The Reasons Of Harmonization Halal Food Trade Economics Essay

There are many grounds that showed the demands of harmonisation Halal nutrient criterion among ASEAN states. The criterion of acquiring halal certification in term of procedure, storage, logistic among ASEAN is differences. From the point of consumer, difference halal nutrient criterion cause the consumer become confuse toward the Halal merchandises they buy. The consumer can non easy differentiates and acknowledge the Halal and non-halal nutrient merchandises due to the Halal logo is non standardized between different association organic structures among ASEAN state. The job of different halal criterion between different state besides cause the consumers become less confident toward the quality of the Halal nutrient merchandise which they had bargain. Studies show that the consumers are watchful toward the information about the Halal nutrient and any information about the abuse, alteration and halal criterion can do the loss of confident of consumer and impact the buying determination ( Golnaz, 2008 ) . For case, latest issues occur in Malaysia intelligence whereby the manufacturer maintaining the halal nutrient merchandises together with non-halal nutrients was doing the negative impact such as gross revenues and trade in halal market.

Consumer ‘s demands are depend on their wont, picks, and life style. In ASEAN, there is high demand toward the halal nutrient merchandise but the merchandises which fulfill the demand of halal certification and criterion are limited due to the deficiency of substructure and natural stuff in less developed states. Although the assortment of halal nutrient can increase by importing halal nutrient merchandises but there ever has the job of trade barrier when come ining to neighbor state. For case, the cultural and faith construct of halal nutrient merchandise is strong in Muslim state such as Malaysia and Indonesia cause the demand of halal nutrient merchandises is really rigorous follow the Islamic criterion while in Singapore the requirement quality of halal nutrient merchandises are non so rigorous and strong. This might take to different halal criterion demand by different state and trade barrier can happen to forestall the export and import of the halal nutrient merchandises. Hence, harmonisation halal nutrient criterion among ASEAN state can use to carry through the consumer demand between the Muslim and non-Muslim state by produced a new criterion which can be accept by all the state in ASEAN.

In ASEAN, there is non yet holding one criterion which can be recognized and accepted by all ASEAN members. Halal markets are non similar everyplace in the universe. Now, the halal markets are fundamentally been fragmented into three parts such as ethnicity, location, income based on that peculiar state demand. Different geographical country and grade of the ethnicity may take to the differences in halal constructs accepted by Muslims in ASEAN. This consequence the halal certification guideline and demand have difference readings by different governments based on major issues from farm to postpone and ensue in the suppression of trade occurs. Difference enfranchisement, association or council organic structure can take to the dissensions over animate beings feed, butchering methods, packaging, logistics and other originating issues.

Besides that, the job of without the harmonisation halal nutrient criterion can do the deficiency of transparence among the association, council and governments among ASEAN state. The exchange of the latest information about the update of the halal nutrient criterion between the governments is difficult to been done if the nutrient industries are non alert on it can take to the rejection occur when the criterion does non run into the demand by the imported states. This could do the interventions of the trade occur whereby criterion between different state in ASEAN become a trade barrier to forestall the exchange halal merchandises and cut down economic growing toward the exported state every bit good as nutrient industries.

Problems ever occur without harmonisation halal nutrient criterion. Uncertainty, misconstruing and deficiency of experience of local nutrient industries toward the Halal nutrient criterion in those peculiar ASEAN states in term of method of readying, processing, storage, certification and quality confidences can increase the opportunities of rejection occur after the halal merchandises were checked by the authorization on that peculiar state and do the loss of net income. Furthermore, the halal position now has been extends and displacement to whole supply concatenation. Many manufacturers still do non understand the difference the term of logistic activities and non adequate services of halal compliant logistic to be used besides link to the rejection of halal nutrient when exported among ASEAN.

Besides that, manufacturers may be confuse whereby they does non cognize which Halal authorization to confer with to acquire their merchandises certified to the right market because different halal governments may followed different Islamic opinions in certain instances such as gelatin, nutrient flavorer, mechanical slaughter, stupefying of animate beings and besides phosphates. There is a deficiency of common acknowledgment and gulf between halal certifiers. Halal merchandises should be cosmopolitan merchandises whereby the quality, safety, packaging and labeling must be able been represented among ASEAN state. Hence, harmonisation of halal nutrient criterion is the demands by halal market in ASEAN state to bring forth a individual, globally recognized criterion.

Furthermore, without harmonisation, the halal nutrient market will be dominated merely by big company in future. This is because without harmonisation nutrient manufacturer demand to undergo many halal enfranchisement scrutiny processes to carry through the demand by different state and it may be a big sum to done all the enfranchisement. Hence, cut down the chance for little and average nutrient industries to market their merchandise international trade due to miss of substructure and new engineering equipment and do the little and average industries ever can non be good development. Large competition between the nutrient industries in local market might do the little and average industries been isolated and increase the spread difference between them. As a consequence, the limited halal nutrient merchandises are move to the international phase due to strong disconnected consequence which dominated by big company merely.

With increase the demand of Halal nutrient in ASEAN, the volume of export and import of halal nutrient passage between the states are turning which cause the halal market go more of import to increase the economic growing. However, without the harmonisation of the halal nutrient standard the authorities is difficult to command and do certain the hygiene, safe and quality of the import and export halal nutrient is meet the demand due to different halal criterion among the ASEAN state and lead to the maltreatment of abuse of halal nutrient criterion occur for those unethical governments or nutrient manufacturer. Due to cultural issue, authorities is less control toward the type of Halal criterion been used by different governments certificate. There are no jurisprudence to command, modulate and standardise the criterion been used by the governments. They have the pick to take which criterion they traveling to follow. However, harmonisation of halal nutrient criterion is produced by collect and derive all the understanding of governments so that it can be accepted in ASEAN. Hence, it can assist to installations the authorities control to avoid those unethical governments to make illegal concern.

The population is in a steady turning rate and more toward the urbanisation whereby the nutrient demand is increasing. At this phase, the developing state is in the state of affairs that economic interdependent whereby economic growing is of import to keep the exchange rate by import and export of the goods. However, jobs ever occur whereby the criterion becomes the trade barrier to forestall import of the goods in and out of the state. Economic growing been diminishing and market concern of the local halal manufacturers affected do them does non hold the ability to export big sum of halal nutrient merchandise to carry through the demand and outlook of local market. Harmonization halal nutrient criterion can increase the international trade and installations the import and export of the goods.

Last but non least, harmonisation is of import to heighten the cross-border motion of halal of merchandises, halal certification service and exchange of information among the governments ‘ people within ASEAN state. Without harmonisation, nutrient halal criterion like a criterion without planetary governments leading.

Golnaz, R. 2008. Consumers ‘ assurance in Halal labeled manufactured nutrient in Malaysia. PhD thesis, University Putra Malaysia.