ELEMENTS OF SUCCESSOF THE HALAL FOOD BUSINESS

Dr. Ahmad Al-AbsyHalal Transactions

Omaha, Nebraska, USA

INTRODUCTION

من الدنيا نصيبك تنسى وال االخره الدار الله اتاك فيما وابتغي“and seek with what God has bestowed upon you the here after,

but do not forget your share of this life”

فليتقنه عمال منكم عمل من“when one of you performs a work, he/she should perfect it”

رعيته عن مسوؤلن وكلكم راع كلكم“All of you are guardians and each one of you is responsible

for what he guards”

باالسباب االخذthe importance of using the right means for success,

Elements of Success:

1. Acceptable Species

الخنزير لحم و الدم و الميتة عليكم حرمت“Forbidden on you the dead carrion, flowing blood, and the

flesh of swine”

• Halal: must be derived from acceptable species of animals, plants and chemicals that are approved by Muslim scholars.

• Haram (or un-acceptable elements include): filth and impurity such as pigs, spilt blood and dead carrion; poisonous species such as snakes; and intoxicants such as alcohol and narcotics.

2. Lawful Acquisition

الربا حرم و البيع الله أحل و“God has made trade permissible, but forbidden usury”

• The funds and financing used to run the business: • purchasing, raising of animals, equipments, resources and paying for labor should be obtained and financed through Halal• No interest “Riba” should be involved in the Halal business. • “Money does not give birth to money but work does”. • Money invested in business should not come from sources such as gambling, etc. • Bribery, fraud, embezzlement and other unlawful means are Haram

3. Accounts Receivable

وتوكل اعقل“Tie your camel and have faith”

•Processors should make sure that they will get paid for the products they sell. •Checking the credit legibility of the buyers are key issues in

collecting the prices of goods. •Many small businesses close their doors and go bankrupt because of their inability to collect from customers. •Risk management approach within the company. •Some customers may avoid paying the processors for the products they purchase, which counteracts their

purpose of consuming Halal goods.

Out of Business

4. Accounts Payable

عرقه يجف ان قبل أجره االجير آتي

“pay the laborer their wages before their sweat dries up”.

• The owner of the business should be fair to the laborers and pay their wages on time.

• The owner should pay his/her dept, otherwise they will be using Haram money.

• Should not try to circumvent or cheat others, and should adhere to any signed agreement with others.

5. Market Accessاالقدام تزاحم عند الرزق اطلبوا

“seek your trade or sustenance at places with most crowded legs (most customers).”

• Knowledge of conducting business and seeking the right market (where Muslim consumers have a demand for the products), are essential to the survivor and competitiveness of the business.

• This will include big cities which have major Muslim populations.

• Reaching the market with proper means of transportation and distribution of goods are crucial in getting the products to the stores or homes of the consumers.

• Allying the business with a major distribution firms may solve the problem of reaching a fragmented market.

6. Fair Trade Practices

اجله الى كبيرا أو صغيرا تكتبوه ان تسئموا وال

“Do not disdain to reduce your contract in writing, for future period, whether it be small

or big”

يرحم لن الناس يرحم لم من

“Whoever does not have mercy on people God will not have mercy on him”.

• The prices of Halal food should not be inflated just because the food is Halal.

• The processor has the right to make reasonable profit without taking advantage of the customers needs.

• Muslims customers should not be punished because they strive to consume Halal food.

• Merchants should not hold merchandises in time of scarcity and wait for prices to go up to sell it to make outrageous profits.

• The authorities have a rule to play in securing the sources of goods for Muslim consumption (food security).

• Authorities should ensure fair market access to all people through fair competition and lawful means.

• Traders and certifiers of Halal products should not try to cheat Muslim consumers on the Halal issue.

In The Freezer

7. Quality Assurance

بالقسط والميزان الكيل أوفوا“Give just measure and weight, Don’t

withhold from the people the things that are their due”

منا فليس غش من“Who ever cheats (any one) he does not

belong to us (Muslims)”

Packaging and Labeling

• Processing of meat should be done in clean and sanitized areas following strict hygiene and safety standards.

• There should be assurance that the meat produced is clean and not contaminated with filth, impurities, toxic or poisonous ingredients.

• Recalls and law suits could arise if contaminated food cause illness to the consumers.

• The quantities and qualities of the delivered goods should be as stated in the contracts or advertisements.

• Purity, integrity and traceability should be the guidelines in product development and quality assurance systems.

• Health critical control points should be observed throughout the whole production and supply chains.

Where is the Health Inspection?

Refrigerated Truck

Open Transportation !?

8. Zakatul Maal

بها تزكيهم و تطهرهم صدقة اموالهم من خذ و

“Of their goods take alms, so that thou mightest purify and sanctify them”

• Paying the Zakat is an obligation (Farrd) on every tangible asset at the end of each calendar year,

• Zakat is 2.5% of the accumulated wealth. • Zakat and charity purify the money and property

and put blessing (barakah) in them.

9. Halal Standards.

لغير أهل وما الخنزير ولحم والدم الميتة عليكم حرم إنما , غفور الله فإن عاد وال باغ غير اضطر فمن به الله

رحيمHe has forbidden you dead meat, and blood, and the

flesh of swine, and any food over which the name of other than Allah has been invoked. But if one is

forced by necessity, without willful disobedience, nor transgressing due limits-then Allah is oft-

forgiving, most merciful”

وسطا امتا وجعلناكم“We made you a moderate nation”

• There is a need for developing a set of global Halal standards so Muslim communities can apply the standards in harmonious way.

• The standards should address the local needs and requirements of norms and necessities.

• Should not impose extreme measures beyond the basic Islamic requirements on producing and certifying the Halal food so as not to scare processors to abandon the Halal business.

• We should follow the Sunnah of moderation of the Prophet and follow the middle path without being too loose or un-necessarily too strict.

• The original norm in the Islamic Shariah is permissibility, unless there is a clear evidence of prohibition in the Quran and Sunna.

• Examples of Halal Standards…

WORLD HALAL COUNCIL

WORLD HALAL STANDARDS:

GUIDELINES FOR HALAL CERTIFICATION

November, 2007

10. Halalan Tayyiban

طيبا حالال رزقناكم مما وكلوا“ And eat from what we bestowed upon you Halal and

wholesome”

• Producers, Halal certifiers and Muslim consumers should strive to produce and seek to consume not just Halal but also Tayyib food: safe, healthy and wholesome.

• Conditions for Tayyib are not stipulated in the Sharia, so as not to inflict extra hardship on the producers and consumers.

• Even though Tayyib is not a necessity (Wajib) the same way as the method of slaughter is, however, Tayyib is highly favored (Mustahab) and abandoning the conditions of Tayyib is disliked (Makrouuh).

• Production of Halal food is an integrated process involving several interconnected stages from farm to fork: farming, processing, packaging and labeling, warehousing, transportation, delivery, and consumption.

• The “Halalness” of the end product depends on the integrity of each phase of the production chain.

• The Halal condition of the meat is satisfied by the proper slaughtering of the animal.

• For the meat to be also wholesome “Tayyib”, a whole set of other conditions should be observed, as shown in the following diagram:

Main Requirements for Halal SlaughterOf the Right Animal:

1.Tsmiah by a Muslim – well trained, sane Muslim saying the prayer of Bismillah Allahu Akbar2. Using a Sharp Instrument – such as a single edged and sharp knife3.Thorough Bleed Out – which results in maximum draining of blood out of the carcass

The Halal Box

Operating the Machine

No Hormones, Antibiotics FARM Animal Feed, Animal Handling FEED LOT

Offering Water HOLDING PINS Humane Treatment

Method of Stunning SLAUGHTERHOUSE Direction to Qibla (Mecca)

Humane Handling, Should Not See Other Animals Slaughtered

Health Inspection

Tasmiah by a Muslim KILL FLOOR Using a Sharp Knife Thorough Bleed Out

No Cutting/Scalding Before Death PROCESSING Clean Equipments

Approved Ingredients FURTHER PROCESSING Clean Equipments

Use of Approved Halal Raw Meats - No Mixing with Other Meats

Approved Material PACKAGING Clean Packages

Sealed Packages

Accurate & Complete Information LABELING Use of Halal Logo

Special Codes For Tracing

Proper Temp, Clean Place STORAGE No Mixing with other Meats

Clean Vehicles TRANSPORTATION Refrigerated

Product Integrity DISTRIBUTION Proper Handling

Read Instruction COOKING Safe Handling

DINING TABLE

تعالى قال

Qطيبا Qوكلوا مما رزقناكم حالال

“And Eat From What We Bestowed Upon You

Permissible and Wholesome”

Quran

Alabsy Model of Halal Tayyiban

� طيبا حالال

Summary

• In conducting any type of business, most particularly the Halal business, knowledge, honesty and integrity should be the guiding underlines. The guidelines should be based on good business practices in light of the main steam Islamic Shariah, which provides tools for success in all aspects of life, since Shariah is a way of life.

• Halal Standards should be based on informed Islamic Fiqh armed with sound science and market dynamics

• All parties involved in the chain process of Halal business: farmers, processors, Halal certifiers, traders and consumers should perform their jobs with knowledge and good intentions. The integrity of the end product depends on the integrity of each link in the food chain. All factors involved contribute to the success of the business and the satisfaction of the consumers.

• The rewards for producing Halal & Tayyib food and the pleasure of consuming it have multiple rewards: success in this world and plenty of rewards in the here after.

� طيبا � حالال