A new food standards regime coming to vogue-Will it cause disruption of global trade?

Every country in this planet has a food industry of its own which seeks to meet the food needs of the citizens through processing of native raw materials or imported ones if not available within the country. Besides some foods are always imported because no nation can be expected to be 100% self sufficient in terms of its needs making global trade a necessity rather than a luxury. Like any buyer-seller arrangement, country to country trade also involves negotiations, bargaining and agreed standards regime under which export-import is managed. International agencies like WTO, WHO, FAO, ISO etc do provide guidelines and recommendations regarding food safety and standards but ultimately the trade will take place only based on mutually agreed upon prices and consensually arrived quality parameters. In any market place buyer has invariably an advantage if there is over-supply while supply shortage will give advantage to the seller. Recent promulgation of a new set of standards in the Gulf countries for food imports follows the same reality and these mandatory standards under the banner of Halal Food Certification are expected to be the basis on which imports of foods from non-Islamic countries into the gulf region are going to be regulated. Here is a take on this new development in the global food trade front.   

"Halal food products from Australia and New Zealand are the first imports to be subject to the UAE's new standards, which aim to create a global mark of quality for the Islamic food industry. The halal mark was unveiled by the Emirates Authority for Standardisation & Metrology (Esma) at Gulfood yesterday, following a three-year development process that is part of Dubai's push to become the global capital of the Islamic economy. The new halal certification covers the full process from farm to slaughter to additives and ingredients used, Esma said. The standards are backed by the Organisation of Islamic Cooperation, the 57-country body that aims to preserve Islamic social and economic values. Within two years all food imports will need the mark to pass through the country, Esma said. About a fifth of the global food trade is halal, according to Datamonitor, and it is forecast to be worth US$10 trillion by 2030, a Global Futures and Foresights study says. Halal food imports into the GCC will reach $53.1 billion by 2020, according to the Economist Intelligence Unit. "More than 85 per cent of the food we import comes from non-Muslim countries," said Dr Rashid bin Fahad, Minister of Environment and Water, who is also chairman of Esma. "We need new standards of transparency and security for halal customers. There will be no disruption to the food chain, it will be an incremental change with Australia and New Zealand the first countries to fall under the new standards."

Probably there is logic in promoting Halal Foods Certification in a big way as Muslims constitute a very sizable segment of world population and most of them are religiously conservative in following Islamic traditions and culture as originally evolved over so many centuries ago. It is to the credit of the Gulf countries, especially Dubai, that Halal Food Standards have been codified with no ambiguity keeping in view the knowledge generated by modern science. That these standards are not radically different from international ones and can be easily met by all countries with least disruption of their existing industrial landscape must be appreciated. If countries like Australia and New Zealand can export their products with no difficulty as per the new Halal Standards global trade will have no impact if other Islamic countries also follow the same guidelines for food imports into their countries. 

V.H.POTTY
http://vhpotty.blogspot.com
http://foodtechupdates.blogspot.com

THE HALAL FOOD "SURGE"-NEW DEVELOPMENTS

True Islamic followers consume only "Halal" foods which are raised and processed as per the norms prevalent among the followers of this faith for centuries. Halal Food Industry has acquired a stature beyond religion because of wide skepticism regarding the safety of modern industrial foods and its growth has been phenomenal during the last one decade. Many consumers seem to prefer Halal foods if organic alternatives are not readily available because of their belief that Halal foods are safer to consume. Halal system mainly refers to foods, especially meat products, food contact materials and pharma products which are permissible under Islamic law. Other products are either Haram (forbidden) or Mashbooh (questionable). Many countries insist on clear labeling of Halal foods to enable consumers make a willful choice. Halal system of processing meat animals is not universally accepted because of the bleeding method during slaughtering and hence the requirement for specific labeling. As Halal foods gain increasing acceptance efforts are on to standardize different products and evolve universal certification procedures. Recent developments in Halal foods are highlighted in the following report.

"From farm to fork, Halal is simply the better meat and its major health and business benefits help growth in the market, according to industry specialists. The worldwide Halal food industry is estimated to be over $650 billion, and this segment currently accounts for approximately 16 per cent of the global food market. Speakers at a recent forum agreed that the immediate potentials for investors of Halal food market are in acquiring high net worth Halal food producers, slaughterhouses, ingredients production, Halal livestock, Halal raw meat and Halal industrial parks. The forum was jointly organised by Al Islami Foods and CNBC Arabia. Industry experts who were invited to the forum include Al Islami Foods deputy chief executive officer Hamid Badawi, sales and marketing head Alaa Kamal of US-based Midamar Middle East and general manager Wahid Kandil of Canada-based Prairie Halal Foods Middle East. "From a business point of view, Halal has some major health and business benefits. That is why the market is developing. Attractive growth numbers are grabbing attention of investors," Badawi said on the fast growth of the market. "A Global Halal Standard and Global Halal Certification," Hamid asserted, "is key to resolve the sensitive issues faced by the industry, otherwise the market will remain fragmented and in regional hubs." Legislations for Halal certification vary from one Islamic school of thought, called Madhab in Arabic, to another. Each school of thought and country has its own legislations for Halal certification. Malaysia is one of the key players in the global Halal sector, the others being Australia, Brazil, Thailand, Indonesia and Brunei, with China, France and Japan planning to enter soon. Currently, the market is in its natural evolution process. However, regions and countries differ on Shariah rules of standards and certifications. At present, the Halal market is in the brain-storming phase of developing Common Halal Standard and Common Halal Certification that are acceptable to all four Madahib of Islamic world".

There are lot of similarities between "Kashrut" foods of Jews and Halal foods of Muslims and both sectors are attracting consumers from outside their faith. During the last few years lot of scientific research has gone into these food systems and it is wrong to believe that they are not science based. The root for evolution of such distinct food systems can be traced to the early phase of the religions when there were limited followers and the need to protect them from food poisoning. With the advent of modern science, both Halal foods and Kosher foods have evolved keeping in view the safety of their followers. One advantage for a general consumer belonging to other faiths is that they can choose what they want from among the products in the market without following the diktats from respective religions while followers of the religions have to compulsorily take these products as part of life. The fact that established food industry players are entering Halal food sector reflects the inherent strength of these foods though market considerations do play a part in such investment decisions.

V.H.POTTY
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http://foodtechupdates.blogspot.com

HALAL MEAT TO ENTER THE "DRAGON"-MALAYSIA'S NEW INITIATIVE

Halal system has its origin in antiquity, evolved historically to protect the Muslim population from dangers inherent in unhygienic foods. Since there is lot of science behind it, many non-Muslim consumers are also adherents to this type of foods. It is some what amusing to think of Halal foods when it comes to China which is a totalitarian nation with hardly any freedom to do what its citizens think is right including religion. Against such a background, recent Malaysian initiative to break into Chines market with its Halal foods is timely and far sighted. The logic behind the move is reflected in the following report.

With an estimated 1.8bn Muslims around the globe (and growing), the market for supplying Muslim-friendly food products is expanding into the most far-flung reaches of the world. Malaysia – a Muslim majority country – wants to capitalise on this $560bn-a-year food industry by exploiting the growing appetite for halal in China. China's Islamic Association reckons there are more than 22m Muslims in the country – other estimates put the figure as high as 40m. The market for halal products is estimated at $1bn, and boasts an impressive growth rate of 10 per cent a year. Matrade, Malaysia's External Trade Corporation, wants to target the north-western province of Gansu – where 10 per cent of the 25m population is Muslim – as a market for its halal enterprises. "There are numerous opportunities in the Gansu province that can be taken advantage of", Matrade is quoted as saying in Bernama, Malaysia's national news agency, on Monday. "Due to the current lack of products from other Asean countries in these provinces, Malaysian halal products and services have the potential in creating an early market presence and lead". Translated as 'that which is lawful' for Muslims, the tag of halal is applicable to any number of categories, from cosmetics to clothing. But it is food and catering that offer the most lucrative area for international growth, with supermarkets, restaurants, and fast-food outlets jumping on the (halal) gravy train in non-Muslim majority countries. Halal meat is differentiated from non-halal based largely on the process of slaughter. Islamic regulations stipulate that the animal must be healthy, the butcher make a recitation to God, and the jugular vein, carotid artery and windpipe are cut in a single movement allowing for immediate death and the full draining of blood. In addition to tying up Malaysia's food producers with retailers in Gansu, Matrade is also looking to provide a certifying service for China's halal products. The logic behind providing halal goods to food retailers in areas with a large Muslim population is simple. Companies do not want to preclude their meat products being sold to some consumers based simply on a technicality. Indeed, the halal label is becoming increasingly ubiquitous in the Far-East. For the 3.8m Muslims in Singapore, all branches of McDonald's, Burger King, KFC, Pizza Hut and Taco Bell in the country are 100 per cent halal. Islam has a 1200 year history in China but most of its indigenous halal industries, which deal mainly in beef and mutton, are small-scale operations in areas such as Xinjiang, Henan and Guangdong where there is a large Muslim population. But China is waking up and smelling the halal in more ways than one. Not only is it looking to increase the provision of halal goods through imports, but China wants to develop its halal credentials to serve the demands of the wider Muslim world".

Malaysia deserves full credit for pioneering into business areas others may not recognize. Look at the Palm oil business where it, along with Indonesia, enjoy near monopoly for supply of this low cost edible oil to the world. The fight to achieve this enviable record has not been an easy one, especially in the face hostile response from western countries which did not want to create a viable competitor for their products like Canola, Soybean oil, Corn oil etc. Whether China will put any road block against smooth trade in Halal foods through policy restraints, is not certain at this point of time. Also there is a possibility that Chinese government, atheist in character, could set up its own Halal based food processing facilities in future to have a "control" on the intensely religious Muslim population which is not trusted fully.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

NEW FOOD LABELING CONTROVERSY-HURTING RELIGIOUS SENTIMENTS?

Front pack labeling seems to be an issue of perennial controversy. It is unfortunate that there is no unanimity amongst WTO member countries in evolving a globally acceptable format that could have facilitated world trade with minimum hassles. Unfortunately each country seems to be tinkering with its national regulatory formats which often do not make much sense. Latest instance is the on-going consideration in Europe for modifying the existing labeling regulations to insist on including a provision to declare Halal meats and Jewish meat products that "they are processed by killing the animal without stunning". The rationale behind such a move may be to satisfy animal activists who propagate elimination of cruel practices while handling the slaughter house bound animals. Here is a take on this latest avoidable controversy.

"Consumers could be told whether the meat they buy comes from animals that have not been stunned before slaughter, following a move in the European parliament. MEPs on the food safety committee voted on Tuesday to back amendments to a food labelling bill that would see the mandatory inclusion of labels stating "meat from slaughter without stunning" on relevant food products. The proposals, which go before the European parliament in July, target meat slaughtered using ritual techniques like those employed by Jewish shechita and Muslim halal butchers. Animals killed by the shechita technique are not stunned before having their throats cut and blood drained out. Halal meat is slaughtered using a similar technique, although research by the British Veterinary Association suggests 80% of halal meat is stunned before slaughter. Religious groups have expressed anger at the proposals. A Jewish campaign group, Shechita UK, controversially claimed the measure was the "21st-century equivalent of the yellow star, but on our food". "This amendment does nothing to improve animal welfare, fails to fully inform consumers and is clearly discriminatory by design," said Henry Grunwald, spokesman for the group".

Critics have a point in condemning this proposal as stunning is only one step that spares the agony of the victim. If one has the opportunity to see the documentary "Food Inc.", it is very clear that most of the meat industry majors have scant respect to animal welfare and no one seems to be bothered to discipline this powerful industry so that both ethical as well as food safety aspects receive the attention due to them. More over when the products are classified as Halal, every consumer knows that they are processed through religious diktats and the animals are slaughtered without stunning. The move smacks of religious discrimination by encouraging the consumers to shun Halal and Shechita meats.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

FOODS COOKED IN ALCOHOL-THE BAN REVISITED!

Serving food in a multi cuisine restaurant, especially in a country with cosmopolitan population can be nightmarish. Take for example India. There are many taboos and food habits that make the job of the Chef very difficult. Pork, onion, garlic, beef, cooking oil used, type of rice cooked etc can both attract as well as drive away customers depending on their food preferences. Same is true with foods served to different religious groups. While Muslims do not take Pork, Hindus detest beef. Similarly Halal and Kosher meats are essential for attracting some customers. Alcohol which is shunned by followers of Islam is used some times in cooking of some foods. Recently such foods being served in the Emirates have attracted the attention of regulatory agencies and guidelines have been issued when such foods are served.

"Khaled Sharif al Awadhi, director of Dubai municipality's food control department, said food containing alcohol could be served on condition it was segregated from other food and clearly labeled, The National reported. "We have found violations where hotels are not clearly stating alcohol content in their food," it quoted him as saying. Awadhi added that alcohol should be handled like other "non-halal products" such as pork".

The stipulation that alcohol comes under the non-halal food category may be a new approach that will insulate the followers of Islam from such undesirable items on the menu. It is a tribute to the progressive thinking of the rulers of Emirates that they do not blindly ban foods on one or the other consideration giving relative freedom to the multi faith community that contributes to the development of the region.

V.H.POTTY

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HALAL CERTIFICATION-THE NEW ZEALAND 'EXPERIENCE'

According to Islamic Religious Rules, all foods consumed by its members must conform to Halal standards which are universally respected. As many countries do not impose any restrictions if the products are certified as Halal by the industry, disputes have often arisen because of lack of credibility of its certifying arms. New Zealand, one of the top beef and dairy products exporters in the world had experienced serious problems regarding quality and has now brought the certifying organizations, New Zealand Islamic Meat Management (NZIMM) dealing with meat products and Federation of Islamic Association (FIA), managing dairy product exports under its direct overseeing control.

"The Government is stepping into an arena it has previously tried to stay clear of - the certification of New Zealand exports as "halal", or "clean" in terms of Islamic religious rules. New Zealand Food Safety Authority (NZFSA) has announced that organisations which certify halal meat for export will be subject to government oversight "to standardise halal certification and improve assurances to our trading partners". "While the proposed model focuses currently on meat exports, it could be extended to include dairy products in the future," said NZFSA market access director Tony Zohrab. NZFSA has added halal export certification for Indonesia, Malaysia and the Middle East to the list of additional assurances it provides to importing countries.Halal certification in New Zealand has not previously been directly regulated by government officials".

Probably the proposed ban by Indonesia on import of $ 100 million worth beef and $ 540 million worth dairy products from New Zealand in 2010, because of quality issues, must have spurred the action by the food safety authority in that country. More significantly New Zealand also has thrown open the field of certification to others for certification purpose, who must conform to the standards of performance stipulated.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com