Halal Goes Global

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24 Chapter 4 – MARKET ACCESS AND REGULATORY FRAMEWORKS MARKET ACCESS AND REGULATORY FRAMEWORKS The regulatory frameworks in the halal sector are complex, as they vary between regions and countries. Muslim-majority countries take a different approach from Muslim-minority countries, and regional frameworks, such as for ASEAN or the GCC, are also being developed, as are standards and frameworks for the 57 member states of OIC. The entire landscape of regulation of the halal market globally is constantly evolving. A major challenge in developing a regulatory framework for the halal market is to bring the halal F&B sectors up to the same levels of regulatory compliance as those pertaining to safety and quality in the mainstream food sectors. Generally, regulatory frameworks comprise the following elements: • Definitions, guidelines and standards • Auditing and certification • Accreditation Definitions, guidelines and standards The first internationally recognized definition of halal, from a market perspective, was prepared in 1997 by the Codex Alimentarius Commission, a body established by the Food and Agriculture Organization of the United Nations (FAO). This serves as a practical entry-level definition for general understanding, and is included in Appendix of this report. However, a deeper and more complex approach is required for market access. Some halal guidelines are applied, on a voluntarily basis, for domestic use in a given country for products that are not for export. These play a role when we come to consider the domestic halal markets of the Muslim diaspora, but are not the primary focus of this report. Halal food is a subset of the global food market. In general, the mainstream food sectors are very tightly regulated, with sophisticated and highly evolved systems for safety and quality created by developed nations. By comparison, the Figure 8: Mainstream food sector regulatory framework International accreditation organizations Peer reviews Standards development agencies Accreditation bodies Auditing & certification bodies Not yet functioning in halal sector, hence no supervision of certification bodies Producers Manufacturers Laboratories Retailers Food service Restaurants Traders Customers and product end-users
Chapter 4 – MARKET ACCESS AND REGULATORY FRAMEWORKS 25 regulations for the halal industries are considerably less developed, and bringing the regulatory frameworks for the halal sector into line with mainstream food industries has been a slow process. Most halal food is exported from Muslim-minority countries, and the general modus operandi has been to do the minimum that will enable the product to get to market. The need for more sophisticated regulatory frameworks has become apparent as the markets for halal products and services have matured. The various initiatives for halal standards development and certification plans have not been coordinated by any central governing body. This has resulted in a rather complex process of evolution with projects being developed at every level, from domestic Islamic organizations to national standards bodies, regional accreditation bodies and now global bodies. There are no clear hierarchies and no agreed methodology to guide this process. The gap between the levels of competence required, for example, by many ISO standards and the realities of regulating the halal food and beverage industries is often wide. The means of closing this gap today is a series of independent initiatives, rather than a coordinated collective effort. To simplify this diverse regulatory ecosystem, this report will approach the various regulatory frameworks using the following categorisation, and in each case using examples for clarification: • Multicultural country, government controlled (e.g. Malaysia) • Muslim-majority country, government controlled (e.g. United Arab Emirates) • Muslim-minority country, government controlled (e.g. Australia, New Zealand) • Muslim-minority country, non-government controlled (e.g. United States, United Kingdom) • Regional (e.g. European Committee for Standardization – CEN) • Global (e.g. Organisation of Islamic Cooperation – OIC) Multicultural As previously mentioned, halal standards and certification procedures were developed in Malaysia and other South- East Asian countries to ensure that the Muslim consumers would trust and accept food manufactured by non-Muslim producers. These standards, and the regulatory frameworks that accompany them, have for many years served as a benchmark for others. Malaysia, in particular, has developed a halal regulatory framework that covers domestic use, imports and exports. It is controlled and managed by the Malaysian government. Halal standards for food production, pharmaceuticals, cosmetics and logistics have been developed by the Department of Standards Malaysia. In the absence of a globally accepted standard, Malaysia’s standard for food, MS1500:2009, is regarded by many as a global benchmark, and forms the basis of many other standards.All audits and certificate issuance is carried out by the government’s religious department, widely known as JAKIM, which is the sole body responsible for regulating the country’s halal industry. It is also the body, in conjunction with the Department of Veterinary Services that determines which overseas HCBs are recognized by JAKIM and, by extension, which certificates are acceptable for products being imported into Malaysia. Figure 9: Regional variations in the halal market Regional variations in global halal market Multicultural (e.g. Malaysia, Singapore) Muslim majority (e.g. GCC countries) Muslim minority (e.g. United Kingdom, United States, France) • Mixed religion & culture • Well-established Muslim presence • Pioneered standards & certification • Consume & produce • Multinational presence • Local SMEs & microenterprises • Halal as economic driver • Halal as political platform • Traditional Muslim majority population • Halal low priority - assumed to be halal • Primarily consumers • Exporters target market • Slow to develop standards • Political support starting • Multinational presence • Developing local industry • Immigrant Muslim minorities • Political sensitivity • Halal as identity • Disposable income • High industry interest • Multinational headquarters • Consumer awareness • Marketing expertise • Innovation & creativity • Global influence
Page 1 and 2: From niche to mainstream Halal Goes
Page 3 and 4: From niche to mainstream Halal goes
Page 5 and 6: iii foreword BY ITC As the global l
Page 7 and 8: v ACKNOWLEDGEMENTS This report has
Page 9 and 10: vii Chapter 5: THE HALAL FOOD VALUE
Page 11 and 12: ix abbreviations AIO AMIC ANSI AQIS
Page 13 and 14: xi EXECUTIVE SUMMARY For anyone wit
Page 15: xiii Halal market - a force for goo
Page 18 and 19: 2 Chapter 1 - What is halal? What i
Page 21 and 22: Chapter 2 THE HALAL SECTOR How larg
Page 23 and 24: Chapter 2 - THE HALAL SECTOR 7 Key
Page 25 and 26: Chapter 2 - THE HALAL SECTOR 9 Natu
Page 27 and 28: Chapter 2 - THE HALAL SECTOR 11 Box
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Page 32 and 33: 16 Chapter 3 - DRIVERS OF HALAL FOO
Page 39: Chapter 4 MARKET ACCESS AND REGULAT
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Page 52 and 53: 36 Chapter 5 - THE HALAL FOOD VALUE
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Page 68 and 69: 52 Chapter 7 - ITC AND THE HALAL SE
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Page 72 and 73: 56 ANNEX ANNEX GENERAL GUIDELINES F
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Page 76: USD 35 ISBN 978-92-9137-429-8 Unite

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