It has been stated that food makes up about 60% of the halal industry which includes primary meat, processed goods, bakery food, and confectionary. 1. This study focus on the issues and challenges of halal food industry implementation in Malaysia. Since the halalfood industry covers the farm-to-table operations, therefore unwanted practices which culminate to halalfood fraud along food supply chain has become a major concern among Muslim consumers. As each intermediary has its own suppliers and vendors, which would in turn involve other logistic activities within and across those intermediaries, the potential risk of cross-contamination is high if no halal control systems are in place in the supply chain. Other issue is the usage of Halal certification logo toward industry, rectify halal-ness have also been extensively reviewed. Since the 1980s, Malaysia was the pioneer in establishing Halal laws and remains a force in matters relating to halal certification globally. 4.1 Issues and Challenges Faced in the Halal Industry in Singapore Being a secular state that involved in the development of the halal industry since 1978, there are several issues and challenges faced by MUIS and the Singaporean Muslim in halal related matters in Singapore. This is of paramount concern since any mishandling, contamination, or reported food-borne illness is guaranteed to be a major PR nightmare. Mariam binti Abdul Latif Department of Islamic Development Malaysia (JAKIM) 4 March 2006, MIFT Scope Introduction Basics in Halal Food Current Issues on Halal Food International Scenario National Perspective Consumer Perception New Products. Ph: +39 02 36 58 75 64 The forthcoming webinar organized by World Halal Authority (WHA) on 12th January 2021 aim to increase the understanding of the global challenges of the halal food industry but also analyse the potential opportunities for organisations to continue their growth both domestically and internationally affected by key unprecedented events. During the manufacturing or packaging process, it is important that halal food manufacturers operate a separate production facility to prevent halal contamination. To cater to the anticipated growth in the Halal food industry, Breach of Halal Certification is incorporated as a trigger event. Recently, halal authenticity issue became a major concern in the halal food industry. According to the Japan National Tourism Organisation for instance, a majority of Muslim visitors to Japan are from South East Asian countries such as Indonesia, Malaysia and Singapore. Ph: +44 3300 570 855 Another less benign example, which may pose issues for the production of halal, kosher, vegetarian, and vegan foods occurs in the beverage industry. With advancements in technology, companies can now have the option of using fungal rennet as a substitute in halal-certified products. HALAL ISSUES Halal issue is starting to get the place and attention in the market, and it is very influencing in marketplace particularly in most Islamic countries. I declare that I have read the Information pursuant to Legislative Decree 196/2003 and Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (GDPR). Countries such as China and the US have faced this issue before. Equally important is the packaging process as there have been incidents of falsely labelled products in Malaysia as well as the UK, where halal-labelled products were either not halal certified or have been doctored with pork DNA. A typical Contaminated Product Recall Insurance covers losses for food companies due to recalls caused by accidental contamination, malicious product tampering, governmental recall, and product extortion. Swiss Re Corporate Solutionshas recently launched a Contaminated Product Recall Insurance Product for the Halal Food and Beverage Manufacturers. This implies that foods are fit to be consumed and are completly safe. Issues related to business model, management, marketing, finance, food security, lifestyle, hospitality, tourism, cosmetics, personal care, legal aspects, technologies and sciences are presented in the chapters. With the average food recall cost incurred observed to be approximately USD1 million in Asia, this makes it necessary for food manufacturers to look into ways to mitigate their risk. Many cases were reported worldwide involving adulteration of haram or mushbooh ingredients in food productions. Investments in the Halal food industry are also rebuilding momentum with acquisitions happening globally from Indofood’s $2.9 billion acquisition of Pinehill, Indomie noodles MENA market manufacturer whilst Isla Delice acquired Hoca Meats. By. There are many food products that have high tendency to be incorporated with blood. With F&B exports to Organisation of Islamic Cooperation (OIC) countries such as Malaysia and Indonesia reported to be USD210 billion in 2018, this figure is expected to grow in line with the projected F&B consumption increase. The forthcoming webinar organized by World Halal Authority (WHA) on 12th January 2021 aim to increase the understanding of the global challenges of the halal food industry but also analyse the potential opportunities for organisations to continue their growth both domestically and internationally affected by key unprecedented events. Swiss Re Corporate Solutions has recently launched a Contaminated Product Recall Insurance Product for the Halal Food and Beverage Manufacturers. One of the most pressing issues in the foodservice industry is food safety. I declare that I have read the Information pursuant to Legislative Decree 196/2003 and Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (GDPR) Read the Notice, I also authorize WORLD HALAL AUTHORITY SRLS and its partners to the processing of my personal data for promotional, advertising and marketing activities of their products and services. A typical Contaminated Product Recall Insurance covers losses for food companies due to recalls caused by accidental contamination, malicious product tampering, governmental recall, and product extortion. Unanticipated but deadly, the coronavirus pandemic has not only been a tragic health issue globally but has destroyed the global economy with industries across the globe feeling the impact of restrictions set by governments globally. Whilst there is a massive impact due to challenges such as Brexit and Covid-19, the Halal food industry has not been significantly impacted relative to the rest of the halal industry with just a 0.2% drop forecasted and a CAGR of 3.5% expected between 2019 and 2024 instead of a -8.1% drop in the other sectors. There has been an increase in remote auditing as a way to hurdle the challenge of lack of travelling to sites. Recent studies show an estimated 400 million jobs have been lost worldwide, poverty levels regressing 30 years and GDP dropping expeditiously in both advanced economies and emerging markets, it’s safe to say that the Coronavirus pandemic has greatly affected the global economy including the halal food industry. While the literal meaning of this Arabic word means lawful or permissible and typically associated with food and beverages, the word ‘halal’ has since evolved. News Bureau - 01/06/2021. Hence, setting up halal-friendly restaurants in Southeast Asia could enable the restaurant to give patrons the dining experience as well as promote their menu on food delivery apps such as Gojek and Grab. Companies have a wide range of opportunities to gain more competitive advantage including expanding into the gulf region with a high demand for Halal suitable products. As there are strict requirements where halal food is concerned, the entire supply chain process from sourcing of raw materials to manufacturing, transporting, storing and handling of the products will need to be looked into. Current Issues on Halal Food. In Indonesia, for instance, Nippon Express and Yusen logistics, two of Japan’s biggest transport companies have been certified for shipping goods in compliance with the Islamic law. The issue of food fraud is not new, globally. It is prepared as a guide for the manufacturing industry (food and non-food product manufacturers) to give a basic understanding of HALAL with the hope of assisting them to comply with the HALAL requirement in their manufacturing operations. Facebook. Given the intricacy of the halal food supply chain, the integrity of the entire supply chain is of utmost importance. Whatsapp +44 7770 281 432 Twitter. As for the Halal food industry, while Muslim consumption on food and beverage (F&B) reached USD1.4 trillion in 2018, this spend is projected to reach US$2 trillion by 2024. The Halal Monitoring Committee would like to make the public aware of the ongoing issues within the Halal industry. In this case, pig and cattle blood are most often used. With consumers socially distancing due to Covid-19, online grocery shopping has increased thus highlighting the importance of increased demand for halal products online. Conflict to decide the halal-ness of the product is a new concept worth being discuss in the context of halal food implementation and certification. Hence, any restaurant chain or food manufacturer looking to tap into the Indonesian market, which has the largest Muslim population, will need to undergo a thorough and extensive halal certification process. For 2019, a total of 1,876 exporting companies of Malaysian halal products were recorded. For instance, in sausage preparation, the animal blood is cooked with a filler (meat,fat wheat) until it is thick enough to congeal when cooled. Whatsapp +39 380 177 35 91 Between the growing Muslim population and the increasing affluence of Muslim consumers globally, the overall consumption for this segment has grown over the years. The example is one where the processing aid is removed from the product after serving its purpose. Federal Territory and Selangor Malay Muslim Food Operators Association president Ayob Abd Majid said where the halal issue was concerned, both customers and restaurant operators should be held accountable as it was their careless attitude that made the issue difficult to contain. Should any part of the supply chain be compromised, there could be significant impact to all businesses operating in the supply chain. “This means the potential of the halal industry still has huge room (for growth). WHA ITALY The halal food industry is of vital importance to Muslims world wide as it gives them a sense of security that whatever they consume, use and purchase is Syariah compliant. Google+. Consumers trust spending their money on halal-certified products due to the trust they give to certifiers in auditing and assuring that these products meet the Islamic standards are met. 0. The public are taking to social media to voice their concerns on the authenticity of genuine Halal food. Mohamed Azmin said halal exports is worth RM40.2 billion today or 4.1 per cent of the country’s total exports valued at RM986.4 billion in 2019. Other opportunities include the digitalisation of the halal industry with an increased shift to meeting e-commerce demand due to the more and more consumers shopping online post-Covid-19. Given its intricacy, the integrity of the entire Halal supply chain is of utmost importance. Uncertainty has lowered the value of GBP (£) and may result in higher raw material costs for stakeholders in the industry-leading to less profitability. But with challenges come opportunities. With the UK deciding to leave the European Union in 2016 and now leaving in 2021, there will be widespread complications as the EU accounts for 70% of the UK food imports and exports. Among the issues are forged Halal certificate, the use of As the restaurant currently operates 2 halal friendly outlets in Tokyo with authorisation by Nippon Asia Halal Association, the transition to offering halal menu process has already been initiated. Fragmentation in the halal food certification process and varying halal certification requirements across markets increases the complexity and challenges in the halal food production and trade industry. In 2018, the estimated consumption was USD2.2 trillion, and this is projected to reach USD3.2 trillion by 2024. World Halal Authority (WHA) - International Halal Certification Body with the highest number of international accreditations and recognitions in the world - now landing in the UK. In conclusion, the word Halal has become the most abused word equally misused by Muslims a… WHA receives the certificate of renewal of recognition from the ESMA-Emirates Authority for Standardization and Metrology. As for Japanese food manufacturers, this ready audience presents an opportunity for them to invest in manufacturing halal certified products for the export and international market. It’s also clear to see the potential of AI and automation in the industry, potentially lowering total operating costs for companies thus giving consumers a higher quality at a lower price. Eventhough Singapore is only consist of 14.3% of Muslim population but their halal industry is rapidly catching up in being a globally recognized Academia.edu is a platform for academics to share research papers. Of course, there are challenges as well. The 25th edition of the most important event in the world for the food & beverage sector has officially begun, GulFood, at the Dubai World Trade Center, opens its doors to 193 countries representing all continents, with an influx of visitors expected equal to 90... WHA è il frutto di una pluriennale esperienza nel mondo della Certificazione Halal e i servizi annessi. The halal food industry has the potential to grow expeditiously especially when Islamic banks such as CIMB and Standard Chartered Saadiq, two of the largest Malaysian Islamic banks, have launched initiatives for the growth of Malaysia’s small and medium food enterprises. Over the past decade, there have been many incidents nationwide where meat and poultry has been mislabelled as “Halal” misleading Muslim consumers. Other reasons that have resulted in halal product recall in Malaysia include processing conducted with non-halal requirements and usage of unapproved ingredients by the halal committee. In general terms and in accordance with the above, to consider food Halal, it is necessary that it conforms to the Islamic law in the Koran, the traditions of Prophet Muhammad (SWS), and the teachings of Islamic lawyers . By further highlighting the importance of Halal certification, quality assurance of halal products is highlighted. This could be achieved by identifying Haram Critical Control Points (HrCCPs) in each supply chain and logistics process in and across each intermediary, with proper development and implementation of a Halal Assurance System. E-mail: certification@wha-halal.org, WHA UK There is a continuing struggle for Halal food standards and accreditation, with more education required of such topics in OIC countries. The development of halal hubs such as Malaysia’s Northpoint and Singapore’s Halal Hub, as well as interest from other Southeast Asian countries to establish halal hubs, is another indication of the significant growth potential in this industry. Concepts of halal have been discussed in terms of definitions, and scopes have also been established. +44 7770 281 432 Indonesia for instance, requires all food products that are imported, distributed and sold in the country to be halal certified. Don’t miss this definitive halal awareness webinar, reserve your place now and discover the challenges and opportunities of a growing market! As consumer demands increases, so would the need for F&B manufacturers to meet these demands. We use cookies to ensure that we give you the best experience on our website. Modern consumer food trends that catch on quickly (thanks in part to the Internet and social media), have become a breeding ground for food safety-related problems, and food safety professionals should be re… World Halal Authority (WHA) – International Halal Certification Body – now landing in the UK. The above problems highlighted lead to the biggest dilemma of all, Muslim consumers buying meat, poultry, kebabs, samosas or anything else labelled as Halal from butchers, takeaways, or restaurants are not and can not be certain about the genuineness and authenticity of the Halal label, either through ignorance in the chain of suppliers or either through unscrupulous, deceitful, corrupt and greedy meat traders. Restrictions such as social distancing and national lockdowns have led to a chain reaction in global markets leading to a -4.5% reduction in global GDP, where it was originally forecasted to be 2.9%, indicating lower disposable income for consumers and even potentially increased risk of halal food fraud as companies look to satisfy both consumer needs and its own financial needs in this pandemic. 2015 brought new challenges for food and beverage manufacturers, and 2016 will have its own set of issues that manufacturers will have to face to … For example, The Muslim Council of Britain (MCB) has warned that up to 90% of the meat and poultry sold as halal in the United Kingdom (UK) may have been sold illegally and not slaughtered according to the … In locations with a central halal accreditation agency, this might be easier managed as compared to countries like Japan which had no central agency for halal accreditation until December 2019. This additional trigger event covers losses from recall due to accidental or unintentional contamination, impairment or mislabelling during production, preparation, manufacture, packaging, labelling or distribution that results in the breach of halal certification determine by a competent authority. Halal food market generates $1.2 trillion in consumption and OIC markets become a great opportunity for European companies. While sourcing of raw materials might seem a straightforward process, it is important for procurement personnel in Malaysian companies for instance, to be aware of the list of halal certification bodies (CB) recognized by the Department of Islamic Affairs Malaysia (JAKIM) and procure products which have been approved by the halal committee. Scope • Introduction • Basics in Halal Food • Current Issues on Halal Food – International Scenario – National Perspective – Consumer Perception – New Products • Conclusion . Ramadan, a time where sales rocket in the halal industry with revenue at restaurants dropping in the midst of the pandemic. E-mail: SPAIN.certification@wha-halal.org. Global Halal Food Market To Hit US$2.1 Trillion By 2025, Cargill And Ecolab Advance Digital Innovation Across Agri-food With Techstars Farm-to-Fork Accelerator Class, Regional Plant Science Industry Urges Strong Partnerships To Address Asia’s Food Security, EQT Acquires Chr. But with challenges come opportunities and Covid-19 has led to an increase in e-commerce, increased demand for food security initiatives, and more clear labelling of healthier foods. In Halal food, scandal buyers have no idea the meat is not halal, unsafe, and are putting their health at risk. This webinar will dive deeper into the digitalisation of the halal industry and the influences of halal claims on consumer behaviour. Current Issues on Halal Food Mariam binti Abdul Latif Department of Islamic Development Malaysia (JAKIM) 4 March 2006, MIFT. In fact, among growth sectors identified for the halal food industry are ‘retail concepts’ and ‘halal products e-commerce’. With regards to Islamic branding and issue of halal certification manifested by halal logo or labeling of foods or products, it is clearly reflected in some studies that not all local companies in the food industry place the “Islamic†feature on their packaging and labeling of the products, perhaps owing to the multicultural nature of Malaysia (Syed & Nazura, 2011). For Japanese restaurant chain Coco Ichibanya for instance, expanding into Southeast Asian markets with halal-friendly menu could be an engine of growth for them. The foodservice industry’s prime responsibility to consumers is public health and safety. When looking at the top 5 halal product exporters, we see that 4 of those exporters are the top 4 countries affected by Covid-19. Hence, getting the commitment of each intermediary or partner in the supply chain to uphold the highest standards of integrity of halal products is critical. Also, as Japan ranks in the top 3 travel destination for non-Organisation of Islamic Cooperation (OIC) countries, interest in Japan signals significant demand for halal Japanese food as well as food products both domestically and internationally. The issues and challenges are as follows: 2.1 Halal logo issue One of the most vital elements of halal food packaging is the Halal logo. In fact, Swiss Re Corporate Solutions has found that a large proportion of F&B insurance claims have arisen due to manufacturing and packaging issues. At the same time, halal logistics capabilities are critical in ensuring that the halal integrity of The recent cases and issues involving halal-certified products require the halal food industry to have a robust risk management practice. From Asia to America, the Halal food sector is becoming a major source of growth in both the Islamic and wider global economy. Overall, the volume offers a comprehensive point of view on Islamic principles relating to the halal business, industry, culture, food, safety, finance and other aspects of life. Another process within the halal certification that has been altered by social distancing is the auditing process for food safety and halal compliance. The papers cover topics such as halal food, halal pharmaceuticals, halal cosmetics and personal care, halal logistics, halal testing and analysis and ethics in the halal industry. An increase in healthier product demand, due to covid-19, has led to spectacular feats such as the IPO of Pakistan’s The Organic Meat Company Ltd. (TOMCL) a major halal meat exporter, were oversubscribed by 1.7 times, showing a keen investor interest. In lieu of the paradigm shift on global issues such as sustainability, environmental protection, and animal welfare, the potential growth of the halal industry has made it a lucrative market to be tapped into and presenting a major global opportunity. E-mail: UK.certification@wha-halal.org, WHA SPAIN This consumer trust will lead to an increase in sales and solidify brand recognition of a Halal-friendly company in any Halal sector. The risk arises when these procurement personnel do not have the updated list of halal CBs, and acquire products from companies that are not on the approved list. Mob. Simultaneously, the halal industry contributes to societal development and national economic growth. Halal issues on the use of blood in food products. Among halal issues that arisen are including improper hygienic practice at processing premises and also the expiration of halal certification. Hansen’s Natural Colours Business For EUR 800M, Kemin Food Technologies – Asia Launches “KemTalk” To Connect With Customers, Building Resilient Food Supply Chains In ASEAN In The Face Of COVID-19, Cargill’s CocoaWise Portal Keeps Sustainability Data At The Fingertips Of Chocolate Customers, Ingredient Communication Survey Finds Gap In Clear Labelling Of Ingredients, The Next Generation Of Beverage Stabilisers, Emulsifiers & Hydrocolloids In Plant-Based Protein Revolutions, Challenges & Opportunities In The Halal Market Within Southeast Asia. Singapore is one of the key player in the ASEAN region Halal industry besides Malaysia and Thailand. Mob. +39 380 17 73 591 This paper attempts to review the issues and challenges of halal food implementation in Malaysia. Given the demand and growth projections for halal food, companies looking to expand into halal food manufacturing should look to align their products with the halal industry growth sectors such as ‘halal ingredients’, ‘meat-based meals and snacks’, and ‘halal products e-commerce’. Halal in the food industry. Shariah Issues; Travel & Hospitality; Trends; Video Clips; Europe, Farm-to-Fork News, Halal Integrity, Halal Trade, Media & Events, Partner Events, Trends Webinar: Impact of Global Challenges on the Halal Food Industry . The logistics of transporting, storing, and handling of halal products is another area of risk because not only do halal products need separate transporting and storing facilities from non-halal products, halal certification could also be a requirement of logistics companies. Legal changes promoting Halal such as Indonesia’s ‘The Halal Product Assurance law no.13/2014’ will further promote global spend on food increase by 3.1% in 2019 from £844.4 billion to £874.37 billion and whilst Covid-19 will impact global growth in 2020, it’s expected to grow to £1.31 trillion at a 5-year CAGR of 3.5% by 2024. How blockchain can help combat ongoing fraud in the Halal food industry in SEA – e27. If you continue to use this site we will assume that you are happy with it. Metal Detection, X-Ray & Vision Solutions, Emulsifiers, Stabilisers, Mouthfeel & Texture, Natural, Free-From & Functional Ingredients, Reliable Operator Guidance For Size Changeover, Hidden “Flavours” In Your Herbal Health Products, Detecting “Forever Chemicals” In Food Packaging. The table below shows the ranking in halal product exporting and their ranking of coronavirus cases: With manufacturing, production and logistical operations being disrupted, key exporters have had a challenging year financially. The webinar will also feature panel discussion from industry experts on harmonising halal standards which will allow for a more streamlined and efficient process for Halal companies worldwide and allow consumers to increase trust in the halal products themselves. Technology has always been key in the halal industry for a multitude of reasons such as detection of haram ingredients such as rennet in cheese manufacturing. It is suggested that the Halal food fraud has been going on for 40 years. Technology solutions to combat food fraud. Brexit and Coronavirus; two words which have the impact to severely affect the global halal food industry. Consumers rely heavily on the Halal label on the product package as it communicates important cues of the halal-ness of the product (Hifza et al., 2010). This presents significant opportunities for businesses that are already operating in this space, as well as for those that have yet to do so. The halal food experience could be viewed as one of the drivers of change in the industry. “Halal”—what is it and what does it mean? WHA è un Organo internazionale di Certificazione Halal indipendente e un’Autorità riconosciuta da moltissime Organizzazioni e Autorità nel mondo. These are the materials that manufacturers use to clarify fruit juices, for example, they are added to remove tannins. Consumer behaviour has also changed with an increase in home cooking and e-commerce with Saudi supermarket BinDaWood Holding reporting their e-commerce sales increasing by 200%. 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