality and wholesomeness (good health, physical and moral well -being). • Mc. Donald’s, A & W, Kentucky Fried Chicken, and Taco Bell are some international brands that have gone 100% halal in Singapore (and some other non-Muslim countries) !! Indonesia, Malaysia, and Singapore (recently, Thailand Philippines) have had regulations to control the import of halal-certified products. 9

Global Halal Market • Middle Eastern countries are net importers of processed foods both for the food service and retail markets. • Saudi Arabia, United Arab Emirates, and other Middle Eastern countries have been importing food for decades. • North Africa and other African countries also offer opportunities for export of processed food as their economies and political conditions improve. 10

Global Halal Market • Muslims are starting to blend the best of Western attitudes with their generally Eastern cultures. • The large addition of Westerners to the faith of Islam is resulting in some changes in the behavior of the Muslim community. • Whereas in the past Muslims simply avoided foods that did not meet the dietary standard of halal, today Muslims are making their presence felt socially and politically. • Muslims are now requesting food products that meet their dietary needs. • They are offering services and cooperating with producers with the foresight and wisdom to cater to the Muslim consumer. 11

Global Halal Market • Indonesia is unquestionably the leader in the amount of food imported and in its strictness in meeting halal regulations. • Malaysia was the pioneer in establishing halal laws in the early 1980 s and remains a force in matters relating to halal certification globally. 12

Halal Activities in Vario us Countries Index score of the leading halal food markets worldwide in 2017, Statista 13

Halal Activities in Vario us Countries Rininta Nurrachmi, The Global Development of Halal Food 14 Industry: A Survey (2017)

Malaysia: A Leading Global Halal Food Hub (by HKTDC Research) Rank Leading Destinations of Malaysian Halal Exports Source: Halal Industry Development Corporation 2012 2013 2014 2015 1 China 2 Singapore 3 United States 4 Indonesia 5 Netherlands Japan 6 Thailand Netherlands Thailand 7 Japan Netherlands Thailand Australia 8 India Philippines 9 South Korea Netherlands Philippines Australia India 10 15

Malaysia: A Leading Global Halal Food Hub (by HKTDC Research) 16

Malaysia: A Leading Global Halal Food Hub (by HKTDC Research) No Halal Park Operator Size (Acres) 1 Selangor Halal Hub Central Spectrum (M) Sdn Bhd 1, 000 2 PKFZ National Halal Park PKFZ(M) Sdn Bhd 100 3 Melaka Halal Park Melaka Halal Hub Sdn Bhd 164 4 Techpark@enstek TH Properties Sdn Bhd 480 5 POIC Lahad Datu POIC Sabah Sdn Bhd 272 6 Tanjung Manis Halal Food Park Tg Manis Halal Hub Sdn Bhd 192, 500 7 Penang International Halal Park PIHH Sdn Bhd 100 8 ECER Pasir Mas Halal Park ECERD/PKINK 108 9 ECER Gambang Halal Park ECERD/PKINK 200 10 Pedas Halal Park MIDF Property Berhad 100 11 POIC Tanjung Langsat TPMTechnopark Sdn Bhd 280 12 PERDA Halal Park PERDA 100 13 Sedenak Industrial Park TPM Technopark Sdn Bhd 700 14 Kota Kinabalu Industrial Par K. K. I. P Sdn Bhd 8, 320 15 Kedah Halal Park, Sg Petani Perbadanan Kemajuan Negeri Kedah 35 16 Perlis Halal Park, Padang Besar Perbadanan Kemajuan Negeri Perlis 50 17 Terengganu Halal Park Perbadanan Kemajuan Iktisad Negeri Terengganu 2 18 Pengkalan Chepa Halal Park Perbadanan Kemajuan Iktisad Negeri Kelantan 2 19 MARA Halal Park Kuala Perlis Perbadanan Kemajuan Negeri Perlis — 20 MARA Halal Park Tamnun MARA — 21 MARA Halal Park Kuching MARA — 22 Labuan Halal Distributive Hub Labuan Halal Hub 100 23 Sabah Halal Park, Sepanggar — — 24 Perak Halal Park, Simpang Pulai Perbadanan Kemajuan Negeri Perak — 25 Prima Agri Halal Park Prima Agri 100 17

Halal Activities in Vario us Countries 18

Halal studies in published articles Noreen Noor Abd Aziz et al. / Procedia Economics and Finance 31 ( 2015 ) 325 – 332 19

Halal studies in published articles Noreen Noor Abd Aziz et al. / Procedia Economics and Finance 31 ( 2015 ) 325 – 332 20

Import Requirements for Dif ferent Countries Malaysia § 1970 s – Exposed to imported food products when global food service establishments started opening restaurants there. § Muslim consumers wanted an assurance that the food offered at restaurants as well as in stores was indeed halal. § This prompted the Malaysian government to enact laws, revise procedures and guidelines for halal foods, domestic and imported. § Trade Description (use of expression “halal”) Order of 1975 made it an offense to falsely label food as halal, and the Trade Description Act (halal sign marking) of 1975 made it an offense to falsely claim the food to be halal on signs and other markings. 21

Import Requirements for Dif ferent Countries Malaysia § 1982 - Government committee - evaluation of foods, drinks, and goods utilized by Muslims under the Islamic Affairs Division in the Prime Minister’s Department. § This committee - responsible for checking and instilling halal awareness amongst food producers, distributors, and importers. § Make mandatory for all meat (beef, mutton, veal, and poultry) imported into Malaysia to be halal certified and such meat to originate only from meat plants approved by the Islamic Affairs Division of the PM’s Department and the Department of Veterinary Services, Malaysia. § Now, called Jabatan Kemajuan Islam Malaysia (JAKIM) 22

Import Requirements for Dif ferent Countries Singapore § The Islamic Council of Singapore (Majlis Ugama Islam Singapura (MUIS) started to provide halal services in 1972 and the first halal certificate was issued in 1978. § Administration of Muslim Act (AMLA) in 1999 - This amendment gave MUIS more powers by allowing it to regulate, promote, and enhance the halal business. § Gov. agencies with MUIS - The Food Control Department, Ministry of Environment; the Agro-Veterinary Authority, Ministry of National Development; and the Commercial Crime Department, Ministry of Home Affairs. § Singapore is also a member of the ASEAN Adhoc. Working Group, committee on halal food guidelines. 23

Import Requirements for Dif ferent Countries Indonesia § Religious Council of Indonesia (Majelis Ulama Indonesia (MUI)), has been assigned the responsibility to coordinate halal activities to an institute called the Assessment Institute for Foods, Drugs and Cosmetics (AIFDC) or Lembaga Pengkajian Pangan, Obat-obatan dan Kosmetika (LP-POM). § § § Halal certification within Indonesia is a multidisciplinary function. The process of inspection and evaluation is initiated with an application by the manufacturer or the importer. A auditor team (LP-POM, the Department of Health, and the Department of Religious Affairs) makes an inspection visit to the manufacturing facility to evaluate the production procedures and ingredients. The findings of the visit - a report to the Fatwa Commission of MUI, which declares the product to be halal or not. 24

Import Requirements for Dif ferent Countries Middle East Countries § The Gulf Standard and Saudi Standard. § It includes guidelines and requirements for the import of a variety of food and food products and meat products. § All countries in the Middle East, Gulf, and the rest require that imported products be accompanied with a halal certificate issued by a recognized Islamic organization in the country of export. § They also require that the certificates be endorsed by the National U. S. Arab Chamber of Commerce or the consulate of the importing country before exports can commence. 25

Import Requirements for Dif ferent Countries South Asia § The South Asian countries - India, Pakistan, Bangladesh, and Sri Lanka also import halal products for consumption, especially for food service. § Halal programs in these countries are not as well defined. § Some of the food service establishments in Pakistan operate under guidelines similar to those in Malaysia and voluntarily require halal certificates from their vendors not only for meat and poultry but also for processed food items. 26

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