PROMOTING A NEW MARKET - halal Research Council

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Transcript PROMOTING A NEW MARKET - halal Research Council

THE INTERNATIONAL HALAL INTEGRITY ALLIANCE (“IHI ALLIANCE”)

HALAL CERTIFICATION: THE GLOBAL SCENARIO

BY DARHIM HASHIM, CHIEF EXECUTIVE OFFICER INTERNATIONAL HALAL INTEGRITY ALLIANCE AT ABU DHABI NATIONAL EXHIBITION CENTRE, UNITED ARAB EMIRATES NOVEMBER 11TH, 2008

CONTENTS

 Background of IHI Alliance  Assessment of Worldwide Halal Certification  Halal certification in OIC  IHI Alliance framework

International Halal Integrity Alliance formed

 Registered on the 30 profit, non-governmental, private-sector business association.

th April 2007, as an international, non  Created to serve as a platform for providing services to its members, representing their interests and to liaise with governments, organizations and business communities.

Islamic Chamber of Commerce & Industry

IHI Alliance forms strategic partnership with Islamic Chamber of Commerce & Industry (ICCI) IHI Alliance CEO Darhim Hashim (left) welcomes ICCI President Sheikh Saleh Kamel (right) on board as Chairman of the Board of Trustees

OIC (Organisation of Islamic Conference)

FINAL COMMUNIQUE OF THE ELEVENTH SESSION OF THE ISLAMIC SUMMIT CONFERENCE (SESSION OF THE MUSLIM UMMAH IN 21 ST CENTURY)

DAKAR – REPUBLIC OF SENEGAL 6-7 RABIUL AWWAL, 1429 H (13-14 MARCH 2008)

OIC Mandate

RESOLUTIONS ON ECONOMIC AFFAIRS ADOPTED BY THE THIRTY-FIFTH SESSION OF THE COUNCIL OF FOREIGN MINISTERS (SESSION OF PROSPERITY AND DEVELOPMENT) KAMPALA, REPUBLIC OF UGANDA 14-16 JAMADIUL THANI 1429H (18-20 JUNE 2008)

Structure under OIC

PRINCIPAL REPRESENTATIVE OF OIC ON HALAL Global Halal Standards Authority

Programmes of IHI Alliance

   Halal standards and certification system  Harmonize the halal standard and certification system worldwide by setting guidelines and best practices Education and Promotion  Create awareness and provide information   Train professionals and develop human capital Brand Halal as the standard of choice Research & Development  Develop knowledge base supported by scientific validation   Set up R&D infrastructure to resolve new issues Provide innovative solutions that can be commercialised

No unified Halal Standards

         The Halal market is global… BUT Halal has different meanings in different countries In most countries, Halal certification is an unregulated ‘cottage’ industry Australia has 25 different agencies France has over 30 Many Muslim-majority countries have no certification at all There is no authority, and no leadership, and too many questions remain unresolved Problems for industry & consumers Questions over integrity

Results

Number of Halal Certification Bodies by Region

SOUTH AMERICA 4% ASIAN 16% NORTH AMERICA 19% AFRICA 4% EUROPE 23% AUSTRALASIA 34%

Total of 34 countries surveyed :107 Organisations

Halal CB’s: Various Structures

1. Islamic/ Muslim Association 2. Certification body under an Islamic/ Muslim Association 3. Mosque/ related to a specific mosque 4. NGO or Group/ Private initiative 5. Semi government/ Government-related

Halal CB’s: Various Revenue Models

1. Per MT/ per quantity of product (litre, kg, etc) 2. Per company 3. Per container 4. Combination of any of the above

Observations: What does it take to be an approved Halal CB?

1. Even in neighboring countries such as Indonesia & Malaysia, the list of approved Halal CB’s are different.

2. There is no unified standard in approving any Halal CB’s.

Asia:

No of CB’s approved by Indonesia & Malaysia

18 16 14 12 10 8 6 4 2 0

17

Total

16

Indonesia

14

Malaysia

Australasia (Australia & New Zealand):

No of CB’s approved by Indonesia & Malaysia

15 10 5 0 40 35 30 25 20

37

Total

14

Indonesia

14

Malaysia

Europe:

No of CB’s approved by Indonesia & Malaysia

25 20 15 10 5 0

25

Total

11

Indonesia

9

Malaysia

America:

No of CB’s approved by Indonesia & Malaysia

25 20 15 10 5 0

24

Total

8

Indonesia

6

Malaysia

Total CBs Certified by Malaysia & Indonesia

22 Malaysia 24 overlap Indonesia 16

Results: CB’s with Website

No 55% Yes 45% Total= 107 Organisations

“Murky Business”

Observations & facts:  Many CBs are not contactable  Some CBs agreed to “sell” certificates  Pricing and fees of many CBs not transparent

OIC Member Countries

53 52 11 27 29 28 26 30 36 32 31 33 34 35 38 37 40 39 42 41 43 45 44 1 25 46 10 22 24 23 21 9 49 12 4 17 13 14 15 19 20 18 3 2 6 5 7 8 48 16 47 50 51 54 55 56 57

LEGEND : 1. Kazakhstan 2. Uzbekistan 3. Turkmenistan 4. Iran 5. Pakistan 6. Af ghanistan 7. Tajikistan 8. Ky rghy zstan 9. Azerbaijan 10. Turkey 11. Albania 12. Iraq 13. Kuwait 14. Bahrain 15. Qatar 16. Maldiv es 17. Saudi Arabia 18. Y emen 19. UAE 20. Oman 21. Sy ria 22. Lebanon 23. Jordan 24. Palestine 25. Egy pt 26. Liby a 27. Tunisia 28. Algeria 29. Morocco 30. Mauritania 31. Senegal 32. Gambia 33. Guinea-Bissau 34. Guinea 35. Sierra Leone 36. Mali 37. Burkina Faso 38. Cote d'Iv oire 39. Togo 40. Benin 41. Nigeria 42. Niger 43. Cameroon 44. Chad 45. Gabon 46. Sudan 47. Uganda 48. Somalia 49. Djibouti 50. Mozambique 51. Comoros 52. Suriname 53. Guy ana 54. Bangladesh 55. Malay sia 56. Brunei Darussalam 57. Indonesia  OIC Member Countries

Map 2.1 : OIC Member Countries

OIC Scenario

Total of 57 Member Countries:  Combined population of 1.45 billion  Represents >90% of world’s Muslims  Overall net importers of food products

OIC Scenario

 Total import= 2.84 million MT of meat, 2008 (p) Lamb & Mutton 10% Beef 29% Poultry 61%  certified halal = ?%

Total Poultry Meat

Total Beef/ Veal

Total Mutton/ Lamb

Breakdown of Total Poultry Imports in OIC Countries

GCC 67.50% Others 24.03% AMU 0.67% ECO 7.72% COMESA 0.09%

Breakdown of Total Beef/ Veal Imports in OIC Countries

Others 37.47% GCC 25.88% COMESA 20.51% ECO 14.71% AMU 1.42%

Breakdown of Total Mutton/ Lamb Imports in OIC Countries

Others 26.52% AMU 1.53% COMESA 1.56% ECO 8.54% GCC 61.85%

OIC Countries

Out of 57 Member Countries:  Less than Five (5) have Halal CBs  Less than half have Halal import regulations  No country has domestic Halal Act

Some observations

1. Halal-related legislation exists in non-OIC countries, such as some states in the USA, Australia, etc; 2. Some regulations pertaining to technical aspects and implementation, such as Slaughter-men exist in non-OIC countries e.g. Australia and New Zealand

Development of Global Halal Standard

NATIONAL SOVEREIGNITY SHIA’ Science MALIKI Shariah HANAFI HANBALI SHAFII’ Ummah Industry

Four main challenges 1.

Getting consensus from industry and government 2.

Harmonising certification bodies 3.

Overcoming unresolved issues 4.

Sharing of basic infrastructure

1 st challenge: Getting consensus  Getting consensus from industry and government:  Dichotomy of interests (consumer vs industry)   Secular vs Dogmatic Cost management

2 nd challenge: Harmonising  Certifying Bodies – Benchmark standards (e.g. ISO/IEC Guide 65)  Incorporate Tayyiban into the standard  Food safety measures (HACCP, GMP)     Food safety & quality management (BRC, SQF, IFS, ISO22000, ISO9001) Fair trade - ensuring fair transactions Islamic finance Developing halal policy within each organisation        Establishing in-house halal committee Waste Management & Environment care (ISO14000) Continuous education and training on halal matters Workers health & safety (OHAS18001) Animal welfare Corporate social responsibility (SA8000, BSCI, FLA) Traceability system

3 rd challenge: Resolving critical issues  Overcoming unresolved issues    Stunning Mechanical slaughter Doubtful raw ingredients

4 th challenge: Collaborating  Sharing of basic infrastructure  Halal testing labs   Training schools – auditors, managers, skill workers etc.

Promotion and marketing tools  Mutual recognition

Moving Forward  Engage with the stakeholders  Consumers – the Ummah  Industry – manufacturers, distributors, wholesalers, retailers     Certification bodies Governments & authorities of Multilateral Institutions (e.g. EU) Institutions of higher education Leading Islamic scholars  Develop the draft standards  Divide up the standard into 10 modules   Invite countries to become secretariat for Technical Committees of each module Map out timeline Draft standard to be ready by May 2009 for start of public enquiry period, insyallah

Strength in Unity

THANK YOU

DARHIM HASHIM International Halal Integrity Alliance Ltd.

[email protected]

www.ihialliance.org