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Generally, a regulatory framework comprises the following elements: Definitions, guidelines and standards Auditing and certification Accreditation A more coordinated approach led by international bodies such as the Standards and Metrology Institute for Islamic Countries (SMIIC) will benefit the sector by increasing transparency and cooperation among different national bodies. Another challenge is the proliferation of private halal labels including those that are self-declared. These private labels do not necessarily undergo proper checks and, in certain cases, contain false claims. This issue needs to be addressed by establishing strong institutions at the national level that provide full guidelines with clear audit and certification procedures. Increasing transparency and clarity in the regulatory framework is a key to gaining the confidence of all stakeholders and to give a boost to the growth of the halal sector.
SMEs in global halal value chains – the farm-to-fork challenge It is only in the past decade that the notion of the halal value chain has really been widely considered. The realization that the application of halal values and compliance criteria applied to all of the elements in a complex value chain has led to an increasingly sophisticated approach to halal in general. In contrast to the traditional view that halal was primarily related to slaughter methods, it is now widely accepted that halal integrity must be maintained throughout the entire supply chain. With the emergence of global trade, complex supply chains are now the norm rather than the exception. As a result, the issues of end-to-end halal integrity have become markedly important. Marketing, messaging and branding in the mainstream food sector in general have also become very sophisticated, adding to the challenges faced by stakeholders in the halal F&B sectors. The halal value chain is emerging as a challenging proposition, particularly for processed food items, and manufacturers and brand owners must consider every aspect of the product, from the farm to the table. Manufacturers who can demonstrate this level of commitment are seeing more success than those who simply consider halal as an afterthought or add-on to an existing product. This perspective of the halal market and the importance of maintaining the integrity of the entire value chain creates enormous opportunities for SMEs to be part of the sector. Be it in the areas of farming, processing and manufacturing or in providing support services, new areas of activity are opening fresh prospects. With some adaptation to existing processes and technology, SMEs are capable of addressing quality requirements and finding their place in the growing supply chains of these new markets.
Strong support systems – the role of institutions Given the continued expansion of the halal market, both in size and complexity, and with the crossover potential into the mainstream and other eco-ethical markets, there is a significant window of opportunity. TISIs can make a valuable contribution to the growth of their national economies by developing expertise within the halal market and using this to nurture SMEs and entrepreneurial startups, and even assisting major corporations looking for a pivot into the halal sector. Trade promotion organizations can play a significant role in building appropriate institutional capacity to develop a national halal industry. To truly succeed, TISIs must think and act outside their normal patterns of activity and take a more proactive approach to understand and engage with the halal marketplace. There are now enough examples in the wider marketplace to provide insights and fresh ideas for TISIs to apply to their own situations. International institutions have the potential to play an increasingly substantial role in the halal market. Naturally enough, much of the current impetus across all sub-sectors, including regulatory-framework development, is being driven by stakeholders with corporate, national or regional priorities. Consequently, there is space for an international body that can play a fully impartial and broad-based role with an inclusive approach for the benefit of all, especially the lesser developed economies.