The 2nd International Workshop of IELP Meeting

10th-11th December 2015

Graduate School of Environmental StudiesTohoku University, Sendai, Japan

Green & Sustainability Protocol Development for Malaysian Halal Food Industry

B.C.Chew & Syaiful Rizal Abdul HamidFaculty of Technology Management & Technopreneurship

Universiti Teknikal Malaysia Melaka (UTeM)

The Macro View:The Global Market Opportunity

of the Muslim World

According to the report from Fleshman-Hillard Majlis (2012)

“ While many countries and companies continue to chart out their emerging market strategies, developing their businesses and growing consumer bases, the single biggest market in the world has been largely overlooked. The FHM (2012) report talks about the opportunity of the next billion: A collection of people larger than the markets of India and China, united under a single umbrella-their beliefs. Muslims (in 2012) represent nearly 1.8 billion of the world’s population.”

annually

Source: Fleishman-Hillard Majlis. 2012. The Next Billion: The Market Opportunity of the Muslim World.

The Meso View: Halal Development in Malaysia

Parameters Information and agencies

Ecosystem Product and services

Halal Certification JAKIMIslamic Development Department of Malaysia

Industry Development

Halal Industry Development Corporation

Exports Promotions Malaysia External Trade Development Corporation

Other agencies : SME Corp, MIDA, Standard Malaysia

Malaysia Halal Industry Master Plan

Source: MITI 2015.

The AchievementsKPI (2020) Achievement in 2014

Halal Export RevenueRM19billion

RM37.7billion

Employment in Halal 300,000 jobs

206,000 jobs

Number of exporters (SMEs)1,6000 companies

700 companies

- 5415 Halal certified companies in Malaysia

Source: MITI 2015

Halal Exports

Source: MITI 2015

Halal Exports by Product Cluster (2014)

Source: MITI 2015

Halal Business Transformation Programme

It was introduced in 2011, to assist local Halal companies to increase their overall competitiveness and to enhance their business performance and growth.

Source: MITI 2015.

JAKIM/Malaysia Recognised Certification Bodies

• There are about 200 different Halal certifications available globally. The majority of certifications stems from Asia Pacific countries.

• January 2015: JAKIM has recognised 57 Foreign certification bodies and 16 authorities from 33 countries include Japan, Australia, Chile, Poland, Brazil and Sri Lanka.

• All of the products under these certifications are allowed to be marketed in Malaysia.

Source: MITI 2015

JAKIM/Malaysian Recognised Certification Bodies

Source: MITI 2015

What next after the Halal certification?

The Micro View: Sustainable Food Production and Food Management Certification on Halal Food.

Objective:-To put an added value to the existing Halal food-To penetrate larger the global market share.

Definition of Sustainability

• Bruntland (2012) defines sustainable as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

• Sustainability on food is challenged with the high cost food production, source scarcity of raw materials and resources, while at the same time to sustain food sources for the future generation consumption (climate change).

Have you seen these logos?

Why we go for Sustainable Food Production and Food Management?

1. Better for the environment2. High quality goods3. Better working conditions for famers and

producers4. Supports local socio-economic community

development

Definition of Halal Food

• Halal food means operation which has to be sanctioned according to Islamic Dietary Law; with a strict level of operations and inspection, in meeting the standard of food quality, cleanliness, safety and nutrition (Rezai, Mohamed and Shamsudin, 2012).

Our Research• Our research explores the processes of food

production and food management in Halal food, particularly, the livestock sector at industrial scale of production.

• The researchers adopted Luning’s (2001) and Power et al. (2012) framework for food production model and food management, which aimed to synthesize both processes in order construct a comprehensive green and sustainable protocol on food production and food management.

Livestock Production• Livestock production is a form of agricultural

production influence environment1 economic2 and society3 (Robinson et.al, 2007, FAO, 2007, Van Hooft, 2012).

• -----------------------------1. Impacts of livestock on the environment (food and water supplies, facilities setting, wastes generation, transportation, vaccine, medicine, antibiotics). -Around the world we see groundwater supplies depleted, agricultural soils degraded, oceans overfished and forests cut faster than they can re-grow.2.Estimating production and off-take, cost involve, trades3.Nutritious values, livestock disease risk

Livestock Management• Foster by increasing consumption of

livestock products (as food) and international trades, Van Hooft (2012) explains, livestock sector is rapidly moving towards intensive and specialised systems. Larger and larger livestock farming companies are formed, where the production environment is highly controlled.

Livestock Management• Livestock management aims to produce highest

quality of livestock (to safeguard animal health) at maximum productivity, by minimising the production impacts on social, environmental and economics at the most cost efficiency.

• In improving livestock management, the animal welfare is not only point out the physical aspects, but also includes psychological aspects (M.de Vries et al, 2015).

Livestock Management & Production• Technology adoption in food production helps the

developments and innovations in most aspects of livestock production from breeding, feeding, housing, disease control, processing, transportation and marketing (FAO, 2009).

• Albeit internal factors could be manipulated by technology, the external factors are beyond the management capability. Climate change which affecting the productivity rates, the scarcity of the resources; and the vulnerability of the livestock for pandemic; all of these affecting biodiversity and ecosystems for the animal breeds.

Sustainable Food Management

• Power et. al (2012) advocates five pillars of food sustainability:

1. Sustainable Sourcing2. Improve land and water management3. Enhancing nutritious 4. Using technology effectively5. Reduce commodity price volatility

Theoretical of food production

Souce: Luning, 2001

Research Methods• 248 companies from 700 exporters companies

are selected to conduct this study.• Interview and correspondent analysis. • Data collection is still on going.

The EvaluationSocial Environmental EconomyRights of the workers High Conservation

Value Land assessment

Trademark and certification

Rights of the local communities

Transparency in farming management

Value chain creation

Free from forced labour

Farming procedure Sustainable can be profitable

Health and safety GHG EmissionSocial impact assessment

Water footprint

Argo chemical reduction

References

Books1.Fleishman-Hillard Majlis. 2012. The Next Billion: The Market Opportunity of the Muslim World.2.Jahnke,H.E.,1982. Livestock Production System and Livestock Development in Tropical Africa.3.Luning,P.A., Marcelis,W.J., and Jongen,W.M.F.,2001. Food Quality Management- A techno-managerial approach. Wageningen Academic Publishers,pp.29-434.Robinson,T.P., Thornton P.K.,Franceschini,G., Kruska,R.L., et.al.,2011. Global livestock production systems. Rome, Food and Agriculture Organization of the United Nations (FAO) and international Research Institute (ILRI),pp.1525.Usui,N.,1995. Book review article: Induced Innovation Theory and International Agricultural development: A Reassessment, by Bruce Koppel, Baltimore, Johns Hopkins University. Asian Development Bank.6.Van’t Hooft, K.E.,Wollen, T.S. and Bhandari, D.P.,2012. Sustainable

Journals 7. Linden,A.D., et.al.2015. A framework for quantitative analysis of livestock systems using theoretical concepts of production ecology. Available at:<http:dx.doi.org/10/1016/j.agsy.2015.00.0078. M.de Vries et al,2015. Housing and management factors associated with indicators of dairy cattle welfare. Available at:<http:dx.doi.org/10/1016/j.prevetmed.2014.11.016>9. Najim,A., Amin, M.R., Karimand, S.M.R and Mei,S.J. 2015. Small holder cattle farming in east Coast Economic Region (ECER),Malaysia: Farmers’ perception on type, breed and crosses. Journal of Dynamics in Agricultural Research.10.. Nakyinsige,K., Che Man,Y.B., Aghwan Z.A., Zulkifli,I., Goh,Y.M., Abu Bakar,F., Al-Kahtani,H.A., and Sazili,A.Q., 2013. Stunning and animal welfare from Islamic and scientific perspectives. Meat Science,95,pp352-36111. Rezai, G., Mohamed, Z. and Shamsudin, M. (2012). Non-Muslim consumers' understanding of Halal principles in Malaysia. Journal of Islamic Marketing, 3(1), pp.35--46.12. Robinson,T.P., Franceschini,G., and Wint,G.R.W.,2007. FAO’s Gridded Livestock of the World. 13. Ruttan,V.W.,1977. Induced Innovation and agricultural development. Food Policy, pp. 196-216.14. Thompson,B.R., Stevens,D.R., Bywater A.C., Rendel J.M., and Cox N.R.,2015. Impacts of animal genetic gain on the profitability of three different grassland farming systems producing red meat.

Boon Cheong ChewEmail: bcchew@utem.edu.mylinkedIN: http://my.linkedin.com/in/bcchew My Primary Research Interests(a) Renewable Energy Development & Deployment (b) Clean Technologies Innovation & Implementation(c) Green & Sustainability Practices(d) Human Technology Innovation & Introduction • Please google BCChew to follow my work

Syaiful Rizal Abdul HamidEmail: syaiful@utem.edu.myMy Primary Research Interests(a) Quality-Technology Management(b) Sustainable Development(c) Service Management