Halal Industry

Addressing the critical gaps and opportunities in halal standards training


Photo: Bill Erickson / CC BY-NC 2.0

The global halal industry’s needs for professional training and qualified personnel remain woefully underserved and the demand for training increases substantially as the industry grows. What opportunities are there for new players to develop a halal professional qualification scheme?

YOUR PAIN POINTS ADDRESSED ASK YOURSELF

Scenario:

You are a food training institute seeking to establish a halal industry professional certification

How lucrative could a halal training proposition be?

How much is spent overall on food industry training, and who are the leading providers?
What is the need for dedicated halal training and how is this currently being addressed?
What are the gaps in halal training and how can these be addressed?

GLOBAL FOOD TRAINING INDUSTRY

The most prevalent form of training for the food industry are in food safety and food handling. Food safety management training includes developing an understanding of preventative actions for foodborne illnesses and best practices for food sanitation, while food handling training further explores food safety practices when preparing and serving food.

Among the largest global food training providers are Alchemy systems, NSD International and SAI global, according to research firm Campden BRI.

U.S.-based Alchemy Systems helps companies engage with frontline workforces to drive safety and productivity. The company has trained over 2 million frontline workers, with major clients including Cargill, Kellogg’s, Kraft, and Nestle.

U.S.-based NSF International oversees public health standards and certification programs that protect food, water, and consumer products. It provides education and training solutions for food safety and quality. The company acquired food safety provider Euro Consultants Group in February 2016, which facilitated its expansion into Europe.  

Australia-based SAI Global offers a licensed training center for food safety across the supply chain, and the company has worked closed with the Global Food Safety Initiative.  

FOOD TRAINING INDUSTRY VITAL STATS

$284 billion: Estimated spend globally on employee training in 2015, with the United States accounting for $71 billion (Source: Training Magazine. These figures are based on a review of Dun and Bradstreet’s business database, with the rest of the world extrapolated based on the U.S. contribution to global Gross Domestic Product.)

$28 billion: Training in the food and beverage industry globally, assuming spend in line with the food industry’s share of global 2015 GDP. (Source: Total F&B industry estimates are based on ICP 2011 data, extrapolated by year-on-year growth national estimates.)

HALAL TRAINING NEED AND LANDSCAPE

The global halal industry is a complex web: there is no single global standard and there is a lack of effective oversight of the more than 300 certification bodies globally. The lack of clarity within the ecosystem has inhibited market entry from leading mainstream food manufacturers.

However, the industry is an attractive, high-growth market and hence there is a significant demand among current and prospective players for robust training programs to navigate its complex rules.

GLOBAL HALAL MARKET VALUE

$800 billion: The halal food market was estimated at over $650 billion in 2010, according to Malaysia’s Halal Industry Development Corporation (HDC). Extrapolating this estimate by global food industry growth implies a halal market exceeding $800 billion in 2015.

To help industry players steer their way through the value chain are international standards that many countries follow and which are becoming more stringent.

The standards issued by Department of Standards Malaysia are a key global benchmark for the halal industry globally, and they are followed by around 73 certification bodies around the world.

Standards from two other organizations are also becoming global benchmarks: the Organisation of Islamic Cooperation’s (OIC) Standards and Metrology Institute for Islamic Countries (SMIIC) and the UAE’s Emirates Authority for Standardization and Metrology (ESMA) issued halal standards in 2011 and 2014, respectively.

To address the large-scale need for training, dedicated companies are beginning to emerge, supplementing the support that certification bodies provide as part of their halal certification process.

KEY HALAL TRAINING PROVIDERS

There are currently three major halal training providers: Halal Industry Development Corporation (HDC) in Malaysia, RAQAM Consultancy in Dubai, and International Halal Integrity Alliance (IHIA) Malaysia.

HDC was established by the government of Malaysia to promote and boost the halal industry in the region. It provides training based solely on Malaysia’s standards.

Malaysia-based IHIA provides certification support and training services, focused on airline catering companies globally. It is a private organization and similar to the HDC, it trains according to Malaysia’s standards.

RAQAM is based in Dubai, UAE, specializing in halal and regulatory consultancy and training. RAQAM covers training based on SMIIC (OIC), ESMA (UAE/GCC) and Malaysian standards. Its training is offered to industry players as well as students, government authorities, certification bodies, and accreditation bodies. 

GAPS AND OPPORTUNITIES

While the regulatory landscape for halal food is evolving, there are significant opportunities to develop large-scale, global training providers, especially in leading halal exporting markets. These  include Brazil, Australia, India and the United States, the four largest exporters of meat and live animals to OIC countries, according to UN Comtrade data.

When asked about the underserved need for professional halal training, Abdalhamid Evans of UK-based Imarat Consultants told Salaam Gateway, “The size of the gap became apparent when I saw that there were hundreds of organizations offering Islamic finance qualifications but hardly anything in halal food.”

There is ample opportunity for new players, as well as existing food industry educators across the professional and academic landscape, to address this opportunity. There are two core areas of focus:

Develop professional-level qualifications

There are leading multinational players involved in the halal food industry, including Nestle, which itself reported over $7 billion in annual revenues from halal food alone in 2015.

With over 5,000 companies certified by the Department of Islamic Advancement of Malaysia (JAKIM) alone, there is substantial opportunity to develop a credible professional certification program.

Discussing the opportunity, Evans said, “Where I think the opportunity lies – as the market expands – is that bigger players are going to want to hire qualified halal professionals. Right now there’s no way to do this – there is a whole range of opportunity from government, to executive, to smaller levels – covering entrepreneurs. There are a lot of interesting things in the realm of training.”

Develop dedicated university-level courses

Food education is an area that is gaining traction among students.

U.S.-based non-profit food thinktank FoodTank recently identified 22 programs globally that offer leading food education programs, including an undergraduate degree in Sustainable Agriculture and Food Systems from the University of California-Davis, an M.Sc. in Food Security from the University of Edinburgh, and a Certificate in Organic Farming from the Indira Gandhi University in New Delhi.

Dedicated halal food programs, or supplementing existing food programs with halal food courses, can also help prepare the next generation of food professionals.

Discussing the need for more halal technical food personnel, the CEO of UK-based independent certifier Halal Food Authority, Saqib Mohammed, commented during a session at the Muslim Lifestyle Show in London in April 2016, “One of the biggest challenges is finding suitably qualified technical personnel. We would prefer employees understand the specific Islamic requirements but finding Muslims who understand the space is a key challenge.”

SUGGESTED ROADMAP

Understand the needs of the industry: It’s clear that many needs are unaddressed – map these out and determine how a potential program would address it.

Benchmark against the top providers: Understand the roadmap and evolution of the leading training providers in the food industry.

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Education
Training
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Haroon Latif, supported by M. Tafseer Ansari, DinarStandard