The definitions of Halal, while generally agreed upon by Muslims, display significant gaps when it comes to their application in the industry. Due to differing Halal standards not only between countries but also within each individual country (following the presence of various Halal authorities), confusion, misunderstanding and even abuse in the Halal audit and certification process have occurred. As a result, supply chains have been broken whilst artificial shortages of raw material have emerged as a result of disunity between Halal certification bodies.
There are plenty at stake for the industry. The loss of Halal status can easily translate into significant loss of revenue for Halal manufacturers and producers. A case in point is the recent delisting of Australian and New Zealand Halal meat producers by JAKIM in Malaysia. It was reported that the combined loss of exports amounted to US$53 million!
Industry players are certainly the ones who best understand the impact of not having uniformity in the application of Halal standards. According to the World Halal Forum chairman Khairy Jamaluddin, one of the reasons why the Halal industry cannot grow faster, despite rising demands for Halal products worldwide, is because there is no consensus on a Halal standard. Each country has its own certification body, which leads to disagreements over animal feed, slaughtering methods, packaging, logistics and other arising issues.
Indeed, all sectors of the market from inter-government agencies to the smallest trader have recognised the need for one global Halal standard that is recognised by all importing countries. However, for this to be achieved, there are varying views that need to be sorted out.
Different Halal authorities follow different Islamic rulings regarding issues such as gelatine, food flavourings, animal enzymes, phosphates, mechanical slaughter, stunning of animals and the usage of thoracic stick. This sometimes creates confusion for producers who may not know which authority to consult in order to get their products certified for the right market.
While the industry welcomes the idea of establishing a global Halal standard, certification authorities may on the contrary feel that it can thin out the integrity of each Halal certifying body, including JAKIM’s.
The World Halal Council WHC, established in December 1999 for instance, has spent several years working towards an international Halal certification standard. The council, which is comprised of Halal certifiers from around the world, is currently working through ‘thorny issues’ and controversial topics pertaining Halal dietary laws.
Amidst the growing number of agencies issuing Halal certificates, there is also an increasing trend for local government departments to take charge of Halal certification as a result of the increasing demand for the export of Halal goods.
The governments of Malaysia, Thailand, Indonesia, Singapore and the Philippines, for example, have established institutions specifically for Halal certification. Given the increasing involvement of governments in Halal certification, it would ultimately be difficult for countries to collectively agree on a global Halal standard as it would mean surrendering their sovereign rights.
Figure 1: Minimum Core (Non Negotiable) Standard with Addendums
Source: M’Nasria, H. (2007) Challenges for Multinationals in the Global Halal Market, presentation delivered at the World Halal Forum, Kuala Lumpur, 7-8 May.
If certification agencies cannot agree on one Halal standard, then how do we find a middle ground This was one of the questions raised during the recent World Halal Forum 2007.
Dr. Habib M’Nasria, Zone Quality Assurance Director at McDonald’s International, suggested the establishment of a Minimum Core Standard carrying zero tolerance for a few basic issues (like pork and alcohol) with addendums applied to each individual country (as shown in Figure 1).
The addendums, for example, would clearly list out countries that permit electrical stunning on animals prior to Halal slaughter (such as Malaysia, Indonesia and Thailand). Unfortunately, given that some countries do not even have a national Halal standard, let alone statutory regulations pertaining Halal, it would expectedly be difficult to globally implement the standards proposed by Dr. Habib.
As mentioned above, Halal certification is carried out not only by local government authorities but also by various Islamic centres and organisations which further complicate matters. There are bodies that do not recognise the other’s certification because each would follow their own guidelines and interpretation of the Holy Qur’an and Hadith.
In countries like the UK, for example, there are over 20 different Halal certification bodies in operation. Some of them permit the use of electrical stunning while others like the Halal Monitoring Committee and the Muslim Council of Britain firmly reject such practice.
Creating one standard for the Halal food industry through a general open-for-all certification scheme would be extremely difficult because one standard will not meet the needs of all certification bodies. Another speaker at the World Halal Forum 2007, Dr. Jochen Zoller, who is the Global Director for Food Services, Intertek Testing Holdings Germany, suggested that “we should set up a Halal benchmark with an independent third party certification body, like the BRC.” He also added that “if we use ISO, it will take us forever.”
The BRC, or British Retail Consortium - a leading trade association in the UK, represents all forms of retailers from small independently owned stores to big departmental chain stores. In the UK, under the Food Safety Act 1990, retailers or brand owners have a legal responsibility for the products under their own labels. However, they must also grapple with a variety of different certification systems that exist worldwide following several food crises and the increasing demand for high quality food products.
The BRC, in 1998, subsequently undertook the initiative to harmonise retail standards by introducing the Food Technical Standard to evaluate whether manufacturers fulfil the requirements of retailers who sub-contract the manufacturing of products under their own brand name. The standard requires tight controls over the processes in which the products are produced, so that with a BRC certificate, manufacturers are able to satisfy all British supermarkets’ demand at once.
In recent years, the number of certification standards established by private institutions like the BRC (as shown in Table 1), has increased worldwide in the agri-business or food industry. Indeed, food safety and quality standards established by private institutions are today becoming the predominant drivers of agri-food systems although traditionally such standards were the preserve of government regulation.
Privately-owned standards, which are also becoming a primary determinant of market access in selected industrial countries, are fast becoming a global phenomenon and are even pervading the agri-food markets of many developing countries.
The IHI Alliance: The Vehicle to Harmonise All Halal Standards
There is an urgent need to reduce the problems created by the plethora of Halal standards and much can be learned from the trends to harmonise food safety and quality standards in developed Western countries. The Halal industry is now worth billions but there are still no international standards and best practices, making it a complex area to navigate for companies trading Halal goods globally.
Additionally, according to Nestle’s Othman Mohd Yusof, “with increasing trade barriers, regulatory impediments and food safety standards, the need for a premium global standard is crucial”. If Halal is to penetrate the mainstream market and gain access to global consumers, the standards for Halal producers must also be raised. Moreover, the nature of Halal requires rigorous certification.
Following a resolution that was passed at the World Halal Forum in 2006, the International Halal Integrity (IHI) Alliance was formed recently at the WHF 2007. As a non-profit, non-governmental and non-national body, it “aims to provide a platform for its members to share information and work towards upholding the integrity of the Halal industry; to provide a communication channel for its members with relevant parties; and to strengthen the Halal industry to fulfil its highest potential (World Halal Forum: The Executive Review 2007, p.30).
Harmonisation that comes through the IHI Alliance will help develop Halal standards that are acceptable globally and that will facilitate global trade so that both consumers and retailers would be able to get the right quality of products.
An all-encompassing Halal standard and a harmonised Halal certification system worldwide would also “help industries to expedite product development, assuring the consumers, reducing the number of multiple certifications and thereby compressing the supply chain cycle time” (Kamarul Aznam 2006, p.2). The new Halal guidelines and certification system will therefore be suitable not only for the Muslims but also global consumers at large.
The success of the IHI Alliance will largely depend on the stakeholders of the non-Muslim business community throughout the value chain. With their support, the IHI Alliance will serve to protect the interests of both the industry and consumers, apart from ensuring the integrity of Halal products around the world.