Hungry for more

As the global halal food market continues to grow rapidly, logistics providers must ensure their standards match their commercial appetites.

The halal sector is definitely the flavour of the month in the logistics industry, even if no one can agree on just how big it is. Some say $150 billion, $245 billion, or as much as $570 billion – one source even goes as far as $2.1 trillion.

There’s no doubting it is expanding significantly in tandem with the Muslim world, which now makes up close to a quarter of the world’s population and is set to grow by an additional 3.6 billion people in the next 24 years. In which case, it’s conceivable that the halal trade could account for a fifth of all food globally.

You need only glance at the trade show calendar to realise halal is now on everyone’s lips. From Australia to Abu Dhabi, dedicated exhibitions are establishing themselves, not only as pleasant meet-and-greets but vital forums for exchanging ideas in this rapidly expanding sector.

Around 50,000 delegates turned up at Amsterdam’s El Hema exhibition in January, and thanks to sites such as the halal blog (www.livehalal.com), which disseminates the latest global industry news and developments, everyone’s being kept up to speed. Everyone knows about Indonesia, Malaysia and the Middle East – but did you know China alone has a Muslim population exceeding 30 million?

All of which means halal is now an industry in its own right, one that savvy logisticians are now eager to capitalise on. Halal means lawful or permissible in Arabic, and under  Islam, halal food must be free from alcohol, pork and other substances Muslims are prohibited from consuming.

Malaysia is keen to establish itself as a ‘halal hub’, with its Northport at Port Klang earmarked to serve the one billion Muslim consumers, manufacturers and producers globally.

The national shipping carrier, MISC, pioneered the first halal service with Northport as one of the important ports of call, and a $500 million halal park, Malaysia International Halal Park (MIHAP), is earmarked for a 1,200- hectare site at Selangor.

Malaysia is also home to the Halal Industry Development Corporation, which supports, develops and co-ordinates all matters halal.

GULF EXPANSION The red-hot Middle Eastern market is also starting to realise its potential, with manufacturers such as Khazan expanding production capacities to keep up with demand. It is planning a third factory this year, complementing operations in Kuwait and Sharjah.

“We’re looking to increase our exports, particularly with the opening of the new factories, and have been examining the US market,” says Gerhard Vogt, Khazan’s Production Manager. “We’re definitely able to supply halal products which meet US regulatory requirements.”

One of Malaysia’s leading logistics companies, MISC Integrated Logistics, has reportedly formed a joint venture company with Dubai shipping agents, RHS Group, to offer halal logistics services in the UAE.

Last year, two Malaysian companies announced they would set up a wholesale International Halal Centre in Damascus, catering primarily for the 1.3 million displaced Iraqis.

Meat & Livestock Australia has launched a halal brand for Australian meat in the Middle East, indicative of the increased sophistication of meat retailing throughout the Muslim world. Australia exported 43,071 tonnes of mutton, 17,685 tonnes of lamb and 3,312 tonnes of beef to the Middle East, valued at $242 million, in 2006.

“Australian meat exporters wishing to supply halal meat to Muslim countries must source meat from abattoirs operating under the Australian Government Muslim Slaughter (AGMS) programme, which is under the control and oversight of the Australian Quarantine and Inspection Service (AQIS),” says Ian Ross, MLA’s Regional Manager for the Middle East and Africa.

Apart from correct slaughter procedures, the welfare of animals being raised for slaughter is a key requirement of Sharia law. Careful and highly regulated transportation of livestock is a key logistical component, as is the separation of halal products from those which are ‘haram’, after slaughter, during processing, storage and transport to the customer.

EMIRATES’ HALAL PRODUCTS ON THE MOVE Halal products account for the majority of the meat transported through the Emirates’ hub in Dubai, making it a very important segment for Emirates SkyCargo.

Dave Gould, Emirates Senior Vice President, Cargo Global Operations, says perishables (which include food products such as meat, fish, fruit and vegetables, fresh flowers and pharmaceutical products) represent nearly a quarter of the cargo division’s total traffic.

“As such, we have invested heavily in our perishables facilities and in our ‘cool chain’, Emirates’ dedicated solution for the transport of temperature-sensitive products in temperature- controlled air cargo containers, over the past few years,” he says. Emirates SkyCargo’s new Cargo Mega Terminal (CMT) will open in the first quarter of this year, although it has already transferred the handling of all temperature-sensitive goods – including halal products – to the two new, state-of-the-art facility’s 6,000-sq metre temperature controlled storage areas, which are maintained at 5˚C and 15˚C respectively, complemented by a freezer set at -18˚C. A dedicated handling team is familiar with the halal (and other) products’ specific needs and authorities are located in the same building. Municipality and veterinarian checks at the CMT and at Emirates SkyCargo destination stations ensure spoilt or substandard meat does not get released to the consignees/consumers. Handling procedures from aircraft arrival to the terminal at the Dubai hub, and vice versa, have been simplified and accelerated so halal products and other temperature-sensitive goods are less exposed to Dubai’s mostly warm climes.

“Emirates SkyCargo also offers the use of our temperature-controlled Cool Dollies for tarmac transport,” adds Gould. “When the aircraft lands, ULDs containing halal cargo can be transferred directly into the Cool Dolly. This is then transferred to the CMT for collection or forwarded to its final destination.”

Comprising a steel trailer and an aluminum insulated container, the Cool Dolly’s chlorine-free cooling system, fitted with a diesel engine and an electrical backup system, is able to maintain temperatures between 40˚C and -200˚C. These units are capable of handling all types of lower deck ULDs and pallets, and handle loads up to 6,800 kg. “We also offer the option of vacuum cooling for temperature-sensitive cargo while it is in transit in Dubai,” he says.

GLOBAL STANDARDS As the halal market grows rapidly, monitoring processes across the supply chain becomes more challenging. While there are systems in place to protect consumers in the UAE, for example, the sector’s rapid growth means there is growing demand for globalised standards across all products.

Delegates attending the recent Global Halal and Islamic Business Forum in Abu Dhabi called for monitoring offices around the world to work with recognised Islamic centres to conform to the halal protocols for all foodstuffs to be imported into the GCC region. A committee will be formed to establish guidelines of the Muslim World League regarding halal slaughter and food production.

The committee will oversee the development and implementation of educational programmes for manufacturers on the approved guidelines for halal slaughter and processing as well as a recommendation for a mandate to ban the sale of haram foods, such as pork and alcohol, in all Muslim countries in the GCC.

“The halal industry needs this kind of platform to discuss vital issues affecting businesses throughout the world,” says Abdalhamid David Evans, Managing Director of Imarat Consultants. “The discussions here will have a direct impact on the growth and direction of the global halal industry. What happens in the Middle East will have an immediate knock-on effect on standards around the world.”

The complexities of the halal supply chain extend much further than the usual concerns regarding unbroken cool chains and the efficient delivery of fresh food produce — it’s an all encompassing ‘farm to table’ operation that involves ports operators, forwarders, hauliers, warehousing operators and handlers. Malaysia and Brunei are among the few countries to have formed regulatory bodies to verify halal products.

Halal supply chains include everything from the procurement and preparation of genuine halal ingredients to the manufacturing and delivery of the final product, all the way to the supermarket shelves. Consequently, operators need to maintain ‘halal integrity’ throughout the supply chain.

With the legitimacy of some halal products coming under fire, the industry is now demanding more specialised halal-compliant solutions for its supply chain process.

With technological and scientific advancement, it has become easy to test whether a product is halal or not, meaning that any contamination can be detected. Most suppliers don’t cut corners – food manufacturers have too much riding on their brands and anything that brings that into disrepute can be costly in terms of lost sales and brand damage – but the challenge remains to ensure consistency throughout the process.