Halal Logistics in Europe
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1 Halal Logistics in Europe
2 1. Understanding Halal Halal Standard in Islamic Law Halal and Haram Meat Halal Cosmetic and Pharmacy 2. Halal Market Potential Islamic Countries Global Islamic Economy Europe as Halal Market Europe as Halal Producers 3. Halal Logistics Definition and Principles Control Activities in Supply Chain Countries Implementing Halal Logistics Halal Certification Bodies Halal Logistics in Europe 4. Future Research Contents
3 1. Understanding Halal Halal Standard in Islamic Law Halal means permissible and is often referred to foods and beverages which are permitted for Muslims to eat and drink under Islamic law (Saheb, 2012). Halal also refers to other products such as pharmacy and cosmetics (Jaafar et. al., 2013). All halal products must be in good condition and be guaranteed for their cleanness, quality (nutrition), and safety (not contaminated by non-halal products) before they are consumed (Hadith, Muslim 1015) If halal means permissible, then haram means impermissible according to the guidelines given by Allah in the Qur an and explained by the Prophet Muhammad (Jaafar et. al., 2013).
4 1. Understanding Halal Halal and Haram Meat Saheb (2012) has summarized the principles of halal and haram meat referred to Fiqh (Islamic law) and extracted from Fiqh books. Dead animals, blood, and the flesh of swine (and all products made of pork) are clearly stated in the Qur an that they are haram to consume. Some particular animals are haram to consume based on specific explanation. Halal meat comes from permitted animals, produced and processed in halal ways.
5 1. Understanding Halal Halal Pharmacy and Cosmetics Awang et. al. (2012) explains that we can consider that cosmetic and pharmacy is Halal if: They don t contain parts or substances of non-halal animals like pigs, crocodiles, and dogs e.g. gelatine based on pork is haram. They must be handled with clean utensils, and are made with materials that are free from najis (e.g. alcohol) and not harmful to human. Product-handling that includes manufacturing, packaging, and distribution should also be referred to Islamic law
6 2. Halal Market potential Islamic Countries
7 2. Halal Market potential Global Islamic Economy
8 2. Halal Market potential Food importers and exporters
9 2. Halal Market potential Europe as a Market for halal products Muslim Population in Europe 16,00% 10% 14,00% Muslim Population Prediction in % 12,00% 6% 4% 2% 10,00% 8,00% 6,00% 4,00% 0% ,00% 0,00% France Germany Netherlands Russia UK In recent decades, the Muslim share of the population throughout Europe grew about 1 percentage point a decade. The growth of Muslim population in Europe will increase the demand for halal products. Source: Hacket (2015).
10 2. Halal Market potential Europe as Exporter of Halal Products Germany is one of Europe biggest meat producers including beef, pork, and poultry. The country also produces halal beef marketed in Germany and exported to other countries (german-meat.org) Source:
11 2. Halal Market potential Consumer confidence of French Muslims Source: Awang (2012).
12 2. Halal Market potential Consumer confidence of Dutch Muslims Source: Awang (2012).
13 3. Halal Logistics Definition Jaafar et. al. (2011) explain that halal logistics can be defined as logistic activities that cover procurement, handling, warehousing, transportation, and retailing aspects based on Sharia (Islamic law). Principles Segregation between halal and non-halal products in all logistics activities to avoid cross-contamination, to avoid mistakes, and to ensure consistency with Islamic law (Jaafar et. al., 2011).
14 3. Halal Logistics Halal Value Chain From farm to fork principle
15 3. Halal Logistics Warehouse The organization shall ensure that there is a physical segregation of Halal cargo from non-halal cargo throughout the warehouse processes The Halal products have a dedicated storage zone (floor storage) or racks, which are clearly separated by color and/or marking A dedicated cold room is available, or segregation from non-halal through physical barrier or container (insulated box) is required for the storage of Halal products in case of refrigerated storage.
16 3. Halal Logistics Transport The transport is cleaned before use according to existing hygiene standard and according to ritual cleansing in case of an earlier non-halal or unknown shipment No mixing of Halal goods with non-halal goods in case of bulk shipments and medium & severe najis in one container or transportation vehicle. There is no mixing of Halal goods with non-halal goods in one pallet and/or load carrier. Halal shipments are provided with a tertiary packaging in case of mixing of Halal and non-halal cargo in one container or transportation vehicle.
17 3. Halal Logistics Terminal The organization shall ensure that there is a physical segregation of Halal cargo from non Halal cargo throughout the Terminal processes.
18 3. Halal Logistics Countries implementing Halal Logistics Malaysia was the first country in the world to introduce halal logistics standards and halal certification for logistics operators (HKDC Research, 2014). Japan is currently seeking halal certification in Malaysia with the aim of building a worldwide halal food delivery business (HKTDC Research, 2012). In Europe, there are at least three countries providing halal logistics through their certified seaports in France, Netherlands, and Belgium (Transportweekly, 2012)
19 3. Halal Logistics Halal Logistics in Europe The Port of Rotterdam in the Netherlands has a halal dedicated storage facility in its attempt to be recognized as the key halal entry point for the European market since 2007 (Nadaraj, 2013). In 2012, Port of Marseille in France developed a halal regional distribution center in collaboration with Malaysia (Nadaraj, 2013). The Belgian port of Zeebrugge has become the first port in North-Western Europe certified to process halal food products since 2012 (Transportweekly, 2012). Liege Airport in Belgium aspires to become a halal logistics (Raths, 2011). Luxemburg Central Bank commits to support financing Islamic economy including logistics sector (Raths (2011)
20 3. Halal Logistics Future trends Halal logistics in Europe is growing since the last five years that is indicating potential business in this sector. Halal logistics gateway is still dominated by seaports by receiving halal certification. Airports will be the next potential gateways for halal logistics for specific market target. Providing logistics companies and airports with the understanding of the promising business from halal logistics.
21 Thank You
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