For the International Trade Centre (ITC), the halal food sector offers a new horizon /Content/About_ITC/Corporate_Documents/Impact-Stories-web(1).pdf

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Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, SwitzerlandPostal address: ITC Palais des Nations 1211 Geneva 10, Switzerland Telephone: +41-22 730 0111 Fax: +41-22 733 4439E-mail: itcreg@intracen.orgInternet: http://www.intracen.org The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. © International Trade Centre 2015

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iiABSTRACT FOR TRADE INFORMATION SERVICES ID= 43160 2015 SITC-0 FRO International Trade Centre (ITC) From niche to mainstream Œ Halal Goes Global Geneva: ITC, 2015. XIV, 58 pages. This publication provides a detailed overview of the global halal food and beverage market, including up-to-date trade data on the key sub-sectors of the halal marketplace. It assesses the trade potential in the halal food market by giving insights into its size, dynamics and drivers, its regional variations, the complex nature of its integrated value chain and the evolving regulatory frameworks; discusses the role of trade and investment promotion institutions to develop a national halal industry; highlights ITC™s role in assisting TISIs to build the necessary expertise in halal sectors, and collaboration between ITC and Islamic Development Bank (IDB) to enhance people™s livelihoods and reduce poverty through development and support of small-scale food-based industries and trading ventures enabling them to connect to global supply chains.Descriptors: Food Products, Beverages, Meat Products, Processed Food, Oils and Fats, Market Access, Market Research, Technical Cooperation. EnglishThe International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org) The designations employed do not imply the expression of any opinion on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Digital image(s) on the cover: © Shutterstock© International Trade Centre 2015 ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts may be freely reproduced, with due acknowledgement of the source. Permission should be requested for more extensive reproduction or translation.Doc. No. P259.E/DCP/OAS/15-X ISBN: 978-92-9137-429-8 United Nations Sales No. E.15.III.T.4

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iiiFOREWORD BY ITCAs the global landscape of trade continues to evolve, we are seeing not just new patterns of production and trade, but, as is the case with the global halal market, the appearance of what is effectively a new commercial paradigm.A global market based on the needs and preferences of the estimated 1.6 billion Muslims worldwide has emerged as a powerful commercial arena. This creates opportunities for enterprises, especially in developing markets to take advantage of this estimated US$ 1 trillion market of the halal food sector. This sector is increasingly attracting the attention of policymakers and the private sector as a sector with increasing growth potential. For the International Trade Centre (ITC), the halal food sector offers a new horizon of opportunity to build the capacity of small and medium-sized enterprises (SMEs) to diversify and gain a competitive edge in this area. Helping them to recognise, enter and move up the halal sector value chain and strengthen their trade and investment support institutions (TISIs) to be multipliers on the ground in providing trade and market intelligence, are all areas that ITC can and will be working toward. In particular, for SMEs in the less developed rural economies, the halal food market offers a great opportunity. With its emphasis on farm-to-fork compliance, there are many possibilities to link SMEs to the international and regional supply chains existing in the halal sector. SMEs play a critical role in all economies by fuelling growth, increasing the demand for labour and generally raising living standards. Supporting women-owned SMEs in particular can be a powerful tool to promote women™s economic in countries belonging to the Organisation of Islamic Cooperation (OIC), where 60% of the population are under the age of 30. Supporting SMEs to be vectors of growth will also be a clear response to the recently adopted United Nations Global Goals for Sustainable Development.ITC™s role as a provider of trade and market intelligence, with online tools that enable even the smallest business enterprise to have access to global trade data, can assist SMEs to link to supply chains and enhance their commercial presence in the halal food sector. While many market sectors are increasingly saturated and highly competitive, the evolving halal market offers a new range of opportunities with a different set of ground rules, giving agile and enterprising SMEs the chance to The halal sector has its own set of challenges. Varying interpretations of religious rulings, different standards and constantly evolving regulatory frameworks can easily become obstacles for newcomers to this market. ITC™s contribution to shedding light over some of these issues, including by capturing halal standards in the ITC Standards Map and providing support to many TISIs to enter the halal market, will help to bring solutions to some of these challenges.This new publication is a welcome addition to ITC™s portfolio of interventions. It provides an excellent introduction to those At the same time, it aims to increase the understanding of many of the complex issues that are particular to the sector, and in doing so, allows SMEs, policymakers and TISIs to have a comprehensive view of the market landscape.ITC™s commitment to working with stakeholders in the halal market is a natural extension of our existing goals and values, and our strong belief that trade can be an engine for sustainable growth and an incubator to create new jobs and better lives.Arancha GonzálezITC Executive Director

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ivFOREWORD BY IDBIn the name of God, the Most Merciful, the Most CompassionateAt the outset, I would like to congratulate the International Trade Centre (ITC) for its continued commitment to the goal of promoting ‚trade impact for good™, and especially for its focus on South-South trade, enhancing the competitiveness of SMEs by connecting to global supply chains, and its focus on helping women and youth to become successful entrepreneurs. These goals are fully in line with the vision and mission of the Islamic Development Bank (IDB). Some important priorities of the recently adopted United Nations Global Goals for Sustainable Development include: 1) No poverty, 2) Zero Hunger, and 3) Good Health Better synergy and strategic alliances at national, regional and international levels are key to coordinate resources needed, UN Global Goals. By focusing on the development of sustainable agriculture, small and medium food production enterprises, and connectivity to global supply chains, IDB is already making positive contributions towards the UN Global Goals.The development and expansion of the halal food markets around the world offer a clear opportunity, especially within the countries belonging to the Organisation of Islamic Cooperation (OIC). The halal food industry is currently valued at over US$ 1 trillion annually. Enhancing intra-OIC trade has always been a priority for IDB. The food sector opens up a new horizon of possibilities for increasing trade volume within OIC. Some OIC member countries, including GCC member states, are major food one hand major food importing countries, especially within the GCC region. While OIC membership includes some of the wealthiest countries in the world, many members are impoverished facing long-term crises stemming from unemployment and poverty including malnutrition. by addressing food security issues for some, and poverty and malnutrition issues for others. the common good, and to further strengthening the halal food sectors by the application of Sharia-compliant methods of To this end, IDB will continue to collaborate with ITC to move closer to achieving our shared goals. IDB has made a decision to double our development assistance activities from US$ 80 billion to US$ 150 billion over the next 15 years to support programmes and projects that further the UN Global Goals in our member countries.We look forward to a long and results-based collaboration with ITC. Dr. Ahmad Mohamed Ali Al Madani President of the Islamic Development Bank Group

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viCONTENTSFOREWORD BY ITC .iiiFOREWORD BY IDB ..ivACKNOWLEDGEMENTS vABBREVIATIONS .ixABOUT THIS REPORT ..xEXECUTIVE SUMMARY .xiCHAPTER 1: WHAT IS HALAL? 1HALAL ΠA NEW HORIZON OF OPPORTUNITY .2CHAPTER 2: THE HALAL SECTOR 5HOW LARGE IS THE HALAL MARKET? ..6WHAT ARE THE KEY REGIONS? ..6KEY COUNTRIES .7MEAT AND LIVE ANIMALS 7UNPROCESSED MEAT AND POULTR Y PRODUCTS ..7POULTR Y 7PROCESSED FOODS (MEAT, POULTR Y, SEAFOOD) .8NAT URALLY HALAL PRODUCTS ..9CHAPTER 3: DRIVERS OF HALAL FOOD AND BEVERAGE MARKETS 15CONSUMER AWARENESS 16ECONOMICS ..16TECHNOLOG Y 17SOCIETAL ..18SUPPLY-CHAIN INTEGRIT Y 18ECO-ETHICAL .18FOOD SECURITY .19POLITICAL .19LEGAL ..19CHAPTER 4: MARKET ACCESS AND REGULATOR Y FRAMEWORKS 23DEFINITIONS, GUIDELINES AND STANDARDS .24ISSUES FOR MANUFACTURERS AND EXPORTERS ..29ISSUES FOR CONSUMERS ..30ACCREDITATION ..30SANITAR Y AND PHYTOSANITAR Y MEASURES .31

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viiCHAPTER 5: THE HALAL FOOD VAL UE CHAIN ΠTHE FARM-TO-FORK CHALLENGE 35FARM AND LIVESTOC K REARING ..36STANDARDS AND CERTI FICATION 37SLAUGHTER .37PROCESSING AND MANUFACTURING ..37LABELLING 37MARKETING AND BRANDING 39LOGISTICS 39INGREDIENTS AND ADDITIVES .39WHOLESALE AND RETAIL .40CUSTOMER RELATIONS 40CHAPTER 6: TRADE AND INVESTMENT SUPPORT INSTITUTIONS 43TRADE PROMOTION .44INTEGRATED POLICYMAKING ..46TRAINING AND HUMAN RESOURCE DEVELO PMENT ..46NATIONAL BRANDING .46INVESTMENT OPPORTUNITIES .48CREATING CL USTERS AND HUBS ..48CHAPTER 7: ITC AND THE HALAL SECTOR 51LINKING SMES TO GLOBAL SUPPLY CHAINS ..52STRENGTHENING TRADE AND INVESTMENT SUPPORT INSTITUTIONS 52SUPPORTING REGIONAL ECONOMIC INTEGRATION .. 52 TRADE AND MARKET INTELLIGENCE . 53 HALAL MARKET OPPORTUNITIES . 53 HARMONIZING STANDARDS 54DEVELO PING INDUSTRY .. 54ENDNOTES 55ANNEX56

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ixABBREVIATIONS AIO Approved Islamic OrganizationsAMIC Australian Meat Industry CouncilANSI American National Standards InstituteAQIS Australian Quarantine Inspection ServiceASEAN Association of Southeast Asian NationsCEN European Committee for Standardization (Comité Européen de Normalisation) DAC Dubai Accreditation CentreDIEDC Dubai Islamic Economy Development CentreESMA Emirates Standards and Metrology AuthorityEU European UnionFAO Food and Agricultural Organization of the United Nations F&B Food and beverage GAC GCC Accreditation CentreGCC Gulf Cooperation CouncilGHP Good hygienic practicesGMP Good manufacturing practicesGSO Gulf Standards OrganizationHACCP Hazard and critical control pointsHDC Halal Industry Development CorporationIAF International Accreditation Forum IDB Islamic Development BankIBM Incoming Buying MissionISO International Organization for StandardizationITC International Trade Centre JAKIM Department of Islamic Development Malaysia (Jabatan Kemajuan Islam Malaysia) JAFZA Jebel Ali Free Zone LDC Lesser developed countryMATRADE Malaysia External Trade Development Corporation MENA Middle East and North AfricaMIHAS Malaysian International Halal ShowcaseMLA Meat and Livestock AustraliaMUI Indonesian Ulema Council (Majelis Ulama Indonesia) MUIS Islamic Religious Council of Singapore (Majlis Ugama Islam Singapura) OIC Organisation of Islamic CooperationSGD Sustainable Development GoalsSMEs Small and medium-sized enterprisesSMIIC Standards and Metrology Institute for Islamic Countries SPS Sanitary and phytosanitary measuresTBT Technical barriers to trade TISI Trade and investment support institutions TURKAC Turkish Accreditation Agency UKAS United Kingdom Accreditation ServiceHalal Lawful, permissible under the Islamic ShariahHaram Unlawful, prohibited under the Islamic ShariahTayyib Good, wholesome, pureUlema Religious scholar

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