The study explored the halal food producer’s awareness, perception, religious beliefs and the market strategies government adopted to fortify the Pakistan halal food industry. Shariah compliance standards were also analyzed. The study found that Pakistani food producers and distributers perceived that most of Muslim consumers prefer halal food items, and a proper advertising and marketing strategy of Pakistan halal food could be a competitive advantage in this regard. Some policy actions are needed to be established as governance of Halal is unsystematic in Pakistan. This study will be of great significance to the policy makers, marketers and food manufacturers in Pakistan.
Background of Halal Food Standardisation
- As the National Standards Body, PSQCA is mandated to develop, implement and coordinate standardisation activities in Pakistan. It is primarily involved in standards implementation/promotion to raise the quality and global competitiveness of Pakistani products at the same time to protect the interest of consumers and businesses.
- The Trade Policy 2008-9 of Pakistan entrusted Most to devise and enforce Halal Standards and Certification mechanism for export of Halal food products.
Halal food industry is one of the fastest growing industry around the Muslim and non-Muslim countries. The growth in the Muslims consumer population makes halal food industry stands out; the religious beliefs fuel the acceptance of halal foods and developed this industry. The concept of halal food quickly absorbed in global food markets. Most of the Muslim state’s the consumption and producing of halal products complies by constitution. Pakistan does not adequately contributing in the progress of the halal food – industry, although the resources are abundant in Pakistan as compare with the other economically equivalent countries like Thailand and Malaysia that are promising halal centre in the constituency. Malaysian government has established an organization for halal certifications named Jabatan Kemajuan Islam Malaysia (JAKIM), all manufacturers are compelled to acquire halal certifications from JAKIM.
Pakistan’s private sector contribution in the development of the halal industry is noteworthy; in the tough situation of the economy their efforts are distinguished. Homeland is suffering from energy crisis, terrorism attacks and government revenues put burden on the commercial sectors. The lacks of modern technologies domestic producers face hurdles for international placement in halal supplies. The demand of red meat boosts gradually and Pakistan has potential to compete this demand but the international standards of meat export do not accomplish by the local meat producers. Third largest livestock country Pakistan has 19th position in the exporting meat.
Over the last few years, government of Pakistan took some serious steps for the growth and development of halal industry. The government had established agricultural and meat Market Company for halal meat processing set in the home land. Pakistan is enriching in the verities of cattle and world best classes of livestock are originated in the districts of all provinces of Pakistan. Pakistan livestock is world third largest emergent sector and growing approximately at the rate of 4% annually, all the cattle feeds are halal and the slaughtering method is purely on the word of Shariah law (halal). Nonetheless, a long journey is ahead, according to a consistent study human livestock ratio of Pakistan is 1.
In the last few years, halal food and goods market grow consistently and reached to the level of about $635 billion per annum. Halal food market is one of the largest consumer market in the world. This is 16.7% of the world food industry as a whole. Muslims as follower of divine religion are bound to intake only permissible foods, beverages and even medicine should contain halal components. That is why the Muslims from entire world boost up the demand for halal foods incredibly and assure their consumer power among the free market. Now the Muslims consume pull towards multinational companies’ attention and halal foodstuff confine prominent niche in Tesco, KFC, McDonalds, Nestle and liver brothers add halal goods in their product lines. These multinational companies lock in almost 90% market share of the halal goods.
The increase in the halal market speeds up after the extraction of oil and petroleum in Middle East countries that are Muslims majority countries and the lifestyle of their public have been revolutionized and the demand for halal goods and services accelerate. At present Gulf countries (Oman, UAE, Saudi Arabia, Kuwait, and Qatar), including Malaysia, Indonesia, China, and India are big contributors of halal market and declare it promising market of the future. Highly ranked non-Muslim countries like Russia, and European countries exceedingly honored halal foods due to the safety and moral values of the products approved by halal certifications and meet the international standards. The demand of halal food is greater than the supply globally; even though Asian markets European markets are big niche for halal foods market. The potential consumer of halal foods and goods are also observed in the Canada and America if the distributers fulfill the international standards.
Pakistan government took serious steps to enter into the prospective halal business through endorse halal certification, halal logo, and Shariah compliance of the production procedure, monitor by recognized bodies. Government officials tour the world in search of prospective markets for halal food industry and get familiarity of advancement in halal industries. All the agencies directly or indirectly associated with halal industry should coordinate each other for the evolution of national halal industry. Pakistan government has established team of renowned Shariah scholars who control and regulate Pakistan Halal Authority, also set standards in light of Shariah decree. The enthusiastic efforts are required to make Pakistan vision of “Promotion of Pakistan Halal Industry as Potential Halal Food Hub”. The vision of seize initially Pakistan to the world best halal meat supplier and then prospect the halal hub for entire commodities.
Consumer attitude towards selection of the product is thoroughly stimulated with the awareness of customer about the product. Simply how much consumer is informed regarding the product porn and corns. Halal food products are wide range of local and international brands that are processed under the keen super vision of the ethnic team, consumer decision of buying halal product manipulate through this way and to get their trust. Long term reminiscences about the product are objective knowledge while instant information and discernment of the product is subjective knowledge and people usually make decision of buying on their subjective explanations. Particularly demand halal goods and services is the objective knowledge of the consumers and which companies provide halal product is subjective knowledge.
Consumer perception and image build in peer group also impact on his buying decision and try to maintain their image through the purchase of certain products. Muslim is socially bound in to the circle which highly influences his attitude and lifestyle. To move beyond this circle may lead him to the phase of isolation. Halal consumption is the choice may be to associate him with his peers, friends and relatives any maltreatment in buying non halal food may exile him from society. Pakistani consumer awareness about the halal dietary based on the practice follows in their country. The consumers consider halal logo and certification and confidently purchase such products having halal tags. Extremely faithful Muslims of the Pakistan have slightest awareness of the halal products. They merely think of the food item they use for long time contain haram ingredients in the processing. Brand is more than number and symbol has capability to influence customers and build consumer perception and mind-set. Brand has strong imagination impact; communicate massage to consumer. Consumers’ acquaintance towards brand decides the worth of the product in the market.
Muslims are restricted to follow the teaching of Islam and spend their lives according to divine principles of Quran and Sunnah. The dietary sets are clearly mentioned in Islam. Muslims should obey and intake permissible things only. Muslim countries execute and pursue the divine rules of Islam to facilitate Muslims live and practice their verve as pure as philosophy of Islam instructed. To consume halal food and live pure life is religious obligation on all Muslims, they face difficulty while grocery in stores irrespective of live in Muslim country or non-Muslim country, because there are very few products have indications that they are permissible for Muslim consumers. To get the trust of the Muslim consumer Shariah compliant halal label is necessitated, halal label help in making choice of buying. Halal label has sound impact on the decision making of the Muslim consumers; customers trust on the decree behind these halal labels, a full Shariah compliant procedure work and take responsibility of the protection of their faith. That is why halal certification role become crucial for the trade among Muslims.
- Halal certification is a process by which a credible Islamic Organization and certification body certifies that a company’s products can be lawfully consumed by Muslims.
- Halal Certification provides an independent third party endorsement of food safety.
- We are certified by SGS-Pakistan & Binors Sharia Board Pakistan.
- Standard basis for certification in Halal Food Management System (PS 3733:2010)
Syed taimoor Hassan
Halal is becoming a universal sign for quality assurance and standard of living. The world market for halal goods and services is rising into influential energy pitch of the world commerce and finance. Halal products and Islamic financial services (IFS) have market share of one trillion USD annually. The aim of this study was to survey the potential and expectations of halal food producers, distributors and consultants anticipate in promoting Pakistan halal food industry as potential halal food hub.