Source: Wan-Hassan, W.M.

(2007) Globalising Halal Standards: Issues and Challenges, The

Halal Journal, July August, 38-40.

Globalising Halal Standards: Issues and Challenges

By: Wan Melissa Wan Hassan
The need to establish one global Halal standard is currently the most pressing issue
within the Halal industry. The definitions of Halal, while generally agreed upon by
Muslims, display significant gaps when it comes to their application in the industry. Due
to differing Halal standards not only between countries but also within each country
(following the presence of various Halal authorities), confusion, misunderstanding and
even abuse in the Halal audit and certification process have occurred. Additionally,
supply chains have been broken whilst artificial shortages of raw material have emerged
as a result of disunity between Halal certification bodies.
There is plenty at stake for the industry. The loss of Halal status can easily translate into
significant loss of revenue. A case in point is the recent delisting of Australian and New
Zealand Halal meat producers by JAKIM in Malaysia because of thoracic sticking. It
was reported that the combined loss of exports amounted to $53 million.
Industry players are the ones who best understand the impact of not having uniformity in
the application of Halal standards. According to the World Halal Forum (WHF)
Chairman, Khairy Jamaluddin, one of the reasons why the Halal industry cannot grow
faster, despite rising demands for Halal products worldwide, is because there is no
consensus on a Halal standard. Each country has its own certification body, which leads
to disagreements over animal feed, slaughtering methods, packaging, logistics and other
issues.
Indeed, all sectors of the market from inter-government agencies to the smallest trader
have recognized the need for one global Halal standard that is recognised by all importing
countries. However, for this to be achieved, there are varying views that need to be sorted
out.
The challenges to globalisation
Different Halal authorities follow different Islamic rulings regarding issues such as
gelatine, food flavourings, animal enzymes, phosphates, mechanical slaughter, stunning
of animals and the usage of thoracic stick. This sometimes creates confusion for
producers who may not know which authority to consult in order to get their product
certified for the right market.
While the industry welcomes the idea of establishing a global Halal standard,
certification authorities on the contrary may feel that it can thin out the integrity of each
Halal certifying body, including JAKIMs. The World Halal Council (WHC), established
in December 1999 for instance, has spent several years working towards an International

Halal Certification Standard. The council, which is comprised of Halal certifiers from
around the globe, is currently still working through thorny issues and controversial
topics pertaining Halal dietary laws.
Amidst the growing number of agencies issuing Halal certificates, there is also an
increasing trend for local government departments to take charge of Halal certification as
a result of the increasing demand for the export of Halal goods. The governments of
Malaysia, Thailand, Indonesia, Singapore and the Philippines, for example, have
established institutions specifically for Halal certification. Given the increasing
involvement of governments in Halal certification, it would be very difficult for countries
to collectively agree on one global Halal standard as this would mean surrendering their
sovereign rights.
How do we find a middle ground?
If certification agencies cannot agree on one Halal standard, then how do we find a
middle ground? This was one of the questions raised during the recent World Halal
Forum held in Kuala Lumpur on 7-8 May 2007. Dr. Habib MNasria, Director of Quality
Control at McDonalds International, suggested the establishment of a Minimum Core
Standard carrying zero tolerance for a few basic issues (like pork and alcohol) with
addendums applied to each individual country (as shown in Figure 1). The addendums,
for example, would clearly list out countries that permit electrical stunning on animals
prior to Halal slaughter (such as Malaysia, Indonesia and Thailand). Unfortunately,
considering that some countries do not even have a national Halal standard, let alone
statutory regulations pertaining Halal, it would be difficult to globally implement the
standard proposed by MNasria. As mentioned above, Halal certification is carried out
not only by local government authorities but also various Islamic centres and
organisations which complicates matters. There are bodies that do not recognise the
others certification because each would follow their own guidelines and interpretation of
the Holy Quran and Hadith. In countries like the UK, for example, there are over 20
different Halal certification bodies in operation. Some of them permit the use of electrical
stunning while others like the Halal Monitoring Committee (HMC) and the Muslim
Council of Britain (MCB) firmly reject such practice.

Figure 1: Minimum Core (Non Negotiable) Standard with Addendums

Addendum
1

Minimum Core
(Non
Negotiable)

Addendum
3
Addendum
2

Source: MNasria, H. (2007) Challenges for Multinationals in the Global Halal Market, presentation
delivered at the World Halal Forum, Kuala Lumpur, 7-8 May.

Creating one standard for the Halal food industry through a general open-for-all
certification scheme will be extremely difficult because one standard will not meet the
needs of all certification bodies. Another speaker at the World Halal Forum 2007, Dr.
Jochen Zoller, who is President of Food Services Division at Intertek in the UK,
suggested that We should set up a Halal benchmark with an independent third party
certification body, like the BRC. He also added, If we use ISO, it will take us forever.
The BRC (British Retail Consortium), which is a leading trade association in the UK,
represents all forms of retailers from small independently owned stores to big
departmental chain stores. In the UK, under the Food Safety Act of 1990, retailers or
brand owners have a legal responsibility for the products under their own labels.
However, they must also grapple with a variety of different certification systems that
exist worldwide following several food crises and the increasing demand for high quality
food products. The BRC, in 1998, subsequently took the initiative to harmonize retail
standards by introducing the Food Technical Standard to evaluate whether manufacturers
fulfil the requirements of retailers who sub-contract the manufacturing of products under
their own brand name. The standard requires tight controls over the process in which
products are produced so that with a BRC certificate, manufacturers satisfy all that
British Supermarkets demand at once.
In recent years, the number of certification standards established by private institutions
like the BRC (as shown in Table 2), has increased worldwide in the agribusiness or food
industry. Indeed, food safety and quality standards established by private institutions are
today becoming the predominant drivers of agri-food systems although traditionally such
standards were the preserve of government regulation. Private standards, which are also
becoming a primary determinant of market access in selected industrial countries, are fast
becoming a global phenomenon and are even pervading the agri-food markets of
developing countries.

The IHI Alliance: The Vehicle to Harmonizing Halal Standards

There is an urgent need to reduce the problems created by the plethora of Halal standards
and much can be learned from the trends to harmonize food safety and quality standards
in Western developed countries. The Halal industry is now worth billions but there are
still no international standards and best practices, making it a complex area to navigate
for companies trading Halal goods globally. Additionally, according to Nestles Othman
Mohd Yusof, with increasing trade barriers, regulatory impediments and food safety
standards, the need for a premium global standard is crucial. If Halal is to penetrate the
mainstream market and gain access to global consumers, the standards for Halal
producers must be raised. The nature of Halal furthermore requires rigorous certification.
Following a resolution that was passed at the World Halal Forum in 2006, the
International Halal Integrity (IHI) Alliance was formed at the recent WHF 2007. As a
non-profit, non-governmental and non-national body, it aims to provide a platform for
its members to share information and work towards upholding the integrity of the Halal
industry; to provide a communication channel for its members with relevant parties; and
to strengthen the Halal industry to fulfil its highest potential (World Halal Forum 2007,
p.30).
Harmonisation that comes through the IHI alliance will help develop Halal standards that
are acceptable globally and that will facilitate global trade so that both consumers and
retailers would be able to get the right quality of products. An all-encompassing Halal
standard and a harmonised Halal certification system worldwide would also help
industries to expedite product development, assuring the consumers, reducing the number
of multiple certifications and thereby compressing the supply chain cycle time
(Kamaruzaman 2006a, p.2). The new Halal guidelines and certification system will
therefore be suitable not only for the Muslims but also global consumers at large.
The success of the IHI Alliance will largely depend on the stakeholders of the nonMuslim business community throughout the value chain. With their support, the IHI
Alliance will serve to protect the interests of both the industry and consumers, apart from
ensuring the integrity of Halal products around the world.
References:
Henson, S. (2006) The Role of Public and Private Standards in Regulating International Food
Markets, paper prepared for the IATRC Summer Symposium Food Regulation and Trade:
Institutional Framework, Concepts of Analysis and Empirical Evidence, Bonn, Germany, 28-30
May.
Kamarul Aznam, Kamaruzaman (2006) HDC: Local Halal Manufacturers Must Raise Standards to
Penetrate the Global Halal Market, The Halal Journal, Kuala Lumpur,
http://www.halaljournal.com/artman/publish_php/article_1079.php (Accessed 12 June 2007)
MNasria, H. (2007) Challenges for Multinationals in the Global Halal Market, presentation
delivered at the World Halal Forum, Kuala Lumpur, 7-8 May.
World Halal Forum (2007) World Halal Forum: the Executive Review 2007, KasehDia Sdn. Bhd.: Kuala
Lumpur.

Table 2: Examples of Private Food Safety & Quality Standards

Private

National

Public
Mandatory

Public Voluntary

National
Legislation

Food Safety Enhancement

Program

Collective

Business-to-Business

Dutch HACCP

Natures Choice
(Tesco Stores UK)

BRC Global Standard

HACCP Advantage

Field-to-Fork
(Marks & Spencer - UK)

Assured Food Standards

[SQF]*
Qualitat und Sicherhei

Filire Agriculture
Raisone
(Auchan - France)

Integrale Keten Beheersing

Focus

Filire Qualit
(Carrefour France)
Terre et Saveur
(Casino)
International

EU
Regulations

ISO 9000

International Food Standard

ISO 22000

SQF 1000/2000/3000
EUREPGAP

*: Until July 2003

Source: Henson, S. (2006, p.19)