Challenges of halal industry

Although halal standards and processes are based on the universal principles and teachings of Islam, the halal industry is yet to use one universal set of standards and one all-encompassing mark.

Today, more than a hundred halal marks are used all over the globe, and this poses the following problems and gray areas that IHAF is seeking to address.

• Manufacturers often end up with no choice but to raise the prices of halal products to meet different sets of requirements for various marks.• Traders could not ensure the reliability of the marks because no single entity takes charge in consolidating the standards.

• Governments, who have accreditation bodies of their own with their own specifications and mechanisms, have no bi-lateral or multi-lateral agreements that would allow various countries to accept each other’s marks.

• International Standardization Bodies take no interest in developing universal set of standards, owing to the perception that halal is a matter of religion and that authorities fail to reach consensus.

• The World Trade Organization sees the proliferation of halal marks from various countries as a trade barrier.

• As they are bombarded with too many halal marks, consumers end up getting confused, harboring doubts, and losing trust in the halal industry.

NO. PROBLEMS/CHALLENGES SOLUTIONS EXPECTED OUTCOME
1. • Complicated red tape, long list of requirements resulting in the hefty price tags of halal products • Standardization of requirements
Streamlining of operations to expedite processing
• Harmonizing halal criteria and practices
• Cheaper halal products
2. • Unreliable marks • Introduction of one globally accepted mark • Customer satisfaction, consumer’s trust and confidence in the halal industry
3. • No consensus on what is halal among various governments
• Absence of halal infrastructre
• Creation of a common platform wherein governments can discuss halal standards, policies and regulation, and come up with mutual agreements• Assistance on the developing halal infrastructure • Global reputation in terms consumer protection
• Cost savings in monitoring systems
• Good halal infrastructure
4. • Lack of interest in develop international halal standards • Creation of one unified platform for international standard bodies • Globally accepted international standards
5. • High trade barriers • Signing of multi-lateral agreements among countries to break the barriers • Easy facilitation of trade
• Increase in halal trade
6. • Doubtful and misinformed consumers • Introduction and promotion of one single halal mark • Consumer trust and satisfaction
• Increase in consumption of halal products

All these challenges that the industry is facing are issues that have to be addressed immediately, as we keep up with the continuous expansion of the halal field. Experts have mapped out the solutions and IHAF is bound to make them happen.

From the standardization of criteria, streamlining of processes, forging partnerships all over the globe down to the creation of one global halal mark, IHAF offers the ultimate solution.

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International Halal Accreditation Forum
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Email: info@ihaf.org.ae