What is halal???

What is halal???

Halal is an Islamic Arabic term that literally translates to ‘permissible’. Globally, in the food industry, halal is used to refer to food that is permissible under Islamic law, similar to the use of the Jewish term ‘kosher’. Foods that are not halal include pork, blood, carrion, carnivorous animals with the exception of most fish and sea animals, and all intoxicants – specifically alcohol. Forbidden foods are referred to as haraam and suspect foods as shuba. To be halal, all animals, excluding fish and most sea life, must be slaughtered according to the Islamic method: Dhabiha. This method involves cutting through the large arteries in the neck along with the esophagus and trachea with one swipe of a non-serrated blade, without damaging the spinal cord. The animal must then be left, unhandled, until all blood and impurities have drained. All animals must be facing Mecca during this process and be slaughtered in the name of God. The driving force behind halal is that foods be tayyib; wholesome and natural. This means animals must be fed natural products free of hormones or other animal products such as gelatin, offal and tallow. Genetically modified foods are not accepted as halal.

Halal authority: Department of Islamic Development Malaysia (JAKIM)

Halal Food Laws:

Trade Description Act 1972
Trade Description Orders, 1975
Food Act 1983
Food Regulations 1985
Animal Rules 1962
Customs Act 1988

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.

Scope for topics choice: marketplace

Scope for topics of choice: marketplace

3. Discontinuing product offerings that are consider harmful but not illegal.

There are some products that are considered harmful but not illegal. One of them is cosmetic product especially intensive whitening cream and sun block. These product maybe can make people especially women looks more fairness and beautiful but actually some of the cosmetic product give a bad effect to their skin for example, make skin become thin and caused skin cancer. Besides that, some of the cosmetic products is not halal.

4. Providing full disclosure of product materials and their origin and potential hazards, even going extra mile with helpful information on for example the amount of exercise needed to burn calories and fat contained in a candy bar.
Our group chose a Red Bull drink product that called “energy drink”. All of the ingredients found in Red Bull are synthetically produced. Most are manufactured by pharmaceutical companies. According to Red Bull, this "guarantees highest quality." The most important thing should available on the product is halal logo. Besides that, the ingredients that given must written in words that all people can understand what is it, means not use scientific words.

5. Establishing guidelines for marketing for children to ensure responsible communication and appropriate distribution channel (e.g. not selling product online to children age 18 and below.)
In our opinion, there are other guidelines that we should follow in marketing products to children. One of them is should not advertise nutritionally poor choice in television because more than 15 percent of the audiences are under age 12. Besides that, advertisement that want to show in media such as movie, television show, video games, books and text books should not use products or brands placement for low-nutrition foods to children because children are generation that easy influenced rather than teenager and adult. In addition, there must be using licensing agreement or cross-promotions such as television or movie or they can use cartoons from television, movie and music to market to children and use sponsorship of sporting and other event for children only with brands and food that meet the above nutrition criteria.

Maping Trend of 20 Articles about Halal-Products

Mapping Trend of 20 articles about Halal-Products

Halal Industry in Malaysia from year 2004 to 2008

Halal products are fast gaining worldwide recognition not only because the Muslim ummah is growing, but most significantly because halal is being recognized for quality and security assurance. Malaysia sees China, Japan and Korea as highly potential export markets for its halal-food products. Besides that, Malaysia and Australia have agreed to enhance the existing cooperation between both countries in the production and marketing of halal products, especially to third world countries. Malaysia's effort to promote and lead the way towards global halal food industry is another manifestation of Malaysia's commitment to a strong and resilient economic system based on Islamic principle.

There is also a constant demand for halal-products from the Organization of Islamic Conference (OIC) countries as well as from pilgrimages during the hajj season in Makkah. In addition, in 2006, Britain’s biggest supermarket, Tesco, will spend RM1 billion on Malaysian-made halal food over the next five years to cater for rising demand in halal-products in its how market.

The market for Halal cosmetics is growing on a global basis, but nowhere is this trend more pronounced than in the Middle East, where conscientious consumers are specially searching out Halal endorsed products. Because of that, touted as the only country where the halal certification is developed by the government, Malaysia remains competitive as a leader in the halal industry with concerted efforts by both public and private sectors to push the agenda forward. In addition, the Halal Industry Development Corporation (HDC) will embark on three-pronged strategy over the next three to five years since 2007 to establish Malaysia as a hub for the global Halal Market, which is estimated to be worth US$580.91 billion.