The logistics world is waking up to the enormous potential of the halal industry. Benefiting from a ready-made global customer group of nearly two billion Muslims, 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 specialised 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."

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.

"Developing nations, need to look at improving their supply chain and become more competitive in the global food market," he asserts. "What needs to happen is that all parties, including major ports and logistics companies, come together and be a part of the development of industry best practices to avoid confusion at a later stage."

With global standardisation in the certification process for halal products now including strict criteria throughout the supply chain process, some countries such as Malaysia, Singapore and even some western countries are stepping ahead of the Middle East when it comes to taking halal logistics very seriously.

Meat & Livestock Australia (MLA), for example, has launched a halal brand for Australian meat in the Middle East, in recognition of the increased sophistication of meat retailing throughout the Muslim world. This response has already brought impressive dividends. In 2006, Australia exported 43,071 tonnes of mutton, 17,685 tonnes of lamb and 3312 tonnes of beef to the Middle East, valued at US$242 million. "Australian meat exporters wishing to supply halal meat to Muslim countries must source meat from abattoirs operating under the Australian Government Muslim Slaughter (AGMS) programme, which is under the control and oversight of the Australian Quarantine and Inspection Service (AQIS)," explains Ian Ross, MLA's regional manager for the Middle East and Africa.

With such a stringent process supported by government regulation and supervised by independent Islamic organisations, all Australian halal meat products are identified with government secured stamps. Meat consigned to Muslim countries also bears an official certificate which is endorsed with an original authorised Islamic Organisation stamp.

The usual requirements of ensuring an adequate infrastructure to transport, store and market fresh produce such as cold chain management are also on the top of MLA's priorities for halal meat.

Related Reports:
Special report: Halal logistics - Part 1
Special report: Halal logistics - Part 2
Special report: Halal logistics - Part 3

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