issues in halal food industry

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. This implies that foods are fit to be consumed and are completly safe. Among the issues are forged Halal certificate, the use of How blockchain can help combat ongoing fraud in the Halal food industry in SEA – e27. 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. E-mail: UK.certification@wha-halal.org, WHA SPAIN This could be achieved by identifying Haram Critical Control Points (HrCCPs) in each supply chain and logistics process in and across each intermediary, with proper development and implementation of a Halal Assurance System. 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. 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. “This means the potential of the halal industry still has huge room (for growth). To cater to the anticipated growth in the Halal food industry, Breach of Halal Certification is incorporated as a trigger event. According to the Japan National Tourism Organisation for instance, a majority of Muslim visitors to Japan are from South East Asian countries such as Indonesia, Malaysia and Singapore. Of course, there are challenges as well. WHA ITALY 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. 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. 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. Ph: +39 02 36 58 75 64 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. Current Issues on Halal Food Mariam binti Abdul Latif Department of Islamic Development Malaysia (JAKIM) 4 March 2006, MIFT. Between the growing Muslim population and the increasing affluence of Muslim consumers globally, the overall consumption for this segment has grown over the years. +44 7770 281 432 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. Other reasons that have resulted in halal product recall in Malaysia include processing conducted with non-halal requirements and usage of unapproved ingredients by the halal committee. Brexit and Coronavirus; two words which have the impact to severely affect the global halal food industry. With consumers socially distancing due to Covid-19, online grocery shopping has increased thus highlighting the importance of increased demand for halal products online. Mob. Given its intricacy, the integrity of the entire Halal supply chain is of utmost importance. Countries such as China and the US have faced this issue before. Given the intricacy of the halal food supply chain, the integrity of the entire supply chain is of utmost importance. 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. 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 recent cases and issues involving halal-certified products require the halal food industry to have a robust risk management practice. Since the 1980s, Malaysia was the pioneer in establishing Halal laws and remains a force in matters relating to halal certification globally. It has been stated that food makes up about 60% of the halal industry which includes primary meat, processed goods, bakery food, and confectionary. 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. Current Issues on Halal Food. E-mail: certification@wha-halal.org, WHA UK Twitter. 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. 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. The public are taking to social media to voice their concerns on the authenticity of genuine Halal food. Should any part of the supply chain be compromised, there could be significant impact to all businesses operating in the supply chain. Simultaneously, the halal industry contributes to societal development and national economic growth. 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. But with challenges come opportunities. 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. By. For Japanese restaurant chain Coco Ichibanya for instance, expanding into Southeast Asian markets with halal-friendly menu could be an engine of growth for them. Ph: +44 3300 570 855 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. Don’t miss this definitive halal awareness webinar, reserve your place now and discover the challenges and opportunities of a growing market! While sourcing of raw materials might seem a straightforward process, it is important for procurement personnel in Malaysian companies for instance, to be aware of the list of halal certification bodies (CB) recognized by the Department of Islamic Affairs Malaysia (JAKIM) and procure products which have been approved by the halal committee. 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. Singapore is one of the key player in the ASEAN region Halal industry besides Malaysia and Thailand. Global Halal Food Market To Hit US$2.1 Trillion By 2025, Cargill And Ecolab Advance Digital Innovation Across Agri-food With Techstars Farm-to-Fork Accelerator Class, Regional Plant Science Industry Urges Strong Partnerships To Address Asia’s Food Security, EQT Acquires Chr. 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. The foodservice industry’s prime responsibility to consumers is public health and safety. 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. 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. 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. 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. Consumers rely heavily on the Halal label on the product package as it communicates important cues of the halal-ness of the product (Hifza et al., 2010). The halal food experience could be viewed as one of the drivers of change in the industry. 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. 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. In 2018, the estimated consumption was USD2.2 trillion, and this is projected to reach USD3.2 trillion by 2024. Swiss Re Corporate Solutionshas recently launched a Contaminated Product Recall Insurance Product for the Halal Food and Beverage Manufacturers. Other opportunities include the digitalisation of the halal industry with an increased shift to meeting e-commerce demand due to the more and more consumers shopping online post-Covid-19. Facebook. Uncertainty has lowered the value of GBP (£) and may result in higher raw material costs for stakeholders in the industry-leading to less profitability. Another process within the halal certification that has been altered by social distancing is the auditing process for food safety and halal compliance. Ramadan, a time where sales rocket in the halal industry with revenue at restaurants dropping in the midst of the pandemic. Legal changes promoting Halal such as Indonesia’s ‘The Halal Product Assurance law no.13/2014’ will further promote global spend on food increase by 3.1% in 2019 from £844.4 billion to £874.37 billion and whilst Covid-19 will impact global growth in 2020, it’s expected to grow to £1.31 trillion at a 5-year CAGR of 3.5% by 2024. News Bureau - 01/06/2021. Halalis an important aspect of food selection as it is one’s part to obey religious obligations and commandments. 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. Halal issues on the use of blood in food products. With regards to Islamic branding and issue of halal certification manifested by halal logo or labeling of foods or products, it is clearly reflected in some studies that not all local companies in the food industry place the “Islamic†feature on their packaging and labeling of the products, perhaps owing to the multicultural nature of Malaysia (Syed & Nazura, 2011). As consumer demands increases, so would the need for F&B manufacturers to meet these demands. 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. Shariah Issues; Travel & Hospitality; Trends; Video Clips; Europe, Farm-to-Fork News, Halal Integrity, Halal Trade, Media & Events, Partner Events, Trends Webinar: Impact of Global Challenges on the Halal Food Industry . Conflict to decide the halal-ness of the product is a new concept worth being discuss in the context of halal food implementation and certification. 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. 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. 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. This is of paramount concern since any mishandling, contamination, or reported food-borne illness is guaranteed to be a major PR nightmare. The papers cover topics such as halal food, halal pharmaceuticals, halal cosmetics and personal care, halal logistics, halal testing and analysis and ethics in the halal industry. Google+. Halal in the food industry. This webinar will dive deeper into the digitalisation of the halal industry and the influences of halal claims on consumer behaviour. At the same time, halal logistics capabilities are critical in ensuring that the halal integrity of There has been an increase in remote auditing as a way to hurdle the challenge of lack of travelling to sites. 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. 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’. 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. E-mail: SPAIN.certification@wha-halal.org. During the manufacturing or packaging process, it is important that halal food manufacturers operate a separate production facility to prevent halal contamination. 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. The halal food industry has the potential to grow expeditiously especially when Islamic banks such as CIMB and Standard Chartered Saadiq, two of the largest Malaysian Islamic banks, have launched initiatives for the growth of Malaysia’s small and medium food enterprises. 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. For 2019, a total of 1,876 exporting companies of Malaysian halal products were recorded. Technology solutions to combat food fraud. This presents significant opportunities for businesses that are already operating in this space, as well as for those that have yet to do so. This paper attempts to review the issues and challenges of halal food implementation in Malaysia. Scope • Introduction • Basics in Halal Food • Current Issues on Halal Food – International Scenario – National Perspective – Consumer Perception – New Products • Conclusion . 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. In fact, among growth sectors identified for the halal food industry are ‘retail concepts’ and ‘halal products e-commerce’. This consumer trust will lead to an increase in sales and solidify brand recognition of a Halal-friendly company in any Halal sector. 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%. Academia.edu is a platform for academics to share research papers. 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