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GBI 795 UiTM Shah Alam
MOHD FARID AWANG
AMIN ABDULLAHNORHAIZUM SAHRIL
HALAL LOGISTICS
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CONTENT
1. Introduction on Halal2. What is Halal Logistics?3. Standards4. Government initiatives5. Private initiatives6. Halal Logistics in 5 continents7. Opportunities
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INTRODUCTION
What is Halal? Halal products
Muslim population
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Halal is used to describe anything permissibleunder Islamic law, in contrast to haram, thatwhich is forbidden.
This covers aspects such as behavior, speech,dress, conduct, manner, and dietary laws.
This dichotomy of usage is similar to the Hebrew
term "kosher".
Halal
Ir. Marco Tieman, ASEAN Logistics Network Symposium 2010Bangkok, 8-9 October 2010
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HALAL HUB DIVISION : JAKIM
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Halal Products
! The production & consumption of Halalfood has been traditionally the mainfocus of the Halal industry.
! However, the concept of Halal is notconfined to food itself. Halal products andservices also include cosmetics,pharmaceuticals, clothing, financialservices, and logistics.
! Halal is extending both upstream (likeanimal feed) and downstream (like foodservices) the value chain and includeslogistics!
Ir. Marco Tieman, ASEAN Logistics Network Symposium 2010Bangkok, 8-9 October 2010
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The People
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THE HALALLOGISTICS
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Hypermarket Restaurant Canteen Pasar malam
Supply chain Online
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HOW ALL THESE FOODSDELIVERED? IS IT (SC)
CLEANS? DO THE
SUPPLIER HAVE HALALLOGISTICS @ SC?
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Ensuring integrity from farm to fork
WHY NEED HALAL
LOGISTICS?
Ensuring integrity from seed to fork
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WHAT IS HALAL LOGISTICS?
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DEFINITION
Halal logistics is the process of managing theprocurement, movement, storage and handling ofmaterials, parts livestock and (semi) finished inventory
both food and non-food (and related information &documentation flows) through the organization and thesupply chain in compliance with the general principles ofShariah Law.
Halal Logistics Conference 201228 June 2012, Traders Hotel, Penang
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Halal products are segregated from non-
Halal products to:
1. avoid (cross) contamination2. avoid making mistakes3. ensure consistency with Shariah andthe expectations of the Muslim Consumer
THE PRINCIPLES
Halal Logistics Conference 201228 June 2012, Traders Hotel, Penang
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Halal Logistics Conference 201228 June 2012, Traders Hotel, Penang
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Assoc. Prof. Hajjah Mariam Abdul Latif (UMS)Opportunities on Halal Logistics and ASEAN FTAs, HDC and MITRANS, June 2012
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HALAL LOGISTICSSUPPLY CHAIN
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EMERALD JOURNAL : Marco Tieman, (2011),"The application of Halal insupply chain management: in-depth interviews
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GBI 795 UiTM Shah AlamFoundation of Halal supply chain management
As argued by all people interviewed, theperception of the Muslim is different,depending on the Islamic school ofthought, local Fatwas (religious rulings)and local customs. As mentioned during
one of the interviews, Brunei requires evenfull segregation between stunned and non-stunned Halal slaughtered meat.
Risk product characteristics:
wet products have a higherrisk as compared to dryproducts; and
bulk products have ahigher risk than unitisedproducts
EMERALD JOURNAL : Marco
Tieman, (2011),"The application ofHalal in supply chain management:
in-depth interviews
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Halal control activities and
assurance activities in theHalal Supply Chain
Warehouse Transport Terminal
Marco Tieman, Jack G.A.J. van der Vorst, Maznah Che Ghazali,(2012),"Principles in halal supply chain management", Journal of
Islamic Marketing, Vol. 3 Iss: 3 pp. 217 - 243
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1. Halal control activities and assurance activities in the warehouse
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2. Halal control activities and assurance activities in transport
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3. Halal control activities and assurance activities in terminals
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EMERALD JOURNAL : Marco Tieman, Jack G.A.J. van der Vorst, Maznah Che Ghazali,(2012),"Principles in halal supply chain management", Journal of Islamic Marketing
HALAL SUPPLY CHAIN MODEL(Developed based on SC model by van der Vorst and Beulens
(2002), based on Coopers SCM framework (Cooper et al., 1997)
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EMERALD JOURNAL : Marco Tieman, Jack G.A.J. van der Vorst, Maznah Che Ghazali,(2012),"Principles in halal supply chain management", Journal of Islamic Marketing
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Assoc. Prof. Hajjah Mariam Abdul Latif (UMS)Opportunities on Halal Logistics and ASEAN FTAs, HDC and MITRANS, June 2012
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STANDARDS
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STORAGE Non halal product / raw material
should not be in the storage area The surrounding of storage must
be clean and free from anycontamination
Storage for wet and dry rawingredients should be separated,well arranged and systematic
DISTRIBUTION & LOGISTICS Transportation and warehouse are
assigned for halal products only Suitable temperature based on
the product characteristics
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MALAYSIA HALAL LOGISTICS STANDARDS
Launch by Prime Minister of Malaysia during MIHAS2010 : Halal Logistic and Cosmetic Standards,
Department of Standards Malaysia
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!MS 2400-1:2010 (P) Halalan-Toyyiban AssurancePipeline Part 1: Management System Requirementsfor Transportation of Goods and/or Cargo ChainServices
!MS 2400-2:2010 (P) Halalan-Toyyiban AssurancePipeline Part 2: Management System Requirementsfor Warehousing and Related Activities
!MS 2400-3:2010(P) Halalan-Toyyiban AssurancePipeline Part 3: Management System Requirements
for Retailing
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The International Halal LogisticsStandard
IHIAS 0100:2010
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Halal Warehouse
The organisation shall ensure that there is a physicalsegregation of Halal cargo from non-Halal cargo throughoutthe warehouse processes
The Halal products have a dedicated storage zone (floorstorage) or racks, which are clearly separated by colour and/or marking
A dedicated cold room is available, or segregation from non-Halal through physical barrier or container (insulated box) is
required for the storage of Halal products in case ofrefrigerated storage.
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Halal Transportation
The transport is cleaned before use according to existing hygiene standardand according to ritual cleansing in case of an earlier non-Halal or unknownshipment (history of one shipment before this only),
No mixing of Halal goods with non-Halal goods in case of bulk shipmentsand medium & severe najs in one container or transportation vehicle.
There is no mixing of Halal goods with non-Halal goods in one pallet and/orload carrier.
Halal shipments are provided with a tertiary packaging in case of mixing ofHalal and non-Halal cargo in one container or transportation vehicle.
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Halal Compliant Terminal
The organisation shall ensure that there is a physical segregation of Halalcargo from non Halal cargo throughout
the Terminal processes.
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GOVERNMENT INITIATIVES
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Through one of the Governments plan for thedevelopment of the industry in IMP3, theobjective has incurred Malaysia as the globalHala l hub for product ion and trade
merchandize and Halal services such aslogistics.
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PRIVATE
INITIATIVES
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INTERVIEW VIDEO
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The Halal SuperHighway
The Halal SuperHighway is a trade & logisticssolution and is envisioned to become the De factostandard to facilitate Global Halal Trade.
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The Halal SuperHighway
The Halal SuperHighway = Brick & Mortar (A hybrid model)
Trade and LogisticsSolutions
Chain of custody
Halal certification& standards
Halal compliance
Supply Chain Integrity
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The Objectives1. The Halal SuperHighway provides a command & control centre to
facilitate authentication of Halal in a supply chain, providing marketaccess and a cost advantage for the Halal industry.
2. The Halal SuperHighway locks-in Halal producers in a country aswell as Halal producers overseas that manufacture under licenseof a countrys standard.
3. The Halal SuperHighway consolidates for SMEs and providesthem market access.
4. The Halal SuperHighway connects Halal Ports & Terminals(Gateways).
5. The Halal SuperHighway promotes International Halal LogisticsStandard (IHIAS 0100:2010) as the Halal logistics standard.
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!HalalStorage.com, a LBB Internationalinitiative, was launched in 2008.
!Halalstorage.com is an online market place forthe demand and supply in Halal storage. It
facilitates in the search process for Halalstorage worldwide
!HalalStorage.com envisions to increase theavailability of Halal storage facilities world-
wide in order to better facilitate global Halaltrade and to reduce the costs of Halal Logistics
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Increase the availability of Halal storage
facilities world-wide in order to better
facilitate global Halal trade and to reducethe costs of Halal Logistics
The Objective
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1
2a3
2b
Register available Halal storage facilities
System matching
Direct facilitation
Contracting
The Process
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Halal Logistics
- 5 Continents
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GLOBAL MARKET: POTENTIAL
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World Muslim population of 1.98 billion in 2011 out of 7.0 billion World population.With average annual growth rate of about 1.84% per annum.Approximately 117,000,000 per yr. increase which does not include conversionwhich on the rise currently.
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HALAL MARKET
Food &Beverage
Pharmaceutical
Cosmetics &Personal Care
Global Halal products market is estimated at US$2.3 trillion excluding Islamic banking.
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REGIONAL HALAL MARKET VALUE
United States
According to the Islamic Food and Nutrition Council of America, the U.S.halal market is estimated at $17.6 billion
The top 10 major halal food markets are:
1. New York City, New Jersey and Long Island metropolitan areas
2. Los Angeles 9. Atlanta
3. Chicago 10. Washington D.C
4. Detroit
5. Houston
6. Dallas/Forth Worth
7. South Florida8. San Francisco
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The Americas
Muslims account for 0.6% of the population of the Americas, numbering 5.3million. The Muslim population in Canada and the United States is expectedto grow, presenting new opportunities in the halal food markets of North
America.
The largest Muslim population in South America resides in Argentina,numbering 1 million.
The population of Muslims in the Americas is small compared to that of theMiddle East; so many Muslims do not have convenient access to halalfoods. As such, this market shows strong potential for growth, as Muslimconsumers in the Americas continue to demand halal products. Canadasclose relations with the US and Latin America would contribute to itssuccess in exporting halal products to these regions.
Several US companies have recognized this opportunity, and have becomesignificant exporters of halal products; companies such as Cargill, ConAgra,Tyson, and Oscar Mayer have halal product lines.
Canada: Global Halal Food Market http://halalfocus.net/2011/05/09/canada-global-halal-food-market/Page 8 of 18
REGIONAL HALAL MARKET VALUE
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Africa
" South Africa, also known as the rainbow nation due to its diversepopulation, has also been actively hosting events focussing on Halal as aviable business concept.
" With a Muslim population of approximately 1 million, South Africa is playinga major role in developing the regional Halal industry in Africa and isconstantly seen as the gateway to the immense African market.
REGIONAL HALAL MARKET VALUE
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Canada has long-standing trade relations with several key halal markets.Canadas top export market in the Middle East, the United Arab Emirates, isone such partner.
Exports of bovine meat have increased 5383% since 2007, representing a newand lucrative market for Canadian beef exporters. Poultry exports to thecountry were high in 2009, likely because of the economic recession.Bangladesh is currently the largest Canadian agri-commodity buyer in South
Asia. Despite strong trade relations with the country, Canada does not exportsignificant amounts of beef and veal or chicken to the country. As one ofCanadas largest trading partners in the region, Canadian exporters will find a
lucrative halal market in the predominantly Muslim country.
Potential Markets for CanadianExporters
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Poultry exports to Pakistan have increased 341% since 2005, and haveseen a steady increase between 2008 and 2010. As Canadian exportershave already entered the poultry industry in Pakistan.
there are several opportunities to export other meats and products thatadhere to halal requirements. Canadian exporters have already enteredthe beef and veal markets of both Indonesia and Egypt.
Two of Canadas largest halal export markets in this category. Thisfoothold will allow exporters to offer a wider range of products toconsumers in these countries, including halal poultry and other halalproducts.
Potential Markets for CanadianExporters
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HALAL IN AMERICA
Certifying Organization: Islamic Food and Nutrition Council of America
IFANCA halal certification is recognized by:
! United States Department of Agriculture (USDA)! Majlis Ugama Islam Singapura (MUIS) (Singapore)!
Jabatan Kemajuan 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
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HALAL IN EUROPE
Halal is no longer a taboo in Europe as awareness abouthalal products and certification has notably increased
over the last couple of years.
Advertising, certification and labels are also on the rise inEurope, particularly in France with estimated 5 millionMuslim population. (Tieman, M, 2010, http://www.logasiamag.com/article/halal-logistics/1744)
The European Supermarkets are now aggressivelypursuing the Halal food retailing. The Global Market Potential of Halal, InternationalConference & Expo on Halal Industry , Lahore, Pakistan , 2010
Russia & other markets need to create awareness mitrans2012
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Europe - The Port of Marseille The Port of Marseille- with the strong support of the Malaysian government, is
actively developing this Halal Logistic sector.
The idea was officially launched in 2012 by the Port of Marseille, when thelaunch of the Hub to Hub Halal Logistics was set up with.
Port of Marseille- is a unique tool to enter western markets. Minimizing risks for mass distribution players, the system will enhance businessopportunities, including in western mature markets. An open door to outsiders in markets locked by multinationals. A potential bridge to emerging markets : from the sole transportation of Halal
finished products to the integration of these products into downstream
business development adapted to local markets : Africa and Asia can be servedfrom South of Europe
Giraud. J (HBD, PoM) World Halal Forum Kuala Lumpur, Monday 4thApril 2011
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Europe - Port of RotterdamIn the Netherlands, the Port of Rotterdam started with a consortium back in2005 with Eurofrigo (Cold Room Warehousing) and VAT Logistics (logistics
service provider) to provide halal logistics services and promote the halalgateway to Europe. (Tieman, M, 2010, http://www.logasiamag.com/article/halal-logistics/1744)
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Opportunities for Malaysia inEurope
There remains a need to harmonize the halal standards in Europe, to
simplify halal for the consumerand meet the diverse needs of the Europeanconsumers.
Halalnow being aglobal business and the international halal logisticsstandard is important where Malaysia Sandard is globally used asbenchmark.(Tieman, M 2009)
Malaysian Government expertise needed by European Companies in orderto set up the Halal Logistic Business (e.g PoM).
Help Malaysian Enterpreneurs to enter the market
O t iti f M l i i
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Opportunities for Malaysia inEurope
Port of Marseille- able to serve a potential target of 220 million consumers across Europeand the Mediterranean region.
Giraud. J (HBD, PoM) World Halal Forum Kuala Lumpur, Monday 4thApril 2011Port of Rotterdam - is currently creating a Halal DistriPark to serve 30 Million Muslims inEurope.
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BELGIUM
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Australia
Australia have capitalized on their image as high quality, safe and reliablefood suppliers.
Australia is one of the largest exporter to halal meat and mutton.Australia holds the largest market share in Indonesia of dairy products,beef, seafood, fresh fruits, vegetables and few processed products. Morethan 80% of Australia's cattle exports go to Indonesia.
Meat & Livestock Australia (MLA), for example, has launched a halalbrand for Australian meat in the Middle East, in recognition of theincreased sophistication of meat retailing throughout the Muslim world.
http://www.worldhalalfood.com/HalalInfo/HRHalalLogistics1.aspx
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Opportunities for Malaysia inAustralia
Malaysia has been particularly active and was the first country tointroduce a halal logistics standard, now recognized globally as abenchmark (Tieman, M 2009). Malaysia can provide halal logistic expertiseto Australian exporters in entering new market such as Europe andAfrica.
Malaysian Brand as a halal superpower can help Australian exporterto enter Market for Islamic countries e.g Middle East Countries.
http://www.worldhalalfood.com/HalalInfo/HRHalalLogistics1.aspx
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Implementation ofHalal Logistics- Push Factor
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! The Cooperation Council for the Arab States of the Gulf(CCASG; Arabic: !"#$%&$ '(&)&$ &*+& ,*$-.&$ "&'/0), alsoknown as the Gulf Cooperation Council (GCC; ,*$-.&$ "&'/('(&)&$), is a political and economic union of the Arab statesbordering the Persian Gulf and located on or near the Arabian
Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia,and United Arab Emirates. Jordan and Morocco have beeninvited to join the council
!Among the highest economy and GDP of OIC memberscountries
GCC COUNTRIES
Source : Wikipedia
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Source : Wikipedia
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Darhim Dali Hashim, CEO IHI, Malaysia, 2011
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Darhim Dali Hashim, CEO IHI, Malaysia, 2011
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Report from Brazilian ChickenProducers andexporters
association (ABEF), 2011
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GCC COULD FORCEBRAZIL TO FULLFILL
THE HALAL LOGISTICS
STANDARD
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CONCLUSION
- The awareness still low- Room for improvement- Need a Halal logistics @ Halal Supply Chain logo?- Less required in Muslim country- Issue in Muslim's minority country- Too focus on Halal of products and services- Increase cost of doing business
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THANK YOU