Halal Goes Global

Chapter 3 – DRIVERS OF HALAL FOOD AND BEVERAGE MARKETS 19
is having an effect on agriculture, food production and
even consumers’ eating habits. This trend is a factor in the
convergence of halal with the mainstream, and will probably
be an identifiable element in the halal sector as the industry
matures.
Pioneering companies such as Saffron Road and Crescent
Foods in the United States have incorporated their green
credentials into the design of their products, packaging and
marketing campaigns. This is likely to become a common
trend, especially in the minority markets. As these are global
trends, we can expect to see the eco-ethical aspects of the halal
market being brought more into the foreground in the future.
Food security
Food security has become an issue of global concern over
the past decade, and its impact can also be felt in the halal
food sector. This is particularly true in countries in the MENA
region, and the GCC in particular, as up to 90% of their food
is imported, exposing them to food-security risks.
This has led to a two-pronged approach:
• Using technology to transform arid environments into
viable agricultural land through the use of hydroponics,
large-scale irrigation and air-conditioned livestock farms
for poultry and dairy produce.
• Overseas investments in agricultural land and in food
production and manufacturing companies.
These are all long-term projects to address food security, and
it is perhaps too early to determine the overall successes.
But it is clear that these trends are on the increase and will
probably be significant large-scale drivers in the halal sector
over the coming decade.
A good example is Hassad Foods, a wholly owned subsidiary
of Qatar Investment Authority that focuses on the production of
animal proteins, grains, rice and sugar. In addition to developing
hydroponics technologies to support local agriculture, Hassad
has made significant investments in Pakistan (rice), Oman
(poultry) and Australia (grain and livestock).
Political
There have been significant changes in how the halal market
is perceived in political circles, albeit with wide-ranging
differences depending on geography and culture. The past
decade has seen a marked increase in appreciation of the
potential of the halal market, and a recognition that halal
can play an active role in economic development of the
related sectors.
One of the major changes has been the recognition among
Muslim-majority countries that developing halal standards,
products and services and looking for ways to grow a vibrant
halal sector can be engines of growth for their national
economies. In particular, countries looking to expand their
food export markets recognize that halal certification and
labelling can open new market opportunities.
Past assumptions that allowed halal to be taken for granted
have been replaced, in most cases, with fresh appreciation
of the opportunities on offer. This has given rise to innovative
approaches and initiatives to open up this new market
arena that is, at the same time, an integral part of national
and cultural identities.
Similarly, the recent development of a European standard on
halal is also a clear sign that policymakers now appreciate
the size and relevance of the European halal market, as well
as the export opportunities.
The development of legal frameworks that encompass the
halal economy are a particularly important development in
both Muslim minority and majority countries. They represent
not just a shift of perception, but a clear recognition that
this emerging marketplace is not to be ignored, and indeed
needs to be stabilized and standardized. The development of
standards, audit and certification procedures, accreditation,
export promotions and other related initiatives are all
important indications that the halal market is in a process of
maturation and growth that will lead to its manifesting as a
recognizable element of global commerce.
Legal
Halal has made its way into the legislative framework of
many countries over the past decade. In many countries,
it is an offence to label a product halal if it is not. Halal is
being included in legislation in many countries, for various
reasons.
In many South-East Asian countries, halal has specific legal
status. In Malaysia, for example, the Trades Description Act
was amended in 2011 to state that only the official Malaysia
Halal logo was permitted for domestic products, and all
imported halal products can only carry a logo from a JAKIM
approved certifier.
Indonesia, with the world’s largest Muslim population, has
recently passed a Halal Product Assurance Law that will
effectively make halal certification mandatory for domestic
producers and manufacturers. Certification will be carried
out by the newly created Halal Product Certification Agency,
ending decades of control by the Indonesian Ulema Council.
This new law calls for the certification of food, beverages,
drugs, cosmetics, chemical products, biological products,
genetically modified products and consumer goods that
are worn or used by the public. It remains to be seen how
effective this legislation will be, but it certainly indicates
Indonesia’s commitment to develop its halal sector.