Implementing Traceability Systems in Halal Supply Chains

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Implementing Traceability Systems in Halal Supply Chains

A recent scandal in Turkey, where traces of pork were found in what were marketed as halal-certified products, has brought global attention to the importance of traceability in halal supply chains. This incident is not isolated. Similar cases across the world have demonstrated the need for robust systems that ensure halal integrity from production to the consumer. This week, we explore how businesses can implement traceability systems to safeguard halal compliance, build consumer trust, and prevent reputational damage.

1. Why Traceability is Critical for Halal Supply Chains

The recent Turkish scandal highlights the devastating impact of non-compliance with halal standards​. However, similar incidents have occurred in other regions, emphasising that no market is immune to such risks.

• Horsemeat Scandal in Europe (2013): The infamous case in Europe, where horsemeat was found in products labeled as beef, affected several halal products. While horsemeat is not haram, the mislabeling highlighted how improper traceability can lead to contamination risks and a breakdown in trust​.

• Malaysian Halal Controversies: In 2020, Malaysian authorities discovered that some "halal" meat products were falsely labeled. Non-halal meat (including pork) was being smuggled into the supply chain, damaging consumer confidence​.

• Indonesia Pork Adulteration Scandal (2001): A scandal emerged in Indonesia when porcine enzymes were found in the production of Halal-certified flavour enhancer. This led to widespread public outcry, further stressing the importance of reliable control measures in the halal supply chain.

These incidents underscore the necessity of implementing strong traceability systems, not just to avoid non-compliance but to maintain consumer trust and market integrity.

2. Components of a Strong Traceability System

To avoid similar contamination issues, businesses need a comprehensive traceability system:

• Ingredient Sourcing: Ensure that all ingredients, especially meat products, are sourced from certified halal suppliers and track them at every stage.

• Process Verification: Maintain a clear record of every step in the production process to ensure that halal standards are upheld, reducing the risk of accidental contamination.

• Supply Chain Monitoring: Use technology to track transportation, storage, and handling to ensure that halal products remain segregated from non-halal items.

3. Leveraging Technology for Halal Traceability

Several modern technologies can be employed to enhance traceability and prevent similar incidents:

• Blockchain Technology: Blockchain is revolutionising supply chain transparency by providing an immutable record of each step of the process. Businesses can use blockchain to verify halal certifications and ensure transparency from the source to the end consumer. One such company that offers this technology is OneAgrix.

• QR Codes and Digital Labels: Offering consumers the ability to scan products and see real-time details of their halal status, ingredients, and origins is a powerful way to build trust. Apps like ‘Zabihah’ offer consumers insights into halal-compliant products.

• IoT (Internet of Things) Devices: IoT devices can monitor real-time conditions during storage and transportation, ensuring halal products are maintained in compliant environments, thus preventing contamination during transit.

4. Benefits of a Traceability System

Implementing a traceability system provides significant advantages for halal businesses:

• Risk Mitigation: Businesses can quickly identify and address any potential issues before they reach the consumer.

• Consumer Trust: Consumers are more likely to trust brands that offer transparency about their product’s journey, which is especially important for halal-conscious buyers.

• Streamlined Audits: A solid traceability system simplifies the audit process, ensuring that you remain compliant with halal certification standards.

Key Takeaways

The recent scandal in Turkey, along with similar incidents worldwide, underscores the importance of strong traceability systems in halal supply chains. By implementing robust systems using blockchain, QR codes, and real-time monitoring, halal businesses can ensure product integrity, maintain halal compliance, and build lasting consumer trust.

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Industry News

1. Policy & Compliance

• Malaysia should strengthen halal medical device certification for global recognition (TheSun, 17 Oct 2024)

• Indonesia to check grocery shelves as deadline for halal labels nears (Reuters, 16 Oct 2024)

• Selangor has highest number of active halal certificate holders in Malaysia (TheSun, 16 Oct 2024)

• Halal certification application process set at 30 days after submission (New Straits Times, 15 Oct 2024)

2. Industry Development & Trade

• Thailand, where Buddhism reigns, challenges Malaysia for Asia’s halal crown (Al-Jazeera, 17 Oct 2024)

• SELHAC 2024: Powering global halal growth with innovation, certification and collaboration (MalaysiaKini, 16 Oct 2024)

• Russian ready to supply high-class halal products from Tatarstan to Malaysia (Bernama, 16 Oct 2024)

• Close cooperation in TVET, halal industry strengthens Malaysia-Philippine ties (Bernama, 16 Oct 2024)

• SME Bank unveils 5-year halal roadmap with RM2.41b funding (The New Straits Times, 16 Oct 2024)

• Fiji’s halal industry ready for transformation (FBC News, 13 Oct 2024)

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That’s it for this week!
Stay tuned, stay halal, and stay competitive!

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Best Regards,
The Halal Market Mastery Team