Halal Goes Global

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Chapter 7 – ITC AND THE HALAL SECTOR
For many poor countries, developing the SME sector,
particularly in the food and other agro-based industries, is
a key to tackle poverty reduction. Investment in small and
medium-scale industries in the food sector serves many
purposes:
• Sustainable food supply. Most importantly, agricultural
development provides people with a local and sustainable
source of food that can have an immediate impact on
malnutrition and the associated health problems that
inevitably accompany it.
• Improved health. Access to good food will not only
reduce illness; by raising the general level of health
through proper nutrition, communities can function better
in every way, and take a proactive interest in their own
development and social welfare.
• Education. Including agricultural studies in rural
communities can generate real involvement in the
younger generation. Agricultural studies lead to related
subjects such as health, nutrition, science, engineering,
rural development and, of course, trade.
• Infrastructure. Agricultural development is naturally
linked with general infrastructure development. Improved
infrastructure provides water supplies that benefit
humans, livestock and plants; better roads and storage
facilities enhance trading opportunities to generate
income and jobs; and electricity enables agri-processing
industries to develop high value-adding businesses to be
developed by the local communities.
• Trade. If a community can develop sustainable agriculture,
its members can also become traders in food products.
If they are assisted in training and human resource
development, their efforts can be coordinated and further
developed to link them to global supply chains.
Harmonizing standards
IDB is strongly supportive of the Organisation of Islamic
Cooperation, and their related projects. Initiatives by SMIIC
to develop halal standards that can be acceptable to all
OIC members offers a genuine window of opportunity to
harmonize halal food standards globally.
Unified halal standards for food production can create a
strong foundation for this important new market and can
benefit people all over the world. The halal food market
is already an important meeting point for people of all
cultures and beliefs, and as it develops, there is a genuine
opportunity to bring enormous benefit enabling many lessdeveloped
countries to become useful members of this
emerging global trading community.
Developing industry
The development and support of small-scale food-based
industries and trading ventures can go hand-in-hand with
the provision of online tools and training, enabling SMEs and
even micro-business ventures to connect to global supply
chains.
The development of the agricultural sector, and the range
of industries that are connected to it, is an obvious target
for poverty reduction. Sub-sectors of the food industry with
potentially high value addition, such as further processing,
trading, storage and marketing are all areas that can have
a high impact on improving the living conditions of some of
the most vulnerable groups in society.
In particular, there is an opportunity for another kind of
collaboration between OIC members. The wealthier OIC
member countries import the vast majority of their food.
There is an opportunity to address their food-security
concerns and, at the same time, to relieve the endemic
poverty issues in the poorer member countries and in the
poorer rural regions. With more developed agriculture, the
poorer countries can export food products to their wealthier
neighbours, bringing benefit to all.