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. 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. E-mail: UK.certification@wha-halal.org, WHA SPAIN 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%. The issue of food fraud is not new, globally. As consumer demands increases, so would the need for F&B manufacturers to meet these demands. 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. 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. The halal food experience could be viewed as one of the drivers of change in the industry. Between the growing Muslim population and the increasing affluence of Muslim consumers globally, the overall consumption for this segment has grown over the years. 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. The example is one where the processing aid is removed from the product after serving its purpose. 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. Should any part of the supply chain be compromised, there could be significant impact to all businesses operating in the supply chain. Singapore is one of the key player in the ASEAN region Halal industry besides Malaysia and Thailand. If you continue to use this site we will assume that you are happy with it. This webinar will dive deeper into the digitalisation of the halal industry and the influences of halal claims on consumer behaviour. Academia.edu is a platform for academics to share research papers. 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’. 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. Mob. There are many food products that have high tendency to be incorporated with blood. 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. Other issue is the usage of Halal certification logo toward industry, rectify halal-ness have also been extensively reviewed. Another less benign example, which may pose issues for the production of halal, kosher, vegetarian, and vegan foods occurs in the beverage industry. 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. Simultaneously, the halal industry contributes to societal development and national economic growth. 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. Google+. Swiss Re Corporate Solutions has recently launched a Contaminated Product Recall Insurance Product for the Halal Food and Beverage Manufacturers. 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. With advancements in technology, companies can now have the option of using fungal rennet as a substitute in halal-certified products. In fact, among growth sectors identified for the halal food industry are ‘retail concepts’ and ‘halal products e-commerce’. Given its intricacy, the integrity of the entire Halal supply chain is of utmost importance. 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. We use cookies to ensure that we give you the best experience on our website. Since the 1980s, Malaysia was the pioneer in establishing Halal laws and remains a force in matters relating to halal certification globally. One of the most pressing issues in the foodservice industry is food safety. By. It has been stated that food makes up about 60% of the halal industry which includes primary meat, processed goods, bakery food, and confectionary. Given the intricacy of the halal food supply chain, the integrity of the entire supply chain is of utmost importance. Recently, halal authenticity issue became a major concern in the halal food industry. 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. 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. 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 … Halal in the food industry. 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. The Halal Monitoring Committee would like to make the public aware of the ongoing issues within the Halal industry. In 2018, the estimated consumption was USD2.2 trillion, and this is projected to reach USD3.2 trillion by 2024. In this case, pig and cattle blood are most often used. E-mail: SPAIN.certification@wha-halal.org. This implies that foods are fit to be consumed and are completly safe. These are the materials that manufacturers use to clarify fruit juices, for example, they are added to remove tannins. 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. WHA receives the certificate of renewal of recognition from the ESMA-Emirates Authority for Standardization and Metrology. 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. From Asia to America, the Halal food sector is becoming a major source of growth in both the Islamic and wider global economy. 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. Eventhough Singapore is only consist of 14.3% of Muslim population but their halal industry is rapidly catching up in being a globally recognized 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. There is a continuing struggle for Halal food standards and accreditation, with more education required of such topics in OIC countries. 0. Concepts of halal have been discussed in terms of definitions, and scopes have also been established. In Halal food, scandal buyers have no idea the meat is not halal, unsafe, and are putting their health at risk. 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. To cater to the anticipated growth in the Halal food industry, Breach of Halal Certification is incorporated as a trigger event. 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 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. 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. 1. 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. There has been an increase in remote auditing as a way to hurdle the challenge of lack of travelling to sites. Of course, there are challenges as well. 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. Halal issues on the use of blood in food products. This paper attempts to review the issues and challenges of halal food implementation in Malaysia. The recent cases and issues involving halal-certified products require the halal food industry to have a robust risk management practice. But with challenges come opportunities. 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. World Halal Authority (WHA) – International Halal Certification Body – now landing in the UK. Brexit and Coronavirus; two words which have the impact to severely affect the global halal food industry. How blockchain can help combat ongoing fraud in the Halal food industry in SEA – e27. This presents significant opportunities for businesses that are already operating in this space, as well as for those that have yet to do so. 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. The public are taking to social media to voice their concerns on the authenticity of genuine Halal food. 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. 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. 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). The foodservice industry’s prime responsibility to consumers is public health and safety. 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 . 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. Technology solutions to combat food fraud. 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. 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. “This means the potential of the halal industry still has huge room (for growth). 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. 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. Current Issues on Halal Food. 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. 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. Twitter. 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… During the manufacturing or packaging process, it is important that halal food manufacturers operate a separate production facility to prevent halal contamination. E-mail: certification@wha-halal.org, WHA UK 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. 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. +44 7770 281 432 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. 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. Halal food market generates $1.2 trillion in consumption and OIC markets become a great opportunity for European companies. WHA è un Organo internazionale di Certificazione Halal indipendente e un’Autorità riconosciuta da moltissime Organizzazioni e Autorità nel mondo. This paper analyses the competitiveness of the halal food 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 … Among the issues are forged Halal certificate, the use of Indonesia for instance, requires all food products that are imported, distributed and sold in the country to be halal certified. 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. WHA ITALY Ph: +39 02 36 58 75 64 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. 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. 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. At the same time, halal logistics capabilities are critical in ensuring that the halal integrity of Among halal issues that arisen are including improper hygienic practice at processing premises and also the expiration of halal certification. 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. 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. 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. Ramadan, a time where sales rocket in the halal industry with revenue at restaurants dropping in the midst of the pandemic. 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. Don’t miss this definitive halal awareness webinar, reserve your place now and discover the challenges and opportunities of a growing market! 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