HALAL FOOD IN THE GLOBAL MARKET: BENEFITS, CONCERNS AND CHALLENGES

 

Dwiyitno

Researcher at Agency for Marine & Fisheries Research, Jakarta

MSc Student on Food Science, Technology & Nutrition, Gent-Belgium

E-mail:  dwiyitno@yahoo.com

 

 


ABSTRACT

 

The demand of halal food is increasing as the growing of Moslem population. Knowledge of the halal dietary laws is important to the Muslim populations who observe these laws and to food companies that wish to market to this population and to interested consumers who do not observe these laws. Generally all things created by God (Allah) are permitted, with a few exceptions that are prohibited. In term of meat, those exceptions include pork, blood, meats of animals that died of causes other than proper slaughtering. The basic reasons for the prohibition of things are due to impurity and harmfulness. Basically, halal requirements are in accordance with the conventional quality standards (ISO, HAACP, Codex, GHP, etc). Therefore halal products are typically also viable for non-Muslim consumers. With a population more than 1.6 billion, the halal food demand is estimated US$ 550 billion/year. The increase of global meat demand is affected by the increasing population, increasing meat consumption and may also by the decreasing meat price. Requirements for meat exporters to provide halal certificate arise to the growth of halal meat supply. The unified standard of halal certification is important to globalize halal products as well as for consumer convenience.

 

Keyword: halal food, Islamic law, meat, market

 

 

1.       Introduction

 

In connection with religion, there are some rules associated with food, especially from animal origin, which are accepted to consume. Traditionally, Hindus are prohibited to kill cattle and eat any products related to beef and its derivatives. Vegetarian is suggested to Buddhism, while Seventh Day Adventists has also dietary restrictions. Nevertheless, Jewish and Muslims have the relatively similar law concerning to the permissible animal to eat as they are not permitted to consume pork and its products. The permissible food for Muslim calls as halal, while kosher associates with clean food for Jewish community (Codex, 1997; Regenstein, et, al., 2003).

 

Hundreds of millions of people around the world live according to halal laws. Their numbers are growing, from China, to Central Asia, to the Middle East, Africa, and Europe. Recently, Islam is the second largest religious group (after Christians) in the world. Base on the recent data, the number of Moslem population is estimated more than 1.6 billion (+25% of world population), which the majority domesticates in Asia (66.7%) (Table 1). Muslims are also known as the most growing population by over 235% (in 1989-1998), compare to Christians (47%), Hinduism (117%), and Buddhism (63%). By 2010, with the growing rate 2%/year Moslem population is projected approximately 3 billion (+30% of world population) (Anonim, 2005; 2007).

 

Following halal rules in a world that remains largely oriented to non-Muslim consumers can be difficult for Moslem. Since Islamic law considers a very strict rule for halal product, it frequently barriers Moslem to consume conventional (questionable) food, especially for prepackaged and processed foods. On the other hand, the availability of halal food in the market is still less than the demand as the growing of Muslim population. Total halal food in recent trade is estimated US$ 150 billion/yr. This amount is much less than the demand of approximately US$ 550 billion/year (Egan, 2002; Anonim, 2007).

 

Table 1. The Distribution of Muslim Population

 

Continent

Population

(million)

Muslim Population

(million)

Percent

Asia

3,921.0

1,043.7

26.6

Africa

906.0

461.8

51.0

Europe

727.4

51.2

7.0

North America

329.0

6.6

2.0

South America

559.0

1.6

0.3

Oceania

33.0

0.4

1.2

Total

6,475.4

1,565.3

24.2

Source: Anonim (2005)

 

Increasing awareness of Muslim consumers worldwide on halal food is the main factor affecting the growing of halal products in the market. Today, around 1000 halal products are available within the U.S. market. This number is not comparable to kosher products which have established widely. Technology of information also contributes significantly to ease the consumer access any information regarding halal products. This review focuses on the basic knowledge of halal foods and their current status, particularly associated with meat and meat product. Understanding the importance of halal food for Moslems is also essential to evaluate the market opportunities in the global market. The purpose of this article is to overview a better understanding of the concept halal and how halal applies to not only for Muslims but also to non-Muslim community.

 

2.       Basic Concept of Halal Food

 

Originally, there are two terms associated with Islamic permissible food: halal (clean) and toyyiban (wholesome/good) (Qur’an II:168). The word halal means lawful and permitted by Islamic law. Basically, halal food not only associated with spiritual aspect (ritually clean), but also physical aspect (wholesome, clean, safe, healthy, nutritious). Opposite to halal is haram, which means unlawful or forbidden. Therefore, Moslems typically only consume healthy and proper foods that are permitted by Islamic law.

 

Basically, four types of foods have been considered as haram (unlawful) for Muslims. Those prohibited foods according to the Holy Qur’an (Al Baqarah:173) are: 1) The flesh of a dead animal (carrion), 2) Blood and blood by product, 3) Pig meat and its derivatives, and 4) Meat from any animal on which the name of someone other than Allah (God) was invoked when it was slaughtered. Whereas animals permitted for human consumption under Islamic law include: cattle, sheep, goats, camels, deer, poultry, etc. Carnivorous animals and predators are not permitted, while permissible animals must be slaughtered in accordance to Islamic law. Intoxicants of any kind (alcohol, drugs etc.) are prohibited for Muslims to consume, even in small quantities. By implication, any product derived from the above prohibited food and drinks or any food containing ingredients from them will also be unlawful. Originally, fish, seafoods, grains, fruits and all vegetables which have no harmful effect are halal. The rules for those foods that are not specifically prohibited may be interpreted differently by various scholars. Essentially, the things that are specifically prohibited are just a few in numbers (Regenstein, et, al., 2003).

The basic reasons for the prohibition of things are due to impurity and harmfulness. The habitual consumption of haram foods may also affect the exhibition of impure spirit, unsound mind, impairment of personal character and unhealthy body. Intoxicants are considered harmful for the nervous system, affecting the senses and human judgment, leading to social and family problems and in some cases even deathly. What is permitted is sufficient and what is prohibited is then superfluous. People can survive and live better without consuming unhealthful carrion, unhealthful pork, and unhealthful blood. Basically, God prohibited only things that are unnecessary or dispensable while providing better alternatives (Regenstein, et, al., 2003).

 

3.       Stunning and Slaughtering

 

Slaughtering is the crucial step in producing halal meat. Islamic law requires that animals intended for human consumption be slain in a certain manner. The conditions for halal slaughter can be summarized as follows (Zakir, 1994; Regenstein, et. al., 2003; AFIC, 2004; IFI, 2007):

1.       The animal to be slaughtered must be from the categories which are permitted by Islamic law.

2.       The animal must be alive and healthy at the time of slaughtering.

3.       Slaughtering must be done by a sane adult Muslim.

4.       Electric shock/stunning by bullet or any other means should not be used prior slaughtering.

5.       The animal must be slaughtered by the use of a sharp knife. The knife must not kill due to its weight otherwise the meat may not be permissible.

6.       The name of Allah must be invoked (mentioned) at the time of slaughtering.

7.       Slaughtering must be made in the neck from the front (chest) to the back. The throat, esophagus and the two jugular veins must be cut. The head of the animal must not be cut off during slaughtering but later after the animal is completely dead and bleed.

8.       Skinning or cutting any part of the animal is not allowed before the animal is completely dead.

9.       The slaughtering must be done manually not by a machine as one of the conditions is the intention which is not found in a machine.

10.    The slaughtering should not be done on a production line where pigs are slaughtered. Any instrument used for slaughtering pigs should not be used in the halal slaughtering.

 

Since Islamic law believes that animals have also their own right, spirit, instinct, consciousness, they should be killed in a comfortable way. Water should be offered to the animal before slaughter, and it should not be slaughtered when hungry. The knife should be hidden from the animal, and slaughtering should be done out of sight of other animals waiting to be slaughtered. In conclude, unnecessary suffering to them must be avoided (Zakir, 1994; IFI, 2007).

 

Stunning an animal prior to slaughter is a controversial issue. Not only violates the animal welfare, stunning is also associated with unhealthy, low quality meat as well as resulting non-halal product. The common stunning techniques are: 1) The captive bolt pistol for cattle, calves and goats, 2) Carbon dioxide (CO­2) or Argon gas (chemical strangulation) for pigs, 3) Electrical stunning for sheep, and 4) Electrified water bath for poultry (chicken and turkey). Direct slaughtering (without stunning) is considered painless at the time of death and after the cut, because of the huge haemorrhage induced by cutting the jugular veins in the neck. As the cut is made, blood pressure drops rapidly, so that the brain is instantaneously deprived of its normal blood supply. Basically, any kinds and any reasons of stunning can not be accepted by Islamic law (El-Awady, 2003; IFI, 2007).

 

The adverse effect of stunning can be attributed to the low quality of meat after slaughtered. Stunning that does not kill the animal may resulting stress prior slaughtered. Consequently, meat from the stress animal will express unfavorable quality such as dark, firm and dry (DFD) or pale, soft, and exudative (PSE) due to reducing glycogen prior to slaughter which resulting lack of lactic acid on the tissue. The economic lost resulted by DFD or PSE might be up to 40% (Schaefer, et. al., 2001; Berg, 2007; IFI, 2007).

 

Stunning is not only unnecessary but also cruel to the animal, and moreover affects the draining of blood from the carcass thereby producing inferior quality meat. It is estimated that one third of chicken die before slaughter. This fact tent to lead the new method of stunning by killing before slaughter, which means the meat is less healthy, as more blood stays inside the carcass. Captive bolts may also cause blood splash into muscles and more harmful blood stays inside the meat. Retained blood in meat is a major cause of food poisoning and infections (IFI, 2007).

 

4.       Halal Requirements and Healthy Life

 

It is widely believed that the Islamic dietary laws are based on health reasons that suggest impurity or harmfulness of prohibited foods. Carrion and dead animals, for example, are unfit for human consumption because the decaying process leads to the formation of chemicals harmful to humans. Blood that is drained from an animal contains harmful bacteria, and toxins. Swine serves as a vector for pathogenic worms to enter the human body. Infections by Trichinella spiralis and Traenia solium are common (Regenstein, et, al., 2003). Cross contamination halal product by non-halal materials must be strictly avoided to ensure the hygiene of the halal products.

 

Scientific and medical research prove that stunning animals prior to slaughter is painful as many animals remain conscious and paralyzed due to improper stunning, re-stunning, bone shattering, suffocation, strangulation, bruising, depressed skull fracture, etc. A stun gun used on cattle before slaughter may send brain tissue scattering throughout the animal, which could provide a route for bovine spongiform encephalopathy (BSE) or madcow disease to spread to either humans or other part of animal carcass. On the other hand, using any such method may lead to the death of the animal before it is slaughtered. Islam prohibits Muslims from eating any meat coming from an animal which is dead prior to slaughter. For that reason, Egypt, Pakistan and Saudi Arabia don't allow poultry to be given electric shocks before slaughter, while Malaysia permits non-lethal stunning. Slaughtering without stunning is also permitted for religious purposes, both for Islam and Jewish, in UK, Germany and EU (93/119/EC) (El-Awady, 2003; Mukherjee, 2006).

 

As in many countries are becoming increasingly concerned about rising health care costs associated with preventable diseases, Islamic law has established the preventable way of particular diseases by forbidding any harmful substances. Basically halal requirements meet the conventional quality standard, such as ISO, Codex Alimentarius, Hazard Analysis and Critical Control Point (HACCP), Good Hygienic Practice (GHP), etc. Additionally, implementing halal requirement will produce the better quality products compare to those that only implement conventional standard. Therefore, halal products basically not only subjected for Muslim consumers, but also appropriate for non-Muslim community.

 

5.       Halal Products

 

As Moslems are prohibited to eat any products associated with pork and its derivatives, it is essential to understand alternative products to substitute those non-halal ones. Such names as bacon, ham, gammon steaks and rashers are known as haram, while all types of sausages, including beef sausages, contain pork and therefore are also forbidden. It is also widely known that most ingredients available in the market are derived from pig and it by products. Foods containing animal fat, lard, shortening, or just fat are not suitable to be eaten by Muslims. Conversely, foodstuffs containing vegetable oils, vegetable shortening, and of course butter are safe to eat. Margarine is often made from animal fats otherwise stated (IFI, 2007). Originally, any products derived from permitted animal and plant origin are halal. Table 2. presents such non halal food and its alternative halal products to substitute.

 

Tabel 2. Some Non-Halal Meat/Meat Products and the Alternatives for Muslim

Category

Non-halal products

Alternative Product

Fresh meat

·    Pork/swine

·    Beef, goat, sheep, turkey, chicken, etc.

Processed meat

 

·    Bacon

·    Ham

 

·    Sausage

 

·    Salami

·    Beef/chicken bacon

·    Chicken/turkey/beef ham

·    Beef/chicken sausages

·    Beef frankfurter's

Ingredient

 

·    Animal fat

·    Shortening/emulsifier

·    Rennet

·    Gelatine

 

·    Vegetable fat

·    Lecithin

·    Vegetable enzyme

·    Fish/beef gelatine, vegetable gum, carrageen, alginate

 

It is widely recognized that cross contamination halal product by non-halal materials must be avoided. Contaminated product with a small part of non-halal ingredient will result non halal product. Contamination could exist during processing, storing, or transporting of the products. Meat chilled or frozen for export to Muslims should be stored in separate cold storages where pork or other non-halal meat is stored. Meat minced or processed for Muslims should not be minced in the same machines used to mince pork or other non-halal meat (Codex, 1997; IFI, 2007).

 

6.       Prospect of Halal Food in the Global Market

 

As the growing of kosher market, global awareness on halal product is increasing. It implies the growing availability of halal product in the market. For example, in the recent years about 1,000 halal products are available in the U.S. market. This number is of course not comparable with kosher product which available more than 70,000 products. Consequently, many U.S. Muslims are buying kosher products because halal products are not being offered. Muslims account for 16 percent of the $100 billion-a-year U.S. kosher market (Regenstein, et. al., 2003; Mukherjee, 2006). Today, halal food including meat and meat products is also available at Muslim shops in several Western countries from Australia, New Zealand, Canada to European countries (Anonim, 2006; Hardgrave, 2007; IFI, 2007).

 

International concern contributes remarkably in developing global awareness on halal products. Even though in some countries halal products have established in 1970s, the global trend of halal awareness popped up in 1990s. World Halal Food Council (WHFC) responsible as an important hub in unifies global understanding regarding halal principal. WHFC has established several international events, such as symposium, forum, expo and seminar, in order to provide the better understanding regarding halal products. Nevertheless, not only governments of Muslim majority countries, such Muslim minority countries widely support the growing halal awareness by existing Halal Accreditation Authorities.

 

7.       Halal Accreditation Scheme

 

In the recent years, at least 40 halal accreditation authorities have established in 24 countries. Australia is found as the first country established halal authority in 1970s. Singapore then established halal certificate in 1976, while Malaysia in 1982. Today, 24 halal certificate authorities are established in 13 different states within Australia. Halal accreditation authority is also established in the New Zealand, U.S., Canada, Brazil, Argentina, UK, Germany, France, Ireland, Singapore, Indonesia, Malaysia, China, Japan, Hong Kong, Brunei, South Africa, Egypt and Morocco (JAKIM, 2006). Traditionally, the member of halal authority is locally Muslim institution, while in some country also collaborated with government institution. Basically, halal accreditation authority responsible in monitoring halal products in the market as well as supervising in issuing halal certificate to the manufacturer including meat plant.

 

Typically, halal accreditation procedure is not different to the conventional quality standard, and even from country to country. The process is started with application from the company/manufacturer to propose the halal certificate. Halal authority auditors response the proposal by inspection/auditing to the company/plant. If necessary, such samples are needed for the laboratory test. The report of the inspection/audit will be evaluated by the halal certificate panel regarding to halal requirements. If everything meets the halal requirement, the certificate will be issued as the company may exist the halal logo on the packaging (Girindra, 2005; Anonim, 2006; JAKIM, 2006; Hardgrave, 2007). Figure 1 shows the halal accreditation procedure in Malaysia. The Malaysian model has been regarded as the role model for the development of world halal food industries.

 

       

  

Fig. 1. Malaysian’s Halal Accreditation Procedure

 

Halal certification is voluntary, as also existed for any conventional quality standards, such as ISO, HACCP, Codex, GMP, etc. Yet, while conventional quality standards present globally, halal standard is regulated locally. On the other word, different country may provide different requirements on the halal standard. Halal logos used on the packaging may also differ among different countries that make less convenience to the consumer. Therefore, establishing the globally standard is essential to convince the world-wide consumers.

 

Halal certification, for meat and meat products in particular, is developed with regard a total quality health and sanitary system which involves adopting procedures for slaughtering, processing and other related operations as prescribed by Islamic rules. It certifies raw materials, ingredients and products based on quality, sanitary and safety considerations. In addition to meeting halal requirements, food producers are encouraged to adopt and maintain standards that meet global benchmarks such as ISO 9000, Codex Alimentarius, HACCP, GHP and Sanitation Standard Operating Procedures (SOPs) (Mukherjee, 2006).

 

Halal accreditation is known beneficial not only to consumers but also to manufacturer /producers as well as the government/authority. Halal certification convinces Muslim consumers on products they purchase and consume. Furthermore, halal certificate may protect consumers from deceptive and fraudulent, while non-Muslim consumers may also get benefit from the high quality products. For that reason, halal products, of course, are profitable by improving their competitiveness and marketability. For the government and halal authority, halal accreditation is an effective tool to monitor halal products in the market as well as supervising their production, during storing and transportation (Mukherjee, 2006; Shaleh, 2006). Therefore, collaboration and better understanding among involved institutions is essential (Figure 2).

 

Fig.2. Halal Certification Framework (Shaleh, 2006)

 

8.       Market Opportunities of Halal Meat and Meat Products

 

With a Muslim population more than 1.6 billion, and based on the estimated expenditure per capita for food of US$0.85/day, it is estimated that the market for halal products is US$ 550 billion/year. Conversely, halal food trade in the recent market is only US$ 150 billion/year (Egan, 2002). As the many of the countries have significant Muslim community, Asia becomes an important market for halal food that contributes more than 60% of total marketplace (Table 3). Indonesia and India are known having predominantly Muslim population in the world. Generally, the  major global halal food products are being imported from countries such as Australia, New Zealand, Ireland, the United States, U.K., Brazil and Canada (Anonim, 2006).

 

Meat and meat product remains the major source of protein. Additionally, world meat production and trade is still slightly increasing. World meat production in 2005 and 2006 is 269.1 and 275.7 million tons respectively. The production in 2007 is projected 285.3 million ton (increase 3.1%). The main countries in meat production are U.S., Australia, Brazil, Argentina, Canada, New Zealand, Ireland, China, France, and former USSR countries. Global meat consumption is also increasing either in developed countries or developing countries. Meat consumption average in 2005 and 2006 is 41.7 and 42.2 kg/cap/year respectively. This amount is estimated increase to 43 kg/cap/year in 2007. In contrast, meat price slightly decreased in 2006 compared to 2005. Base on FAO index, average of meat price in 2005 and 2006 is 121 and 115 respectively (FAO, 2006)

 

Table 3. Estimated Annual Market Size for Halal Food (2005)

 

Continent

Population

(million)

Muslim

(million)

Food Expenditure (US$/cap)

Market

Size

(US$

million)

Asia

3,921.0

1,043.7

350

365,299

Africa

906.0

461.8

200

92,360

Europe

727.4

51.2

1,500

76,800

N. America

329.0

6.6

1,750

11,550

S. America

559.0

1.6

500

800

Oceania

33.0

0.4

1,500

600

Total

6,475.4

1,565.3

NA

547,409

 

 

 

Table 4. Imports of Meat by Type & Country in 2003 (Metric Ton)

 

Country

Bovine Meat

Mutton

& Goat

Pig

Poultry

Total

S. Arabia

72,248

54,891

NA

401,366

529,688

UEA

19,039

23,871

6,318

158,749

208,236

Malaysia

120,789

11,671

8,248

40,709

181,555

Egypt

117,616

334

97

89

118,154

Kuwait

5,551

4,628

NA

78,608

88,992

Algeria

47,637

3,040

136

1,239

52,060

Iran

42,164

0

2

5,175

47,340

Indonesia

15,300

476

3,570

669

20,521

Brunei

293

308

1,719

1,101

3,440

Morocco

851

38

70

1,995

2,958


 


The global trade of meat in 2006 is 20.7 million tons and projected increase 6.7% to 22 million tons in 2007. Specifically, total halal meat trade is approximately 5 milion tons/year. This number is estimated from total meat trade within main countries with predominant Muslim population and other countries, which have Muslim population, including Europe and America. Total halal meat imported by main Muslim countries is estimated 1.25 million tons/year (Table 4). Brazil, Argentina and Ireland contribute 51.08%, 17.2% and 6.12% respectively, mainly on bovine meat market supply. Additionally, New Zealand and Australia are the main exporter of mutton and goat that contribute 10.35% and 6.47% respectively, while France is the main supplier of poultry (FAO, 2006; Anonim, 2007).

 

In many countries, halal requirement has become necessary for products to be imported. Therefore halal certificate is important for countries that export such meat and meat products to Muslim countries. Halal trading has also affected the requirement of appropriate transport facilities. For that reason, the Rotterdam Port for instance, responses to position as the Halal Gateway to Europe. About three million tons of halal meats are consumed annually in that region. As part of its plans, Rotterdam port is building a dedicated warehouse for halal products to meeting the exact religious requirements (Mukherjee, 2006).

 

9.       Conclusion

 

To most non-Muslims, halal just means no pork, while for Muslims, halal is a way of life. In general, every food is considered lawful in Islam unless only few which are prohibited by islamic law. In term of meat, those exceptions include pork, blood, meats of animals that died of causes other than proper slaughtering. The basic reasons for the prohibition of things are due to impurity and harmfulness.

 

Basically, halal requirements are in accordance with the conventional quality standards (ISO, HAACP, Codex, GMP, etc). Implementing halal requirements will produce the better quality products compare to those that only implement conventional standard. Therefore, halal products basically not only subjected for Muslim consumers, but also appropriate for non-Muslim community. Halal accreditation is essential for convincing Muslim consumer from deceptive and fraudulent. Halal certification is also profitable to increase the marketability & competitiveness of the products.

 

The demand of halal food is increasing as the growing of Moslem population. With a population more than 1.6 billion, the halal food demand is estimated US$ 550 billion/year. The increase of global meat demand is affected by the increasing population, increasing meat consumption and may also by the decreasing meat price. Requirements for meat exporters to provide halal certificate arise to the growth of halal meat supply. The unified standard of halal certification is important to globalize halal products as well as for consumer convenience.

 

10.   References

 

1.         AFIC. 2004. Halal and Haram Fact Sheet. The Australian Federation of Islamic Council http://www.afic.com.au/Halal.htm#Halal. Accessed on February 5, 2007.

2.         Anonim, 2005. Muslim Population Worldwide. http://islamicpopulation.com/worldgeneral. html. Accessed on February 5, 2007.

3.         Anonim. 2006. Halal Food Products: Market Report (Canada). International Markets Bureau Market and Industry Services Branch Agriculture and Agri-Food. Canada

4.         Anonim, 2007. Development of The Halal Industry. Malaysian Government. www.worldhalalforum.org/content/pdf/chapter21.pdf. Accessed on February 5, 2007.

5.         Berg, E.P. 2007. Influence of Stress on Composition and Quality of Meat, Poultry and Meat Products. University of Missouri. Columbia. P.1-17

6.         Codex, 1997. General Guidelines for Use Of The Term “Halal”. CAC/GL 24-1997. The Codex Alimentarius Commission.

7.         Corcoran, L. 1997. Cattle Stun Gun May Heighten "Madcow'" Risk. http://www.iol.ie/~afifi/BICNews/Health/health4.htm. Accessed on February 5, 2007.

8.         Egan, M. 2002. Overview of Halal from Agri-Canada Perspective. Presented at the Fourth Intl Halal Food Conference; April 21-23; Sheraton Gateway Hotel, Toronto, Canada.

9.         El-Awady, A. 2003. Is Islamic Slaughtering Cruel to Animals? www.iccservices.org.uk/ downloads/reports/stunning_issues_definitions_reasons_humaneness.pdf. Accessed on February 5, 2007.

10.     FAO, 2006. Production of Meat and Share in The World. http://www.fao.org/waicent/portal/ statistics_en.asp. Accessed on February 5, 2007.

11.     Girindra, A. 2005. Procedure to Obtain The Halal Certificate. The Assessment Institute for Food, Drugs and Cosmetics. The Indonesian Council of Ulama. pp.1-21

12.     Hardgrave, H.G.  2007. Australia’s Halal Food Industry: Current and Potential Contribution to The Australian Economy. Australian Government’s Department of Immigration and Multicultural and Indigenous Affairs. www.diversityaustralia.gov.au or