Case Studies

Component I: Analysis of 5 Case Studies

Case Study 1: Halal: a growing phenomenon.

The global halal market is evolving, but it is already emerging as a potentially lucrative market. It is estimated that global halal food trade will be worth over $US150 billion in 2006. One of the strengths of the market is its size; current estimates of the world’s Muslim population range from 1.2 billion to 1.79 billion. Despite these differences, it is clear that there is a significant Muslim population around the globe that requires halal food as a basic lifestyle need in accordance with the Koran. Many of the countries with a high Muslim population are our neighbors, such as Indonesia (88% Muslim population) and Malaysia (59% Muslim population). The Muslim population is also high in some countries that have good trade relations with Australia, such as the United Arab Emirates (96% Muslim population). The ease of trade with these countries gives Australian producers an advantage over foreign competitors.

Case Study 2: Franchising & Promoting Halal and Tayeeb Products in International Markets.

Business Format Franchising (BFF) and its variations have become increasingly popular in developing countries in recent years. The rapid growth of fast-food and other franchises in Africa, Asia, Europe, and the Middle demonstrates its use a tool for global market penetration and a business prescription to the small and medium sized businessman's financial worries. The franchise format in the hands of Muslim entrepreneurs can be a beneficial tool and solve some basic issues involved in finance and market penetration. Muslim entrepreneurs should analyze and resolve to bring Islamic Business Ethics to BFF as a market entry vehicle for the halal products and services they offer. The McDonald Corporation offers an example of how a US company joined with Malaysian investors creating, MacFood Services Sdn.Bhd., a highly successful halal food distribution enterprise. The window is open for made in Malaysian halal products manufacturers to borrow a page from the multinational play book and enter global markets– East, West, North and South.

Case Study 3: Halal: The Islamic Regulations on the Import of Meat: Beef.

Malaysia is one of the rapidly developing Southeast Asian countries. For example, Malaysia has had an average annual growth of more than 8 percent, and per capita income grew from $3,144 in 1992 to $4,600 in 1996. (Fleck, 1998) In other words, Malaysia is the very potential market for foreign developed countries. Although three-quarters of Malaysia's imports from the United States are bulk commodities, the US exports of consumer-oriented foods have exhibited rapid growth in the early 1990s. (Fleck, 1998) For example, the value of these exports has jumped from $53 million in 1991 to $105 million in 1996. (Fleck, 1998) According to the best sales prospects for food items from the United States, meat and preparations, such as beef, premium processed meats and frozen turkey are promising as well as fresh fruits and daily products. (Fleck, 1998) On the other hand, there are strict export requirements for Malaysia, and these requirements are deeply related to Malaysian Islamic nature and Halal. The following is the extract of the export requirements by United States Department of Agriculture. Note that the points related to this case study: beef export and Halal are only extracted for convenience.

Case Study 4: Halal- New Market Opportunities.

Malaysian Muslims will spend RM5 billion a year on halal food if their expense per capita is RM1 daily. More than 60 per cent of these Malaysians will go for competitively-priced high quality halal food. Halal food provides tremendous export opportunities. The halal market is well on its path in becoming the most important category in global food development. In 2003 Malaysia’s exports of processed food (including halal food) were valued at RM 5 billion (1.4 % of Malaysia’s total export of manufactured products). According to the Ministry of International Trade and Industry, readymade food manufacturers from Malaysia have penetrated into 80 countries worldwide.


Case Study 5: Requirement for Halal Food For Export

JAKIM has been designated as the sole certification body in Malaysia of halal products for export. The halal logo issued by JAKIM helps to facilitate halal trade at international level. As a first step before exporting halal food, a manufacturer needs information on the regulatory requirements of the importing countries. Once that is known, the manufacturer may require one or all the following certificates from Ministry of Health Malaysia (MOH): Health Certificate, Hazard Analysis Critical Control Point (HACCP) Certificate, and Free Sales Certificate (FSC). In addition the manufacturer needs to obtain halal certification from JAKIM.