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Meat market

The global halal market has exploded in recent years, creating an enormous economic driver and halal meat is a major part of the trade. Bespoke uncovers some surprising facts and controversies in this growing market.

28 Apr 2010 By Official Bespoke 4 min read
Meat market

The halal market in all its manifestations is becoming an important part of global trade, as the 1.3 billion Muslims around the world continue to enjoy economic growth. The total global trade for halal products is estimated to be worth 2.1 trillion USD. The halal meat market is an integral part of this trade worth around 45 billion USD in 2010, according to the International Halal Integrity Alliance; this is up from 15 billion USD in 2007. The rapid growth in the halal food industry illustrates the rising importance of Muslims in global trade and how the halal market is moving beyond religion and borders.

Halal outside the Islamic World

The most surprising beneficiary of the great increase in the halal meat market has been, not a Muslim country, but Catholic Brazil. The Middle East is the main destination for Brazilian chicken and meat exports. Brazil dominates 54 per cent of the global halal food export market. According to industry reports 33 per cent of Brazilian poultry and 40 per cent of meat are for the halal market. The exports of halal chicken and meat to Iraq articulate the huge growth in the halal industry for Brazil; whose exports to Iraq rose from 100 million USD in 2007 to 250 million USD in 2009. Australia has also seen a rapid increase in the export of halal meat to the Middle East.

Europe is also an important region for the consumption of halal meat. Although France has the largest Muslim population in Europe it is Britain that has the highest sales of halal meat, estimated to be worth 900 million USD a year in retail sales. In America and Canada meanwhile, strict rules on the importation of food mean that there is little international influence on the domestic halal market as it is almost impossible to export halal meat to North America. As a result, large halal meat companies have been established in the US, the most famous being Tyson Foods and Pilgrim Pride, and in Canada, Al-Noor. The Canadian domestic halal meat market was estimated to be worth 217million USD in 2005. Although the halal meat market in Canada and the US is largely domestic efforts to secure an international presence in the market through certification processes are underway. In both Canada and the US strong internal growth of the halal market has coincided with approval from several halal certification bodies of global reputation allowing North American products to be sold around the world.

Halal inside the Islamic World

The Gulf countries are, of course, the most important consumers of halal meat and the largest importers, as all meat has to be halal unless stated otherwise. Saudi Arabia is the biggest halal meat market in the world, consuming some 5 billion USD of products a year. In recent years, Dubai has been viewed as the gateway of the halal meat market and is home to some of the best-known producers of Halal meat. Al Islami, Al Kabeer and Al Areesh are all located in the Emirate. Al Islami was recently awarded the ‘Best Halal Food’ producer at the inaugural Gulfood Awards ceremony.

In Asia it is Malaysia that is leading the way in creating a hub for the halal market in general. Malaysia’s attempt to dominate the global halal trade has been emphasised through the creation of the World Halal Forum, held in Kuala Lumpur every year that is now the centre piece for halal trade. Further to this, the Halal Journal has been established in Malaysia and has become a central authority on all things halal.

Is it really halal?

There are three main types of halal certification: Site registration; a certificate for a specific product with a specific duration; and yearly certification. A site certificate does not mean that the food produced is halal, merely that the site of the plant is able to produce halal meat. A halal certificate for a certain product relates to the animals themselves and is usually given with regards to a batch of animals. These certificates tend to be reviewed on a yearly basis where applicable.

The types of certification however ultimately depend on the particular certifying organisation. There are hundreds of different certifying organisations that apply different rules to ensure that the meat is halal. The debate over what halal actually means is heavily disputed and highly complex. There have been efforts to homogenise certification at the World Halal Forum that is due to have its fifth gathering later this year. For example, Malaysia is attempting to develop a global certification process; but so far, and perhaps unsurprisingly, little progress has been made. The growing number of certification bodies is making standardization increasingly difficult.

This lack of coordination is leaving some consumers suspect about international brands of halal and leading some to obtain their meat locally. The crisis of certification was illustrated most recently by the Islamic Food and Nutrition Council of America (IFANCA). The IFANCA is one of the best-known international certifiers of halal meat and was plunged into a crisis of authority. This organisation was called into question, like many halal certification bodies, when the co-founder and former executive director Mohammed Mazhar Husseini told an Islamic information website that he does trust the certification process of IFANCA. “They (IFANCA) are interested in charging fees and certifying products (as halal) and getting commission.” The waters are certainly murky at present.

The future of halal

Attempting to create internationally recognised standards of halal meat will be the market’s greatest challenge and the key to its future growth. As the market is increasingly globalised it is inevitable that regionalised halal standards will have to be replaced with international ones. The continued expansion of the market looks almost assured as the region continues its robust growth in both population and economic terms. If the halal meat market continues the current trend of development then the future will continue to look very bright for the producers of halal meat.

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