Halal Food Marketing

UNIVERSITI TEKNOLOGI MARA

sona Lecture

aridah Hi. Hassan

Professoria LecttfifM

Halal Food

TDamfrWuvf

Professojia LectitfffM

Halal Food Marketing Z)(uv t*1A/uv f

FARIDAH H J HASSAN

PENERBITPPRESS UNIVERSITI TEKNOLOGI MARA

© UiTM Press, UiTM 2013

All rights reserved. No part of this publication may be reproduced, copied, stored in any retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise; without p r io r p e r m i s s i o n in w r i t i n g from the D i r e c t o r of U iTM P r e s s , Universiti Teknologi MARA, 40450 Shah Alam, Selangor Darul Ehsan, Malaysia, e-mail: [email protected]

Perpustakaan Negara Malaysia Cataloguing-in-Publication Data

Faridah Hj Hassan Professorial Lecture: Halal Food Marketing : Dare to Win! / FARIDAH HJ HASSAN. References: page 91 ISBN 978-967-363-498-9 I. Halal food industry-Malaysia. 2. Halal food~Malaysia~Marketing. II. Judul. 338.19595

Cover design : Mohd Nor Firdaus Mohd Isa Typesetting : Nurhunaina Mohd Bani Typeface : Helvetica/Times New Roman Typesize : 11/12

Printed in Malaysia by : Dee Sega Enterprise (SA0034027-X) No.37, SSI5/4,47500 Subang Jaya, Selangor Darul Ehsan. Tel: 03-5633 2850

mailto:[email protected]

Mohamed Shafii

Mohamed Firdaus

Nabilah

Mohamed Fikri

Nur Sarah

Contents

List of Figures ix List of Tables xi Preface xiii Acknowledgements xv

Introduction 1

Concept of Marketing 1

Concept of Marketing Mix 2

Halal Food Marketing 3

The Development of Halal Market 4

Halal Marketing Advantages 6

Concepts of Halal Law 6

PROFESSORIAL LECTURE: HALAL FOOD MARKETING: DARE TO WIN!

Halal Food Marketing by Continent 9 • Asia 9 • Europe 43 • Australasia 52 • Africa 57 • America 62

SWOT Analysis - Winning Stategies 72

Business Opportunities 4Ps 79

Conclusion 87

Recommendations 89

References 91 Index 99

VIII

List of Figures

Figure 1 Figure 2 Figure 3

Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21

Percentage of Halal Market Products Countries in Asia Global Food Market Size and Global Halal Food Market Size Brunei Halal Logo and Halal Products Malaysia Halal Logo and Halal Products Export by Halal Certified Companies Halal Park in Malaysia Issues in Malaysia Singapore Halal Logo and Halal Products Issues in Singapore Indonesia Halal Logo and Halal Products Issues in Indonesia Thailand Halal Logo and Halal Products Halal Bodies in Korea Halal Food Products in Korea Halal Food Industrial Park China JiaYongxin Halal Cured Beef World's First Halal Miso Paste GCC Countries Flags and Map GCC Halal Meat Imports K&N's Halal Food Products

5 9

10

13 14 16 17 18 20 21 22 23 24 26 28 31 32 34 35 36 38

Figure 22 Figure 23 Figure 24 Figure 25 Figure 26 Figure 27 Figure 28 Figure 29

Figure 30 Figure 31 Figure 32 Figure 33

Figure 34 Figure 35 Figure 36

Figure 37 Figure 38 Figure 39 Figure 40 Figure 41 Figure 42 Figure 43 Figure 44 Figure 45 Figure 46 Figure 47 Figure 48 Figure 49


Muslim Population in India India Halal Logo Halal Food Product in India (Bikano) Europe's Muslim Population in 1990 until 2030 Pricing Range for Halal Fresh Chicken Pricing Range for Halal Beef Burgers Halal Logo Certified to Eden Valley Group Halal Logo in United Kingdom Recognised by JAKIM Halal Meat Produced by UK Halal Manufacturer Halal Supermarket Brands in European Countries France Halal Logo Recognised by JAKIM List and Addresses of Approved Halal Authentication Bodies in Australia Market Selling Halal Meats in New Zealand Top Supermarkets Selling Halal Food Halal Processed Food Certificate Provided by the New Zealand Certifying Authority Map of the African Continent Africa Halal Logo Muslim Population in the World United States Halal Logo and Map Argentina Halal Logo and Map 4Ps Global Halal Logo Halal Logo and Labelling on Food Innovation on Packaging Premium Pricing Penetration Pricing Product Price in Different Countries Halal Restaurant in Malaysia with Halal Logo

40 40 41 44 45 46 46 48

49 52 52 54

55 56 57

59 61 62 67 71 79 80 81 82 84 84 85 86

x

List of Tables

Table 1 Sellers' Four Ps and Customers' Four Cs 2 Table 2 Countries at a Glance 12 Table 3 Profile of Countries 25 Table 4 Korean Halal Food Brands Certification 27 Table 5 Korean Halal Products Pricing 28 Table 6 Countries with Largest Muslim Population 37 Table 7 Purchasing Power of Muslim Countries in 2005 43 Table 8 Potential of African Continent 59 Table 9 Estimated Number and Share of Muslim 63

Population in the Americas (1990 - 2030) Table 10 Key Halal Markets - Canadian Exports 65

by Country (2010) Table 11 IFANCA Recognisable Bodies 69 Table 12 Global Halal Market 72 Table 13 SWOT Matrix for Malaysia Halal Industry 74 Table 14 Halal Park with HALMAS Status 90 Table 15 Halal Park with No HALMAS Status 90

(application in progress)

Preface

Halal Food Marketing: Dare to Win! looks into the potential of the global Halal food market as well as what Malaysia could offer. It is also important to be informed on Malaysia's current trade activities, connections and positions as to see whether Malaysia could capitalise on existing trade affiliations in order to promote and market Malaysia's own Halal products based on the marketing mix of the four 4Ps - Product, Place, Price and Promotion. The Halal food market is a lucrative business due to the fact that the Islamic faith has been widely understood and accepted both by suppliers (in Muslim and non-Muslim countries) as well as buyers and futhermore Muslims are growing in population. Thus it is important to know where Muslims are residing in the world as that is where the Halal food market has the highest potential. By applying the SWOT (Strength, Weaknesses, Opportunities and Threats) analysis using the matching and resultant strategies, a marketer will be able to identify the business opportunities by priority and win the return on investments in the global market.

It is a major hope and opportunity to market Halal food globally which will benefit all Muslims, potential converts and associates who care about permissible, safe, wholesome and hygienic food to eat. With the support from authorised bodies in Malaysia and major countries in strategic locations, Halal marketing will definitely help grow the market share in the food and beverages industry.

Acknowledgements

In the name of Allah Most Gracious Most Merciful

Never have I thought that I will be able to conduct a marketing research on 'Halal' which is close to our way of life, consumption and application, and an extensive area which is yet to be discovered. In fact, I found that the more involved I was, the more ignorant I became as a lot of things were taken for granted. The research element allowed me to explore further on the similarities and differences between people's awareness, needs and preferences across continents on the subject of Halal.

I would like to thank my research assistants Marhainie Mat Dinan, Mazinda Hussin, Nadirah Mohd Anuar, Nur Hidayah Ahmad, Yazzra Farah Yahya and Zahirah Che Omar for their collection of data and information which assisted this write up.

To my family members and heartful appreciation, Mohamed Shafii, Mohamed Firdaus, Nabilah, Mohamed Fikri and Nur Sarah, you all fulfil my life.

My deepest appreciation also goes to the top management of UniversitiTeknologi MARA, FAMA, Ministry of Agriculture and Agro Based Industry, Halal Development Corporation, Chartered Institute of


Marketing, MATRADE as well as JAKIM on your continuous support which has made my quest for knowledge the most meaningful in my career.

To my Faculty of Business Management committee members and colleagues, UiTM Press and ILQAM, who have been very supportive on the professorial lecture, your deeds will be remembered and valued.

May Allah Bless All of You.

Sincerely,

Faridah Hj Hassan

(PhD) Marketing and Strategic Management FCIM UK Dean Faculty of Business Management UniversitiTeknologi MARA, 40450 Shah Alam, Selangor DE.

XVI

Halal Food Marketing: Dare to Win!

INTRODUCTION

With the positive growth of the Muslim population together with better economic and education condition worldwide, the demand for Halal products and services is very large and is expected to grow. Malaysia's Halal food industry has a lot of products that can be offered and marketed in the Halal world. Companies export to foreign markets because of the need to diversify markets and reduce risks, to expand sources of revenue and also to enhance competitiveness through product improvement and economies of scale (Faridah and Rosidah, 2011).

CONCEPT OF MARKETING

Marketing is the creation of long term and mutually beneficial exchange relationships between an entity and the public, including individuals and organisations with which it interacts (Kerin, 2010). Based on the managerial point of view, marketing is defined as an organisational function and a set of processes for creating, communicating and delivering value customers and for managing customer's relationships in the way that benefits the organisation and its stakeholder (Samir, 2012). On the other hand, marketing has been introduced as a way to solve problems. According to Syed Ali (2011), Islamic marketing is related to doing a business and the approved etiquettes of doing business, where business


must be done in a way that one neither becomes a loser nor becomes avaricious, and where the rights of buyers and sellers and all other parties involved are also protected. He also believes that marketing practices not only play a role in raising the business profit and standard but also in raising the quality of services or products preferred by the customer. Adherence to such ethical practices can help to elevate the standard of behaviour and thus, the standard of living of traders and consumers alike.

CONCEPT OF MARKETING MIX

Marketing mix is popularised in terms of the 4Ps which is defined as product, price, promotion and place. The marketing mix is one of the most important universal concepts, which has been developed in marketing. All variables are inter-related and inter-dependent on each other (Vaghela, 2013). Marketing mix is filled with the contemporary approaches like "relationship marketing" and "social marketing". Both have a focus on the customer while one aims to give the best possible attention and customer services, and therefore build customer loyalty to fulfil the demand on the product, production, pricing and promotion (SyedAli,2011).

According to a research by Akrani et al. (2010), the four Ps of sellers correspond to the four Cs of customers: each tool is designed to deliver a customer benefit. Four Ps in the marketing mix represent the sellers' view of the marketing tools available for influencing buyers.

The sellers' four Ps correspond to the customers' four Cs as shown below:

Table 1: Sellers' Four Ps and Customers' Four Cs

Four Ps

Product

Price

Place

Promotion

Four Cs

Customer Solution

Customer Cost

Customer Convenience

Customer Communication

Gaurav Akrani, Mudit Katyani and Manoj Patil (2010), Marketing Mix and 4Ps of Marketing,

Kaylan City Life, India

2


Product is the article which the manufacturers sell at the open market. Product acts as the first element in the marketing mix. The variable in the product include the product line and range, style shape, design, colour, quality, packaging and labelling, branding and trade mark, product innovations and product servicing. Product is the most powerful competing instrument in marketing. If the product is not attractive there will be no sales. A good product will fulfil the demand of the customer, which is considered as customer solution.

Place or distribution refers to the delivery of the product and right to consume it. The place can include the channels of distribution, transportation, and warehousing plus inventory control.

Promotion is the tool of communication that is used to offer the products to the customer. It covers the advertising, personnel selling, public relations and more. Largely it deals with non-price competitions.

Price is the valuation placed upon the product by the offer. It covers pricing, discount, allowances and terms of credit. It deals with price competitions (Kerin, 2010). In marketing mix, pricing is a tool for achieving the target market share or sales volume. According to Akrani et al. (2010), the price should be charged at high pricing to gain adequate profit for the company but low enough to motivate consumer to purchase the product. The price should be suitable to compete with other products effectively.

HALAL FOOD MARKETING

Islamic rules refer to the organising activities that are involved with products and activities that are prohibited or related to unethical behaviour. Halal marketing is an Islamic rule that is lawful for Muslim consumption by decree of Shariah compliance. Islamic dietary and consumption system is different and unique compared to other ethnic

3


dietary systems (Ameur, 2011). Halal food marketing has improved and developed since the demand for Halal food increased all over the world. The opportunities in Halal food can be seen as advantageous to other manufacturers to invent Halal food marketing strategies.

Religion is a system of beliefs and practices which groups of people interpret and respond to what they feel is supernatural and sacred (Johnstone, 1975). Most religions prescribe or prohibit certain behaviour including consumption behaviour. Schiflfman and Kanuk (1997) assert that members of different religious groups are likely to make purchase decisions influenced by their religious identity. Such a phenomenon is widely acknowledged in international business and marketing literature.

The growth of Halal marketing can now be considered as mainstream, affecting changes in how the business is being done and the Halal is affecting how marketing is being done. Halal food marketing holds the key in achieving the organisational goal which is to sell Halal foods based on Islamic laws. For Muslim buyers, Halal food marketing offers a solution to their problem in obtaining Halal products. This marketing concept focuses on the major changes in company orientation that provides the foundation to achieve competitive advantages (Philip, 2000).

THE DEVELOPMENT OF HALAL MARKET

Today, the world community from different geographical regions have begun to understand the importance of the Muslim requirements for food and other consumption known as Halal. The Halal market has grown rapidly and recognised certificates in both the domestic and international arenas have increased the trust of Muslim consumers and increased their numbers worldwide. Every Muslim must ensure that his or her food comes from Halal sources. This not only refers to the food ingredients but also to the whole production process, which must be based on Shariah principles (Zakaria, 2008).

4


The growing demand of Halal products currently has significantly increased in both Muslim and non-Muslim populations all over the world (Ameur, 2011). Products such as processed foods, beverages, pharmaceuticals, bakery products, meat, poultry and cosmetics are heavily demanded by both Muslim and non-Muslim countries with low, high or even no Muslim population at all. In early 2010, a study was conducted by Halal Market and Strategy on the Halal food market which was made up of about 38% of beverages and processed foods, which also included meats and poultry. The other 23% was the pharmaceutical market, 13% included bakery products such as cakes and pastries, 9% involved the Halal market for cosmetic and personal care products, and the other remaining 11% and 6% were primary meat and nutraceutical (Halal Market and Strategy, 2010).

The Halal Market

Figure 1: Percentage of Halal Market Products Source: Halal Market and Strategy, 2010

Of late, the term Halal has attracted much attention from non-Muslim consumers around the world. The Halal market has developed in small numbers of Muslim populations such as in European countries

5


and the United States of America. The unique and healthy properties of Islamic diet has attracted these non-Muslim consumers to ensure what they eat comes from good quality ingredients and are safe.

Halal food market has the potential to widen its market due to the massive agriculture production by exporting countries and the greater purchasing power among the Muslim communities' consumers in the importing countries.

HALAL MARKETING ADVANTAGE

The relevance of labelling products with the Halal logo shows the belief in the right of Muslim consumers to be adequately informed. The Halal logo has therefore become a marketing advantage for the products marketed to the Muslim world. The Halal certificate is seen as advanced and important to Muslim societies in Saudi Arabia, Malaysia, Indonesia, Brunei and other Muslim countries. These Muslim countries are relying on the certifications made by the accepted credible certifying bodies that are already in place. The Halal certificate acts as a marketing advantage to the Halal food market.

CONCEPT OF HALAL LAW

Halal is an Arabic word meaning lawful and permitted. This Halal concept comes from the Holy Quran which it uses to describe objects and actions (www.isnaHalal.ca). Islam is a natural way of life and encompasses the concept of an economic system based on human cooperation and brotherhood, which is based on the consultation and dietary laws for all humanity. Halal consists of anything that is free from any component that Muslims are prohibited from consuming. This can be classified as 'pork free' in its physical existence, including food substances such as gelatine, enzymes, lecithin and glycerine as well additives such as flavourings and colouring (Zakaria, 2008).

6

http://www.isnaHalal.ca


The Islamic slaughter procedure requires a Muslim to slaughter the animal by putting the animal down on the ground (or holding it if it is small) and slitting its throat with a very sharp knife to make sure that the three main blood vessels are cut. While cutting the throat of the animal without severing it, the person has to recite "Bismillah Allah-u- Akbar".

This Halal concept highlights the source of food coming from a Halal animal that has been slaughtered according to Islamic rites. The Quran states that:

"O ye people! Eat what is on earth, lawful (Halal) and good (tayyib)../'

(Surah al-Baqarah, 2:168)

Hence it is understood that there are two essential factors that should be stressed for Muslim food consumption, namely Halal which it is permissible and tayyib refers to good quality. The Quran states that eating food that is Halal and the avoidance of what has already been forbidden (Haram) is an obligation of every Muslim. Every hukm (ayat) laid down in the Quran has its own reasoning and must not be taken for granted.

Food is Halal if it does not contain or come into contact with anything regarded as filth, e.g. carrion, alcohol, pork, blood, faeces and urine. It must also be prepared, processed or manufactured using equipment untainted by anything unclean.

According to Jabatan Kemajuan Islam, Malaysia (JAKIM), Halal food can be defined according to three parts. The three parts are the slaughter, the storage, display, and preparation, and the hygiene and sanitation. The Islam concept focuses on the slaughter of animals, which must be performed by a Muslim of sound mind and maturity, who fully

7


understands the fundamentals and conditions related to this activity. The animal must be alive at the time of the slaughter and must be among those which Muslims are allowed to eat. The slaughter must be done with a sharp device - but not something made out of bones, nails or teeth - and the animals respiratory tract, esophagus and jugular vein must be severed.

Storage, display and preparation of food is equally important. Food is considered Halal if it is not made up of or does not contain parts or by-products of animals which Muslims are forbidden to consume. It should not contain what the law terms as filth, and should be prepared, processed and manufactured using untainted equipment. In preparation, processing and storage, Halal food should not come into contact with or be in close proximity to that which is not Halal.

In terms of hygiene and sanitation, the premises for manufacturing, preparing and selling food and drinks must be clean and free of elements which may cause infestation such as flies, rats, cockroaches, lizards and other such pests. Factory workers must be healthy and wear clean, protective clothing to avoid contamination. Equipment used must be washed frequently to ensure cleanliness and the washroom facilities must also be clean (JAKIM, 2012).

The main objective of this study is to identify the potential of the Halal market for Malaysia to expand globally, both in Muslim and non-Muslim countries. Based on the marketing mix, we can identify the potential market for Halal products in the domestic and international markets.

The study focuses on marketing to five continents which are the Asian, European, Australasian, African and the American continent. Within these five continents, a few countries are chosen to represent their regions based on the existing and emerging Muslim population, growing Halal market, purchasing power and per capita income (GDP).

The limitations of the study are in terms of availability of data, such as journals and reports, and the accessibility of the data due to restricted access.

8


HALAL FOOD MARKETING BY CONTINENT

ASIA

In this topic, the potential of Halal marketing in five continents will be discussed. Every continent will be explained and the selected countries will be discussed based on criteria such as the number of Muslims, per capita income, purchasing power and demand of Halal food.

Asia has six regions, as shown in Figure 2, consisting of West Asia (blue area), South Asia (maroon area), East Asia (purple area) and South East Asia (green area). The other two regions are Central Asia that includes Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan, and North Asia, which consists of Russia. For this research, the focus is only on the four major regions as they have the largest Muslim populations of the six regions.

Figure 2: Countries in Asia Source: Greenwich Mean Time, 2013

9


According to Arshad (2012), the Asian Muslim population encompasses the Middle East 40%, South East Asia 33%, India 24% and China 3%. Asia is the continent where Halal awareness is the most obvious and due to increased awareness about Halal status, there are variations of Halal certification by each country on meat and non-meat products, such as dairy milk, butter, soy sauce, cheese and other daily consumption products. Malaysia is preparing itself as an international hub for Halal products and seeks to be a successful leader in the Halal market among the Muslim countries as a production and distribution hub for Halal products.

Other large Muslim populations are found in Indonesia, Pakistan, India and Bangladesh. However, due to their modest per capita incomes and lower total food consumption, it is difficult for food exporters to push their products in those nations because they have to set the price of their product reasonably so that everybody can afford to buy and consume Halal products. Besides Muslim countries, there is also strong demand for Halal products from non-Muslim countries including China, the Philippines and Thailand. Hence, Halal products are also being consumed by non-Muslims because they believe that Halal products are safe, clean and healthy to be consumed.

a ASIAN BUROPftN A&E3CAN AFRICAN OCEAMA

00UNIRES 00UNTHES 00UNTOES 00UNTRES 00UNTCES

B Food Expenditure by| Content. 200$

I Total Ha!a! Food

Expenditure by

Continent. 2009

Figure 3: Global Food Market Size and Global Halal Food Market Size Source: Global Pathfinder Report, 2010

10


Figure 3 shows the global food market size and global Halal food market size. The blue bars represent the food expenditure by continent and the purple bars are the total Halal food expenditure by continent in 2009. This provides evidence that Asia was the biggest consumer of Halal food, at 62% as compared to the other continent. The World Halal Forum held in Singapore in July 2009 by the International Halal Integrity (IHI) Alliance pointed out that the global food market was valued at USD $3,992.2 billion and the global Halal food market was worth an estimated USD $634.5 billion, with Asian countries making up USD $400.1 billion of total Asian Halal food market size.

Asian countries are one of the world's leading suppliers and also importers of Halal certified products in the world. Even though these countries compete in the international front, there has been substantial trading in Halal products among them. For example, Malaysia is a major exporter to Indonesia and Brunei. According to the Halal Industry Development Corporation of Malaysia, among all Halal products on a global scale, 10% is represented by meats, and 35% is processed food and non-alcoholic beverages. Value-added beef products and deli are classified within the processed food category, which also includes a wide variety of other products, such as cookies, candies, and so on. Although they target Muslim consumers, the non-Muslim consumers or markets cannot be overlooked since they are also interested to consume Halal products and offer huge opportunities for food producers to cater to the potential demand from them.

South East Asia (SEA)

Most of the time, the thoughts of Muslim countries is centered on the Middle East, but the truth is that the largest Muslim nations are actually located in the South and South-East Asia. Those countries with a Muslim majority are the most obvious target markets for Halal products. South East Asia consists of 11 countries including Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore,

11


Thailand, and Vietnam. For this study, issues related to Halal food in Muslim and non-Muslim countries in only five major countries - Brunei, Malaysia, Singapore, Indonesia and Thailand - were studied.

Table 2: Countries at a Glance

Country

Population

*2012

estimate

Currency

GDP: Total

| : PPP

Brunei

408, 786

Muslims:

273 886.62

(67%)

Brunei Dollar

(BND)

$20,969

billion

$49, 384

B ^ = Malaysia

29, 179, 952

Muslims:

17,624,691

(60.4%)

Malaysian

Ringgit

(MYR)

$447,279

billion

$15,568

E3 Singapore

5, 353, 494

Muslims:

80,3024.1

(15%)

Singapore

Dollar

(SGD)

1 S$/

RM 2.5926

$314,911

billion

$59, 711

SI Indonesia

248,216, 193

Muslims: 213,

714, 142. 173

(86.1%)

Rupiah (IDR)

Rp 1.0381/

Rm 0.0003

$1,124 trillion

$4,666 | Source: Index Mundi, 2013

Brunei Darussalam

Brunei is a Muslim country where 67% of the total population are Muslims. The Brunei Halal logo is one of the most trusted and other countries have confidence in it because of their tight rules and procedures on Halal products. They have strict import regulations on Halal chilled or frozen meat. This makes the ease of doing business in this country low because it is hard to enter the food business in Brunei.

Brunei Halal certification is issued by the Brunei Islamic Religious Council and Brunei Wafirah Holdings stands as the brand owner of the Brunei Halal brand. Brunei Darussalam's Ministry of Industry and Primary Resources, along with the cooperation of the Ministry of

12


Religious Affairs and the Ministry of Health specifically established the company to manage the brand with a mission to help local Small Medium Enterprises (SMEs) enter the global marketplace.

The credibility of the Brunei Halal Certification will not only bring confidence and taist to Muslims worldwide but also assure the non-Muslim market about the cleanliness and quality aspect of these products as they undergo strict procedures under the certification process. The Brunei Halal Brand basically acts as a passport for businesses to penetrate into the lucrative world industry. Before gaining entry, potential businesses have to pass a strict approval process to get the Brunei Halal Brand by convincing customers about the quality of these Brunei Halal Brand products. Besides that, it also attracts many countries to have faith in using the Brunei Halal logo. For instance, Korea wants to collaborate with Brunei by having the Halal logo on Korean products in order to penetrate into other Muslim or non-Muslims countries. However, one of the challenges for Brunei is that they face difficulty getting their Halal products into China because they have to compete with various Chinese local products or they have to compete in major supemiarkets in China (Shahminan, 2013).

Figure 4: Brunei Halal Logo and Halal Products

13


Malaysia

The majority of Malaysia's population are Muslims, up to 60.4% and Malaysia is the leader in developing the Halal industry. Beginning in 1994, Halal confirmation was given in the form of a certificate with a Halal logo (JAKIM, 2008) by the Department of Islamic Development Malaysia (JAKIM). The Malaysian Halal International Showcase (MIHAS) is the pioneer international food trade fair which, since 2004, has gathered the largest annual gathering of Halal consumers, such as traders, investors, importers and exporters, trade associations and governments with the aim of sourcing and selling quality Halal products on a global level. As the world's largest Halal trade fair and Malaysia's largest food and beverage exhibition, MIHAS is jointly organised by the Ministry of International Trade & Industry (MITI), the Ministry of Entrepreneurial & Cooperative Development (MECD), Malaysia External Trade Development Corporation (MATRADE) and the Islamic Dakwah Foundation Malaysia (YADIM).

Figure 5: Malaysia Halal Logo and Halal Products

14


Malaysian brands

This section is about Malaysian Brands that are produced by local companies in Malaysia that represent the taste and preferences of Malaysian cuisine internationally. Certified Halal by JAKIM in Malaysia only if the food is processed and prepared in accordance to Shariah compliance as well as with adherence to JAKIM procedures.

Brahim's produces a range of 'Meals Ready to Eat' products featuring favourite dishes that capture the exotic flavours of Malaysia. One can enjoy delicious, wholesome Asian meals in just minutes, reducing meal preparation time by up to 90%. These products contain only boneless, skinless lean meat, giving consumers great value at only RM7.25 per pack. They offer varieties of ready to eat rice, meals as well as ready to use cooking sauces. By exporting these products, it introduced the Malaysian taste to the world.

Kart Food Industries Sdn Bhd is the first Malaysian company to have gone into the manufacturing, distribution and sales of Halal Asian ethnic frozen food for the retail, institutional, food service and export markets. The products include Roti Canai, Roti Paratha, Pau, Pizza, Donuts and Murtabak, symbolizing Malaysian food in terms of taste and preference, and introducing Malaysian food to the world.

Halal industry development corporation

The Halal Industry Development Corporation (HDC), established on 18 September 2006, is Malaysia's response for better quality products and services as consumers gain confidence in the Halal process. It helps to coordinate the overall development of the Halal industry in Malaysia. The HDC promotes participation and facilitates the growth of Malaysian companies in the global Halal market where it focuses on the development of Halal standards, audit and certification, plus capacity building for Halal products and services.

15


Figure 6: Export by Halal Certified Companies Source: Halal Industry Development Corporation, 2012

Malaysia's major exports were ingredients/condiments and food and beverage to China, the United States, Singapore, Netherlands and Japan. Ingredients include food and non-food ingredients such as fats, additives, salts, emulsifiers and colourings. On the other hand, food and beverages that are exported consist of processed foods, cocoa, margarine, beverages, meat, seafood, and other edible products.

Malaysia Halal park

Halal Park is one of the infrastructure that manufactures and provides support services for Halal in a one-step centre from raw materials until it becomes finished goods. Halal parks have become a success in Malaysia by attracting foreign companies, particularly multi-national corporations, to invest in the Halal parks located across the country, in places such as Penang, Sarawak and Melaka. Various incentives were given to the Halal Park operator, Halal companies operating within the Halal Park, and Halal Logistic Operators such as 100% tax exemption

16


for several years, and exemption of duty import. This will attract various investors, either domestically or internationally, so that Malaysia can become the central trading hub for Halal products. Malaysia must also intelligently market itself and achieve the Halal-hub's main objective of providing a credible platform in connecting global Halal supply-chain and certification for Halal Assurance.

Figure 7: Halal Park in Malaysia Source: Halal Industry Development Corporation, 2012

17


Food stalls: Hygienic enough?

Ikan keli makan organ babi haram 2010/04/19.0S:47:ftAM

[]Like 277 * Tweet 2 % +1 Q

EEmelKawan oCetaf

Komen

PCTRAJAYA: Memakan haiwan ternakan. termasuk ikan keli yang diberi makanan sebahagian besarnya organ dalaman babi atau haiwan lain secara bertenisan adalah haram bagi umat Islam dan fatwa mengenai pengharaman itusudahdiwartakan.

Penolong Pengarah Cawangan Pemantauan dan Penguatkuasaan Bahagian Hab Halal, Jabatan Kemajuan Islam Malaysia (Jakim), MohdAmri Abdullah berkata fatwa pengharaman itu vvajar menjadi panduan kepada umat Islam bagi mengelak membeli hasil teraakan haram dimakan.

"Umat Islam perlu berhati-hati dan mengelakkan memakan teraakan --seumpama kerana fatwa mengenai kesahihan haram atau halal sudah dikeluarkan,5' katanya kepada Berita Harian, ketika dihubungi di sini, semalam.

Figure 8: Issues in Malaysia - Hygienic and Ethical Practices by Food Premises and Fish Breeding

Source: Berita Harian Online, 2010

18


This issue arose in Malaysia where small food premises or stalls, some of which are very popular, for example Line Clear Nasi Kandar, Rojak Karim and others, are not aligned with Shariah Law where the preparation of food must be hygienic not only to adhere the Shariah Law but also to attract more customers so that they will enjoy the food that they will be eating. The next issue concerns catfish whereby they being feed pig organs which is 'Haram \ In this situation, the fish breeder must obtain Halal certification to ensure they are not feeding the fishes with pig organs to make them big and fresh-looking. Due to this issue, Muslim customers may have no confidence to eat catfish anymore.

Singapore

Singapore has a minority of Muslims, which is 15% of the total population, but there is still a high demand for Halal food. The Halal logo in Singapore was established in 1978 by the Majlis Ulama Islam Singapore (MUIS). Halal certification is widely recognised in key Halal markets, such as Brunei, Indonesia, Malaysia and the Gulf Cooperation Council (GCC) countries.

McDonald's, A&W, KFC and Taco Bell are some international brands that have gone 100%) Halal in Singapore. In 2006, the number of patrons in McDonald's in Singapore shot up to eight million a year after it obtained a Halal certification, showing that Muslims became more confident to consume their products (Al-Haran and Low, 2008).

Singapore Halal food

Mohamad Armiya Food Industry is a Singapore-based manufacturer/ supplier of frozen Halal meatballs such as beef meatballs, chicken meatballs, mutton burgers and marinated Halal meats that include chicken burgers, beef burgers and frozen spicy beef lungs. This offered more choices to interested parties who were looking for frozen Halal meats that were fresh, of the highest quality, safe and 'Halalan Thoyyiban'.

19


Price: $11.00 (RM 28.15)

Price: $2.60 (RM 6.65) Price: $2.00 (RM 5.10) Price: $2.85 (RM7.30)

Figure 9: Singapore Halal Logo and Halal Products

"Seah's Spices", was found with the aim of producing authentic Singapore Style Oriental Taste mixes for households and the food service industry, ensuring the consistency in taste. They offer four types of products, including soup, meat, seafood and desserts.

20


Figure 10: Issues in Singapore - Halal Stamp on Product that Contained Pork Ingredients

The issue in Singapore is the claim that their Halal logo was recognised all over the world; however, some non-Halal products that have pork elements had the Halal stamp on it. This shows that the authorising body did not inspect the product carefully. This will harm the image of Singapore's Halal logo and Muslim customers will refuse to buy any Halal products from Singapore.

Indonesia

Indonesia has the largest Muslim population, up to 86.1%, compared to their neighbouring countries, making it the dominant Muslim nation in South-East Asia. However, the country's concern regarding Halal food only began in 1989. The certifying body which is the Assessment Institute for Food, Drug and Cosmetics - Indonesia Council Ulama (AIFDC - ICU) was established on January 6,1989 in Jakarta (Santoso, 2012).

21


Indonesian brand

Indofood Instant Seasoning comes in various choices of seasonings: Chicken Soto Soup, Rendang, Opor, Gulai, Curry, Fried Sambal, and seasonings for Fried Rice and Hot Spicy Fried Rice. These products which are exported to Japan, China and Singapore have shown significant increase in demand. According to Rostiyani (2012), Indonesia needs to improve its Halal certification technology for mass produced goods to cater for future demands.

Figure 11: Indonesia Halal Logo and Halal Products

Issues in Indonesia

Indonesia mainly imports raw materials such as beef and poultry from New Zealand and Australia and these two countries are Halal-accredited. However, in 2007, a supervisor discovered meat cartons bearing the sign "Non-Halal". All production immediately stopped and all finished products and work-in-process materials segregated. The supplier was blacklisted, inspected and re-accredited straightaway (Xinhua, 2009). They came out with a solution to have their own farm storage and distribution by building a factory named Pt. Soejasch Bali Food Distributor in Bali. The factory compound is divided into two

\ s

$ $ & >

NE

2 2


completely independent plants, one for Halal and the other for non-Halal products. Delivery and storage of non-Halal products are done using dedicated trucks. As a result, there is no co-loading with Halal products.

Figure 12: Issues in Indonesia - Accidental Use of Non-Halal Meat: Production and Processing Team in Pt. Soejasch Bali, Indonesia

Thailand

Thailand has a total population of 67,091,089 and Muslim communities are a minority. Even at 10%, there is still a huge number of Muslims, concentrated mainly in the Southern most provinces of Narathiwat, Pattani, Yala, and Satun. Thailand monetary unit is called the Thai Baht (THB) and effective 2 October 2013, the currency of Thailand over Malaysian Ringgit was $ 10 / RM 1.03. The total Gross Domestic Product according to Index Mundi (2013) was at $616,783 billion and per capita at $9,396. The major trading partners include the United States, Japan, China, Singapore, Hong Kong, Malaysia, South Korea, Indonesia and the United Arab Emirates. Thailand is one of the countries which is rich in natural resources, such as rubber and timber, and has lower costs in labour and production compared to other countries as many international companies have built their factories in Thailand. This would also be a potential for Malaysia to break through the Halal food demand by the minority Muslims and non-Muslims as well. Other than that, Thailand is the world's top producer of rice, cassava, sugar and seafood products, and also exports ready-to-cook products such as sauces and curries to the Association of Southeast Asian Nations (ASEAN), Japan and the EU.

The Halal Standard Institute of Thailand, an exclusive statutory religious organisation, governed by the Central Islamic Committee of

23


Thailand (CICOT) was established on 11 August, 2003. In 2001, the CICOT set up regulations for Halal certification or accreditation as a common standard in Thailand.

Thailand Halal food

Total Food (Thailand) Co Ltd production facility is involved in making Curry Paste, Meal Kit, Dried Herbs and Sauce. Thai Meal Kit by Ori Chef is a ready-to-cook kit of Thai foods, offering convenience to the beginner "Chef to be able to cook not only the original Thai foods but fusion Thai foods in only a few minutes. It is noted that modern-life-style people crave for more convenient yet exciting food to cook at home, and Thai food is one of the best choices.

Price: $ 147.08 (RM 15)

Price: $ 177(RM 18) Figure 13: Thailand Halal Logo and Halal Products

24


At the J.M Food Industry, they have four types of ready to eat food - fresh, prepared, chilled, frozen - and sauce. They are famous for Thai sauce and the torn yum combination taste of sweet, sour and spicy. Besides that, they also export Thai banana and pineapple fritters as seen in figure above.

Issues in Thailand

Since the majority of the population is non-Muslims, they lack the understanding about the Halal concept. They may find that Halal certification may cause difficulties to them because it involves a lot of processes and parties. Other than that, Halal certification may cause confusion for non-Muslims as they may think that Halal is meant only for Muslims and if they eat Halal food, they have to convert to Islam. Moreover, obtaining the Halal certification itself is more costly. Therefore, by providing knowledge and understanding about Halal, both Muslims and non-Muslims will have a clearer understanding and will learn the benefits of consuming Halal food thus will clear up the confusion regarding the Halal concept. For businesses, instead of being concerned about cost, they should be concerned about the returns they will get in the future if their product is certified with the Halal logo since the Muslim population is growing around the world and the demand for Halal food and products is rising dramatically.

East Asia

Table 3: Profile of Countries

Popula t ion * 2 0 1 1 e s t i m a t e

Currency

GDP :TOTAL :PPP

5 0 , 0 0 0 , 0 0 0 (25th) Mus l im (%): 9 %

South Korean W o n

$ 1 , 5 5 6 tril l ion Per capita $ 3 1 , 7 5 3

1,339,72-4,852 (1st) M u s l i m : 2 . 3 %

Renminbi (yuan) (¥) l Y u a n = R M 0 . 0 3 3

$ 1 1 , 2 9 9 trill ion Per capita $ 8 , 3 8 2

1 2 7 , 7 9 9 , 0 0 0 ( lOth) M u s l i m (%): 1 4 %

Yen (¥) 1 Yen = R M 0 .033

$ 4 , 4 4 0 trill ion Per capita $ 3 4 , 7 3 9

Source: Index Mundi, 2012

25


Nowadays as the Halal food industry is growing stronger than ever, the business opportunity is wide open not only to Muslim countries in the Asian region but also widely accepted in non-Muslim countries especially in the Far East Asia region such as South Korea, China and Japan. The three countries have growing populations of Muslims and awareness of the booming Halal food industry has resulted in the strive to become manufacturers of Halal-based food products to be marketed not only in their respective countries but also globally.

South Korea

South Korea or formally known as the Republic of Korea occupies the Southern half of the Korean Peninsula on the North Eastern Corner of the Asian continent. North Korea lies to the North and Japan is located to the Southeast, across the Korea Straits. According to the Korean Muslim Federation (KMF), founded in 1967, there are some 120,000-130,000 Korean and foreign Muslims living in the country. Migrant workers from Pakistan and Bangladesh make up the majority of the Muslim population. The number of Muslims of Korean origin is estimated to be around 45,000. There are currently 10 mosques and 50 temporary musalain in Korea today. The Seoul Central Masjid was a significant step for Islam in Korea, and it is an excellent place to view Seoul's cityscape (Korea Tourism Organisation, 2006). The organisations that are responsible for handling the issues of Halal food in Korea are the Korea Muslim Federation Halal Committee and the Korea Halal Association.

Figure 14: Halal Bodies in Korea

26


The growing number of Korean food companies getting the Halal Certification is due to an explosive growth in demand for Korean food in populous Muslim countries such as Indonesia, Malaysia and Pakistan. The increase has largely been attributed to the international boom of Korean pop culture, a socio-cultural phenomenon called "hallyu" (Korean Wave). The demand for Halal food is also on the rise in the domestic market on the back of the increasing number of students and travellers from Muslim countries. In March 2013, Hanyang University in Seoul opened the country's first Halal food cafeteria on campus to cater to 80 Muslim students there and the number is expected to increase even more. Sunmoon University in Asan, South Chungcheong Province, followed suit early April 2013 by opening a Halal food cafeteria for its Muslim students (Park, 2013).

Table 4: Korea Halal Food Brands Certification

CJ CheilJedang (30 food products,

including steamed rice, dried seaweed

and kimchi)

Daesang (dried seaweed and mayonnaise)

JAKIM Malaysia

Majelis Ulama Indonesia

Paris Baguette (Korea's largest bakery

chain) Korea Muslim Federation (KMF)

Source: Park, 2013

Nearly 1.6 billion Muslim people in 140 countries, including some 135,000 in Korea, consume Halal-certified food products and the global market size was estimated to be worth $661.6 billion as of 2010, according to the World Halal Forum. That has swollen to $2 trillion when Halal-certified beauty and other non-food products are added. Therefore food manufacturers in Korea are rushing to get their food products recognised by Halal Associations from Muslim countries such as JAKIM from Malaysia, Majelis Ugama Indonesia and Majlis Ugama Singapore to name a few. This is so that their products can penetrate into the Muslim countries. Other than the three giant food manufacturers

27


above, other food makers that earned Halal certification from more than one Muslim state are Namyang Dairy Products, Nongshim, Pulmuone, Orion and Lotte Confectionary.

Figure 15: Halal Food Products in Korea Source: AgraFoo6.co.kr, 2012

Table 5: Korean Halal Products Pricing

Products

Nong Shim Shin

Ramyun Noodle

Daesang

Chunjungone

Mayonaise

Image

m 1 •<r

Price

(US Dollars)

USD $0.9701

per packet

USD $5.29

(500g)

Price

(Ringgit Malaysia)

RM3.10 per packet

RM16.9042 (500g)

Source: Shine-Korea.com (2009)

Issues in South Korea

In order to compete in the booming Halal food industry, South Korea is looking for business collaboration in Muslim countries to help

28

http://AgraFoo6.co.kr

http://Shine-Korea.com


them expand their Halal food products regionally and globally. In March 2013, the Korea Trade-Investment Promotion Agency (KOTRA) under the Ministry of Trade, Industry and Energy signed a memorandum of understanding with Majelis Ulama Indonesia, Indonesia's top Muslim clerical body and Halal certification issuer, to make it easier for domestic food makers to enter the Indonesian market (Park, 2013). Korea Agro-Fisheries Trade Corporation (aT) opened a branch office in the Indonesian capital, Jakarta, last July to help Korean food exporters advance to the Muslim food market. 88% of Indonesia's population is Muslim and the Halal food market there reaches USD$70 billion. Last year, Indonesia imported about USDS 150 million worth of Korean foods. Among the Korean products, Indonesian people mainly prefer sauces, snacks, instant noodles and processed coffee products. The Jakarta aT office made efforts to promote Korean foods utilising 'Hallyu' (Korean culture wave) marketing and by conducting sales promotions for Korean foods in cooperation with large local distributors.

According to aT, Korean Halal certification achieved equivalence with the JAKIM certification of Malaysia, so all the foods that have the Korean Halal mark can be distributed in Malaysia without restrictions as of last July 1. The process of obtaining a JAKIM Halal certification is more difficult and complicated than that for other Halal certifications, but it enjoys high recognition worldwide. The equivalence of the Korean and Malaysian Halal certificates will become an important stimulus for Korean foods to push into Malaysia (Korea AgraFood, 2013).

China

China, or formerly known as the People's Republic of China, is located South of Mongolia and the Siberian land mass, West of the Korean Peninsula and insular Japan, North of Southeast Asia, and East of Central and South Asia. China is one of the world's most eye-catching Halal food markets, as Muslims there total more than 30 million, or 2.3% of China's population. There is a growing demand for Halal food in Ningxia

2S


and Gansu provinces and in Inner Mongolia. The key advantage of the Chinese Halal industry is access to cheap labour. Islam was introduced into China officially in 651 in the Tang Dynasty (618-907) through marriage with Arabic traders. The Muslim Hui ethnic group was formed, and thus Chinese Halal food history started. It is very common to see wines served at Halal restaurants in big cities like Beijing, Shanghai, Guangzhou, Shenzhen in China. However in Northwest China's Shaanxi, Gansu and NingxiHui Autonomous Region where you will see a large Muslim population, Halal restaurants are very strict on alcohol. Wines are strictly prohibited at Halal restaurants in those provinces. To run a Halal restaurant in China, Halal certificates is required and this can usually be obtained from the local Ethnic and Religious Affair's Office of the city after necessary inspections. In some areas, Halal certificates is issued by mosques (IslamiChina, 2002).

Halal Food Industrial Park

Northwest China's Ningxia Hui Autonomous Region is building a Halal industrial park to integrate research, design, manufacture, processing and trade for the Halal industry. The city now has 176 Halal food enterprises. Halal output of the city totalled 13.2 billion yuan (USD 2.16 billion US dollars) last year, up 15 % year on year, and accounted for more than 60 % of the whole value of the region's Halal industry. By the end of 2012, Yinchuan had more than 4,800 Halal food enterprises and other processing or selling enterprises. Some have showcased their products outside China and at exhibitions in Cairo, Dubai and Istanbul (Xinhua, 2013).

30

PROFESSORIAL LECTURE; HALAL FOOD MARKETING: DARE TO WIN!

Figure 16: Halal Food Industrial Park China

Covering an area of 63 square km, the park has over 40 enterprises to date with an annual production value of 3.6 billion yuan. Well-known enterprises, such as Ningxia Hongshanhe Food Co. Ltd., Yili (Ningxia), and Baodi Halal Food Company, have played great roles in the development of domestic Halal food industry. To tap into the international Halal food market, Ningxia is perfecting the authentication system, so that domestic standards can meet the standards of Arab countries and other Muslim regions (Xinhua, 2013). On 17 September 2013, the first China-Arab States Expo opened in Yinchuan city of Northwest China's Ningxia Hui autonomous region. It features trade fairs and seminars on agriculture, energy, culture and tourism. China's exports to Arab states in 2012 exceeded USD90 billion while imports reached more than USD 130 billion. The new products that have attracted the Arab nations were juice products from China (China Daily, 2013).

Halal Food Products in China

The Xi'an Yongxin Halal Food Company has invested in the West Halal Food Base, located in the Xi'an Bonded Area and covering an area of 70 mu (about 4.67 hectares). The Halal food processing import and

31


export base, with an investment of 200 million yuan ($32.3 million), involves the construction of cold storage warehouses, Halal food production lines and a market for imported beef, mutton and aquatic products. The overall production process will be strictly monitored according to Islamic law, including raw material procurement, processing and selling. The products of Xi'an Yongxin Halal Food Company are available around China and include Jia Yongxin cured beef, beef seasoned with soy sauce, deep fried beef with cumin, and pita bread soaked in lamb soup (Salama, 2013).

Price for 200g: USD $12.28 = RM39.24 (cart100.com, 2013)

Figure 17: Jia Yongxin Halal Cured Beef

Halal issues in China

In January 2013, the issue of mislabelling products as Halal imports became a hot topic among Muslims living in China especially the Uyghurs. A number of companies in China are mislabelling domestically made food products as Halal imports from Islamic nations in order to improve their market share in the Muslim-populated North-Western Xinjiang region, according to sources (Lipes, 2013). One company contacted by RFA Uyghur Service, Tianren International Ltd., admitted it had been producing food products domestically and mislabelling them as certified Halal goods from Malaysia, a predominantly Muslim country.

32

http://cart100.com


China is also one of the main importers of Halal food products from Malaysia. In 2011, Malaysia exported food products worth RM20.6 billion to more than 200 countries, of which, processed food contributed about RM13.5 billion. The main exports were cocoa and cocoa preparations (RM3.8 billion), prepared cereals and flour preparations (RM1.6 billion), and margarine and shortening (MIDA, 2012).

Japan

With markets expanding in Muslim countries, a number of Japanese companies saw the production of Halal foods and other products as a passport to the Islamic world, even though this might mean the complete renovation of a factory. The number of Muslims is expected to exceed two billion in 2030. Two of the largest Muslim countries, Indonesia and Bangladesh, are expected to chalk up growth rates of 6% (Salama, 2013). Halal authentication bodies have received applications from Japanese companies that want to produce Halal products for Islamic countries. The Japan Halal Association reported the number of restaurants offering Halal dishes has increased rapidly over the past 10 years. Currently, about 200 restaurants across the nation offer Halal dishes. Japan believes the barriers against entry into the Islamic market are low for Japanese companies because the Islamic economy is close to the Japanese way of doing business, as it puts weight on fair transactions and the production of goods, and on contributions to local communities (Jiji, 2013).

Halal food products in Japan

The Japanese are very inventive in their daily lives and this includes innovation in new food products that are Halal and in accordance to shariah laws. There are a few food products that has already been approved by Halal bodies such as JAKIM from Malaysia. The spirit of innovation in Japan can definitely help the nation to further expand its business in the Halal food industry globally. Dumplings or 'gyoza' are not Halal as the filling is usually pork meat. However, due to the increase

33


in demand in Japanese Halal food, a company in Japan had invented Halal cgyoza\ The dumplings are stuffed with mackarel fish instead of pork. Not only is the filling Halal, but the company also emphasises on the hygiene of the production area which is separated from the rest to ensure the hygiene is according to Islamic principles. The dumplings were showcased at the Halal Fair 2012 at Singapore and had been given the Halal certificate. Another well-known product that is making headlines is the miso paste. The paste is used largely in Japanese cuisine to add great flavour. A non-profit organisation, Japan Halal Association (JHA), a certification body in Japan accredited by J AKIM has approved a Nagano based miso paste company which became the world's first Halal miso paste provider on 12 December, 2012.

Price for Packaging of 26.450Z: USD $4.88 = RM15.594 (marukaiestore.com, 2012)

Figure 18: World's First Halal Miso Paste

Middle-East (West Asia)

"Middle East" is a term invented by Europeans to describe the geographical region that lies between Europe and distant parts of Asia (what they call the far-East). The "Middle East" is on the continent of Asia but many parts of North Africa have strong cultural and geographical ties with the Middle East. In the Middle East, the Muslim population numbers 127 million and the region imports more than 80% of its food

34

http://marukaiestore.com


requirements. Gulf Cooperation Council (GCC) nations consumed USD 43.8 billion worth of Halal products in 2009. The Halal food industry in the GCC region is expected to grow at a faster pace over 2011 -2016. The six members of GCC are the most important countries in the Middle-East; the United Arab Emirates (UAE), Saudi Arabia, Bahrain, Oman, Kuwait and Qatar. It is a very competitive market because there are "no entry barriers and exit barriers". The total population is only about 40 million in 2011 and projected to rise 40% by 2030 (Sungkar and Hashim, 2011).

Figure 19: GCC Countries Flags and Map

Although the GCC countries have small populations, the total imports of Halal meat into these countries (chicken and beef) exceed 1 million MT annually.

35


Figure 20: GCC Halal Meat Imports Source: HDC, 2012

The main markets are Saudi Arabia and the United Arab Emirates (UAE), contributing more than RM71 billion.

Halal issues in the Middle-East

Even if GCC countries are under the GCC Standardisation Organisation (GSO), they vary from country to country. The main difference is in terms of the slaughtering process: stunning, mechanical slaughter and the use of gelatine (Halal Journal, 2010). In order to solve the ever unsolved issues of unstandardised Halal certification standard, the Organisation of Islamic Cooperation (OIC) has given the mandate to formulate Halal codes for cosmetics and perfumes to be implemented in all Islamic countries and non-Muslim countries as well. The standards are in the ratification process now and will be in place by early next year, covering all types of food products and outlets. Every eatery and food brand that claims its food to be Halal will come under the scanner. (The details of the ingredients used, the processing, the plantation, chemicals

3 6


used, the packaging as well as the slaughtering of animals will be discussed later). Every process should comply with Shariah regulations. Food products that are being genetically modified or processed using chemicals or fertilisers that have traces of non-permissible products will also be inspected. Having traces of pork, animals slaughtered in a non-Islamic way or the presence of alcohol in food products among other things are not allowed according to Shariah (Shahbandaari, 2013).

South Asia

Pakistan

Pakistan or the official name, Islamic Republic of Pakistan, has the second largest Muslim population in the world, behind Indonesia (Pew Research Center, 2009). There are approximately 174 082 00 Muslim people in the country.

Table 6: Countries with the Largest Muslim Population Countries with the Largest Number of Muslims

Indonesia

Pakistan

India

Bangladesh

Egypt

Nigeria

Iran

Turkey*

Angaria

Morocco*

Estimated 2009

Muslim Population

202,867,000

174,082.000

160,945,000

145.312.000

78.513.000

78.056.000

73.777.000

73.619.000

34.199.000

31.993.000

Percentage of Population that is Muslim

88.2%

96.3

13.4

89.6

94.6

50.4

99.4

-98

98.0

-99

r**rC*nt«g© OF WO fi P Muslim Population

12.9%

11.1

10.3

9.3

5.0

5.0

4.7

4.7

2.2

-2

Source: Pew Research Center, 2009

37


Halal food products in Pakistan

Pakistani food companies made inroads into the UAE market at the Gulf Food exhibition in February 2012. The major groups held fruitful meetings at the exhibition and they launched their products from June onwards, according to industry insiders. K&N's Foods (private) Limited, a leading name in poultry and meat products in Pakistan, is expected to market its products in the UAE by June. Other brands like Sufi Cooking Oil and Habib Oil, leading herbal trademark, Qarshi and confectionery products leader, Hilal, among others are also planning to enter the UAE food market this year (Rizvi, 2012).

Price per 300g: USD $3.96 = RM12.6542 (pakistan.grocery.com, 2013)

Figure 21: K&N's Halal Food Product

38

http://pakistan.grocery.com


Halal issues in Pakistan

Halal meat is one of the fastest growing markets in the world, contributing around 16% to the total world trade. Pakistan is the 19th-largest meat producer in the world. However, it only provides 2.9%) of global meat production. In fact, not one single Muslim country is in the top 10 of the world's meat producer. Therefore, Pakistan could triple Halal food exports by formulating and implementing policies in association with the private sector. It has the ability and potential to capture a sizeable share in the $2 trillion world Halal food industry. The country has more than 160 million quality livestocks including 72 million catties and buffaloes and 89 million goats and sheeps. Pakistan should follow the successful steps of its neighbour, India, which is one of the main producers of meat, especially cows, because of the high quality meat. This is because catties in India are free from nail and mouth diseases (Halal Journal, 2010). Pakistan has a 100% Halal production base and has direct access to 470 million consumers in Central Asia, Middle East and Europe (The Express Tribune, 2013).

India

India is one of the key Halal markets which has a large food safety concerned population which also encompasses over 177 million Muslims (Mulani, 2012). According to the Halal India Management Board, the potential market of Muslim customers is largely untapped but investors face the problem of using only Halal products. More than 10% of the world's Muslims lives in India and this makes it the third largest Muslim community in the world, after Indonesia and Pakistan. There are more than 175 million Muslims in India having approximately 15% of the total population with a larger youth ratio, spread out in all states of India. 20 districts have more than 50 % Muslim population in India while 68 districts have more than 25 % share in total population. Most of the Muslims prefer to buy only Halal-certified products.

39


I1IW41.'H.'I'M PAKISTAN

CONTROLLED KASHMIR

PAKISTAN

•ML 1 •" • I

M u m b a i j |

MAHARASHTRA—1 10.2m (10.*%*) m

• More than 10 million

~~" _-J -CHINA-CONTROLLED ^ . . KASHMIR

. '—.— INDIAN-CONTROLLED KASHMIR

UTTAR PRADESH 30.7m ( I8 .SV)

D . m i C j W l BIHAR

•NCMA i l B BANGLAOE

W ' WEST BENGAL 20 2m (25.2%*)

ANDAMAN A N D — NICOBAR ISLANDS

SH

Total population - ibn Total Muslim population « 13Sm (13.4%)

* = •lots'c proportion of Mm ^•'•M^SHBHKSBSiSi

• 5-10 million 1 -5 million Lees lhan 1 mi lion

ASIA-PACIFIC

Countr ies w i t h the Largest P

in Number of Muslims, 2010

LSHMAltC HUS11M

POPULATION

2010 Pakistan* 178,007,000

India 177,286,600

Bangladesh* 148,607,000

Indonesia" 204.84 7,000

Afghanistan* 29,047,000

I ran ' /4,819.000

lUrfcty* 74,660,000

China 23,308,000

Uzbeksom' 26,83 3.000

Malaysia* 17,139^000

ro jected Increase

2030

pftojecieo MUSLIM

POPUIATION

2030 2S6,117,000

2ib.\m.<jw

187,506,000

238,833,000

50,527,000

89,626,000

89,127,000

79,949,000

72,757,000

pROJtcreo NUMERICAL

INCREASE

2010-2030 78,021,000

58,897,000

38,896,000

33,985,000

21,480,000

14,807,000

14,467,000

6,641,000

5,927,000

5,613,000

Figure 22: Muslim Population in India Source: Pew Forum, 2011

Halal food products in India

s>\* * $

I N D I A •

V www.halalindia.com

J < < < . * #

Figure 23: India Halal Logo

40

http://www.halalindia.com


Bikano, the sweet and the namkeen brand from Bikanervala Foods, has seen a 30% jump in soanpapdi and cookies sales in the Malaysian market in the last year, partly due to the Halal-certification that gave it a higher visibility on retail shelves there (Phadnis,2012).

PRICE for 400g: USD $4.99 = RM15.9455 (shop.khapkana.com, 2012)

Figure 24: Halal Food Products in India (Bikano) Source: Phadnis, 2012

Halal Issues in India

India is the major producing and exporting country of bovine meat in the world. The Indian meat industry has shown an annual growth of more than 10% since 1990-91. The unorganised sector has the greater share in meat production in comparison to the registered organised sector. The overall estimated production of meat was 6.5 million tonnes between 2007 and 2008 while in the recognised sector, it was only 2.6 million tonnes (Rahman, 2010). A big advantage for India is its livestock health

41

http://shop.khapkana.com


status. India has always been free from the dreaded Mad Cow Disease (BSE) and has been free from Rinderpest since 1995. There has not been a single incidence of Contagious Bovine Pleuro Pneumonia (CBPP) in India in the past 12 years. Foot and Mouth Disease (FMD) remains the only issue of concern, though it is controlled through various measures (Rahman, 2010).

Demand of Indian Meat is expanding in the overseas market especially with the increased demand of buffalo meat in the Gulf and South Eastern countries due to its lean character and its near organic nature. Adhering to the Halal method of slaughtering animals is an important issue for consumers from the Muslim world. Therefore, prior to granting the registration certificate to meat processing plants, it is mandatory to disclose the method of slaughter: whether the Halal method of slaughtering animals is practiced properly and recording the number of animals slaughtered kept by the representatives of the Islamic organisation. Due to the certainty of Halal compliance, India is therefore the preferred country for the import of meat by Gulf and Muslim countries. It is pertinent to note that the meat profession in India is exclusively conquered by Muslims. More than 95 % of the producers and exporters belong to the Muslim community. Abattoirs and meat plants are owned by Muslims. The Hindu community is completely vegetarian and slaughtering is strictly prohibited according to their religion.

However, India also has to face rivalry from emerging competitors such as their neighbour, Pakistan. In January 2010, Malaysian's Minister of Agriculture, Datuk Seri Noh bin Haji Omar visited various private sector slaughter houses in Pakistan and held meetings with the Food and Agriculture Minister, Nazar Mohammad Gondal, to discuss meat imports from Pakistan. Pakistan has just started exporting Halal meat to Malaysia. The Malaysian government is importing two-thirds of its meat requirements from India. This means that Malaysia could import at least 60,000 tons of meat from Pakistan if it chooses to do so (Halalinlndia, 2010)

42


EUROPE

Europe, including Eastern Europe, has a Muslim population of about 51.2 million and has a spending power of about 30 billion Euros annually. Halal products are seen by major retail chains in Europe as part of their business expansion plans and they are looking at a range of Halal-certificated products to fill new Halal sections of their outlets. The fact about Europe's Halal market is that 25 % of the world population's is Muslim and 780 million are under 25 years old. The demand for Halal products in Europe is valued at $667 billion globally (16 % of the annual growth in consumption of Halal food). The biggest Muslim population is located in the United Kingdom followed by France. Both of these countries shows a growing Halal market throughout the years.

Table 7: Purchasing Power of Muslim Countries in 2005

Africa

West Asia

South Central

Asia

Southeast Asia

China

Europe

North America

South America

Oceania

Total

Muslim

Population

(Million, 2005)

461.77

195

584.8

266.37

39.1

51.19

8.26

1.64

0.35

1,565

Per capita food

expenditure

(p/a US$)

250

570

300

350

175

1,250

1,750

500

1,500

Halal Food

Market

(Millions US$)

115,443

111,150

175,440

93,230

5,865

63,988

14,455

820

525

580,915

Source: http://www.islamicpopulation.com, Euromonitor, 2005

43

http://www.islamicpopulation.com


The above table shows the purchasing power of Muslim consumers over the world. European countries have the fifth largest Halal food market with a higher per capita income, even though the number of Muslims is smaller compared to the non-Muslims.

EUROPE Mus l im re of Overa l l P o p u l a t i o n , 1 9 9 0 - 2 0 3 0

1990 2000 2010 2020 2030

Pew Resea' b P\jbl« Life « 7»t? Fljture of the Gtottat MLKJH™ Popu;.*

Figure 25: Europe's Muslim Population in 1990 until 2030 Source Pew Research Religion & Public Life Project (2011)

United Kingdom

Major retail chains in the United Kingdom (UK) have an increasingly influential role in the Halal industry. In these stores, 40 % of their customers are Muslims, who require more Halal products, both food and non-food, with a wider product offering.

A report on the UK Halal market published recently by the UK Government found that the Asia population in the UK is growing 15 times the national average. In 2011, about 50 % of all London boroughs will have an ethic majority population where the retail sales of Halal meat are valued at 400 million Euros. The majority of Muslim consumers utilise large supermarket chains for their main grocery shopping indicating a vast retail opportunity for the large chains and 51 % currently offer Halal

44


meat. The proportion of Halal meat sales in the UK is 12 % while the Muslim population form only 4.8 % of the UK population.

Halal food in Europe

Eden Valley Group is one of the family businesses that is producing Halal meat and poultry based on the Halal standards. The figure below shows the meat and fresh chicken that is promoted by Eden Valley Group to Muslims.

10K9

Fresh Chicken Niblet Wing (1st Joint)

15Kg

Fresh Chicken Niblet Wing

lOKg F r o z e n IQF C h i c k e n N i b l e t Wing (1st Joint)

BuyS1

or more < E 1 8 . 9 9 <

lOKg Frozen IQF Chicken Niblet Win (1 st Joint) (Plain Box} S

Buy 10 or more

Figure 26: Pricing Range for Halal Fresh Chicken

Eden Valley Group is a family run company that is positioning itself as a major meat supplier and the largest poultry processing company in the UK.

45


Figure 27: Pricing Range for Halal Beef Burgers Source: www.edenvalleygroup.co.uk

The figure above shows the range of different sizes and weight of Halal beef burgers in the United Kingdom pricing range, which is between 6 to 12 Euros.

5^*£^/ A*n.-** *-r* •

Figure 28: Halal Logo Certified to Eden Valley Group

The number of Muslims has grown in the smallest countries (www. stastistic.gov.uk). The UK is seen as a potential Halal market in European countries with the increase of the Muslim population and demand from non-Muslims. There are about 2.7 million Muslims in the UK and a

46

http://www.edenvalleygroup.co.uk

http://stastistic.gov.uk


million of them lives in London. They are responsible for the 20.5 billion Euros of Muslim spending in the UK, and 700 million overall value of the UK Halal market.

In 2010, the European Halal Food Park was built to increase the Halal process and market. The objective of the Halal Park was to focus on the growing demand for Halal beef and sheep in the UK. Examples of meat that is produced by UK Halal Park is beef, lamb, veal, mutton, chicken, burgers, sausages and marinated meat products. Besides that, diverse packaging materials are used to suit wholesalers, retailers and food service customers. In Europe, about 6 million people are consciously buying Halal meat. According to Halal Food Authority (UK), "significant quantities of the meat sold in the UK on the open market are slaughtered under Halal standards". This explains why the Halal market is slowly expanding around the world. The safety and quality of the meat has increased the household demand. Britian's biggest hotel and restaurant group, Whitebread, which owns the Beefeater and Brewers Fayre chains, admit that more than three-quarters of its poultry is Halal. Of this, the highest amount of the meat was supplied by the New Zealand Halal market.

The UK offers a variety of Halal foods such as burgers and sausages with the Halal logo (Simply Halal Brand). In 2011, the export of Halal meat increased to 22% and this increment allowed the UK to create opportunities with US trade. The business trade led to 28% to the UK economy with an increase to 1 billion Euro (Global Meat news.com). The Halal market in the UK is one the few segments showing real growth. The Halal Food Festival is an excellent opportunity to engage with second and third generation Muslims with real spending power as the highest Muslim population in the UK are under 25 years old (Halalfoodfestival. com). Below is the UK Halal logo from different systems:

47

news://news.com


Organisation and System Logo

Halal Food Authority (UK)

Recognised by:

Philippines (Halal Stock)

Malaysia (JAKIM)

Halal Development Council

j * > ^ Muslim Food Board (UK)

Recognised by:

Indonesia (MUI)

Malaysia (JAKIM)

Singapore (MUIS)

World Halal Food Council

HALAAL Figure 29: Halal Logo in United Kingdom Recognised by JAKIM Source: www.Halal-zertifikatde

48

http://www.Halal-zertifikatde


Halal Meat Images Food Services Range

Fillet and Sirloin, a real meat lover's

steak.

This succulent, bone in steak has a

tasty sirloin on one side and a tender

portion of fillet on the other. It's a big

flavoursome cut for those who love

their meat.

Fully matured and 100% Non-Stun

Halal.

Approx. weight 370g, packed

individually.

10 steaks per box.

Good marbling is what makes Simply

Halal's Sirloin taste so good.

Sirloin is one of the most flavoursome

steaks, yet it's almost as tender as

fillet, so it can be relied on to please

everyone. Choose from our Sirloin

steaks and minute steaks available

in a variety of box sizes, or why not

try one of our Sirloin roasting joints

available in a variety of sizes.

Approx. weight 230g, packed in 2's.

20 steaks per box.

49


Big deal for the large appetite.

Dry matured on the bone, the flavour

and tenderness of this 400g steak is

second to none, and the size is ideal

for the larger appetite.

"Dry matured on the bone for extra

tenderness"

Approx. weight is 400g, packed

individually.

10 steaks per box.

Figure 30: Halal Meat Produced by UK Halal Manufacturers source: www.Halalfoodpark.com

The figure above shows the product range that is provided by Europe Halal Park which is located in the UK. The variety of Halal meat in the UK has had a lot of demand from different customers, both Muslims and non-Muslims.

France

The Halal market in early 2005 in Europe earned more than 5 billion Euros. As in all multi-cultural societies, France has seen a rapid growth in the Halal market over the few past years. The Muslim population living in France is estimated at 7 million people and 70% of them originate from countries such as Algeria, Morocco, Tunisia, while others are from Turkey and diverse Africa Muslim countries (Zakaria, 2008). France is reported to have the largest population growth for Muslims in Europe. In France, the non-Muslims' total demand for Halal food is estimated to reach about USD3 billion annually and they spend up to 14% on food

50

http://www.Halalfoodpark.com


only. On the other hand, Muslim consumers spend about 30% to 35% purchasing Halal foods (World of Halal).

France is a country that has just started to develop the Halal industry since the demand of Halal products from Muslim consumers is growing. The first step in developing the Halal market is through the development of Halal food markets. In 2001, the expansion of Halal shops increased due to high demand. The Halal market is focusing on the meat segment which every Muslim takes seriously, particularly on how the meat has been slaughtered and processed (Zakaria, 2008).

In 2003, the opportunities of the Halal market increased the range of Halal products and at the same time expanded the Muslim consumer variety of products, such as cosmetic and daily care, tourism and etc. Examples of the main local meat and poultry are Charal, Doux, Socopa and Due. Nestle is one of the MNC companies that launched the Halal "Maggi" soup and Halal stock cubes into the French market. According to Nestle CEO, European Halal food market is valued at US$67 billion and expected to grow by at least 25% in 2020 (Nestle's, 2009). Several supermarkets such as Carrefour, Franprix, Auchah and Leclerc accounted for 20% of Halal products sold in France and 80% sold in the Halal butchery shop. These supermarkets also allocated specific shelves for Halal products. This strategy has increased Halal demand by non-Muslims. According to World of Halal, the demand from non-Muslims reached about USD 3 billion annually, 14% of it spent on foods. In 2005, about 3000 to 5000 shops based in France produced Halal food such as butchery shops, fast food outlets and pizzerias, catering and food services, hotels and even airline companies (Halal Market in France, 2005).

51


Figure 31: Halal Supermarket Brands in European Countries

Organisation and System

Ritual Association of Lyon's Great

Mosque

(Association Ritualle de la Grand

Mosquee de Lyon)

Recognised by:

Malaysia (JAKIM)

Logo

Figure 32: France Halal Logo Recognised by JAKIM

Source: www.Halal-zertifikat.de

AUSTRALASIA

Australia The growth of the Halal concept in Australia is from the increase

in Muslims in the country (Dickson, 2009). Basically, Muslims are

52

http://www.Halal-zertifikat.de


particular about the Halal products such as food, medicine, cosmetics and others. Australia has been recognised as the largest Halal exporter of dairy products and beef. Besides that, most of fast food restaurants are Halal, even though the Muslim population in Australia is only 1.5 % of the 20.2 million total population (Dickson, 2009). It shows that there is a market potential for Halal food even though the Muslim population is low, because they export large amounts of Halal food around the world.

However, there are several issues raised regarding Halal food. As we know, dairy products and cows are the largest exports in Australia. The slaughter of animals according to the Halal concept is that the that throat of the animal will be slit without any stunning and cruel technique. Even though some of the suppliers in Australia did get the Halal certificate, they still use cruel systems to slaughter, such as stunning and electrical shock on the animal's head (Dickson, 2009). This issue arises as not all in the country accept this technique.

On the other hand, the availability of the Halal certificate on packaging is another issue that arose. Some of the companies put a small printed Halal logo on the side of its packaging and some do not even though it is Halal food. The reason may be that they might want to keep a good reputation and improve sales. Besides that, they do not want to lose their non-Muslim customers even though the company produces Halal products and services. This issue made Muslims doubt all products that are not labelled with the Halal logo although the company has obtained the approved Halal certificate for meat and chicken. These are the sensitive issues regarding the labelling of Halal on the packaging of food. However, some non-Muslims do not care to consume the Halal products and some of them banned the Halal products straightaway (Kaufman,2013). This is because they had labelled Muslims as terrorists (Australia Day, 2013).

In Australia, there are several approval bodies awarding the Halal certificate such as the Adelaide Mosque Islamic Society of South Australia, Islamic Association of Geraldton, Islamic Association of Katanning Inc, Islamic Co-ordinating Council of Victoria (ICCV),

53


Supreme Islamic Council of Halal Meat in Australia Inc. (SICHMA), The Islamic Council of Western Australia, Khairat Melayu Islam Victoria (KMIV), The Perth Mosque of Western Australia Incorporated, Australian Federation of Islamic Councils Inc., Halal Australia Inc., Australian Halal Food Services (AHFS) Head Office Queensland State - Brisbane and Victoria State - Melbourne (Halal Event Ltd., 2013).

Adelaide Mosque Islamic Society of South Australia

20 Little Gilbert Street, Adelaide S.A5000, Australia

Islamic Association of Geraldton

Geraldton Mosque, 172 George Road Geraldton, Western Australia,

6530 Australia

Islamic Association of Katanning Inc

P.O Box 270, Katanning, Western Australia 6317

Islamic Co-ordinating Council of Victoria (ICCV)

155 Lygon Street, East Brunswick, Victoria 3057, Australia

Supreme Islamic Council of Halal Meat in Australia Inc. (SICHMA)

Unit 1, 35-37 Harrow Rd, Auburn NSW 2144, Australia

The Islamic Council of Western Australia

P.O Box 70, Burswood WA6100, 7 Melvern Road, Rivervale WA6103

Khairat Melayu Islam Victoria (KMIV)

56 May Avenue, Altona Meadows, Victoria 3028, Australia

The Perth Mosque of Western Australia Incorporated

427-429 William Street, P.O Box 106 Aberdeen Street, Perth WA6001

Australian Federation of Islamic Councils Inc.

932 Bourke Street, Zetland NSW, 2017, PO Box 7185, SSBH,

Alexandria, NSW 2015

Halal Australia Inc.

Unit 6, Level 1, Auburn Chambers, 22 Auburn Rd, Auburn NSW 2144,

Australia

Australian Halal Food Services (AHFS) Head Office Queensland

State - Brisbane

PO Box 775, Springwood, QLD 4127, Australia

Victoria State - Melbourne

RDV Business Centre, 41 Cumberland Road, Pascoe Vale, Victoria

3044

Figure 33: List and Addresses of Approved Halal Authentication Bodies in Australia

Source: Halal Events Ltd, 2013

54


New Zealand

Tan (2013) clarified that in New Zealand there are 1.5 % of Muslim population, the same as in Australia. He had justified that the total population is 3.8 million. Even though there is a small population of Muslims in New Zealand, there are a lot of restaurants that provide Halal food in order to market their business. Besides, New Zealand is also a big exporter of dairy milk and beef like Australia. In fact, New Zealand is the largest exporter of Halal sheep in the world.

Figure 34: Market Selling Halal Meats in New Zealand

Halal cuisine is prepared in an acceptable manner that the Muslims are allowed to eat under the Islamic dietary guideline (New Zealand Tourism Guide, 2013). Beef and Lamb News, New Zealand (2013) had justified getting a Halal certificate at no extra cost as it may help them to increase their sales and gain more profit. However, in New Zealand they stun the animals so that animals do not feel the pain during the slaughter process. This process has been implemented in Australia too. However, this process is not implemented in Malaysia.

55


SUPERMARKETS

CHICKEN

Up to 5% of chicken Is halal

Waitrose SS 'sow

LAMB

All NZ and 35% of UK lamb is halal

All lamb is halal

BEEF

beef sold

No halal beef sold

OWN HALAL RANGE?

Shahada halal meat range - 4 0 stores

Does not sell any halal-only range

M Q No halal NZ lamb No halal Does not sell any I V I O chicken sold Is halal beef sold halal-only range

Q ? i i n c h i i r \ A : No halal All lamb No halal Tahira halal meat - > d l ! i b U U I y ^ chicken sold Is halal beef sold range - 42 stores

, H | » A Refused to Refused t o Refused to Refused to _>Tv_> *-\ comment comment comment comment

F W L S H H I J I No halal NZ lamb No halal *•<*. u»iai n n a p r ' W H " H I « | chicken sold is halal beef sold N O n a , a , r a n g e

ThoAiumora f io f i No halal NZ lamb No halal 3 London stores ine CO-Operatlve chicken sold Ishalal beef sold sell halal range

Figure 35: Top Supermarkets Selling Halal Food Source: Taher, 2010

In New Zealand, they also had issues regarding Halal food, such as Halal hysteria where most of the consumers wanted to ban Halal food. Besides, the way the supplier of meat slaughtered the animal was cruel (Hassan, 2012).

There are two Halal approvals in order to produce Halal food or export the Halal food. They are from the New Zealand Islamic Meat Management (NZIMM) and the Federation of Islamic Associations of New Zealand (FIANZ). In order to know what the Halal foods are, the approved 'ME' symbol is required on each individual box of sealed and packaged meat portion (Nana, 2011).

56


W _ ^ , " ^ i „ „ 513799 W •• ™ New Zealand Halal € . ^ n i t y i n g Authority ^ ^ 4

f ^ R ^ f * < " * Zealand Iv lamk PROCESSED F O O D Management t ^ f c f

Iflfcj HALAL PROCESSED FOOD CERTD7ICATE tffcfel | ^ , | J^-^^^M^^j^M^. % J 1 4

w w A . A HAIVtOMAMI J>SAMV A B W I Al . 4 . 4

^ £ ; M . i i r r w w w < Foatf M * u a r a n l x -

4 , 4 • N « 4 < h liv^AMt uwl . « M >• !)•« _-C«SJ „..,>. A , A

Z^^B^S t m a r i m M n l .III. mn^W >^iw<n >.i 1 ^ . 1

| A, • ^ « — •—«—»•-«•-*•-«»- J^V>Y^-*J» 4 _ _ A,

I ^ ^ B A I tUjKrtltr: N r * I M A < . M N I I K N A ! K ^ A l f ^ ^ ^ A l

W Covalry o* OrigjHi Ml- W Z fA l AST> A

la iprt . r NFW IMAOl M A I A V S f \ «$NIOK SON UHDi f ^ ^ R j

W D M i u i M i C t t u r ! - ; MALAVWA Order No: VIV K4VW0B .

D T « I V I ~ . : AU-HAi i r iounx in t ta^RAJ

R R R R R K.*W«i«ha <K«»V « : « i 0 I b M l N w n b t n ; -*KX il>4*> i%»UM ' M R R M

W S t i p H |wi H . l C . H T M I l l W j V A R M A W l l ' i ? i n M ; w . 4 i 4

r rwn»d AH FOOP CONTRACTORS i-rn I B B H R J

W r radKt laa i l ik 1/tX.VJOG* * A

r»».*., date I K . W I D*to: 2ft.O3.7O0* a B B B a t f

iiupM-Mr: AtrMirn B A W P W M J ^ M L . ^ ^ ^ ^ A

L ^ L ^ * ^ t ^ L ^ L ^ L ^ i

Figure 36: Halal Processed Food Certificate Provided by the New Zealand Certifying Authority

AFRICA

Africa is the only continent that is rapidly becoming a developed continent by producing fresh and processed foods that are displayed for export. The specialty foods and beverages are marketed to Africa's importers, wholesalers and retailers globally. Halal food products in Africa can be considered as a strong market because of the rapid changes in the infrastructure and the large tourism industry has become a factor for the Halal market (Market Indicator Report, 2011). Moreover, the

57

http://2ft.O3.7O0*


Muslim population in Africa is higher than in other countries, which is over one billion people and hence the African market can be a key player in the Halal industry (Halal Industry Development Corporation, 2007). The majority of the Muslim population in Africa can be seen in Egypt, Tunisia, Nigeria, Morocco and Algeria. They became the largest users of Halal food products (Muslim population, 2013). The statistics for the five years from 2004 until 2010 shows that the market for Halal products in Africa increased from USD136.9 to 153.4 and this proves that the Halal food market size in Africa has become an opportunity for this continent to become a large market for Halal food products either for export and import (Sungkar and Hashim, 2009).

Egypt

The country in Africa that has a potential opportunity for Halal food market is Egypt, with a 78.19 million Muslim population that prioritise the usage of Halal products (Muslim population, 2013). Egypt focuses on processed food products such as pasta or noodles, savoury biscuits, sweet biscuits, bread and rolls and snacks (Market Analysis Report, 2011). These products have a higher demand and this has contributed towards the economy in Egypt. Besides that, Egypt is also popular in terms of tourism. There are 1600 travel accommodation outlets and all these travel outlets serve Halal food such as high quality beef, seafood, sauces as well as canned vegetables and fruit (Egypt Agriculture Report, 2010). This sector contributed towards the economy of Egypt and this shows the opportunity for the Halal market to expand.

58


Table 8: Potential of African Continent

COUNTRY

EGYPT

MOROCCO

ALGERIA

NIGERIA

TUNISIA

TOTAL

POPULATION

(MILLION)

82.3

32.6

37.4

170.1

10.8

MUSLIM

POPULATION

(MILLION)

78.19

32.27

37.29

119.07

10.69

GDP

PER

CAPITA (RM)

21714

17437

24675

8883

31913

TOTAL

GDP

(RM)

1769.36

Billion

562.59

Billion

903.11

Billion

1482.15

Billion

343.48

Billion

*

AMSOI.A i * « B l

Figure 37: Map of the African Continent Source: www.musiimpopulation.com (2013)

59

http://www.musiimpopulation.com


Morocco

Morocco is also seen as a potential country where the Muslim population is at 99 % (Index Mundi, 2012). This country focuses on agriculture, construction, infrastructure, mining and metals (Export Development Canada, 2010). Morocco is now more innovative in terms of its infrastructure, and has launched a new port and free trade zone. This has created an opportunity for Halal products to expand in that country (Morocco Agriculture Report, 2010).

Tunisia

Tunisia is another potential market for Halal products because of the high Muslim population which is at 99 % and the usage of Halal food (Index Mundi, 2012). The diversity in its economy has developed the country as one with the highest standards of living. According to Worlds Consumer Income and Expenditure Patterns (2012), the annual gross income for the Tunisian population is considered high in the continent. The few natural resources here have made the country import food and beverage from outside the country and this has increased the import of goods into the country, especially Halal food.

Algeria

Algeria, like Tunisia, is a potential market for Halal products because of the higher Muslim population which is at 99 % and the high usage of Halal food (Index Mundi, 2012). This country has been categorised as an upper middle income country and this is considered good for other countries to enter the market especially for Halal food products. This country is the second largest country in Africa in terms of land mass, and also is the eleventh largest country in the world. Food and non-alcoholic beverages are the main categories of import for this country (Market Indicator Report, 2011).

60


Halal Logo in Africa

The import and export of Halal products in Africa will have gone through all the procedures in order to get the Halal certification by the Muslim Judicial Council (MJC), which is the first Halal authority in Africa. However, the Halal authority has been replaced by the National Independent Halal Trust because of several issues and the last Halal logo in Africa has been replaced by the South African National Halal Trust (SANHA). This is because consumers are more confident with the way that this body manages Halal food products, whether imported or exported, in terms of their procedures. This body also gives seminars, public programmes and community programmes in order to highlight the dangers of non-Halal foods. Thus, the consumers will not have any doubts regarding the Halal logo certified by this body (Tayob, S., 2012). Many plans have been developed by the Halal Industry Development Corporation (HDC) regarding the opportunity to promote Malaysia as a Halal standard to be used in Africa. It also wants to collaborate with MIDA in order to facilitate the trade of Malaysian Halal products and increase the investments into the Halal sector in Malaysia by the African Halal sector (Industry Report, 2007). Halal products, especially food, should be expanded not only in the nations that have high population of Muslims but also in other nations to make Halal products become globally successful.

Figure 38: Africa Halal Logo Source: Jakim ,2011

61


AMERICA

America is one of the continents that has one of the largest population in the world which is around 972 million people, and it covers the South and North of America (Index Mundi). According to the National Geographic website (2013), North America has five countries which are the United States, Mexico, Canada, Costa Rica and Panama; while South America has more than 40 countries. That makes a total of 55 countries in the American continents. According to the Muslim Population website (2013), America only has an estimated 0.5 % of Muslim population, which is the lowest percentage as compared to other continents around the world.

• Asia-Pacific

• MiddleEast-North Africa

• Sub Saharan Africa

• Europe

• Americas

Figure 39: Muslim Population in the World Source: Muslim Population Website (2013)

As can be seen above, the population of Muslims in the Americas is the smallest, and therefore many Muslims do not have convenient access to Halal foods (Muslim Population, 2013). In order to further discuss the American continents, the table below shows the estimated

Muslim Popula

3%0%

62


number of Muslims and the share of Muslim population in both South and North of America from year 1990 to 2030.

According to Faisal Masood (2010), American Muslims' spending power is USD 170 billion. This amount is expected to grow as the number of Muslims is increasing in America and that Muslims are continuing to maintain their purchasing habits to align with their faith (Cheema, 2010). Faisal Masood (2010) also stated that the increasing demand on the Halal food market is also because Muslims want to be able to look at the product and see recognisable Halal logo before making the purchase and Muslims are now more aware of things that they consume.

Table 9: Estimated Number and Share of Muslim Population

in the Americas (1990 - 2030)

AMERICAS

Estimated Number of I

Americas

Central and South America

North America

Muslims, 1990-2030

1990

2,990,000

1,147,000

1,842,000

2010

5,256,000

1,720,000

3,536,000

PROJECTED 2030

10,927,000

2,050,000

8,677,000

AMERICAS

Share of Population that is Muslim, 1990-2030

Americas

Central and South America

North America

1990

0.4%

0 3

0.7

+ 0 .

2010

0.6%

0.3

1.0

PROJECTED

2030

1.0%

0.3

2.2

Pew Research center's Forum c<t Religion & Public Life • 7TB Future or the Global Mustim Population, tanu*

Source: Pew Research Centre's Forum on Religion & Public Life (2011)

Based on research done by the Pew Research Centre's Forum on Religion and Public Life (2011), the Muslim population in Central and

63


South America increased slightly from 1.72 million in 2010 to 2.05 million Muslims in 2030, which means only 0.3 % of the population in that continent are Muslims. The increase in Central and South America is smaller compared to North America, which is expected to comprise about 2.2 % Muslims by 2030. This shows that the Muslims mostly live or stay in North American countries like Canada, Greenland, Bermuda, the United States and St Pierre.

Nowadays, many Islamic nations produce most of their own foods and some also import from other countries. As the Muslim population across the world has increased, the demand for Halal-certified suppliers from non-Muslim countries has also increased. Therefore, there are many new suppliers, for example exporters from Argentina, Canada and the United States that export their products to Muslim countries in the world (Global Pathfinder, 2011).

Besides that, Argentina is also one of the countries in the American continents that have larger Muslim growth in South America. Argentina follows behind the United States, which has 2.6 % of the population who are Muslims (Research Centre's Forum on Religion and Public Life, 2011).

Therefore, those three countries - Canada, United States and Argentina - are selected to be further discussed since the number of Muslims in those countries is the largest compared to the other countries in the American continent. This shows that there are some potential for the Halal food industry in those three countries.

Canada

Canada comprises of 34 million people and 1.9 % of them are Muslims (Index Mundi, 2013). According to Index Mundi (2013), the capital of Canada is Ottawa and they use English and French language as the medium of communication.

64


Canadian agri-food exports to key Halal markets exceeded $3 billion in 2010 (Agriculture and Agri-Food Canada, 2011). It can be seen in the table below that the United Arab Emirates (UAE) is the most dominant market for Canadian agri-food exports, which is worth about USD533.5 million. Following closely behind the UAE is Bangladesh and Pakistan, which are worth USD524.1 million and USD403.5 million respectively. One of the most popular agri-food being exported to these Halal key markets is grain.

In terms of beef and veal exports, Egypt, the UAE and Indonesia are among the largest markets for beef and veal exported by Canadian. While for poultry, Pakistan and Iran were the largest potential for Canadian exporters to expand their business and export the poultry there since they are among the countries that demand poultry. The Pakistan poultry market is USD768,294 while Iran's is USD289, 850. According to Grace (2000), as Canada has already entered the poultry industry in those countries, there are several opportunities to export other meats and products that follow the Halal requirement. This will help to increase the Canadian poultry export value.

Table 10: Key Halal Markets - Canadian Exports by Country (2010)

Key Halal Markets - Canadian Agri-food Exports by Country (2010)

Country

United Arab

Emirates

Bangladesh

Pakistan

Saudi

Arabia

Indonesia

Turkey

Algeria

Canadian Agri-food

Exports

$533.5 million

$524.1 million

$403.5 million

$273.4 million

$251.5 million

$245.7 million

$202.8 million

Canada Beef and

Veal Exports

991,379

0

0

51,595

925,710

0

0

Canada Poultry

Exports

11,958

0

768,294

0

0

84,616

0 continue

65


Egypt

Iraq

Morocco

Malaysia

Tunisia

Syria

Iran

Lebanon

Jordan

Kuwait

Bahrain

Oman

Yemen

Qatar

TOTAL

$188.0 million

$172.6 million

$129.4 million

$116. million

$60.2 million

$20.0 million

$17.4 million

$11.4 million

$10.9 million

$10.7 million

$7.1 million

$6.5 million

$5.7 million

$3.7 million

$3,194.1 million

2,522,564

0

0

0

2,009

0

0

0

0

0

122,057

0

0

0

$4.6 million

0

38,110

0

15,259

0

0

289,850

0

0

0

24,969

0

0

0

$1.2 million

Source: Canadian Agri-food Exports by Country (2010)

Canada, a non-Muslim country, has helped to supply food to other countries, mostly the Muslim countries which are the key Halal markets. Among the products being exported by Canada to the Halal food market, agri-food exports are the highest compared to beef and veal, and poultry; which were worth an estimated USD3,194.1 million in 2010.

66


United States

Figure 40: United States Halal Logo and Map Source: Index Mundi (2013)

The United States comprises 313.986 million people and 0.6 % of them are Muslims (Index Mundi, 2013). According to Index Mundi (2013), the capital of the United States is Washington D.C., and New York City is the largest city. They use the English language as the medium of communication.

In the United States, the demand for meat has increased and this has raised an alarm about the future of the meat industry. The US is also

67


one of the meat exporters in the world and almost 36 % of meat was exported to the Middle East region in 2011 (Agriculture and Agri-Food Canada, 2013). In 2012, the percentage of meat exports to the Middle East increased 13 %. As the demand for quality Halal food is increasing in the Muslim world, the US meat industry can gain from the opportunity available as well as face some challenges that may occur in the future.

Opportunities for the US market will get bigger in the future since for example, the Middle East relies heavily on imports of between 80 to 90 %. According to Global Pathfinder (2011), fresh meat continues to be under supplied in Muslim countries like the Middle East, Malaysia and Indonesia. Thus, the US can cater to these countries in order to expand its market share of meat exports throughout the world.

Halal Body and Certification

Halal certification allows businesses to access into growing export markets in Asia, the Middle East and Africa, which all require proper certification of Halal from an authorised body (DagangHalal.com, 2013). Currently, there is no standard certification for Halal and the requirement for certification is different in every country. In America, there are a number of certifying organisations which include the Islamic Food and Nutrition Council of America (IFANCA), the Islamic Society of North America (ISNA) and Halal Advocates of America. Thus, exporters are encouraged to check first with the importing governments to determine which Halal certificates are recognised (IFANCA, 2012).

INFANCA was founded in 1980 and has worked with major companies like McDonald's. Besides, the agency also helps to find solutions for new challenges faced and related to Halal food, help to publish relevant information, and also consult on particular issues faced by Muslims in selecting food products. There are some bodies around the world that have recognised the IFANCA Halal certification, among them are the United States Department of Agriculture (USDA), Muslim

68

http://DagangHalal.com


World League (MWL) in Saudi Arabia and Jabatan Kemajuan Islam Malaysia (JAKIM).

Table 11: IFANCA Recognisable Bodies

Recognised by:

• United States Department of Agriculture (USDA)

• Majlis Ugama Islam Singapura (MUIS) (Singapore)

• JabatanKemajuan Islam Malaysia (JAKIM)

• Muslim World League (MWL) (Saudi Arabia)

• Majelis Ulama Indonesia (MUI)

• Islamic Committee Office of Thailand

• Philippine Halal Association

• United Arab Emirates (UAE) Municipalities

Source: IFANCA (2013)

Issues in America

According to the Halal advocates of America (HFS AA) website (July 2, 2012), Muslims can detect whether the chicken meat that they buy is Halal or not. Now, Muslims can sit back and relax in terms of finding Halal chicken as there is an availability of hand-slaughtered chicken products. These chickens are individually blessed by Muslim slaughterer by following steps according to the sunnah (HFSAA, 2012).

The process will be monitored and supervised on the sites by the authorising body. This way it will help to ensure the highest standard of Halal integrity and avoid slaughtering that is against Islamic law. The chicken meat then will be given the Tahir symbol to symbolise the Halal chicken, thus helping Muslims to purchase chicken without doubt. According to HFSAA (2012), this Tahir chicken is currently available in Washington D.C., Los Angles, Chicago and San Francisco. In the future, they plan to distribute more to all American countries to give options to Muslims regarding Halal foods.

69


Based on HFSAA website, Muslims can now be rest assured that the chicken that has the Tahir logo is Halal since it has been approved by HFSAA, an authorising body that gives the Halal certificate to businesses in America. In the future, they should also try to do the same with beef and lamb. This will give more variety for Muslims in choosing their foods.

Argentina

In Argentina, it has been reported that Muslims account for about 2 % of the population, which equals to 700,000 people. According to Gertz (2008), many Muslims prefer kosher products rather than haram food, if they do not have options for Halal because kosher products have a similar method to the Halal procedure of preparation. Argentina is the home of kosher products as it has the second largest Jewish population across America. Therefore, the market for kosher products is significantly larger than Halal products. Even though there is only a small domestic demand for Halal food, local entrepreneurs still want to invest in Halal rather than kosher food because it involves less investment (Gertz, 2008).

On the other hand, even though the population in Argentina is mainly Jewish, Argentina is one of the leading exporters of Halal foods to the Muslims countries. They mainly export Halal products like beef, gelatine and lamb, and the main market for these products are Saudi Arabia and Egypt. In addition, Argentina is also one of the global leaders in supplying Halal beef, up to about 15 % (Ibrahim, 2011).

70


Figure 41: Argentina map Halal Logo and Map Source: Index Mundi (2013)

Halal Market Opportunities in America

According to the Association of American Halal Certifiers (2010), the American Muslim population is estimated to be at 8 million, representing an increase in Muslim population. This is also supported by Pew (2011) that projected America continents will have growth of Muslims. The Muslim community's annual combined spending power is at USD 170 billion and this then shows that the American annual Halal market potential is from USD30 to USD40 billion (AAHC, 2010). Hence, America's Halal market has bigger potential for Malaysia to enter as the spending power of Muslims is high. Instead of focusing only on attracting Muslims, Malaysia should also take advantage of attracting the non-Muslims to buy Halal products and foods. Taking the opportunity available will help Malaysia to enter the American market.

71


Table 12: Global Halal Market

Global Halal Market Sizes by Region in US $ billions

Region Global Halal Food Market Size 1. Africa 2. Asian Countries

GCC Countries* Indonesia China India Malaysia

3. Europe France Russian Federation United Kingdom

4. Australasia 5. American

United States Canada

2004 587.2 136.9 369.6 38.4 72.9 18.5 21.8 6.6

64.3 16.4 20.7

3.4 1.1

15.3 12.3 1.4

2005 596.1 139.5 375.8 39.5 73.9 18.9 22.1 6.9

64.4 16.5 20.8 3.5 1.1

15.5 12.5 1.5

2009 634.5 150.3 400.1 43.8 77.6 20.8 23.6 8.2

66.6 17.4 21.7 4.1 1.5

16.1 12.9 1.8

2010 651.5 153.4 416.1 44.7 78.5 21.2 24.0 8.4

67.0 17.6 21.9 4.2 1.6

16.2 13.1 1.9

42 5

':: -

i | * o F> 50^

ID t) J

Source: Global Pathfinder (2011)

Based on the table above, it shows that America has a potential Halal market to enter, especially in the United States and Canada (Global Pathfinder, 2011). According to DagangHalal.com (2013) currently, the global Halal market has started to gain its attention from the trade merchant world. Therefore, Malaysia should take the opportunity available in America and try to export its products by planning strategies on how to capture the market and compete with businesses in America.

SWOT MATRIX

SWOT matrix is a strategic marketing tool applied to help Malaysia's Halal food industry make an analysis of its industrial strengths(S), weaknesses (W), opportunities (O), and threats (T). Plus, it can also help Malaysia to develop four types of strategies such as SO strategies, WO strategies, ST strategies, and WT strategies.

72



The internal strength for Malaysia's Halal food industry is that the Malaysian Halal logo is recognisable worldwide. In addition, it has government incentive and support, positive consumer perception and also high level of trust on the Malaysia Halal logo. These internal strengths are important for Malaysia to know in order to use it wisely to explore bigger markets.

It is important for Malaysia's Halal food industry to know its internal weaknesses so that they can improve their performance internally. Malaysia should try to eliminate these types of weaknesses in order to make their products better than their competitors'. These weaknesses include not having sufficient supply of meat and poultry, SMEs having a limited production capacity, insufficient marketing effort, unattractive packaging and also Malaysia's focus mainly on the agricultural sector.

Besides that, the external opportunities are the factors that Malaysia can take advantage of to improve its service or service quality. The external opportunities may vary from the Muslim consumers who nowadays have started seeking total Halal lifestyle, potential market for processed foods and also rising demand for fast and convenient Halal food choice.

Lastly is the external threat. An external threat is an external factor that Malaysia's Halal industry might have to fight for its survival. The Halal food industry must give more attention to external factors because it can influence the number or degree of customers to buy their products. So Malaysia should design some sort of strategy to prevent this from happening. Malaysia's external threats are kosher elements and foods, Muslim slaughtering issue, Islam-phobia and also a negative mind set about Halal among consumers.

73


Table 13: SWOT Matrix for Malaysia Halal Industry

External Opportunities | (0)

1. Muslim consumers seeking total Halal lifestyle

2. Penetration of global market with processed foods

3. Rising demand for fast and convenient Halal food choice

4. High purchasing power in developed countries and high per capita income

External Threats (T) 1. Kosher elements and

foods 2. Muslim slaughtering

issue 3. Islam-phobia 4. Negative mindset about

Halal industry

Internal Strength (S) 1. Worldwide recognisable

JAKIM Halal certification. 2. Government incentives 3. Consumer positive

perception 4. High level of consumers

trust Malaysia's Halal logo

SO strategies Expand Halal products to global market like to China, India, Russian Federation, Middle East and Europe (S1,S2, S3, 01,02)

Introduce ready-to-eat or ready cook food products like kebab, chicken nuggets, burger, sausages (S4, 03)

TS strategies Exhibition and conference to portray Halal products / benefits and pricing - China, India, Russian Federation, Middle East and Europe (S1,T1,T2, T3, T4)

Internal Weaknesses (W) 1. Insufficient supply of

meat and poultry for export

2. SMEs have limited production capacity

3. Insufficient marketing effort

4. Unattractive packaging 5. Focus only on

agricultural products

WO strategies Fully utilise the available Halal industrial park -Sarawak (W1, 02, 05)

SMEs should upgrade their machine efficiency to cater to customers' demand (W2, 03)

Spend more effort in terms of marketing to promote Halal products with good pricing (W4, 01,04)

WT strategies Improve packaging, pricing and the display of Halal logo on the products to be more attractive (W4,T1)

Improve available website and create application to ease consumers in getting information on Halal products - Dag a ng Halal. com(W3,T1)

74


Based on the above strengths, weaknesses, opportunities and threats for Malaysia's Halal food industry, several strategies have been developed which Malaysian companies can adopt in order to improve their performance and sustained competitive advantage in the market. Four strategies which are SO, WO, ST, and WT strategies have been matched to recommend results for the Malaysian Halal food industry.

SO Strategies

SO strategies include using the Malaysia internal strengths to take advantage of their external opportunities. One of the SO strategies is to expand Halal products to the global market (SI, S2, S3, Ol, 02). This strategy needs to be implemented as a strength by having JAKIM Halal certification that is recognisable worldwide and to use them when the opportunity arises. Today, Muslims are starting to seek a total Halal lifestyle. Therefore, expanding the Halal food industry beyond Malaysian boundaries is a good way as it will help Malaysia's Halal food business to cater and capture the new emerging customers and gain a better market share. Based on the study, it is found that Korea, India and Europe are some of the emerging markets that Malaysia should focus on to enter into the Halal food business.

Besides that, Malaysia should also start to introduce ready-to-eat or ready-to-cook food products and market them to other countries (S4, 03), especially to countries whose people have a busy lifestyle like Japan, Korea and the United States. This is because Malaysia should take advantage of the rising demand for fast and convenient Halal food choice, and use the strength of the Malaysian Halal logo that consumers have a high level of trust in. Products like chicken, porridge, noodles and 'rendang' are some of the food that can be frozen and made into ready-to-cook foods. This is a good opportunity and a bigger potential for Malaysia since many Malaysians study, work and live abroad, and they will be one of the target markets Malaysia can try to cater for in the beginning stage, aside from the citizens of those countries. By doing

75


so, it will eventually give Malaysia an opportunity to also introduce Malaysian brands and names to other countries and showcase a variety of food palates and tastes that Malaysia can offer.

WO Strategies

WO strategies are aimed at improving internal weaknesses by taking advantage of external opportunities. One of the WO strategies is to fully utilise the available Halal industrial park (Wl, 02, 05). Malaysia is not an exporter; hence does not have sufficient supply of meat and poultry to be exported to other country. Therefore, by having and operating the available Halal industrial parks, for example in Sarawak, Malaysia will be able to cover in areas that are lacking. In order to do so, Malaysia needs to emulate the other countries that have better management in terms of their operations, like what has been done by Korea. By doing so, it will then help Malaysia to attract more foreign direct investment (FDI) into the country and also to have more funds. Besides, it will help Malaysia to penetrate the global market with processed foods as in the industrial park. It will have its own research and design department and these than can help in the research of Halal products. By improving the current available Halal industrial park, Malaysia will have a sufficient supply of meat and poultry.

Other than that, SMEs in Malaysia should also upgrade their machines in order to cater to the increasing demand from customers (W2, 03). As there is a rising demand for fast and convenient Halal food among customers, Malaysia should take advantage of the SME industry as most produce foods from scratch. Some examples include 'kerepek pisang' (banana chips) which can be commercialised globally. Therefore, upgrading their current machines will eventually help them to fully utilise their resources and also increase their income. However, if they are unable to upgrade their current machines, they should seek help from TEKUN and MARA.

76


Besides that, Malaysia should also spend more effort in terms of marketing, especially in labelling and packaging (W4, Ol, 04). This is because packaging is one of the first criteria that people look at before purchasing as it is the first impression for them regarding the products and customers often see and judge before they make any purchasing. Additionally, this is one way to attract customers to buy Halal food and adopting the Halal lifestyle. Therefore, Malaysian businesses should improve their brand image and packaging to retain and attract more potential buyers and also compete with other products that have better packaging. Having an attractive packaging and labelling, it will also help to boost the Halal food image and also attract the non-Muslims to try Halal products. One of the ways is to improve the packaging depending on the market that it chooses to capture or enter. For example, if Malaysia plans to enter Japan, Malaysia should do a market study to know the taste and preferences of the Japanese. It has been found that the Japanese prefer packaging in boxes as it is easier for them to organise and save space in their homes or stores.

TS Strategies

Other strategies recommended for Malaysia's Halal food industry are ST strategies. ST strategies use a firm's strength to avoid or reduce the impact of external strength. The strategies include organising exhibitions or conferences in order to present Halal products (SI, Tl, T2, T3, T4). Such exhibitions or seminars will help to create awareness among Muslims about what they are eating and consuming, thus helping them to be better Muslims by consuming Halal foods. Some of the countries where Malaysia should carry out this strategy are the United States and Canada, since the population are mostly Jews and some Muslims. Through the exhibitions, people will be educated about Halal and the Halal products can be showcased as one of the platforms for Malaysian businesses to have a better chance to enter the market and find potential prospects for their products.

77


WT Strategies

Finally, the Halal food industry in Malaysia can use the WT strategies, which are defensive tactics directed at reducing internal weaknesses and avoiding external threats. Currently, Malaysia is lacking in the packaging and marketing area, and needs to compete with the kosher products that have been in the market for a very long period of time. Therefore, the strategy that Malaysia needs to improve is the packaging aspect and also the display of the Halal logo on the products (W4, Tl). The Halal logo should be displayed clearly and stricter regulations enforced in giving out the Halal certification to businesses in order to ensure that the Malaysian Halal logo is trustworthy. In order to do so, JAKIM needs to do constant check-ups on businesses that have their Halal certification to maintain and sustain their image as one of the trusted Halal logo among other countries.

Another way is to develop an application that can give easy or convenient access for customers to know and gain information regarding the Halal food products (W3, Tl). This kind of application can be downloaded from the application stores and give the public more information on Halal products. Besides that, they can also know whether the things that they want to buy or consume are Halal by using those applications. This step or strategy is necessary as it is one of the fastest way to send information to people and one of the ways to educate people about Halal. According to DagangHalal.com (2013), e-commerce and online business portals have proved to be one of the best solutions to penetrate the emerging markets at lower cost compared to going there directly. DagangHalal.com is one of the Malaysian Halal websites that promote Halal business including Halal food in their website. It is like a one-stop centre for the public to search for information about Halal.

78




BUSINESS OPPORTUNITY FOR HALAL FOOD MARKET (4PS)

Figure 4 2 : 4Ps

Product iBranding

Malaysia is well known globally as an Islamic country where the majority of the population are Muslims. Moreover, Malaysia is also considered a successful and established Halal food market among Muslim countries in the world. The well-recognised and reputable Halal certification by JAKIM has given a marketing advantage for Malaysia to strategise, penetrate and be the world's producer of Halal products. The marketing of Halal products needs a more coordinated approach, building awareness among Muslims or gaining support from non-Muslim to understand the overall picture of eating healthy food. The trust in the Halal product can represent the quality of the product and it simultaneously gives the consumers the psychological basis to choose the right products to purchase (Cheng, 2008). This shows that the usage of the Halal symbol will be one of the strategies to attract consumers to buy the product and this is also one of the psychological strategies in order to attract non-Muslim consumers to trust the quality of Halal products.

79


Figure 43: Global Halal Logo Source: Ifanca, 2013

Product: Packaging and Labelling

The improvement in terms of packaging and labelling is important especially for Halal products because it is not easy to promote Halal products to other countries, especially America. In order for the consumers to buy Halal products the ingredient should be in clear view in terms of content in food. The Halal logo should be clearly shown on the products. This is because in order to promote Halal products, the packaging and labelling play an important role to attract new customers to buy them.

30


tTmfocmatKm Avdi

pet

WOMB

»r save 7??ll

used

540

2119

;,.IIIII!V f:cf ICC 9

tsafci IpfjM

RJfl MM

77 mg

*^5S^Sk*r*^.Uterte,W*2i<i fe^

Figure 44: Halal Logo and Labelling on Food Source: Zaremba, D. ,2013

81


Before After

Figure 45: Innovation on Packaging

82


Price

The pricing strategy for Halal product should be created and built based on the value of the product and it depends on the brand that allows the retailers, manufacturers, sellers and consumers to enjoy the suitable pricing for the product. The value of the product also depends on the packaging, image and also the attraction towards the consumers because the pricing is not defined by the sellers but by the buyers and consumers. If the manufacturer puts a higher price for the product but it is suitable with the value of the product, it not only will attract the Muslim population but also the non-Muslim population to buy the Halal product itself. The perception of Halal food is important in order to market the products (Cheng, 2008). There are a variety of strategies in order to set the price but for the Malaysian business opportunity the premium price and penetration price are the best strategies to be used in order to capture the potential demand.

Nowadays, the improvement in knowledge and highly educated consumers give a difficult situation towards the manufacturers in order to set the price because consumers nowadays want to find more convenient products that are easy and faster to prepare because many consumers are busy with their work. This situation has made the consumers willing to pay a premium price for the healthy products and others. Moreover, the price also should be set according to the nation that Malaysia wants to penetrate. For example, Pakistan is one of the countries that has a higher population of Muslims and this country also produces Halal products and it will give competition towards the Halal products that will be exported to Pakistan. Malaysia should set a lower price in order to make the consumers in Pakistan to buy their Halal products. It will give an advantage to Malaysia because it gives a cheaper price for the Halal foods. The condition or situation in that nation should be also considered in order to set the prices. In the Pakistan situation, there is too much competition and Malaysia should set lower price in order to compete but it also depends on the taste and preferences of the consumers there.

83


Figure 46: Premium Pricing

Figure 47: Penetration Pricing

84


Figure 48: Product Price in Different Countries Source: Zaremba, D. (2013)

Place

Asia is a huge potential place to market Halal food. Since there is rapid increase in the Muslim population, there is a big potential to market the Halal food. The World Trade Organisation has come out with the global Halal food market size where Asia has a big potential in order to market the Halal food among other continents. Besides, West Asians are mostly born as Muslims and they are strict about Halal in their daily life. In South East Asia, the Muslim population keeps increasing, especially in Malaysia. So, Malaysia is the best place to share the knowledge and experience about Halal food. It is also a strategic place to market the Halal food. Furthermore, Malaysia also exports and imports Halal food around the world.

85


Figure 49: Halal Restaurant in Malaysia with Halal Logo

Promotion

Promotion of the Halal concept is important in order to cater to the demand and meet the objectives. There are several ways to promote the Halal concept and product. First, the manufacturer should play up their attributes of Halal on the packaging or through the media. In addition, creating softwares and linking them with smartphones can help people to identify Halal food instantly. Continuously promoting the Halal food and the awareness of the Halal food in the media will help educate non-Muslims as well as children to get to know about Halal food, particularly about the process and the Halal logo. Besides, the Muslim country should co-operate together to search for ways to spread information about Halal products around the world. Hence, they should organise conferences and exhibitions often in order to share knowledge, experience and seek ways to educate people about Halal food, the differences between Halal food, kosher food and non-Halal food. On the other hand, the manufacturers or suppliers should label Halal food on the packaging with Halal logo in order to gain profit and bring up the name and the reputation of the company to the world. Lastly, each country may build a Halal industrial park such as in Malaysia in order to educate people about the importance of Halal food and other information regarding Halal.

86


Furthermore, in order to promote the Halal products as the best product to buy, Malaysia should advertise in more Halal journals in order to develop a perspective of Halal products to different communities. It is appropriate to emphasise the Halal nature and characteristics of the foods as the healthier and tastier product (Cheng, K.L.P., 2008). Moreover, promotion can also be represented by advertising, personal selling, public relation and communications in order to expand the concept of promoting the products towards the public (Nezakati, H., 2011).

CONCLUSION

The concept of Halal is very important for Muslims to understand very clearly; Halal food is given the highest attention by Muslims in general as it is regarded as a sensitive issue. Halal has been addressed on many issues, some of which has cause sensitivity to the Muslims. Most of the challenges for Muslims are that the majority of manufacturers that produce Halal products are non-Muslims. This can be identified not only internationally but also locally. For example, there are only non-Muslim countries in the top 10 meat producers in the world.

Malaysia needs to improve on the research and development and leverage on technological advancement in order to win and achieve a higher level of innovation in product and process development in food industries in order to improve export performance by upgrading the efficiency of the machines. Besides that, SMEs should also encourage undertaking research and collaborating with public and private Halal research institutes and universities in Malaysia. Other than that, the investments on emerging technologies such as biotechnology will enable SMEs to develop new products and improve the technology in the Halal food market.

Other initiatives to be implemented are to improve available websites and create application to ease consumers to obtain information

87


about Halal products. The technological improvements have increased the Muslim website users which give opportunities to Halal authorised bodies in spreading the Halal knowledge.

In addition, enhancing the awareness of Malaysia as the centre of Halal products and services could be done through continuously exposing Malaysia in all promotions and trade exhibitions being conducted internationally. This will promote Halal products especially Malaysian Halal food. Besides that, Malaysia should develop campaigns for the Halal industry in Malaysia. For instance, it could be called 'Taste of Asia'. It will be one of the initiatives for Malaysia to showcase some of its best culinary products and to export Malaysian dishes in nice microwaveable packets, such as frozen food, microwaveable and ready-to-eat Malaysian meals at reasonable and affordable pricing.

Apart from that, Halal regulations in Malaysia should be enforced as currently, there are three categories of offences: minor, where a warning is issued; major where Halal Authentication Certificate is suspended; and serious, where Halal Authentication Certificate is withdrawn. The authorised body should enforce the rules and regulations regarding Halal certification. Any premises or businesses that do not update their Halal logo will be fined at RM50 000 and not just given a warning for them to show the seriousness regarding Halal matters as they keep using the old version of the Halal logo. If they do not follow the rules and regulations, they will be charged double the rate, the Halal certification will be suspended and they can be imprisoned not exceeding five (5) years. Other than that, food premises that use Halal logos other than the JAKIM Halal logo will also be fined RM150 000. Since they are doing business in Malaysia, they have to apply for the Malaysian Halal logo by JAKIM and not from other countries or other bodies, either domestic or internationally.

88


RECOMMENDATIONS

Malaysia should follow in the footsteps of its Asian neighbour, China which already owns a successful Halal Industrial Park in Northwest China's Ningxia Hui Autonomous Region that generated 13.2 billion yuan (2.16 billion US dollars) last year, up 15 % year on year, and accounted for more than 60 % of the whole value of the region's Halal industry (Xinhua, 2013). Malaysia should collaborate with other countries especially the non-Muslim countries such as Korea and Japan which are looking for future investments in the Halal food industry. Brunei in the year 2010 already signed a memorandum with Japan to allow their pharmaceutical company to open up a factory in Brunei's Halal industrial park. Therefore, Malaysia should grab the opportunity to attract foreign investors to open up their factories in here so that the economy will bloom and the Halal industry will prosper. Currently, Malaysia owns 19 Halal Parks (10 of which have HALMAS status Halal park) spread throughout Malaysia. The problem with Halal parks in Malaysia is that not all are given the HALMAS status which means that the other nine parks did not follow the standards stated by HALMAS. It is an accreditation given to Halal Park operators who have successfully complied with the requirements and guidelines stipulated under the HDC designated Halal Park Development. It is also a mark of excellence for parks that have noteworthy qualities; namely production of Halal products with the highest quality, integrity and safety. With the HALMAS status, operators, industry players and logistic operators will be able to enjoy incentives given by the Halal Industry Development Corporation (HDC) to help existing and would be players in the Halal industry. Therefore it is recommended that HALMAS approach these other Halal park operators to apply for the status.

89


Table 14: Halal Park with HALMAS Status N o Ma lc i l P a r k s

1 . P K F Z F l a g s h i p H a l a l Z o n e , S e l a n g o r

2 . S e l a n g o r Ha la l H u b , P u l a u I n d a h , S e l a n g o r

3_ M e l a k a Ha la l H u b , S e r k a m , M e l a k a

4-. t e c h p a r k @ e n s t e k ; Ni lai , N e g e r i S e m b i l a n

S - P O I C Ha la l I n d u s t r i a l P a r k L a h a d D a t u , S a b a h

6 . T a n j c i n g M a n i s Ha la l H u b . S a r a w a k ( T M H H )

7 . P e n a n g I n t e r n a t i o n a l Ha la l H u b , Buk i t M i n y a k ( P I H H )

8 . P a h a n g H a l a l P a r k , G a m b a n g

9. K e l a n t a n H a l a l P a r k , Pas i r M a s

1 0 . P O I C T g L a n g s a t , Pas i i G u d a n g

O w n e r s h i p

F e d e r a l A g e n c y

S t a t e A g e n c y


P r i v a t e




b t a t e A g


A c r e a g e

1 , 0 0 0 a c r e s

1 , 0 0 0 a c r e s

1 3 5 a c r e s

4 8 0 a c r e s

2£>2 a c r e s

7 7 . . 0 0 0 h a

lOO a c r e s

2 0 0 a c r e s

lOO a c r e s

2 6 1 a c r e s

Table 15: Halal Parks with No HALMAS Status (application in progress) O v ^ in e r s l~» i p N o H a l a l F » a r k s >

A S . , P e d a s H a l a l P a r l e , N e g e r i S e m b i l a n

1 2 . K e t a n t a n H a l a l P a i P e n g k a l a n C h e p a

1 3 . L a b u a n H a l a l D i s t r i b u t i v e H u b , K i a n s a m

1 4 . K e d a h H a l a l P a r k , S g P e t a i i i

A S . T e r e n g g a n u H a l a l P a r k , C t » e r i d e r i n g

• H a l a l P a r k a t D e v e l o p m e n t a l S t a g e

N o H a l a l P a r k s

1 6 . P e r i l s H a l a l P a r k , P a d a n y B e s a r

1 7 . P r i m a H a l a l P a r k

• H a l a l P a r k a t P l a n n i n g S t a g e

N o H a l a l P a r i e s

A O . S a b a h H a l a l P a r k , S e p a n g g a r

1 € » . J o h o r H a l a l P a r k

2 0 - P e r a k H a l a J P a r k

r v i r D F

— A g e n c y

F e d e r a l A g e n c y



! O w n e r s h i p


P r i v a t e

O w n e r s h i p




A c r e a g e

l O O a c r e s

: r e s

S O a c r e s

3 6 a

A c r e a g e

2 8 a c r e s

A c r e a g e

Source: MIT I, 2012

In short, 'Halal Food Marketing: Dare to Win!' should convince a Halal marketer that life's opportunities really are unlimited and winning the global market is available to anyone who is willing to accept both the challenge and the reward.

90

References

Abdullah, M. A. (2010). Dean keli makan organ babi haram. (B. H. Online, Interviewer)

Abuznaid S,(2012). Islamic Marketing: Addressing the Muslim Market. Department of Marketing, Hebron University, Hebron, Palestine. An - Najah Univ. J. Res. (Humanities). Vol. 26(6), 2012

Al-Haran Saad and Low P (2008), "Marketing of Halal Products: The Way Forward", The Halal Journal, Jan/Feb 2008, pp. 44-46.

Arshad, S. (2012). Developing Global Halal Brand. Business and Brand Consulting. SIREVI Berhad.

Al-Mazeedi, H. M. (2013). Globalization of Halal Standard: Halal United -An Integrated Approach, 15th Annual International Halal Food Conference

Business Opportunities in Halal Industry (2012). Halal Industry Development Corporation, from www.mida.gov.my on 14 September 2013.

Beef and Lamb News, New Zealand . (2013). Market. New Zealand.

Business Opportunities in Halal Industry (2012). IDB Conference, Halal Industry Development Corporation (HDC).

http://www.mida.gov.my


Canada, A. (2011). Global Pathfinder Report Halal Food Trends. International Market Bureau.

Cheng, K.L.P. (2008). The Brand Marketing of Halal Product: The Way Forward. Journal of Brand Management, Vol. V (4) pp. 37-50.

Chinese Halal juice products promoted at China-Arab States Expo (2013, September). The China Daily. Retrieved from http://usa.chinadaily.com. cn/food/2013-09/17/content_16976031.htm on 19th September 2013

Department of Islamic Development Malaysia (JAKIM). [Online]. JAKDVI, Kuala Lumpur. Retrieved from: http://www.islam.gov.my. [Accessed on: 20/9/2013]

Dickson, G. (2009). Halal Food Supply Chain. Islam under Scrutiny.

Export Development Canada (2010). Retrieved from www.edc.ca on 26 September 2013

Egypt Agriculture Report (November, 2010). Past, Present and Future Report. Agriculture andAgri - Food Canada, 1-9

Euromonitor Internation Ltd (2012). International Marketing Data and Statistics 2013. 37th Edition, pp.9-695.

Export Development Canada (2010). Retrieved from www.edc.ca on 26 September 2013.

Egypt Agriculture Report (November, 2010). Past, Present and Future Report. Agriculture andAgri- Food Canada, 1-9.

Export Development Canada (2010). Retrieved from www.edc.ca on 26 September 2013.

Faridah Hj. Hassan, Rosidah Musa (2011), Potential of Halal Products in the Domestic and Global Market, FAMA - UiTM - MOA Repart.

92

http://usa.chinadaily.com

http://www.islam.gov.my

http://www.edc.ca

http://www.edc.ca

http://www.edc.ca

REFERENCES

Gaurav Akrani, Mudit Katyani and Manoj Patil (2010), Marketing Mix and 4Ps of Marketing, Kaylan City Life, India

Greenwich Mean Time. Countries of Asia [Map]. Retrieved from: http://wwp. greenwichmeantime.com/time-zone/asia/. [Accessed on: 11/9/2013]

Gertz, E. (September 25,2008). Is Keeping Kosher Good for the Environment. Retrieved from www.scientificamerican.com on September 10,2013.

Halal Industry Development Corporation (July, 2007). Global Halal Forum: South Africa. Industry Dialogue Report, 3-10.

Halal Event Ltd. (2013). List Approved Halal Authentication Bodies. Retrieved from http://Halalfoodfestival.com/list-of-approved-Halal-authentication-bodies.phpKaufman, J. (2013). Can Buying Food Contribute to Terrorism? The Counter Jihad Report.

Hassan, M. (2012). Halal Hysteria. New Statesman.

Halal Certificate http://www.Halal-zertifikat.de/ m-haditec GmbH & Co KG on 26 September 2013

Halal Food Festival http://Halalfoodfestival.com/why-exhibit.php Halal Event Ltd. on 26 September 2013

Halal Hub, (2012). Ministry of International Trade and Industry. Retrieved from http://www.miti.gov.my

Halal Hub. Center for Maritime Economics and Industries, pp. 1-33. Retrieved from http://www.mima.gov.my


Halal Certification Bodies (2012). Halal Hub Division Department of Islamic Development Malaysia (JAKIM). Retrieved from www.hdcglobal.com on 13 September 2013.

93

http://wwp

http://greenwichmeantime.com/time-zone/asia/

http://www.scientificamerican.com

http://Halalfoodfestival.com/list-of-approved-Halal-authenticationbodies.phpKaufman

http://Halalfoodfestival.com/list-of-approved-Halal-authenticationbodies.phpKaufman

http://www.Halal-zertifikat.de/

http://Halalfoodfestival.com/why-exhibit.php

http://www.miti.gov.my

http://www.mima.gov.my

http://www.hdcglobal.com


Hamid (2009). Thailand develops logistics in bid to become regional Halal hub. Halal Focus. Retrieved from Halalfocus.net on 23 September 2013

HDC, Department of Statistics, JAKIM, Custom Department, & MATRADE


Halal Industrial Development Corporation (HDC). [Online]. Kuala Lumpur.Retrievedfrom: http://www.hdcglobal.com. [Accessed 10/09/13].

Hussnain S. A (2011). What Is Islamic Marketing. Global Journal of Management and Business Research,US A

Index Mundi (2012). Retrieved from www.indexmundi.com on 26 September 2013

Indian Halal Meat Market (2010). Retrieved from http://www.Halalinindia.com

Johnstone, Roland L. (1975). Religion and Society in Interaction: Sociology of Religion

Index Mundi. Retrieved from: http://www.indexmundi.com/. [Accessed on: 10/9/2013]

Khalid, N. (2009). Gearing Malaysia's Maritime Sector towards Making the Country A Global

Kotler, Philip. (2000) Marketing Management. Upper Saddle River, New Jersey: Prentice Hall

Lipes, J. (2013, January). Foods Mislabeled as Halal Imports. Radio Free Asia. Retrieved from http://www.rfa.org/english/news/ on 19 September 2013

Map of PIHH Park (2012). Retrieved from http://www.Halalpenang.com

Map of Tanjung Manis Halal Park (2012). Retrieved from http://www. dagangHalal.com

94

http://Halalfocus.net

http://www.hdcglobal.com

http://www.indexmundi.com

http://www.Halalinindia.com

http://www.indexmundi.com/

http://www.rfa.org/english/news/

http://www.Halalpenang.com

http://www

http://dagangHalal.com

REFERENCES

Market Analysis Report (June, 2011). Saudi Arabia, Egypt and the United Arad Emirates Consumers, Markets and Demand based Products. Agriculture and Agri-Food Canada, 2-23.

Market Indicator Report (April, 2011). Global Pathfinder Report: Halal Food Trend. Agriculture And Agri-Food Canada, 2-8.

Morocco Agriculture Report (November, 2010). Past, Present and Future Report. Agriculture and Agri-Food Canada, 2-12.

Mulani, H. (2012, July 12). $632 billion Halal foods market among fastest growing. Indian Muslim Population in the World (2013). Retrieved from www.muslimpopulation.com on 26 September 2013.


Muslim Population in the World (2013). Retrieved from www.muslimpopulation. com on 26 September 2013.



Muslim Observer. Retrieved from http://www.indianmuslimobserver.com

Muhammad, Z. (2010, November/December). Global News The Halal Journal, pg 6-7. Retrieved from http://issuu.com/the-Halal-journal/docs/thj-novdec2010



95

http://www.muslimpopulation.com

http://www.muslimpopulation

http://www.indianmuslimobserver.com

http://issuu.com/the-Halal-journal/docs/thjnovdec2010

http://issuu.com/the-Halal-journal/docs/thjnovdec2010


Muslim Population in the World (2013). Retrieved from www.muslimpopulation. com on 26 September 2013.



Nezakati, H. (2011). Exploring Hierarchy Situation of 4A Marketing Mix on Malaysia's Fast Food Restaurants. Worlds Applied Science Journal, Vol. 15 (8) pp.1157-1167.

Nana, A. (2011). New Zealand Meat Report. America: Halal Advocates Of America.

New Zealand Tourism Guide. (2013). Gateway To NZ Tourism, Travel And Holidays. New Zealand.

Halal Advocates of America (2011). Not Reciting God's Name When Slaughtering. Retrieved from www.Halaladvocates.org on September 13, 2013.

Park, S. H. (2013, May). Food makers rush to secure 'Halal' certification. The Korea Times. Retrieved from http://www.koreatimes.co.kr/ on 14 September 2013

Patil M. Marketing Mix and 4ps of marketing, management article http://kalyan-city.blogspot.com. Retrieved on 26 September 2013

Peterson K.,(2013). Strategic Marketing Problems. 12th Edition. International Edition, p 1.

Phadnis, S. (2012, May 21). Indian brands get 'Halal' stamp, set to woo Muslims in global markets. The Times of India. Retrieved from http://articles. timesoflndia.indiatimes.com

9b

http://www.muslimpopulation

http://www.Halaladvocates.org

http://www.koreatimes.co.kr/

http://kalyancity.blogspot.com

http://kalyancity.blogspot.com

http://articles

http://timesoflndia.indiatimes.com

REFERENCES

Rostiyani, Y. (2012, January 17). Indonesia sees an increase in Halal food export. Republika Online. Jakarta, Indonesia.

Rizvi, M. (April, 2012). Pakistan: Pak food brands set to make UAE foray. Retrieved from http://Halalfocus.net on 1 October 2013

Rostiyani, Y. (2012, January 17). Indonesia sees an increase in Halal food export. Republika Online. Jakarta, Indonesia.

Rahman, S. (2010, Nov/Dec). Indian Halal Meat Industry. Halal Journal. Retrieved from http://issuu.com

Sungkar, I. and Hashim, D., (2009). The Global Halal Food Market and Updates on Global Halal Standards. The World Bank, 3-27.


Salama (2013). China: West Halal Food Base. Retrieved from http://Halalfocus. net on 1 October 2013

Shahidan ShafielProf. Dr. Md Nor Othrnan Faculty of Business & Accountancy


Shahbandari, S. (2013). Halal mark a must for all food products in UAE: New certification system from next year, gulfsnews.com. Retrieved from gulfnews.com on 13 September 2013

Salama (2013, April). Japan: Firms appeal to Muslims with Halal food. Halal Focus. Retrieved from Halalfocus.net on 20 September 2013

Sabri, M. (2006). Singapore expands e-certification of Halal products. Retrieved from: http://www.IslamOnline.net [Accessed on: 19/9/2013].

Santoso, U. (2012). Assuring Halal Foods in Indonesia. International Conference "Future of Food Factors".

97


http://issuu.com

http://Halalfocus

http://gulfsnews.com

http://gulfnews.com


http://www.IslamOnline.net


Schiffman, Leon, G., and Kanuk, Lealie, Lazar (1997) Consumer Behavior. Published by Prentice Hall, Sixth edition, p.446.

Shahminan, F. (2013). Korea open to Brunei Halal certification. The Brunei Times. Bandar Seri Begawan, Brunei.

Tayob, S. (2012). The South African Halal Industry: A case of Cultural Intermediaries. Annual Review of Islam in Africa. Vol. 11 pp. 49-54.

Taher, A. (2010). Top Supermarkets Secretly Sell Halal: Sainsbury's, Tesco, Waitrose, & M&S Don't Tell Us Meat Is Ritually Slaughtered. United States: Associated Newspapers Ltd.

Tan, L. (2013). Islam Rites, Kiwi style. APN Holdings NZ Limited.

Tayob, S. (2012). The South African Halal Industry: A case of Cultural Intermediaries. Annual Review of Islam in Africa. Vol. 11 pp. 49-54.

The Future of the Global Muslim Population (2011). Pew Research Center's Forum on Religion and Public Life

Tieman, M. (2010). Halal Logistics at Ports and Terminals, ASEAN Logisitics Network Symposium

Vaghela M., (2013) Concept of Marketing Mix Retrieved on www.slideshare.net

World Halal Forum (2009) World Halal Forum: The Global Halal Food Market and Updates on Global Halal Standards 2009, International Halal Integrity (IHI) Alliance: Singapore

World Halal Council www.worldHalalcouncil.com/ on 26 September 2013

Xinhua (2013). Halal food helps Ningxia explore international market, Global Times. Retrieved from www.globaltimes.cn on 14 September 2013

Xinhua. (2009). Indonesia bans beef import from New Zealand, some from Australia. Jakarta, Indonesia

98

http://www.slideshare.net

http://www.worldHalalcouncil.com/

http://www.globaltimes.cn

Index

A

advertise 87 Africa 34, 43, 50, 57, 58, 60, 61, 68,

93, 94, 98 America 6, 43, 62, 63, 64, 68, 69, 70,

71, 72, 80, 96 Asia 9, 10, 11, 21, 25, 26, 29, 34, 37,

39, 43, 44, 68, 85, 88, 93, 94 Australasia 52 awareness 10, 26, 78, 80, 86, 88

B

Beverages 13 business 1, 2, 4, 12, 26, 28, 33,43, 47,

55, 65, 76, 79, 83, 88 business opportunities 91

c certificate 6,14, 34, 42, 53, 55, 70 continent 8, 9, 10, 11, 26, 34, 57, 58,

60,64 customer 1, 2, 3

D

Dare 1,90 demand 1, 2, 3, 4, 5, 9, 10, 11, 19, 22,

23, 25, 27, 29, 34, 42, 43, 46, 47,50,51,58,63,64,65,67, 68, 70, 73, 74, 76, 77, 83, 86

domestic 4, 8, 27, 29, 31, 70, 88

E

educate 79,86 Europe 34, 39, 43, 44, 45, 47, 50, 74,

75,76 expenditure 11,43 export 1, 15, 25, 32, 47, 53, 56, 57,

58, 61, 64, 65, 68, 70, 72, 74, 87, 88, 97

F

Food 1, 7, 8, 10, 15, 18, 19, 21, 22, 24,25,27,28,30,31,32,37, 38, 41, 42, 43, 47, 48, 49, 54, 56, 57, 60, 65, 68, 81, 90, 91, 92, 93, 95, 96, 97, 98


food consumption 7,10 Food Marketing 1, 90 fourPs 2

G

GCC ix, 19, 35, 36 global 11, 13, 14, 15, 17, 27, 39, 70,

72, 74, 75, 77, 85, 90, 97 Global Food Market Size 10 Global Halal Food Market Size 10 Global Halal Logo 80 global Halal market 15,72

H

Halal 1, 3, 4, 5, 6, 7, 8, 9, 10,11, 12, 13,14,15,16,17,19,20,21, 22, 23, 24, 25, 26, 27, 28, 29, 30,31,32,33,34,35,36,38, 39, 40, 41, 42, 43, 44, 45, 46, 47,48,49,50,51,52,53,54, 55,56,57,58,60,61,62,63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80,81,83,85,86,87,88,89, 90,91,92,93,94,95,96,97, 98,99

Halal authentication bodies 33 Halal bodies 33 Halal certificate 6, 34, 53, 55, 70 Halal concept 6, 7, 25, 52, 53, 86 Halal Food Industrial Park 30, 31 Halal food industry 1, 26, 28, 31, 33,

35, 39, 64, 72, 73, 75, 78, 89 Halal Food Products 28, 31, 41 Halal Fresh Chicken 45 Halal LAW 6 Halal lifestyle 73, 74, 75, 77

Halal logo 6, 12, 13, 14, 19, 21, 25, 47, 53, 61, 63, 73, 74, 75, 76, 78, 80, 86, 88

Halal MARKET 4 Halal marketing 3, 4, 9 Halal Market Products 5 Halal park 16, 89 Halal Processed Food Certificate 57 Halal products 1, 4, 5, 8,10,11, 12,

13, 14, 15, 17, 21, 23, 33, 35, 39,43,44,51,53,58,60,61, 70, 71, 74, 75, 77, 78, 79, 80, 83, 86, 87, 88, 89, 98

Halal sector 61 Halal Supermarket 52 HALMAS 89,90 HDC 15,36,61,89,91,94 hygiene 7, 8, 34

I

import 12, 17, 31, 42, 58, 60, 61, 64, 99

Industrial Park 30, 31, 89 international 4, 8, 10, 11,14, 19, 23,

27,31,99 investors 14, 17, 39, 89 Islam 6, 7, 19, 25, 26, 30, 54, 69, 73,

75, 92, 98 Islamic diet 6 Islamic law 32, 69 Islamic rule 3 Islamic slaughter 7 issues 12, 26, 32, 36, 39, 53, 56, 61,

68,87

100

INDEX

J N

JAKIM 7, 8, 14, 15, 27, 29, 33, 34, 48, 52, 69, 74, 75, 78, 79, 88, 92, 93,94

Journal 36, 39, 91, 92, 94, 95, 96, 97

K

key Halal markets 19, 39, 65, 66

L

labelling 3, 6, 53, 77, 80 Logistic 16

M

Malaysia 1, 6, 7, 8, 10, 11, 12, 14, 15, 16, 17, 18, 19, 23, 27, 28, 29, 32,33,42,48,52,55,61,66, 68, 69, 71, 72, 73, 74, 75, 76, 77, 78, 79, 83, 85, 86, 87, 88, 89, 92, 93, 94, 96

Map 35, 59, 67, 71, 93, 94, 95 Marketing 1,2,90,91,92,93,94,

96,98 marketing mix 2, 3, 8 meat 5, 10, 12, 15, 16, 20, 22, 33, 35,

38, 39, 41, 42, 44, 45, 47, 49, 50,51,53,56,67,68,69,73, 74, 76, 77, 87

media 86 Muslim population 1, 5, 8,10, 21, 25,

26, 30, 34, 37, 39, 43, 45, 46, 47, 50, 53, 55, 58, 60, 62, 63, 64, 71, 83, 85

nation 21,33,83 non-Halal 21,23,61,86 non-Muslims 10, 13, 23, 25, 44, 46,

50,51,53,71,77,86,87

o Opportunities 68, 71, 74, 91

P

permissible 7, 37 Place 2, 3, 85 population 1, 5, 8, 10, 12, 14, 19, 21,

23, 25, 26, 29, 30, 34, 35, 37, 39, 43, 44, 45, 46, 47, 50, 53, 55, 58, 60, 61, 62, 63, 64, 70, 71, 78, 79, 83, 85

potential 6, 8, 9, 11, 13, 23, 39, 46, 53, 58, 60, 64, 65, 71, 72, 73, 76, 77, 78, 83, 85

poultry 5, 22, 38, 45, 47, 51, 65, 66, 73, 74, 76, 77

Price 2, 3, 13, 14, 20, 24, 28, 32, 34, 38, 83, 85

pricing 2, 3, 46, 74, 75, 83, 88 Pricing Range for Halal Beef

Burgers 46 producer 23, 39, 79 Product 2, 3, 21, 23, 38, 79, 80, 85, 92 Product Price x, 85 Promotion xiii, 2, 3, 29, 86 purchasing power 6, 8, 9, 44, 74

101


Q quality 2, 3, 6, 7,13,14, 15, 19, 39,

47, 58, 68, 73, 80, 89 Quran 6, 7

R

reputation 53, 86 Retrieved 92, 93, 94, 95, 96, 97, 98,

99

s Shariah 3, 4, 15, 19, 37 slaughter 7, 8, 36, 42, 53, 55 SME 77 standard 2, 24, 36, 61, 68, 69 strengths 72,73,75 SWOT Matrix 72, 74

T

tayyib 7 Threats 75

u usage 58, 60, 80 Uyghurs 32

V

value 1, 15, 30, 31, 47, 65, 83, 89 Value-added 11 veal 47, 65, 66

w Weaknesses 74 Win 1,90 world 1, 4, 5, 6, 11,13, 14, 15, 21, 23,

25,29,33,34,37,39,41,42, 43, 44, 47, 53, 55, 60, 62, 64, 68, 72, 79, 85, 86, 87

X

Xinjiang 32

Y

youth 39

z zone 60, 93

102

Halal Food Marketing looks into the potential of the global Halal food market as well as what Malaysia could offer. Halal food market is a lucrative business due to the fact that the Islamic faith has been widely understood and accepted by both the suppliers as well as buyers in the Muslim and non Muslim countries. Furthermore, Muslims are growing in population, thus it is important to know the highest potential of the Halal food market based on the marketing mix of 4Ps. By applying the SWOT analysis using the matching and resultant strategies, a marketer will be able to identify business opportunities by priority and win the return on investments in the global market.

Professor Dr. Faridah Hj. Hassan, FCIM UK, is the Dean of the Faculty of Business Management, Universiti Teknologi MARA (UiTM) Shah Alam. Previously she was a Director, at the Institute of Business Excellence, heading the research consultancy, training and publication unit. Currently, she is an external examiner for several public and private local universities and colleges, an active Fellow Member of the Professional Chartered Institute of Marketing (UK), and a Board Council and Regional Member for the Malaysian Chartered Institute of Marketing. Her appointments were, among others, an ex Dean from 1998 to 2003, an independent Board of Director, a former Panel Investment Advisor for a public listed trust fund company as well as a visiting professor at USB Iran, University of Massachusetts USA, and Sheffield Harlem University UK.

Her 32 years of teaching, supervising, examining, board and panel advising, involves undergraduate, post graduate and professional courses offered by UiTM twinning with Cardiff, Manchester Business School, Curtin and local universities such as Universiti Malaya, UPM, UIA, UUM, UTM, UKM, Universiti Petronas, Multimedia, Uniten and Lim Kok Wing to name a few. Her research interests are in the areas of Marketing and Strategic Management for corporate and small medium companies, financial institutions and trust funds, public and private education, as well as tourism and government agencies. She has conducted research consultancies in the areas of Sports Merchandising Online - Bloom Advertising Saudi Arabia, Branding and Positioning Strategies on Malaysian Educational Hub from International Perspective - MOHE, Potential of Halal Products in the Domestic and Global Market - MOA, Awareness and Perception of Malaysian Fruits by the Japanese Market -FAMA, Marketing Strategies and ICT Application in Improving Household Income for Farmers - MDEC, Branding Image on Taman Negara by Foreign Tourists - Jabatan Perhilitan Negara, Marketing Strategies by Agents in Unit Trust Funds - ASM to name a fe

PENERBrT^ UNIVERSITI TEKNOLOGI MARA

Date post:	02-Feb-2017
Category:	Documents
Upload:	vuongquynh
View:	249 times
Download:	11 times

Halal Food Marketing

Documents