The logistics world is waking up to the enormous potential of the halal industry

Filed in archive Market Overview on July 12, 2007

There are nearly two billion Muslims in the world, most of them prefer Halal type of meat to eat, and this has made them a nice market for logistics people to penetrate.

The international halal food industry was valued at US$570 billion during 2005. And with the total spend on logistics operations accounting for around 5-10% of total revenue, its not surprising that logistics companies all over the world are keen to grab a piece of this growing market.

However, it is fast discovering, the complexities of the halal supply chain extend much further than the usual concerns regarding unbroken cool chains and the efficient delivery of fresh food produce. To be at the top of the halal logistics game, players need to be well versed in the whole ethos in order to maintain what is known as the 'halal integrity' of a food product. With the legitimacy of some halal products coming under fire, the industry is now demanding more specialized halal compliant solutions for its supply chain process.

"The reality is that science has moved far ahead. It has become very simple to test whether some thing is halal or not," elaborates Nordin Abdullah, co-founder and executive director of KasehDia, and trustee for the International Halal Integrity Alliance (IHI Alliance). "This means that any contamination, however small, can be detected. Food manufacturers have too much riding on the integrity of their brands and, if halal is part of that, anything that brings that into question could be a very costly affair."

According to a report in Arabian Business, the halal industry implements a 'farm to table' operation, presenting opportunities for various players in the logistics industry to climb aboard the process including ports, shipping and freight forwarding, warehousing and handling facilities. Abdullah maintains that this area still needs great improvement.

Anyway, undoubtedly the halal logistics sector will be one of the fastest changing areas to watch out for in the region. With increasing awareness and demand amongst its growing customer base as to the logistical processes involved, it seems halal food producers will have to work harder to ensure that their supply chain participants meet halal requirements.