THE INTERNATIONAL HALAL INTEGRITY ALLIANCE IHI ALLIANCE HALAL

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THE INTERNATIONAL HALAL INTEGRITY ALLIANCE (“IHI ALLIANCE”) HALAL CERTIFICATION: THE GLOBAL SCENARIO BY DARHIM

THE INTERNATIONAL HALAL INTEGRITY ALLIANCE (“IHI ALLIANCE”) HALAL CERTIFICATION: THE GLOBAL SCENARIO BY DARHIM HASHIM, CHIEF EXECUTIVE OFFICER INTERNATIONAL HALAL INTEGRITY ALLIANCE AT ABU DHABI NATIONAL EXHIBITION CENTRE, UNITED ARAB EMIRATES NOVEMBER 11 TH, 2008

CONTENTS p Background of IHI Alliance p Assessment of Worldwide Halal Certification p Halal

CONTENTS p Background of IHI Alliance p Assessment of Worldwide Halal Certification p Halal certification in OIC p IHI Alliance framework

International Halal Integrity Alliance formed p Registered on the 30 th April 2007, as

International Halal Integrity Alliance formed p Registered on the 30 th April 2007, as an international, nonprofit, non-governmental, private-sector business association. p Created to serve as a platform for providing services to its members, representing their interests and to liaise with governments, organizations and business communities.

Islamic Chamber of Commerce & Industry IHI Alliance forms strategic partnership with Islamic Chamber

Islamic Chamber of Commerce & Industry IHI Alliance forms strategic partnership with Islamic Chamber of Commerce & Industry (ICCI) IHI Alliance CEO Darhim Hashim (left) welcomes ICCI President Sheikh Saleh Kamel (right) on board as Chairman of the Board of Trustees

OIC (Organisation of Islamic Conference) FINAL COMMUNIQUE OF THE ELEVENTH SESSION OF THE ISLAMIC

OIC (Organisation of Islamic Conference) FINAL COMMUNIQUE OF THE ELEVENTH SESSION OF THE ISLAMIC SUMMIT CONFERENCE (SESSION OF THE MUSLIM UMMAH IN 21 ST CENTURY) DAKAR – REPUBLIC OF SENEGAL 6 -7 RABIUL AWWAL, 1429 H (13 -14 MARCH 2008)

OIC Mandate RESOLUTIONS ON ECONOMIC AFFAIRS ADOPTED BY THE THIRTY-FIFTH SESSION OF THE COUNCIL

OIC Mandate RESOLUTIONS ON ECONOMIC AFFAIRS ADOPTED BY THE THIRTY-FIFTH SESSION OF THE COUNCIL OF FOREIGN MINISTERS (SESSION OF PROSPERITY AND DEVELOPMENT) KAMPALA, REPUBLIC OF UGANDA 14 -16 JAMADIUL THANI 1429 H (18 -20 JUNE 2008)

Structure under OIC PRINCIPAL REPRESENTATIVE OF OIC ON HALAL Global Halal Standards Authority

Structure under OIC PRINCIPAL REPRESENTATIVE OF OIC ON HALAL Global Halal Standards Authority

Programmes of IHI Alliance p Halal standards and certification system n Harmonize the halal

Programmes of IHI Alliance p Halal standards and certification system n Harmonize the halal standard and certification system worldwide by setting guidelines and best practices p Education and Promotion n Create awareness and provide information n Train professionals and develop human capital n Brand Halal as the standard of choice p Research & Development n Develop knowledge base supported by scientific validation n Set up R&D infrastructure to resolve new issues n Provide innovative solutions that can be commercialised

No unified Halal Standards q q q q q The Halal market is global…

No unified Halal Standards q q q q q The Halal market is global… BUT Halal has different meanings in different countries In most countries, Halal certification is an unregulated ‘cottage’ industry Australia has 25 different agencies France has over 30 Many Muslim-majority countries have no certification at all There is no authority, and no leadership, and too many questions remain unresolved Problems for industry & consumers Questions over integrity 9

Results Number of Halal Certification Bodies by Region

Results Number of Halal Certification Bodies by Region

Halal CB’s: Various Structures 1. Islamic/ Muslim Association 2. Certification body under an Islamic/

Halal CB’s: Various Structures 1. Islamic/ Muslim Association 2. Certification body under an Islamic/ Muslim Association 3. Mosque/ related to a specific mosque 4. NGO or Group/ Private initiative 5. Semi government/ Government-related

Halal CB’s: Various Revenue Models 1. Per MT/ per quantity of product (litre, kg,

Halal CB’s: Various Revenue Models 1. Per MT/ per quantity of product (litre, kg, etc) 2. Per company 3. Per container 4. Combination of any of the above

Observations: What does it take to be an approved Halal CB? 1. Even in

Observations: What does it take to be an approved Halal CB? 1. Even in neighboring countries such as Indonesia & Malaysia, the list of approved Halal CB’s are different. 2. There is no unified standard in approving any Halal CB’s.

Asia: No of CB’s approved by Indonesia & Malaysia

Asia: No of CB’s approved by Indonesia & Malaysia

Australasia (Australia & New Zealand): No of CB’s approved by Indonesia & Malaysia

Australasia (Australia & New Zealand): No of CB’s approved by Indonesia & Malaysia

Europe: No of CB’s approved by Indonesia & Malaysia

Europe: No of CB’s approved by Indonesia & Malaysia

America: No of CB’s approved by Indonesia & Malaysia

America: No of CB’s approved by Indonesia & Malaysia

Total CBs Certified by Malaysia & Indonesia Malaysia 22 Indonesia 24 overlap 16

Total CBs Certified by Malaysia & Indonesia Malaysia 22 Indonesia 24 overlap 16

Results: CB’s with Website No 55% Yes 45% Total= 107 Organisations

Results: CB’s with Website No 55% Yes 45% Total= 107 Organisations

“Murky Business” Observations & facts: p Many CBs are not contactable p Some CBs

“Murky Business” Observations & facts: p Many CBs are not contactable p Some CBs agreed to “sell” certificates p Pricing and fees of many CBs not transparent

OIC Member Countries

OIC Member Countries

OIC Scenario Total of 57 Member Countries: p Combined population of 1. 45 billion

OIC Scenario Total of 57 Member Countries: p Combined population of 1. 45 billion p Represents >90% of world’s Muslims p Overall net importers of food products

OIC Scenario § Total import= 2. 84 million MT of meat, 2008 (p) Lamb

OIC Scenario § Total import= 2. 84 million MT of meat, 2008 (p) Lamb & Mutton 10% Beef 29% § certified halal = ? % Poultry 61%

Total Poultry Meat

Total Poultry Meat

Total Beef/ Veal

Total Beef/ Veal

Total Mutton/ Lamb

Total Mutton/ Lamb

Breakdown of Total Poultry Imports in OIC Countries

Breakdown of Total Poultry Imports in OIC Countries

Breakdown of Total Beef/ Veal Imports in OIC Countries

Breakdown of Total Beef/ Veal Imports in OIC Countries

Breakdown of Total Mutton/ Lamb Imports in OIC Countries

Breakdown of Total Mutton/ Lamb Imports in OIC Countries

OIC Countries Out of 57 Member Countries: p Less than Five (5) have Halal

OIC Countries Out of 57 Member Countries: p Less than Five (5) have Halal CBs p Less than half have Halal import regulations p No country has domestic Halal Act

Some observations 1. Halal-related legislation exists in non-OIC countries, such as some states in

Some observations 1. Halal-related legislation exists in non-OIC countries, such as some states in the USA, Australia, etc; 2. Some regulations pertaining to technical aspects and implementation, such as Slaughter-men exist in non-OIC countries e. g. Australia and New Zealand

Development of Global Halal Standard NATIONAL SOVEREIGNITY SHIA’ Shariah HANAFI Science HANBALI MALIKI SHAFII’

Development of Global Halal Standard NATIONAL SOVEREIGNITY SHIA’ Shariah HANAFI Science HANBALI MALIKI SHAFII’ Ummah Industry

Four main challenges 1. Getting consensus from industry and government 2. Harmonising certification bodies

Four main challenges 1. Getting consensus from industry and government 2. Harmonising certification bodies 3. Overcoming unresolved issues 4. Sharing of basic infrastructure

1 st challenge: Getting consensus p Getting consensus from industry and government: n Dichotomy

1 st challenge: Getting consensus p Getting consensus from industry and government: n Dichotomy of interests (consumer vs industry) n Secular vs Dogmatic n Cost management

2 nd challenge: Harmonising p Certifying Bodies – Benchmark standards (e. g. ISO/IEC Guide

2 nd challenge: Harmonising p Certifying Bodies – Benchmark standards (e. g. ISO/IEC Guide 65) p Incorporate Tayyiban into the standard n Food safety measures (HACCP, GMP) n Food safety & quality management (BRC, SQF, IFS, ISO 22000, ISO 9001) n Fair trade - ensuring fair transactions n Islamic finance n Developing halal policy within each organisation n Establishing in-house halal committee n Waste Management & Environment care (ISO 14000) n Continuous education and training on halal matters n Workers health & safety (OHAS 18001) n Animal welfare n Corporate social responsibility (SA 8000, BSCI, FLA) n Traceability system

3 rd challenge: Resolving critical issues p Overcoming unresolved issues n n n Stunning

3 rd challenge: Resolving critical issues p Overcoming unresolved issues n n n Stunning Mechanical slaughter Doubtful raw ingredients

4 th challenge: Collaborating p Sharing of basic infrastructure n Halal testing labs n

4 th challenge: Collaborating p Sharing of basic infrastructure n Halal testing labs n Training schools – auditors, managers, skill workers etc. n Promotion and marketing tools p Mutual recognition

Moving Forward p Engage with the stakeholders n Consumers – the Ummah n Industry

Moving Forward p Engage with the stakeholders n Consumers – the Ummah n Industry – manufacturers, distributors, wholesalers, retailers n Certification bodies n Governments & authorities of Multilateral Institutions (e. g. EU) n Institutions of higher education n Leading Islamic scholars p Develop the draft standards n Divide up the standard into 10 modules n Invite countries to become secretariat for Technical Committees of each module n Map out timeline Draft standard to be ready by May 2009 for start of public enquiry period, insyallah

Strength in Unity THANK YOU DARHIM HASHIM International Halal Integrity Alliance Ltd. darhim@ihialliance. org

Strength in Unity THANK YOU DARHIM HASHIM International Halal Integrity Alliance Ltd. darhim@ihialliance. org www. ihialliance. org