Technical Aspects of the Halal Food System and Strategies for Obtaining Product Certification

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1 , Vol. 12, No. 4, pp , Dec Technical Aspects of the Halal Food System and Strategies for Obtaining Product Certification Ryoichi NAMIKAWA Faculty of Policy Study, Chukyo University, Yagoto-Honmachi 101-2, Showa-Ku, Nagoya , Japan The food markets of Islamic countries are becoming attractive because of their large populations and rapid economic growth. Food companies from non-islamic countries experience difficulties entering markets in Islamic countries due to the Halal system, which controls trade, distribution and production of nonstandard foods according to the religious principles. From careful observation of the Halal system, the author argues that the system is considerably technical, as it can be considered as an industrial standard that factory staff can easily observe. The author also shows that the best way for Japanese food companies to enter and develop these markets is to invest in establishing their factories in an Islamic country as a base from which export their products to other Islamic markets. The author believes that Japanese food companies with high levels of technology can cope with the system. Keywords: halal, food, Malaysia, Indonesia, Islamic market 1. [1] Fax : , r-namika@mecl.chukyuo-u.ac.jp [2]

2 , [3] , , [4] The Organization of Islamic Cooperation: OIC 57 5 OIC [5] US$ Table 1 10 GDP 10 1 GDP GDP/ UAE GDP/ 1,000 US$ 10,000 US$ Table 1 Economic date of main Islamic countries. Trade balance of Growth rate GDP/ Trade balance of agricultural (per year) of Population person petroleum products GDP/person Unit MillionUS$ US$ % Million Thousand Year Algeria Bahrain Brunei Egypt Indonesia Iran Jordan Kuwait Lebanon Malaysia Morocco Oman Qatar Saudi Arabia Syria Tunisia Turkey UAE Yemen 5, ,937 9,046 2,967 1,243 1,813 1,478 8,740 2,472 1,101 1,037 9, ,064 1,083 4,029 24,409 26,385 2,265 2,349 4,863 3,973 36,668 8,175 6,967 2,834 18,876 69,754 14,353 2,463 3,852 8,215 54,138 1, % 8.8% 6.5% 5.0% 12.0% 11.4% 8.8% 9.9% 6.0% 6.8% 7.3% 11.1% 12.7% 6.1% 8.3% 5.7% 8.0% 11.6% 9.6% , , , ,066 7, , Reference China Japan 27,075 43,769 3,769 39, % 1.4% 1, ,328 4,311 (Source) Food and Agriculture Organization of the United Nations (FAO), Japanese Organization for International Cooperation in Family Planning (JOICFP) and Petroleum Association of Japan. (Note) means minus.

3 139 Table 2 Export from Japan to main Islamic countries Export to Food All items Food/ all items Billion Yen Billion Yen Bahrain Brunei Kuwait Lebanon Malaysia Oman Qatar Saudi Arabia Turkey UAE , , (Source) Ministry of Finance, Trade Statistics of Japan (Note) Countries whose GDP/person 5,000 US $ Table 3 Japanese food companies that invested to Indonesia Japanese food company Year Business or products Ajinomoto 1969 Seasoning (Umami) 1987 Seasoning (Umami) for Export Ajinomoto and Calpis 1994 Lactic acid beverage Shikishima Baking 1995 Bread Nissin Food Holdings 1992 Instant noodle Fuji Oil 1996 Materials for sweets like chocolate Meiji 2002 Sweets Lotte 1994 Sweets (chewing gum, candy, biscuit etc.) Otsuka Pharmaceutical 1997 Beverage Morinaga Milk Industry 2007 Powdered milk for infants Yakult Honsha 1991 Lactic acid beverage. Kirin Kyowa Foods Company 2006 Nucleic acid type seasoning, food additive Suntory 2011 Beverage UCC Holdings 1995 Coffee Plantation Key Coffee 1976 Coffee Plantation Mitsui Norin 1987 Tea Planation MOS Food Services 2008 Fast food restaurant Yoshinoya 2010 Fast food restaurant GDP/ GDP/ 1,000 US$ 3,000 US$ GDP/ 3,000 US$ 10,000 US$ GDP/ 2,349 US$ %

4 Table , Table Halal Lawful Prohibited Haram Syubhah Standard of Malaysia Act 1996 Malaysian Standard (MS)1500: 2009 and 2004 Pensijilan Halal Malaysia

5 Derivatives

6 Jabatan Kemajuan Islam Malaysia: JAKIM JAKIM 2 JAKIM Fig. 1 Fig. 1 Malaysian Halal certificate mark The National Fatwa Council JAKIM 3

7 i OIC JIS MS1500 1

8 ii Halal Industry Development Corporation Thoyyiban wholesome MS1500 HACCP Hazard Analysis and Critical Control Point ISO CODEX

9 Nestle Nestle Fig Fig. 2 The halal mark on Ajinomoto produced in Malaysia 7. GDP 5% 2.5

10 146 1) R. Namikawa; Application of Halal system to chemicals (in Japanese), Kagaku Keizai, 57(11), (2010). 2) R. Namikawa; Halal system for food and food companies countermeasures (in Japanese), Agriculture and Horticulture, 84(8), (2009). 3) Bank of Japan, Statistic of Balance of Payment, (issued on May 25, 2010). 4) Ministry of Agriculture, Forest and Fishery, Export and import value of agricultural, forestry and fishery products (in Japanese), (issued on April 15, 2011). 5) Halal Industry Development Corporation, Halal market and its future (in Japanese), Halal Training Seminar, Japan Food Industry Center, 71 (2009). U R L i) (August 6, 2011) ii) (August 6,2011)

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