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DOST-NCR 2014 Stakeholders Summit
December 11, 2014 DOST Compound, Gen. Santos Ave., Bicutan, Taguig City
Albin M. Ganchero Halal Export Program Coordinator, REAO Reg. 12 & ARMM Emerging Products Division Export Marketing Bureau (EMB) – Department of Trade and Industry
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I. Understanding Halal Market Opportunities and Muslim Consumer Behavior II. Concept of Halal and Haram III.Understanding Philippine Halal Standards on Food for MSMEs IV. Program on Philippine Halal Initiatives V. Next Steps: Recommendations
I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
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“ Firms are discovering that Halal isn't a religious constraint--it's a consumer lifestyle.” One reason for the rise of the Halal economy is that the world's 1.6 (2009) billion Muslims are younger and, in some places at least, richer than ever. Non-Muslim
multinationals
like
Tesco, McDonald's and Nestlé
Time Magazine, May 2009 Issue
have expanded their Muslim-friendly offerings and now control an estimated 90% of the global Halal market.
I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
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Halal Food Products Going Mainstream Report from the global ad agency JWT describes the Muslim market thus: "It's young, it's big, and it's getting bigger." Young devout Muslims are hungry for Islamic versions of mainstream pleasures such as fast food. "The second- and third-generation Muslims are fed up with having rice and lentils every day," Swiss food giant Nestlé is a pioneer in the field. It set up its Halal committee way back in the 1980s, and has long had facilities to keep its Halal and non-Halal products separated.
I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
For non-food companies like South Korea’s LG and Finnish cell-phone giant Nokia, targeting Muslims is also big business. LG offers an application to help users find the direction of Mecca, while Nokia has free downloadable recitations from the Koran and maps showing the locations of major mosques in the Middle East. (This is in 2009) Such offerings increase brand loyalty,
“It’s just about their marketing messages, about showing that this brand is interested in them as consumers.”
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
ISLAM…by the Numbers • Based
on www.muslimpopulation.com, total Muslim population worldwide reached 2.04 billion in 2013, with Asia (India: 251.94 million; Indonesia: 212.08 million) as having the most number at 1.36 billion Muslims followed by Africa at 568.55 million.
While Philippines has population of 9.62 million. •
a
Muslim
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
ISLAM…by the Numbers
In Asia, 31.85% of the population are Muslims and worldwide, total Muslim population is at 28.26% and growing at 1.84% per year. •
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
ISLAM…by the Numbers • Total trade of Halal food alone is valued at
US$632 Billion, and according to David Smith, Global Futures and Foresights Study, the current global Halal market is a US$2.6 trillion industry and it will be a $10 trillion dollar industry by 2030. •Making
it one of the fastest growing consumer segments in the world.
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
ISLAM…by the Numbers Muslim population is estimated at 2.08 B in 2014 (www.muslimpopulation.com)
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
The Muslim Consumers ….
The Hajj goes Hi-tech.
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
The Muslim Consumers ….
The Affluent Shoppers.
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
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“ Firms are discovering that Halal isn't a religious constraint--it's a consumer lifestyle.”
“French start-up nibbles Halal food market with quick pork test” Nov 6, 2014
Launched only a fortnight ago, the company has won nearly US$135,000 in orders. — AFP picture FRESH LOOK: Malaysia-based El Hajj markets skincare products such as moisturizer and facial cleanser to pilgrims headed to Mecca.
I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
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MARKET GROWTH DRIVERS •Increase in Population
•Increase in Demand •Increase in Awareness •Increase in Certification
MARKET OPPORTUNITIES •Prospects in E-commerce •Emergence of Accreditation
Agencies
•Fast & Takeaway Food
I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
Increasing activities for Halal Global Trade
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I.
Understanding Halal Market Opportunities and Muslim Consumer Behavior
Japan joins the fray…
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..and also, with Spain.
Display at Japan airport
Fancy Halal whale meat? No problem, as Halal tourism takes off in Japan Posted on November 2, 2014 in Travel By Jacques Lhuillery Spain interested in developing Halal industry
8 September 2014 · by The Halal Journal Team · in Food & Beverage, News & Events.
II. Concept of Halal and Haram
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In today’s world, it has become very important for Muslims to determine whether the products they use are Halal / permissible or lawful in Islam or not. Haram is unlawful, forbidden and prohibited (e.g. pork or
pork derivatives, alcoholic drinks or intoxicants, blood and blood by-products). This problem of determination is not only limited to food and beverages but also to other non-food products and
services.
Halal is an Islamic value, and has a direct impact on how products are produced, processed, distributed, stored, sold and
consumed.
II. Concept of Halal and Haram Halal Products Halal Products include both Food & Non-Food Items.
Halal Food includes products such as: -
Meat & Poultry Dairy Products Bakery Products Herbal Products
-
Confectionery Canned & Frozen Food Organic Food Beverages etc
Halal Non-Food include products such as: -
Cosmetics Perfumes Pharmaceuticals Leather products
-
Toiletries Beauty products Nutraceuticals Animal & Poultry Feed… etc
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II. Concept of Halal and Haram
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Halal Services HALAL Services are also important components of the global Halal market, including:
-Islamic Banking, Securities & Bonds -Islamic Travel & Tourism -Halal Processing, Packaging, the Complete Supply Chain
-Halal Food Services (catering / hotels, restaurants etc) - Education & Training - HALAL Logistics: This is important to ensure that a HALAL product remains HALAL from its origin to the consumers – from the Farm to the Fork..
II. Concept of Halal and Haram
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Halal and Kosher Similarities between Halal and Kosher: 1.Halal and Kosher denote the ritual slaughter of animals/birds while a follower of that faith pronounces prayers at the time of slaughter. 2.Both use a sharp knife to cut through the neck of the animal in a certain fashion to ensure thorough bleed out of the carcass. 3.Both methods of slaughter are proven to be more humane than regular industrial practices. 4.Both rituals are concerned with the health and safety (wholesomeness) of the food they certify. 5.Muslims and religious Jews do not eat pork or its derivatives. 6.Both Muslims and Jews do not eat the meat of predators or birds of prey.
II. Concept of Halal and Haram
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Halal and Kosher Differences between Halal and Kosher: 1.
The Muslim slaughtermen usually pronounce the prayer on each animal at the time of slaughter. The Jewish Rabbi usually pronounce the prayer only once at the beginning of the slaughtering session.
2.
In Halal slaughter, the animals may be directed towards the Qiblah, whereas no such specific direction is part of kosher slaughter
3.
In Kosher slaughter, the Rabbis examine the lungs and viscera of the carcass to check for discoloration and scars in these organs. In the Halal slaughter no such exams are made. Health issues are usually left to the government officials and/or quality control personnel at the facility. This partially explains why an average of 50% or less of carcasses may qualify for the Kosher stamp.
4.
Only the front side of the beef carcass/ animal is certified Kosher, hind quarters are not certified Kosher. In Halal, all edible meats and offal of the Halal slaughtered carcasses of healthy animals can be labeled Halal.
5.
During Kosher processing the meat is soaked in salt for about two hours then rinsed with water, to remove traces of blood from the meat. In Halal processing the meat is not soaked in salt because only consuming flowing blood is prohibited for Muslims.
6.
Religious Muslims don’t drink alcohol which is acceptable by Jews.
7.
Religious Jews don’t mix milk and meat, nor do they eat shellfish or fish without scales.
III. Understanding Philippine Halal Standards on Food for MSMEs
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PHILIPPINE NATIONAL STANDARDS ON HALAL
1. PNS 2067:2008 The Philippine National Standard on Halal Food – General Guidelines 2. PNS-BAFPS 102:2011 for Cattle and Goat, and 3. PNS-ICS 67029-2011 for Poultry
III. Understanding Philippine Halal Standards on Food for MSMEs
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Philippine National Standard (PNS) 2067:2008
The Philippine National Standard on Halal Food – General Guidelines PNS 2067:2008 has been prepared by Muslim
scholars, theologians and Shariah experts in the Philippines through the technical facilitation of the Bureau of Product Standards’ Technical Committee on Halal Food. In the preparation of this standard, the Technical Guidelines of Muslim Mindanao Halal Certification Board, Inc., was utilized as the working paper which was based on existing International standards. Six (6) area consultations covering 11 regions nationwide and one focused group discussion were conducted and participated in by Muslim scholars, theologians and Shariah experts in the development of this standard.
III. Understanding Philippine Halal Standards on Food for MSMEs
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1. Scope
The standard provides general guidelines for the food industry on the preparation and handling of Halal food, including food supplements and to serve as a fundamental requirement for food product and food trade in the Philippines. The standard should be used together with acceptable food safety systems such as HACCP and its prerequisites.
The application of Halal system to food shall cover “from FARM to PLATE” – that in essence is the whole coverage of the Halal quality assurance to promote hygiene and good health.
III. Understanding Philippine Halal Standards on Food for MSMEs
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2. Normative References - Qur’an and Hadith
- Halal Technical Guidelines of the Muslim Mindanao Halal
Certification
Board, Inc.
- MS 1500:2004 Halal Food – Production, Preparation, Handling and Storage – General Guidelines - Recommended International Code of Practice General
Principles of Food Hygiene
- HACCP Guidelines - ASEAN General Guidelines on the Preparation and Handling of
Halal Food
- Yussof Ali Arabic Translation
III. Understanding Philippine Halal Standards on Food for MSMEs 3. Definition of Terms
Short video on Understanding What is Halal Food by IFANCA
(Islamic Food and Nutrition Council of America)
Note: Please refer to scanned copy of the PNS 2067 : 2008
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III. Understanding Philippine Halal Standards on Food for MSMEs
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4. Islamic Competent Authority /ies 5. Sources of Halal Food and Restrictions
5.1 Animals – all animals both of land and aquatic are lawful, except those that are prohibited. 5.2 Plants – all types of plants and plant products and their derivatives are Halal except those that are poisonous, intoxicating or hazardous to health. 5.3 Other
- Unlawful things: e.g. prohibited drugs
III. Understanding Philippine Halal Standards on Food for MSMEs 6. Subject to Laboratory Analysis
6.1 Doubtful processed food 6.2 Fresh and frozen food (chemical residues) 6.3 Feeds for consumption of lawful animals (meat, blood, bone meal and raw materials from unlawful sources) 6.4 Food service establishments (harmful microorganisms in water, pork, lard, pork by-products, ethyl alcohol, food coloring 6.5 Human derived substances and other unlawful substances
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III. Understanding Philippine Halal Standards on Food for MSMEs 7. Slaughtering
7.1 Choice of animal for slaughtering 7.2 Procedures for slaughtering 8. Electrical Stunning
8.1 Large animals 8.2 Use of stunning equipment 8.3 Basic rule of stunning 8.4 Electrical stunning of fowls (Short Video of an Abu Dhabi Slaughterhouse) Note: For other Islamic markets, stunning is not allowed
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III. Understanding Philippine Halal Standards on Food for MSMEs
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9. Dressing and Cleaning – must only commence after
ascertaining that the animal is pronounced dead and ready for processing.
10. Guidelines in Preparing , Processing / Manufacturing, Handling, Packaging and Serving of Halal Foods.
10.1 Cleanliness , hygiene and sanitation 10.2 Processing and handling 10.3 Devices, utensils, machines and processing equipment 10.4 Storage, transport, display and serving 10.5 Packaging and labeling
III. Understanding Philippine Halal Standards on Food for MSMEs 11. Halal Certification Mark
7.1 Halal mark or logo 7.2 Name of certifying body (Short Video on Certification of Halal Products by IFANCA)
12. Additional Requirements
12.1 Requirement for Muslim employment 12.1.1 Muslim Production Supervisor 12.1.1 Halal Quality Assurance Officer 13. New Sciences and Technology
13.1 Perspective on organically grown foods 13.2 Perspective on cloned animals or GMO
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IV. Program for Philippine Halal Initiatives Tapping the Global Halal Market • Earlier Initiatives
Department of Trade and Industry (DTI) Office of Muslim Affairs (OMA) Islamic Da’wah Council of the Philippines (IDCP) • Strengthening of the Philippine Halal Assurance System •Recognition by the Islamic Markets •List of Recognized Philippine Certifiers in Islamic
Countries •Implications on IDCP Global Recognition • Current Situation
•National Commission on Muslim Filipinos •Bangsamoro Basic Law
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IV. Program for Philippine Halal Initiatives
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MEMORANDUM ORDER NO. 201 Having recognized the decision of the Supreme Court and in order to unify all the Halal programs of each government agencies, the Office of the President of the Philippines issued Memorandum order 201 on December 23, 2005 for purposes of identifying and securing the cooperation and support of other agencies that may be involved in the Export Trade Development Program.
IV. Program for Philippine Halal Initiatives
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The MO 201 Member Agencies / Departments were:
Department of Agriculture, Department of Tourism, Department of Trade and Industry, Department of Science and Technology, Department of Health (Food and Drugs Administration) and Office on Muslim Affairs.
IV. Program for Philippine Halal Initiatives
PNS 2067:2008 - This provides the general guidelines for the Philippine food industry on the preparation and handling of Halal food, including food supplements, and serves as a fundamental requirement for food products and food trade in the Philippines. This standard should be used together with acceptable food safety systems such as Hazard Analysis Critical Control Point (HACCP), and Good Manufacturing Practice.
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IV. Program for Philippine Halal Initiatives
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THE DEPARTMENT OF AGRICULTURE had also developed a National Standards on Halal. The development of the National Standards was also conducted through a nationwide consultations with religious authority in the Philippines and in conformity with other international standard on Halal slaughtering.
These are the PNS-BAFPS 102:2011 for Cattle and Goat and PNS-ICS 67029-2011 for Poultry
IV. Program for Philippine Halal Initiatives
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Creation of the National Commission on Muslim Filipinos (NCMF) to replace the Office of Muslim Affairs (OMA) July 27, 2009
REPUBLIC ACT NO. 9997 Article 2 Section 8 (h) provides: Promote and develop the Philippine Halal Industry and accredit Halal-certifying entities / bodies for the utmost benefit of Muslim Filipinos and in partnership or cooperation with appropriate agencies, individuals and institutions here and abroad.
IV. Program for Philippine Halal Initiatives
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•Halal International Chamber of Commerce and
Industries of the Philippines, Inc. (HICCP)
Unit 701 Jafer Place, Eisenhower St., Greenhills, San Juan City
•Mindanao Halal Authority (MINHA) 3/F Dinopol Bldg., Osmeña St., General Santos City •Muslim Mindanao Halal Certification Board, Inc.
(MMHCB)
No. 2 Abdul Kadil Daod Apartment, Campo Muslim Drive, Cotabato City Other Recognized Philippine Halal Certifier •Islamic Da’wah Council of the Philippines (IDCP) Suite 400 FUBC Building, Escolta, Manila
IV. Program for Philippine Halal Initiatives
BANGSAMORO BASIC LAW Article XIII
ECONOMY AND PATRIMONY Section 28. Halal-Certifying Bodies; Halal Campaign Program. – The Bangsamoro Government shall have the power to accredit Halal-certifying bodies in the Bangsamoro. It shall promote awareness through the development and implementation of a Halal campaign program.
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IV. Program for Philippine Halal Initiatives
Members of the World Halal Council LIST OF FULL MEMBERS •ASSOCIATION RESEARCHES FOR THE INSPECTION AND CERTIFICATION
OF FOOD AND SUPPLIES, GIMDES (Turkey) •HALAL BANGLADESH SERVICES LTD (HBS) •HALAL PRODUCT DEVELOPMENT SERVICES (HPDS) (Canada) •SHANDONG ISLAMIC ASSOCIATION (SIA) .ISLAMIC CENTRE AACHEN •HALAL INDIA PVT LTD •KENYA BUREAU OF HALAL CERTIFICATION •MUSLIM ASSOCIATION OF MALAWI (MAM) •ISLAMIC FOOD RESEARCH CENTRE MALAYSIA & ASIA REGION (IFRC ASIA), MALAYSIA & HONG KONG •RENAISSANCE INSPECTION & CERTIFICATION BODY (RI&CA)
•ISLAMIC DA’WAH COUNCIL OF THE PHILIPPINES (IDCP) •ALL-RUSSIAN HALAL CERTIFICATION CENTER •ISLAMIC COUNCIL OF SOUTH AFRICA (ICSA) •NATIONAL INDEPENDENT HALAAL TRUST (NIHT) •SOUTH AFRICAN NATIONAL HALAL AUTHORITY (SANHA) •MUSLIM JUDICIAL COUNCIL (MJC) •ISLAMIC SOCIETY OF WASHINGTON AREA (ISWA)
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IV. Program for Philippine Halal Initiatives
Other Initiatives to Promote Halal Products and Services •Halal Conferences and Exhibitions - International Halal Summit (IDCP) •BIMP-East Asia Growth Area (BIMP-EAGA) •Philippine Halal Guidebook •Philippine Halal Center in Zambonga City Special Economic Zone
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IV. Program for Philippine Halal Initiatives
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Coming of age for Philippine Halal industry….
Food organizations are now taking strong interest in learning more about the requirements and processes involve in Halal certification. Both certifiers and food industry players are attending Halal conferences and food exhibitions here and abroad. Testing laboratories have signed up to support Halal certification requirements. Some certifiers have already established collaboration with foreign counterparts and other institutions to be recognized as a credible Halal certifier.
V. Next Steps: Some Recommendations
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- Proposed Halal Legislation (Recognized Accreditation Body) – House of
Representatives and Philippine Senate
- Harmonization of Halal Services - Halal Trade and Tourism Development
a. Active listing of Halal Certified Restaurants and Hotels b. Formulation of a baseline data on Value and Volume of exports of Halal certified products (2015)
V. Next Steps: Some Recommendations
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A call for UNIFIED ACTION…… For ALL stakeholders to get its act together. For All Halal Certifiers to shape up and provide authentic and reliable Halal certifications. To do the certification as an act of Ibadah (Worship) and not for money purposes only.
For the Food Sector to take pro-active role in the production and promotion of Halal products. To harmonize all efforts to bring about a Holistic approach in developing our very own home-grown Halal food industry.
Shukran and Wassalam
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ALBIN M. GANCHERO Halal Export Program Senior Trade and Industry Development Specialist (STIDS) Emerging Products Division (EPD) Export Market Bureau (EMB) Department of Trade and Industry – Philippines Website: www.dti.gov.ph 1st & 2nd Floors. DTI International Building, 375 Sen. Gil J. Puyat Ave., Makati City, 1300 Philippines Telefax: +63 (2) 645 3300 CP # Globe: 0917-583-8621 Email adds:
[email protected] or
[email protected]
