Halal Food Trade - Historical Role and Aspirations of FIANZ By Dr Hanif Quazi INTRODUCTION The New Zealand Government has recently issued a new framework for halal certification. Halal has become global mega trend and is gaining serious momentum with investors, suppliers, producers and retailers. Although far removed from the main centers of halal food markets New Zealand enjoys comparative advantage as halal food producer, processor, handler and supplier because countries in the Gulf and in the ASEAN regions entered halal food trade many years after the New Zealand-Iran halal contract was effected in October 1979. Halal standards were established for the Gulf Cooperative Council (GCC) in 2004 (USDA Foreign Agriculture Service 2004) and ASEAN in 2009 (National Standardization Agency of Indonesia 2009). Meat imported by Malaysia before 1984 was not halal (Strait Times Malaysia 1983). While these nations were groping for halal process the New Zealand Meat Industry and Traders had accumulated most valuable expertise in all aspects of halal dealings with the Muslim world for others to immolate (BBC News Service 6 April 2004). The signing of halal meat contract between Iran and New Zealand was a historical moment and a step in the right direction for the local Muslim community safeguarding a niche in the “Multicultural” society of New Zealand today (Clark 2006). The driving force behind the deal was the Federation of Islamic Associations of New Zealand (FIANZ) which had earlier held discussion with a representative of the Interim Administration in Tehran on the non-halal nature of meat imported during the Shah’s regime and the need for streamlining halal meat import from New Zealand. FIANZ had informed the New Zealand Government of the Iranian Government’s desire to negotiate halal meat trade and the impending visit of delegation for the same purpose in March 1979. The establishment of the most stringent halal system in New Zealand long before other nations was mainly due to the efforts and dedication of both Muslim and non-Muslim individuals who had started pleading for the export of halal processed food to the Gulf States way back in 1968 (Christchurch Star 1968). Although most voices were not strong enough to have been heard, there were others that could not be ignored. One such voice was that of an eminent journalist the Late Warren Berryman who wrote in National Business Review 19 December 1983 that “Insensitivities created Halal Meat Difficulties”. The Governments of Kuwait and UAE wanted FIANZ to certify food commodities consigned to the Gulf States which the Meat Producers Board opposed and New Zealand Government remained silent. In disregard to the request a shipload of meat was dispatch to Kuwait without FIANZ’s certification. The consignment was refused. The people here were irritated and a prompt action was called for. The Labour Party Government that had come to power after the November 1983 election complied. The Meat Producers Board and the Federation of Islamic Associations of New Zealand (FIANZ) with courtesy of the Kuwait Government were brought together and signed contract certifying halal meat for markets in Kuwait, UAE and Saudi Arabia. That the present government is paying attention to the finer details is in line with the expectation and demands of the current trend in International halal market because only those countries that will pay attention to details of quality, standards and marketing will be competitive. The Gulf Standards Authority is reported to establish centralized monitoring offices across the globe which could work alongside recognized Islamic Centers to conform to the halal protocols for all foodstuffs imported to GCC. FIANZ has since gained 26 years experience in halal certification for GCC member countries and should have no problem complying with the international trend and the New Zealand government’s initiative to be competitive in the global market presently led actively by Malaysia, Thailand, Brunei, Singapore, Turkey and the UAE. This paper traces the halal struggle by FIANZ between the year 1967 and 2010 with the objectives to share the lessons learnt and to highlight the challenges and opportunities. A way forward is discussed. HISTORICAL PERSPECTIVE Global halal food trade prior to the Islamic revolution in Iran (1979) was elusive. Halal slaughtering of animals was a personalized affair in New Zealand. Mr. Abass Ali worked with a freezing works at Masterton during the early 60s which supplied halal meat to a company in Fiji (Drury 2007).Individual Muslims had arrangements made with local abattoir and poultry farms for halal slaughtering of lambs and chicken for their home consumption. In May 1968 Mr. Yusuf Al-Shirawi, Minister of Finance and Deputy Prime Minister of Bahrain visited New Zealand and addressed a group of Christchurch traders. During the discussion he said, “You can trade anything with the Arab countries, ranging from a needle to a camel but remember our food habits are different”. He was referring to the food being ‘Halal”. The next day a front page article in ‘The Christchurch Star’ titled “Educate the Sellers and not the Buyers” based on interview with local Muslim students was published. The article advocated trading with Muslim world in halal meat, diary products, poultry and biscuits. This did not make much of an impact. The emergence of FIANZ and the Muslims as a well organized community during 1977-83 owes a lot to overseas students (Shepard 2006). They formed the bulk of Islamic Associations in the major towns, raised funds for building mosques and built momentum for the halal system in New Zealand. One such student was Masud Moinfer from Iran at Canterbury University. His father visited him in May 1978 who took keen interest in the nascent FIANZ activities. He was briefed among others things on FIANZ’s endeavors to persuade the NZ Government and the Meat Producers Board on halal food trade with Muslim countries including Iran. He endorsed the idea. In February 1979 when the revolutionary command took control of Tehran Mr. Moinfer was appointed as Minister of Petroleum in the Interim Government led by the eminent Scholar and Statesman Professor Buzargon. As was reported in the International press the interim administration ordered the non-halal meat in cold stores originated from New Zealand to be burnt and converted into fertilizers. Only halal meat import will be acceptable. The interim administration was sympathetic towards FIANZ, had invited its President to Tehran and had allowed FIANZ the custody of the two carpets that were gifted to the New Zealand Muslims by the Shah when he had visited here in 1974. Prior to the arrival of the Iranian delegation in New Zealand for halal negotiation, FIANZ was notified the impending visit which was conveyed to the Minister of Overseas Trade (Hon. Mr. Tallboy). The Minister called FIANZ’s delegation to Wellington to brief senior officials of the Ministry on the merit of Halal Meat Trade with Iran in March 1979. The Interim Administration in Tehran would have liked FIANZ to supervise the halal process but intense opposition from the Meat Producers Board and personal interest in the job of the delegation’s leader proved formidable. The delegation led by a clergy Hojjatul-Islam Sharief Mehdavi arrived in Wellington and after several visits to abattoirs across the country and extensive negotiations with the Meat Producers board and the Government officials concluded a deal in October 1979 for import of 200,000 tons halal lamb over a four year period. During the Shah’s regime the total trade between NZ and Iran was less than $20 million but having removed the non-halal bottleneck the meat trade rose to hundreds of million of dollars. This stance of support for halal trading was maintained by FIANZ right through. Mr. Mehdavi was stationed in Wellington for the four year period and supervised the halal process himself. Initially 21 slaughterers were brought in from Iran but subsequently Muslims from Fiji were brought in. FIANZ was kept out of the loop. In June 1980 during the RISEAP (Regional Islamic Dawah Council for South East Asia & the Pacific) inaugural meeting in Kuala Lumpur FIANZ lobbied with Islamic Foundation for Science & Technology of the Organization of Islamic Conference (IFSTAD/OIC), RISEAP and The Rabita Al-Alam Al-Islami, to help obtain recognition for certification of halal for Saudi Arabia. This involved some very important personalities including the Director General IFSTAD/OIC (Dr Ali Kettani), President RISEAP, and Secretary General Rabita Al-ALam Al-Islami, Makka Al-Mukarrama (Shaikh Mohammad Ali Al-Harakan). The efforts borne fruit and a letter of approval from the Rabita Al-Alam Al-Islami were received in September 1980 that was promptly communicated to the concerned authorities in Wellington. This however, was ignored for a considerable period of time. In 1982 the Director Kuwait Food Import Authority Mr. Hani Al-Mazedi intercepted some bogus certificates inscribed “Hilal” from a NZ consignment of frozen meat. The authorities became suspicious and referred the bogus certificates to FIANZ which were passed on to both the Ministry of Overseas Trade and the Meat Producers Board for information. This did not result in any action. The Minister of Auqaf, Government of Kuwait along with a seven member delegation visited NZ in May 1983. The Minister appraised himself about the situation and established rapport with Government, the Meat Producers Board and the Muslim community of New Zealand. The delegation was very thorough in the investigation and ardent arguments ensued between the visitors and The Late Abass Ali who had wide experience and intimate knowledge of what was going on in the halal meat trade. The presentation given by FIANZ Council about future aspiration of FIANZ impressed the visitors and FIANZ was approved as halal certifier for Kuwait. Meat exporters were notified in due course. The Meat Producers Board resisted FIANZ had tried to prop up a private concern instead. FIANZ was kept at bay. The controversy between FIANZ and the Meat Producers Board became public knowledge when the Late Warren Berryman wrote in the National Business Review “Insensitivities created Halal Meat Difficulties” on 19 December 1983. This alarmed everyone. Labour Party formed the government in November 1983 and the dynamic Mr. Mike Moore became the Minister for Overseas Trade in the ensuing government. At that time Dr Ashraf Choudhory was elected President FIANZ. I was the President Muslim Association Canterbury and was leading the Halal Food Committee of FIANZ. Both of us were called in by the Minister in January 1984 to apprise him of the situation. The global halal food trade was worth $31 billion of which the meat component was $8 billion (Food Insecurity of the Muslim World’ published jointly by FIANZ/IFSTAD/OIC from Wellington in 1983 and from Jeddah in 1985). The Government established a committee comprising representatives both from the Meat Producers Board and FIANZ which was chaired by a senior official of the Ministry of Overseas Trade. Several joint meetings were held but no substantive progress was made. In the meantime the Kuwait Government refused to accept meat imported from New Zealand without FIANZ certification and a shipload was stranded on the high sympathetic towards FIANZ’s stance. To break the deadlock the Ministry of Auqaf, Government of Kuwait invited the whole committee to Kuwait comprising 10 people representing the Meat Industry, NZ Government and FIANZ. Dr Choudhory accompanied by Mazhar Krasniqi and myself, led the FIANZ delegation. Negotiations were held first in Kuwait and then moved to Dubai and Abu Dhabi. The Meat Producers Boards had apprehensions about FIANZ being an Islamic Organization thus being difficult to work with and demanding unreasonable fee and so on. Since money making was not the objective it was agreed to be done on cost basis. A deal to this effect was subsequently reached which was first signed at the Ministry of Islamic Affairs, Abu Dhabi after which final approval was given in Kuwait on the first day of Ramadhan in June 1984. It is remarkable to see that the working relationship between FIANZ and the Meat Industry continued amicably for 26 years and are holding common views on halal as compared with others (Clark 2006) have successfully established an effective and efficient halal system. The New Zealand Islamic Meat Management (NZIMM), an independent, Wellington-based company run by Muhammad Abdel Al has been certifying halal since the late 1970s (Shepard, 2006). The identification and development of New Zealand’s Halal capabilities and export markets have been a cooperative process among New Zealand meat processors, FIANZ and NZIMM. As a corollary New Zealand has become the world largest exporter of halal-slaughtered sheep meat accruing millions of dollars. The role of Government departments per se was minimal. Since the halal agenda has spread in terms value, commodities, geography and politics, active participation of the New Zealand Government Departments is warranted. CURRENT GLOBAL SITUATION About two billion people in the world consume halal food for which the global trade value is estimated to be $547 billion in 2010. The dynamics of the phenomenal expansion are due to: • Growth in Muslim population • Rising income of people in the primary market • Increasing demand for safe, high quality food • Increasing demand for greater variety and • Incidence of food marketed as halal but failing to meet halal requirements has spurred demand for genuine halal products. The general focus has been on meat and dairy products but Halal certification extends to a wide range of food products and consumer goods. These include all Agri-food products, cosmetics, bottled water, and sauces, Tea and coffee and fruit juice. To capture this lucrative market various countries have adopted measures to boost their competitive edge in halal trading. For instance the Australian government in 2003 committed $100 million for five years to promote its halal business. During 1997 and 2002 the Australian halal trade increased by 70% to $4.7 billion both meat and diary products. The European Supermarket giants Carrefour and Auchan are aggressively pursuing the halal food retailing while in the meantime the port of Rotterdam is currently creating a “Halal distri ParK” to serve the 30 million Muslims in Europe. There are butchers and grocery stores in China. The GCC is pushing for a Halal Committee that will establish centralized monitoring offices across the globe which could work alongside recognized Islamic protocols for all food stuff imported into the region (WWW.HalalFocus January 2008). Halal certification has been a topical subject and a favorite theme for Halal Food forums held in Dubai, Tehran and Kuala Lumpur during 2008 and 2010. It is highly likely that the Halal criteria adopted by FIANZ will satisfy all the concerns expressed in theses forums however further clarification may be required on issued raised in these forums as given below; • Prohibition of stunning • Prohibition of mechanical slaughtering • Humane treatment of animals required before and during slaughter • Prohibition of cannibalistic feeding practices • Islamic financing required LESSONS LEARNT 1. Paradigm shift in halal scenarios: Sanctity of food is universally recognized and accepted. Countries and regional associations have adopted their specific standards for halal ritual. Cut throat competition in delivery of the process and the product is name of the game. Market forces are in the driving seat. The halal contracts between the Iranian and New Zealand governments (1979), and the Meat Producers Board and FIANZ (1984) had limited objectives not subject to critical global analyses. The present halal market is huge in terms of commodity cover and geographical spread and the monetary value. A verifiable Halal Certification System must therefore be established for seeking universal acceptability. 2. Correct lobbying both at home and abroad: The real breakthrough in halal participation for FIANZ came when the Government and national press supported FIANZ’s point of view which was dynamic and progressive. In light of the overwhelming demands posed by the global halal market extra efforts may be required. The religious credential and wider experience will go well with the government but competition with prospective certifiers is unavoidable for which FIANZ should be ready. 3. Reaching out to International Islamic Forums: Active participation in international forums especially those organized by IFSTAD/OIC, RISEAP and the Rabita had earned FIANZ respectability and recognition. FIANZ must reach out to its mentors who trusted it for halal certification in 1984 and equate its functioning to the changed scenarios. 4. Collective Leadership and Supportive Member Associations: All member associations had strong representation on the FIANZ Council and conduct of affairs in a transparent manner was hallmark of FIANZ functioning. Elections were held annually for representation in the local Associations and in the FIANZ Council. Accountability was swift. The democratic credentials of FIANZ must be maintained to continuously enjoy greater acceptability in the larger New Zealand society. 5. Pragmatic approach: FIANZ’s massage was broad based encompassing views of all school of thoughts in the Islamic polity. Affiliation with sects is positively alien to the FIANZ original constitution. 6. Concerns expressed by International Halal Food Forums: The points raised in the international forums are not the isolated problems of FIANZ. These concerned all involved in halal production, processing, handling, transporting, trading and certifying. These issues need to be satisfactorily replied to collectively therefore a way forward is proposed. CHALLENGES • Hostile international environment • Competitive Multicultural Polity at home Diversity of NZ Muslim Community: Mutual disagreements within Muslims organizations pertaining to issues of social and religious nature have emerged which could adversely affect Muslims solidarity and resources. • FIANZ’s capacity visa vie halal food market’s demands OPPORTUNITIES • Reorientation of FIANZ • Touching base with Patrons abroad • Expanding clientele at home • Working alongside New Zealand Government Departments • Reconciliation with competitive Muslim entities WAYFORWARD To help New Zealand retain its lead role in global halal trade is collective responsibility of the Government Departments, the Private Sector and the halal certifiers. The traditional partners in halal business are the Ministry of Overseas Trade, Meat Industry Association and FIANZ. The NZ Diary Industry and NZ Food Safety Authority (NZFSA) is new entrant but further expansion is highly likely because halal business has recently spread to other sectors including cosmetics, pharmaceutical, fashion designing and tourism. Interest free banking is already operating in GCC region and Malaysia for more than twenty years. New Zealand has talent in all these areas and it is an opportune time to search for entrepreneurs. Holding a day long seminar/workshop on halal business involving participants from both the traditional as well as the prospective partners including the Muslim competitors will be most appropriate. The objectives of the seminar shall be; to identify new partners, to exchange information about the present trend and opportunities in halal business and to develop a strategy for keeping New Zealand ahead in global halal trading. Malaysian Halal Industry Development Corporation (HDC) in its bit to make Malaysia a Regional and a Global Halal Hub organized a number of international conferences and expos including the one on halal cosmetics in April 2010. The Government of Brunei is holding a halal food conference and expos in the first week of June this year. Meat and Livestock Australia (MLA) with financial support from the government is also holding halal food conference and exhibition. If these examples are anything to go by the Meat Industry Association and the Ministry of Overseas Trade should provide leadership in halal business related forums in New Zealand. In the meantime FIANZ should do some housekeeping chores. The present facility of halal meat certification was conceived in 1984 to cater for halal slaughter of lamb and some beef cattle. With the paradigm shift in the global halal market the facility is grossly inadequate in terms of content and human resources and finance. The information tool that is the brochures, videos and the criteria for halal should be updated in line with current market requirements. The OIC, GCC and ASEAN have notified halal standards for the Muslim countries, the Gulf region and Southeast Asian nations. It is important that halal standards implemented by FIANZ are in consonance with standards accepted universally. FIANZ needs to take its patrons both abroad and at home into confidence. Saudi Arabia, Kuwait and the UAE for which FIANZ provides halal certification are most influential nations in the GCC. Any global halal monitoring system put in place by the Halal Committee of the GCC should hold FIANZ’s contribution in high esteem because of the pioneering role it has played for 30 years. The ASEAN nations are well represented in Wellington, their embassies should be kept regularly informed through mutual visits, meetings and publications. International Halal Trade Conferences and Exhibitions organized in these countries should be given due consideration. The electorate at home must be taken into confidence. An internal assessment of FIANZ’s present capacity and future aspiration in halal certification may prove an excellent starting point. REFERENCES BBC News Service 6 April 2004: Imported lamb gets halal approval; New Zealand’s method of halal slaughtering could satisfy both religious practices and welfare concerns in Britain). Clark, Ian (2006): New Zealand Journal of Asian Studies 8, 2 (December, 2006): 69-96.ESSENTIALISING ISLAM: Multiculturalism and Islamic Politics in New Zealand. Drury, Abullah (2007): Nelson Mail: Halal’s Place in New Zealand. Shepard, William (2006): New Zealand Journal of Asian Studies 8, 2 (December, 2006): 8-44. NEW ZEALAND’S MUSLIMS AND THEIR ORGANISATIONS
Posted on: Thu, 05 Jun 2014 19:06:19 +0000
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