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    Challenges Opportunities For Halal Palm Oil Products

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    AlEp MyEyez AlEp
    The document discusses challenges and opportunities for halal palm oil products. It outlines two main issues highlighted at the World Halal Forum: the emergence of a global halal accreditation body called the International Halal Integrity Alliance and the convergence of halal with Islamic finance. It also notes that while halal certification increases costs, certified halal products have opportunities in markets with large Muslim populations due to consumer preference and stringent quality controls. Overall, introducing halal certified palm oil globally could be an important growth area, especially in Muslim-majority regions, by leveraging halal hubs and alliances with certification organizations.

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    Challenges Opportunities For Halal Palm Oil Products

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    AlEp MyEyez AlEp
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    The document discusses challenges and opportunities for halal palm oil products. It outlines two main issues highlighted at the World Halal Forum: the emergence of a global halal accreditation body called the International Halal Integrity Alliance and the convergence of halal with Islamic finance. It also notes that while halal certification increases costs, certified halal products have opportunities in markets with large Muslim populations due to consumer preference and stringent quality controls. Overall, introducing halal certified palm oil globally could be an important growth area, especially in Muslim-majority regions, by leveraging halal hubs and alliances with certification organizations.

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    The document discusses challenges and opportunities for halal palm oil products. It outlines two main issues highlighted at the World Halal Forum: the emergence of a global halal accreditation body called the International Halal Integrity Alliance and the convergence of halal with Islamic finance. It also notes that while halal certification increases costs, certified halal products have opportunities in markets with large Muslim populations due to consumer preference and stringent quality controls. Overall, introducing halal certified palm oil globally could be an important growth area, especially in Muslim-majority regions, by leveraging halal hubs and alliances with certification organizations.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    64 views3 pages

    Challenges Opportunities For Halal Palm Oil Products

    Uploaded by

    AlEp MyEyez AlEp
    The document discusses challenges and opportunities for halal palm oil products. It outlines two main issues highlighted at the World Halal Forum: the emergence of a global halal accreditation body called the International Halal Integrity Alliance and the convergence of halal with Islamic finance. It also notes that while halal certification increases costs, certified halal products have opportunities in markets with large Muslim populations due to consumer preference and stringent quality controls. Overall, introducing halal certified palm oil globally could be an important growth area, especially in Muslim-majority regions, by leveraging halal hubs and alliances with certification organizations.

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    Challenges

    and Opportunities for


    Halal Palm Oil Products

    THE latest World Halal Forum (WHF) was held on April 4 and 5, 2011, at the Kuala Lumpur
    Convention Centre and themed The Power of Values in Global Markets. The main
    objective of WHF is to provide a focal point for the global Halal industry. Industry players
    can share their knowledge and expertise in the Halal industry with regards to its
    development, challenges and opportunities.

    Two main issues were highlighted during the recent WHF. The first was the emergence of a
    Halal accreditation infrastructure. As accreditation is imperative for the global
    harmonisation of the Halal assurance system and to attain a higher degree of recognition
    among certification bodies (CBs) around the world, a global body, the International Halal
    Integrity Alliance (IHI Alliance), has been formed. IHI Alliance will collabrate with CBs around
    the world. It has already managed to get several CBs into the team, including those from
    Bosnia, India, Italy, Germany, the Netherlands, Spain and the United Kingdom. The first
    stage of setting up Halal certification standards is now in the preliminary review process.

    IHI Alliance is also working together with the Islamic Chamber of Commerce and Industry
    (ICCI) to develop a comprehensive Global Halal Programme and come out with Halal
    guideline modules. Currently, they have published four modules, which are for Logistics,
    Food Services, Animal Welfare and Slaughtering & Processing. It is expected that another
    three modules will be published soon, covering Animal Feed, Laboratory Testing & Analysis
    and Cosmetics & Personal Care.

    The second issue highlighted during the forum was the convergence of the Halal sector with
    Islamic Finance. This is important as a Halal product must come from Halal sources and
    these include financial sources such as loans, Sukuk and other investment instruments. This
    will create another challenge to the sector in having adequate Halal financial resources and
    at the same time, create opportunities for the financial sector.

    In 2010, 46.2 million metric tonnes of palm oil were consumed worldwide, making up the
    largest share at 33.2% of the total edible oils and fats consumed globally. Of the total, 36.8

    million metric tonnes were produced by Malaysia and Indonesia. Much of the palm oil
    imported by a country undergoes further processing as food and non-food end products.
    Halal certification would then come from both parties; Malaysia as the exporter of the raw
    material and the importers as producers of the end products.

    Challenges
    The scope for Halal products is very wide. Halal certification does not cover the end
    products alone but includes raw materials, sources of finance, processing, environment and
    other elements that go into producing the end products. These procedures bring about
    more activities in the business and manufacturing processes and increase the cost of
    production. Once the end product is offered to the market, the price will have to be higher
    or the producer will suffer a loss in profit margins if the price is not maintained at a
    competitive range. The hope now is therefore on globally recognised Halal branding to add
    value to the product and therefore, preference from consumers.

    The recognition and reliability of the Halal logo printed on the product is another issue.
    Creating awareness and promotions are sorely needed, especially for imported products
    where the Halal certification body is not known to or recognised by local consumers.

    Opportunities
    Opportunities for Halal products are wide and numerous. Certified Halal products will
    certainly enjoy a competitive advantage in areas where Muslim population ishigh, and will
    be recognised as products of a higher quality because of the stringent quality controls
    imposed on production by the certification authorities.

    Such a situation can clearly be seen in markets where Islamic financial instruments, Halal
    hubs and markets for Halal food products are fast expanding. For the record, 2.1 million
    metric tonnes of Malaysian palm oil products were last year exported to the Middle East, a
    region where the population is predominantly Muslim and which is a booming market for
    Halal products.


    Conclusion
    Introducing Halal palm oil products to the world is potentially an important growth area.
    Even though the development of the International Halal Integrity Alliance initiative is still at
    an early stage, there are specific areas that palm oil products can take advantage of, for
    example by using the Halal Hub to Halal Hub procedure for the export of products. This
    could provide advantages over other vegetable oil products in terms of entering foreign
    markets and brand quality. The introduction of Halal palm oil products by working together
    with IHI Alliance and JAKIM (Malaysia) in countries with high Muslim populations needs be
    explored further.

    By:
    Mohamad Suhaili

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