As ‘halal’ as New Zealand: Evaluating Potency of Halal Food Sector

Istanbul, Turkey | April 22, 2008 by D-8 Secretariat

The only way to tap the multi-billion food market in Islamic countries is to establish a halal standard and the Turkish agriculture minister asks why Turkey shouldn’t do so when New Zealand has.

At a time when McDonalds produces halal chicken nuggets and New Zealand is the predominant supplier of red meat to Muslim countries, Turkey cannot afford to be left out of the multi-billion dollar industry, the agriculture minister said in an interview with Turkish business daily Referans. As part of the ongoing debate in Turkey about the introduction of Halal food, food permissible according to Islamic law, and its possible implications in society as a whole Mehdi Eker said the Agriculture Ministry intended to take the necessary measures once the decision to establish a Halal standard is reached.

“Halal food contains no substance banned by Islamic rules. Halal food needs to be prepared, processed and stored in areas that have none of these banned substances,” he said, noting that all meat in New Zealand, one of the largest meat exporters, is produced according to Halal regulations. Substances banned in Islam include pork and pork products and alcohol.

Eker said a minister in New Zealand told him that the reason why they abided by Islamic rules was because they exported to Islamic countries. He said the halal food issue, which has become very divisive in Turkey, is a commercial decision.

“New Zealand is a Christian country. It applies these rules and exports to all the Islamic countries. The same is done by Israel. If Turkey is to sell its foodstuff to Islamic countries and if the customers want it, why shouldn’t it introduce a standard,” he said.

Added burden on producers:

Food producers in Turkey voice political and financial concerns against implementing a halal standard. Turkish Food and Beverages Associations Federation President Şemdi Kopuz said firms may use the halal standard for products destined for export and could also use it in the local market. “Then we will see halal food as opposed to haram [forbidden by Islam] food. One needs to assess the dangers carefully,” he said.

Milk and Meat Producers Union (SETBİR) President Erdal Bahçıvan supported Kopuz, claiming the headscarf issue has been broadened to include food. “Halal certificate is not an urgent need. Those who need it get it from overseas anyway.”

A major meat producer Banvit’s General Manager Ömer Görener said he was not against halal certificate but saw it as an added burden on producers. “Those firms that want it can get something very similar from the Religious Affairs Directorate that states that no pork or pork derivative is used in the products. These products are marketed overseas, including to Arab countries. A new certificate system will mean added costs.”

Open to abuse:

While the Turkish Standards Institute (TSE) is preparing its own halal standard, there are others that want to enter the halal certificate market left empty in Turkey.

The TSE has been working on the standard for the last two years and is expected to introduce it next year. Meanwhile, Etika Consulting has become the Turkey representative of Australia-based Halal Certification Authority and wants to start issuing certificates in the first half of 2008.

The TSE’s President Kenan Malatyalı said the certificate issued by the Religious Affairs Directorate was not as authoritative as a halal certificate. He said they wanted to start issuing certificates early next year. “Turkey is late in this matter. One reason is the unpreparedness of all sides,” said Malatyalı.

Etika Consulting General Manager Orhan Erdemir said the halal certificate was very important for firms trying to enter Muslim markets. “We will issue such certificates only for foodstuff at first. Annual inspections will be conducted by experts coming from Halal Certification Authority Europe.”

Halal Standard

This standard is used mainly for food, but also for cosmetic and cleaning products. It is in place in most countries with an Islamic majority but also in China, Thailand, India, Europe, the United States and South Korea. Experts believe the Halal product market is worth $150 billion and will grow to $500 billion by 2010. There are more than 50 halal standards in around 20 countries. The market for Halal certificates alone is said to be worth $240 billion.

D-8 Organisation urges the memberstates to underline the importance of halal food market, at least initially within D-8 itself. The halal food sector is indeed a promising sector not only for moslem majority countries, but also non-moslem majority ones such as New Zealand, USA, and Canada. Along similar lines, D-8 Secretary General Dipo Alam reminded the wish of Malaysian Prime Minister Abdullah Badawi during the D-8 Summit in Bali, May 2006, who encourage memberstates to seek further opportunities in this bright sector.

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