Challenges in Implementation of Halal supply chain in meat industry

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ACKNOWLEDGEMENT
First of all with limitless gratitude, I would like to thank Almighty Allah for
providing me the strength and ability to complete this research. ‘Life isn’t a
solo-flight; it’s a joint venture and a teamwork’ is one of the beliefs that I’d
been espousing since childhood. I felt the ultimate need of this belief when I
decided to write down my thesis. The credit of pushing me to my ultimate
limits goes to my parents, motivator of all motivators, who would barge into
my room many times a day just to prod and remind me about the deadline. I
would also like to thank the entire interviewee’s for sharing their precious time
and in depth knowledge about the industry. My supervisor, Mr. Waqar Ahmed
contributed a lot in terms of designing, composing, proofreading and
improvising the manuscript. In the end, I would like to extend my gratitude
towards my valuable friends for their advice and encouragements.

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Table of Contents
ACKNOWLEDGEMENT......................................................................................i
ABSTRACT.......................................................................................................iv
Chapter # 1........................................................................................................... 5
1.0 Introduction.................................................................................................... 6
1.1 Background ................................................................................................ 6
1.2 Problem Statement ...................................................................................... 8
1.3 Research Objective...................................................................................... 9
1.4 Research Questions ..................................................................................... 9
1.6 Limitation of the Study .............................................................................. 10
2.0 Literature Review.......................................................................................... 13
2.1 Theoretical Background............................................................................. 13
2.2 Empirical Studies ...................................................................................... 15
Chapter # 3......................................................................................................... 29
3.0 Methodology ................................................................................................ 30
3.1 Research Approach.................................................................................... 30
3.2 Research Purpose...................................................................................... 30
3.3 Research Design........................................................................................ 30
3.4 Data Source .............................................................................................. 31
3.5 Target Population...................................................................................... 31
3.6 Sample Size .............................................................................................. 31
3.7 Data Collection Technique......................................................................... 31
3.8 Sampling Technique .................................................................................. 32
Chapter # 4......................................................................................................... 33
4.0 Data Analysis ............................................................................................... 34
4.1 Merger of Halal Compliance’s: .................................................................. 34
4.2 Curtailing Inspection Criteria ..................................................................... 35
4.3 Installation of Reefer Storage Facilities....................................................... 36
4.4 Hindrances in Traceability ......................................................................... 37

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4.5 Barriers in Implementing Full Quality Assurance ........................................ 38
4.6 Increasing Visibility through Information Exchange .................................... 39
4.7 Establish a Regulatory Body ...................................................................... 41
Chapter # 5......................................................................................................... 43
5.0 Conclusion ................................................................................................... 44
5.1 Recommendations..................................................................................... 45
5.2 Future Recommendations........................................................................... 47
Bibliography ...................................................................................................... 48
Appendices ........................................................................................................ 54
7.0 Appendix...................................................................................................... 55
7.1 Appendix “A” ........................................................................................... 55
7.2 Appendix “B” ........................................................................................... 59
Appendix “C”................................................................................................. 64
7.4 Appendix “D” ........................................................................................... 65

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ABSTRACT
In today’s highly competitive global business world, Halal has developed as a
major factor especially in food and safety measures with increase in Muslim
population around the globe. In a fast paced environment, where components
or ingredients are procured from a different country, manufactured in another
country and sold across the entire world, effective supply chains are needed
for a long run growth and stability. Halal industry is still in its primitive years
and efforts are required to chart its way in compliance with Islamic principles
desirable. This research is conducted with a fundamental objective of
identifying the challenges in Halal meat supply chain from a manufacturer’s
point of view. Interviews were conducted with 3 different meat provider’s
operating in Karachi region and variables discussed were halal guidelines,
halal logistics and financial hurdles in implementation of halal, traceability
issues and halal certifications impact on export market as well as local market.
The result of the research shows that more work needs to be done in
technological usage, establishing a regulatory body and installation of storage
facilities at export destination so as to maintain the meat product at a specified
ambient and temperature and a need to build an infrastructure is inevitable to
monitor operations and integrate information exchange in order to develop a
halal lucrative industry.
Keywords: Halal, Halal guidelines, Halal logistics, traceability and global
certifications.

Challengesin Implementation of Halal Supply Chain in Meat Industry:
A Case from Karachi
5
Chapter # 1

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1.0 Introduction
1.1 Background
In the recent years, there has been a dynamic change observed in the
world’s population towards Halal products which has enabled a significant
growth from both Muslim & Non-Muslim consumers. Not only from Muslim
countries, consumers are measured to be very vigilant in generating demand of
meat products, pharmaceutical & manufactured foods through impure
procedures in supply chains also having less density of Muslim populated
countries such as Europe and South America.1
In 2010, the Halal market had a significant impact having sharing 16%
of the total food trade in the world and these numbers are estimated to be
growing with more than USD 500 Billion per year because of increasing
popularity of Halal operations and products among the Non-Muslims. 2
As the globalization has taken place, consumers have become more
aware and more educated towards in their consumption especially Muslims.
The ambiguity is not only related to ingredients used in making but also the
operations being followed in respective supply chains to ensure the integrity of
the Halal product all the way to the end consumer.3
1 Norman et al (2008) , Golnaz et al (2010)
2 Adam (2006) , Sungkar (2010)
3 Alserhan (2008)

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The authenticity of Halal meat supply has raised serious questions
from its origin to end consumer because of the handling of food materials at
various places and from different sources from all over the world. The
ambiguity in various Muslim customers is also valid in relation to Halal meat
supply where New Zealand, Australia and Brazil are major meat exporters. In
question to it, comes the Halal integrity of food guarantees and the measures
taken so as to hold its integrity and purity through various procedures.
Correspondingly, non- Muslims are also moving towards halal
products in the international market. According to a study, it has been
emphasized that consumption of food among non-Muslims is driven by halal
which is recognized as a sign of hygiene, quality and safety.4 Moreover, the
major factor which is perceived by non-Muslims is that halal brands are
extensively fair in trade, ethical and honest business transactions5. Not to
mention, Halal market expansion has led to relegate inhumane animal
treatment which has attracted the non-Muslim consumers.6
This has developed a key interest in both academic as well as from
corporate point of view and measures are now been taken in Logistics sector
to ensure sterilization of product to the end consumer but limited literature is
found in Halal food supply chain management. Especially, published article
where most of the articles found are from Halal Journal and Malaysia where
4 Ambali & Bakar (2013)
5 Wilson & Liu (2010)
6 Aziz & Chok (2013)

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government has taken keen interest in establishing a regulatory authority
named JAKIM to ensure the quality according to Islamic rules.
1.2 Problem Statement
Many studies have been conducted to analyze the impact of halal
certifications and processes on traditional supply chain. It is evident from past
research that Muslims tend to have concerns over consumption of meat and
other food items without having halal certification and their supply chain
operation.7 The research concluded their findings about the essential
processes needs to be taken into account from farm to fork transportation and
highlighted the following effects; governmental support, increase intensity in
competition, social responsibility, contamination of products during
transportation and storage facilities and willingness to pay (WAP) in Muslim
consumer in search of Halal products8. This study has tried to analyze the
challenges of Halal meat supply chain in Pakistan as no preliminary research
has come across me while analyzing this sector. The significance of this study
is to give the organization an over-view of Halal processes which should be
considered before implementing it practically so that they can maintain and
establish a better relationship with their customers without facing
interruption’s as well as they can increase the visibility of their supply chain
according to guidelines provided by the Islamic Sharia.
7 Tieman (2012)
8 Kamaruddin (2012)

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1.3 Research Objective
The objective of this study is to outline the operations performed by
organization which contributes in minimizing the contamination of product
according to Halal guidelines with regard to Supply Chain Management.
 Guidelines and principles are essential for the Halal integrity of Halal
supply chain
 Halal logistics from a supply chain point of view
 To identify the hurdles arising in implementing Halal Supply Chain.
 To identify the impact of technology in traceability and tracking of
meat in Logistics.
 Impact of certifications & Halal compliances play when you deal in
B2B
1.4 Research Questions
This study has tried to find out the different operations performed
through Halal certifications by organization. A framework will be developed
and gaps will be analyzed which will make it easy to understand the variables
effecting Halal Supply Chain and what organization values most while
maintaining integrity of meat to the end consumer. Some of the variables are
listed below:

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1. Which guidelines and principles are essential for the Halal integrity of
Halal supply chain?
2. What is Halal from a logistics, supply chain point of view?
3. What are the financial hurdles in implementing Halal Supply Chain?
4. How technology can create an impact in traceability and tracking of
meat in Logistics?
5. How much impact certifications & Halal compliances play when you
deal in B2B?
1.5 Scope of the Study
This study is carried out to second the concept of Halal and in that
analyzing the Halal Supply Chain and its overall impact on procedures been
taken into account through certifications provided by authorities. In addition to
it, it also scrutinizes factors having major impact on traditional supply chain
with Halal operations. Importance is given to Meat providers operating in
Karachi and the way their resources are used in purifying meat. This study
also benefits the meat consumers – by having a sense of satisfaction on
product’s integrity, government – by establishing a central Halal council in
Pakistan and industry – by increasing their performance through technology.
1.6 Limitation of the Study
The limitation of this study is it’s only in food sector and analyzing the
meat providers in food only in Karachi region. Moreover, such findings can’t

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be generalized in different industries or varying by geographic boundaries.
The objectives can also be completely different depending on culture and
support provided by government and may also have different outcomes.

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Chapter # 2

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2.0 Literature Review
2.1 TheoreticalBackground
Halal is an Arabic word meaning “permitted”. According to Islamic law, its
most frequently used with refer to food permissible. The opposite of it is
known as Haram which means “unacceptable”.9 Both terms halal and haram
are used particularly to relate food products, cosmetics, ingredients used etc.
The basics of Halal and Haram are decided according to the Holy Quran and
Sharia.10
Halal logistics is defined as “the underlying obligation of transportation of
meat by separating non halal products from halal cargo in one fleet”. Such
measures are taken to avoid cross contamination from harmful as well as
impermissible items by the Shariah. This is to guarantee a logistics system as
per the belief of the Muslim’s regarding Halal meat integrity along the supply
chain. 11
As per the Sharia guidelines, the traceability is said to be halal when the status
of food particularly in meat industry can be monitored through every stage of
production from the point of origin to the point of consumption. The key
aspect of such technique is to analyze the activities free from unwanted
ingredients (fluids, chemicals etc.) that can endanger the safety of the halal
9 Kamali (2003)
10 Lada and Harvey (2008)
11 Jaafar et al (2011)

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meat. Critical control points can be managed through traceability in operations
as well as from the pre-purchase activities so that any suspicious product can
be dealt at the same time and information can be integrated through the whole
supply chain.12
As defined by various researchers, Halal certification is one aspect which
dictates that product is in line with the laws of Sharia and such approved
agencies fortify that the operations are in accordance with the standard
measures allowed by Sharia as well as health safety organizations. Halal logo
creates a sense of credibility in the mind of Muslim consumers. Moreover,
such regulatory bodies must be authorized by a reliable Islamic organization to
avoid any ambiguity by misleading logo and certifications.13
Halal standards are basically defined as the “every Halal meat producer needs
to comply in their own respective countries likewise internationally
recognized halal bodies for trading purposes”. In the absence of a Standard
regulatory body acceptable around the globe by all producers, it has become
more difficult to breach the geographical boundaries without a certain standard
procedure. In addition to it, Halal standards must not neither stringent nor too
indulgent so that any false Halal certifications as well as claiming the non
Halal product as Halal can be prevented.14
12 Norman, Nasir & Azmi (2008)
13 Abdul (2008), Riaz(2004)
14 Evan (2007)

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2.2 Empirical Studies
Iranmanesh et al (2015) explored the reasons that have leaded the
organizations to go for incorporating halal principles and perspectives in their
processes. For data gathering a survey was conducted based on questions
regarding foods and drinks that are said to be halal. Respondents were 137
SMEs involved in the production halal food products. By using the
quantitative techniques such as partial least square and structural equation
modeling for getting results. The study concluded that in order to maintain
trust their customers, firms’ needs to follow the requirements of values in
manufacture halal food products.
Talib et al (2015) argued about the barriers in adopting Halal logistics
operation in Malaysia. Exploratory research methodology is applied and to
gather the data interview technique is used. Interviews are taken from four
different logistic service provider firms responses were gathered on nine
questions developed accordingly. Resulting barriers that were highlighted by
the research are internal barriers, inter-firm barriers, firm-government barriers,
firm-authority barriers. In conclusion four causes were identified as the
existing precursor of barriers to Halal logistics, namely, scarcity of Halal
expert, resistant to adopt, no Halal logistics champion, transition complication.
Mohammad and Wang (2015) instigated research work on RFID and
its unique usage in identifying halal food items also how can the whole supply

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chain process be traceable by employing this technology. A mathematical
model naming “Halal meat supply chain” was developed in order to
understand the working of this technology. Into different categories the model
further broke down to have phase by phase analysis. Conclusion of the
research suggested that technology like this can be really beneficial for not
only the producers of meat but also consumers are highly motivated in
knowing clearly about what they’re consuming.
Ab Talib et al (2015) discovered the critical success factors of the
upcoming concept of the halal supply chain management. The factors that
have been identified by the researchers are government support,
transportation, information technology, human resource, halal certification and
halal traceability. This study only focuses on the factors of halal supply chain
management. It’s concluded that the above CSF’s are serious concerns in
implementing Halal supply chain. Any of the above highlighted being ignored
can suppress or break the integrity in consumer for searching halal products.
Poniman et al (2015) purpose of this paper is to explore the growing
importance and execution of traceability systems in the Australian Halal food
industry. For the methodology empirical qualitative approach was utilized to
inspect these issues deploying in-depth interviews. The study concluded that
the joint activity between the firms generates the effect of a network, where
the value generated is much more than that which the firms alone can create.

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Talib et al (2014) inquired the sensitivity of halal logistics in
accordance to the Malaysian environment by taking help of PEST analysis.
Since this is totally a new research paradigm in food supply chain explorative
approach has been applied so as get deep into the subject. For generating
results external factors evaluation also known as matrix methodology is used.
It is suggested by the research that more work should be done in this sector
like educating and developing a work force that have the complete knowledge
of halal logistics to have better chances in making Malaysia halal hub for the
world.
Zulfaqar et al (2014) develops a general framework for production,
handling, carrying, transportation and other related activities for halal food. A
qualitative approach has been applied in order to explain a number of factors
like halal integrity, certification, commitment, and trust for which past
researches are taken in to consideration on similar accounts. The research has
concluded that all the parties in the supply chain, downward and upward
channels, must take collective responsibilities in order to ensure the protection
of the Halal food products from being polluted or coming in contact of
harmful substances, whether deliberately or not on purpose. It is impossible
for any single channel member to oversee all of these activities.
Alqudsi (2014) questioned the level of demand and awareness among
consumers for the halal meat products. The study has taken into account the
consumer, cultural, and religious perspectives to define the criteria that what is

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actually halal. An online survey was conducted in Australia, Malaysia, and
Singapore, the questionnaire was based on the likert scale. For analysis
descriptive quantitative techniques were used. It has been recognized from this
study that there is a lot of potential demand for halal supply chain and
logistics. Many of the respondents are aware of the halal prerequisites and are
willing to pay a high price for halal meat products.
Ambali and Bakar (2014) investigated the responsiveness of both
Muslims and non-Muslim consumers towards food item and other products
that are said to be halal. For Muslims the factor of halal is of more importance
as well as quality, hygiene, safety whereas for non-Muslims everything is
important except halal. For data collection convenience sampling was used, a
survey was conducted from 210 Muslim respondents of mixed attributes like
working, unemployed, and students. Using PLS technique findings were
generated on three characteristics responses were gathered religious beliefs,
exposure, health reasons. The research concluded that increasing demand for
halal food items is the result of growing awareness in Muslims consumers on
several indicators mentioned above, which is why more importance should be
given to food regulations, halal logo, trustable halal certification bodies so as
to accommodate the emerging demand of Muslims and non-Muslims
consumers.
Ngah et al (2014) analyzed a model framework in order to develop a
better understanding of warehousing concept of supply chain in accordance

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with the sharia guidelines so that the concept can be named as halal
warehousing. The basis of the model was developed on five key variables such
as halal warehouse, complexity, awareness, top management’s attitude and
suppliers. The sample population for this research was on the organizational
level and more specifically managerial level positions; for responses a
questionnaire was formulated based on above mentioned variables and was
distributed among 200 personnel out of which 140 responses was of usable
form. By using structural equation modelling technique findings of the study
were generated. Many findings of the research contradicted previous research
findings. In the end, conclusion of the study gave a new direction in early and
higher involvement of supplier in warehousing which will ultimately create
satisfaction among halal meat producers and their customer as well.
Shahijan et al (2014) investigated into the behavioral aspects and
practices of retailers in the context of handling of halal meat. For the research
purpose several variables were taken into consideration which encompassed
all the characteristics from the retail side. Collection of the data sample was
carried out on the basis of questionnaire a total 178 questionnaires were
returned to be helpful in generating the results. Analysis was carried out by
partial least square method. It was found out that the performance of retailers
is very much dependent upon variables like behavior, belief, attitude, and
norms of retailers. In conclusion its was emphasized that in order to increase
the value added features and effectiveness halal meat retailers and their

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suppliers should consider and implement more halal practices on as much
stages as possible.
Awan et al (2014) highlighted the factors and their effect on the
intention of purchase by the customers for halal food products. Several
variables like attitude, religion, certification, behavior, and norms were used
by the research to develop the survey instrument. In total 300 responses were
gathered from 4 different cities of Pakistan. With the help of confirmatory
analysis the research identified the especially in Pakistan customers are more
inclined towards the general society perception or word of mouth about Halal
products and very little importance is given to the religious aspects of the
products intended to be halal. In the end it has been concluded that although
their not much awareness in consumers of halal when making purchase
decisions it is the utmost responsibility of the marketers to create campaigns
that can consumers more knowledgeable and wise in their purchase decisions.
Mohammad Syazwan (2013) investigated essential components in
Halal Logistics through series of focus group interviews. The results have
been compiled into 5 barriers for Logistics service providers in the Malaysian
industry. Variables probed in this research are issues in implementing halal
logistics, integration issues within halal logistics providers, lack of
coordination between Halal authorities and service providers, financial
hindrances in Halal logistics, governmental support & promotions in halal

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logistics are the critical factors in implementing halal logistics management
from farm to fork.
Tieman et al (2013) put forward the perception of Muslim consumers
regarding the halal meat logistics. A number of variables are taken into
consideration for this research like transport, level of segregation for halal
meat in supermarket, storage and terminals; the willingness to pay for halal
logistics; and responsibility of halal logistics. For the collection of data sample
questionnaire was developed and distributed to 451 Muslims in both Malaysia
and Netherlands so as to analyze the behavior of Muslims living in different
parts of the world. The results generated by using descriptive analysis
proposed that Muslim consumers regardless of their geographical locations are
very much concerned about what they are consuming is either halal or not as
well as other deciding factors already mentioned above.
Manzouri et al (2013) interrogated about the practices concerning the
lean supply chain and what barriers firms face in this regard. A questionnaire
was developed to gather the data and was distributed among 300 halal food
firms. For data analysis only 61 responses were in the usable form. By using
correlation results were produced. It was observed that many of the firms
around 70 percent are still unable to fully implement the practices and
concepts of lean supply chain. Moreover it was seen with importance that
firms don need to hurry up in their implementation of lean supply chain in

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order the maintain halal integrity of their food products as well as take the
maximum benefits of going lean supply chain.
Borzooei and Asgari (2013) conducted a research exploratory in nature
and aiming to identify pre-requisites and resources needed to develop a global
hub for halal supply chain operations. This study gathered responses by
developing a semi structured interview questions which were carried out from
3 professionals and industry experts. For analysis of the interviews constant
comparative method was used. The results of this study highlighted key
factors of human capital, R&D, marketing strategy and infrastructure essential
for a country to promote its halal industry.
Du Plessis and Du Rand (2012) interrogated about behavioral aspect of
consumers for taking purchase decision when comes to buying a particular
meat type or food product. This research paper identified key factors that are
decision making, traceability, quality, safety, and origin. For sampling of data
questionnaire was used that was circulated through the email to the audiences.
The research has concluded that while during a purchase of any specific food
item in this case is meat consumers have shown interest in knowing the origin
of food item and its very helpful if they have the idea regarding safety process
form which the meat is coming through.
Yahaya et al (2012) carried out a research paper for developing a
modeling framework for the halal products to be recognized by smartphone
application. The study is based more on contextual analysis rather than using

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traditional research techniques. So, in conclusion the research focused on the
need of having an application that not only clearly differentiates between halal
and non-halal items also can satisfy consumers for their search of best quality.
Tieman et al (2012) investigates the design of halal supply chain with
respect to halal food supply chain. The data has been collected in the form of
discussion group and focus group. Malaysia, the Netherlands and China are
taken to identify the control and assurance activities of logistic business
process. This logistic business process includes transportation, warehousing
and terminal operation. The findings show that product attributes and market
requirement decide the vulnerability of halal supply chain. The results
conclude that the halal supply chain is different from conventional supply
chain. It required halal policy and specific parameter for the complete supply
chain process.
Talib and Johan (2012) scrutinized the processes and functions
involved when delivering products with halal packaging and what challenges
are faced in doing so. A pure literature review based study was conducted the
highlighted a number reasons and concept that are necessary in producing
halal packaged products. The issues came across by Halal packaging are in
terms of Halal packaging traceability, Halal distribution and storage, product
handling, and Halal certification on packaging. Since this study is theoretical,
additional research should be carried out in order to discover more issues
relevant to Halal packaging.

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Kamaruddin et al (2012) investigated the essentials of providing
logistical services which are said to be halal and how people react to them in a
way such willingness to pay. The research paper focuses on five key points in
order to generate the findings that are halal logistics, demand, willingness to
pay, costs, transportation cost, logistic administration costs. For collection of
data a questionnaire was made using likert scale and a sample of 221
respondents was collected. The research paper concluded that it’s very much
necessary to understand the consumers (WTP) as well as demand patterns in
order to refine the processes and develop more efficient services to offer.
Tieman (2011) the paper intends to portray the essential prerequisites
of Halal sustenance and supply to guarantee the respectability of Halal
nourishment at the purpose of consumption, which is a commitment for
Muslims. This exploratory research paper has deployed comprehensive
interviews to better comprehend what is Halal, the Islamic sources that are key
for Halal supply chains, and recognize the rules and standards which are vital
for the respectability of Halal supply chains. Halal production network
administration is in light of staying away from direct contact with Haram,
tending to the danger of spoiling and guaranteeing that it is in accordance with
the impression of the Muslim.
Jaffar et al (2011) explores the innovativeness and creativity in halal
logistics providers due to enhance in Muslim consumers in the world and also
of the fact that Non-Muslim consumers also compliance the halal products. A

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Qualitative research comprising of two leading logistics providers in Malaysia
was conducted with variables such as ISO certifications for hygiene and
cleaning factors, consolidation of materials at freight’s terminal through halal
standards, halal warehousing and halal reverse logistics was taken into
consideration. The results pointed out a significant presence for halal
commodities in consumer and they have concluded that a fully dedicated
logistics service can upscale the demands of market but its tracking and
traceability is very difficult because they can only provide guarantees until the
product is not transferred from their custody.
Marzuki et al (2011) aimed to assess the restaurants that said to be
halal and certification that they carry with them. In order to take a more in-
depth view of halal restaurants the interviews were taken from the managers of
respective restaurants, before that restaurants were segregated into three
groups namely halal certified, halal claimed, and non halal. A total of 33
interviews were conducted from these restaurants. During the collection of the
sample a number of variable or factors appeared to be more relevant and
important for meeting the halal criteria like knowledge of halal in the staff
members, halal practices, types and authenticity of certifications, moreover
perception of customers was also taken into account about that particular
restaurant. In conclusion it is implied that managers have high expectation
with regard to halal certifications for increasing and establishing awareness in
mind of Muslims and non-Muslim consumers.

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Wilson and Liu (2010) examined various factors playing an important
role in decision making of Muslim consumers for purchasing and consumption
of halal food products. This research is based on the systematic analysis of
literature and personal observations on variables like halal brands and
marketing programs. The findings of this research suggested that variable of
halal must be defined in more detail and consumer perceptions should be
addressed in the marketing campaigns.
Norman et al (2009) investigated the phenomenon of customer
willingness to believe RFID ensuring products halal status. A conceptual
framework has been developed by taking previous researches into
consideration and a questionnaire was developed consisting of 11 questions
based on 1 to 5 likert scale. Almost 92% of the answerers showed positivity in
this regard of using RFID devices for making sure those products are halal. It
is highly recommended by this research that steps should be taken in making
this technology of RFID at the disposal of industrial sector as well as making
consumer buying decisions for halal products convenient.
Lada et al (2009) investigated the phenomenon of growing importance
of halal products and on what basis those products are selected by the
customers. For data collection a structured questionnaire was used to draw out
responses from consumers applying a convenience sampling technique. In
total 485 responses were collected. Theory of reasoned action was also used to
observe the halal product usage among consumers in Malaysia. The research

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findings concluded that the sellers have to ensure that when manufacturing
and encouraging sales of halal related products, at the same time attempt to
add in the element of thoughts and emotions in their marketing operations.
Bonne and Verbeke (2009) focused on the public trust level of
Muslims living in Belgium for sources of halal meat and their assurance in key
indicators and institutions for monitoring and controlling the halal meat chain.
Data collection was carried out as from four different types of consumer with
the help of a survey with 367 Muslims. Research findings disclosed that
Islamic certification bodies and especially the Islamic butcher receive in
general believes to be more important for scrutinizing the halal status of meat,
and for exchange of halal meat. The research concluded the indifferent
consumers are undecided about who should monitor the halal status of meat.
Concerned Muslim consumers displayed higher belief in Belgian than in
Islamic institutions. Confident consumers affirm a clear first choice for
Islamic bodies to supervise the halal processes.
Lam and Alhashmi (2008) examined the planning of halal food supply
chain and certification systems. A model was constructed utilizing different
features of halal supply chain like pseudo-synchronous interactions among
different indicators, complex interaction (agents of halal supply chain) and
feasibility of certification organization. The research concluded that the actual
process of implementation is contingent to external factors such as behavioral,
market trend, ethical, social factors and economical.

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Botonaki et al (2006) probed consumer attitudes and behavior towards
products consisting of organic matter. The research revolves around two main
concepts that are system of integrated management (SIM) and consumer’s
willingness to pay (WTP) for halal products. A survey was conducted in order
to collect responses for analysis of data principal component analysis (PCA)
and varimax rotation techniques are used. The research concluded in the end
that the principle inspiration for customers to purchase halal items is that they
are recognized as better than the routine additionally shoppers are more eager
to pay high price for halal items.

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Chapter # 3

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3.0 Methodology
3.1 Research Approach
The approach used to carry out this research is qualitative. The
qualitative research is “the process which analyzes the questions of how and
why on the happening of events”. It’s basically used to explore, describe,
translate and interpret the natural process occurring in the social world.15
3.2 ResearchPurpose
The purpose of this research is Exploratory, in which we also analyze
the new concepts in the area of our research. Exploration helps researchers to
plan and design their methods prior to conducting their data which minimizes
the chances of error. For this reason, most researchers are prepared to face
possible predicament but they are loaded with possible solutions at the same
time. 16
3.3 ResearchDesign
The research design that has been applied in this study is
phenomenology. Phenomenology can be explained as a research design that
“specifically deals with the understanding of behavior from the individual’s
15 Cooper & Schindler (2006)
16 Cooper & Schindler (2006)

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31
own point of view”. This research design supposes that people will do
something that is irregular and contrary to already setup norms.17
3.4 Data Source
The data source for this study is primary. For data collection,
interviews will be conducted from the managers of supply chain in different
meat providers in Karachi.
3.5 Target Population
Target population for this study is local meat providers companies
located in the region of Karachi.
3.6 Sample Size
Primary data has been used to bring about this study. Professionals of
managerial level managing supply chain were contacted from different
processed meat providers functioning in Karachi for data collection.
3.7 Data Collection Technique
The technique used to collect data in this research is comprehensive
interviews. Such interviews are conducted when “interviewer wants to have a
detailed discussion about a particular topic with a person operating in the same
field in which research is carried out.” In general, structured interviews are not
17 Colin Neville (2007)

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32
practiced however in peculiar situations contents of interview are previously
decided by the interviewer.18
3.8 Sampling Technique
Purposive sampling technique has been used to carry out this study. In
case of exceptions, a non-probability is used and applied while focusing on
sample of pre-defined groups. It can be best described as “a technique used to
identify participant typifying a target population and where researcher implies
his/her understanding about the topic”.19
18 Colin Neville (2007)
19 Cecilia Elizabeth (2007)

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33
Chapter # 4

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34
4.0 Data Analysis
This chapter will focus as an illustration of interviews been conducted
from different meat providers particularly in private sector to key-out the role
of halal processes and integration that are operating in Karachi. Also this
chapter will help to determine and explain the possible challenges and gaps
that were notifies by the respondents.
This study is comprised of three interviews from different meat
providers and having a possession of abattoir. Interviewee’s were selected
from managerial level positions that are directly playing role in operations in
their respective organizations. For interview details please see Appendix 1.
4.1 Merger of Halal Compliance’s:
Compliance came across as the most important factor while operating
in Halal business and especially in meat business because certain standards
must be met in order to penetrate market because of the consumer awareness.
Moreover, strict guidelines have been established by JAKIM a Malaysian
Halal standard and almost all the respondents are certified from central body.
In Pakistan, Dar-ul-Ifta by Jamia Mansoora and Jamia Ashrafia are the
central bodies for issuing compliances and Sharia compliance officer makes
sure that the operation is run smoothly. One thing needs to be noticed is that
the Pakistan standard 3733 has become almost redundant and least valuable
because upgradation of such standard hasn’t been done from the last 3 years.

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35
One possible solution is that it can be merged with Malaysia’s body
standard so as to increase the worth of document and subsequently the world
can recognize it as a Pakistan standard too which will help local exporter
ultimately.
4.2 Curtailing Inspection Criteria
To maintain the integrity an audit is been run by different audit
companies mainly SGS in Karachi to examine the quality and halal standards.
Inspection helps in maintaining a certain standard and allows following a rigid
guideline for hygiene. It also minimizes the risk of contamination by storing
different meat varieties at a distance so that handling as well as direct contact
with surface is eliminated and even the red offal’s are stored separately so that
blood cant deteriorate meat after washing.
Anti-bottom inspection is carried out once the animal is slaughtered in
which its made sure that the animal was healthy and is innocuous for
consumption through different test’s under the team of veterinarian.
According to guidelines an animal shall not be used for production if given
antibiotics because certain particles are harmful for a human body so a certain
ambient is given to animals before slaughtering. Subsequently, an animal is
injected, that animal shall not be slaughtered until 15 days because of certain
residuals and another inspection is run before slaughtering. This increases
examination time which is a big factor in production because it not only

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36
increases handling cost but many a times such animal can be harmful even
after production because meat stales more quickly than normal.
By the use of technology and early supplier involvement such
problems can be curtailed in their initial stages by training suppliers about
proper feed of animal. Automated machines can be used with different
equipment’s and by providing vaccination to the suppliers this inspection
criteria can be made more useful and less time consuming so that production
don’t observe any hindrances or break at any part.
4.3 Installation of Reefer Storage Facilities
In terms of meat what matters the most after production is the storage
of meat chopped at a certain temperature to maintain its freshness throughout.
Reefer storage facilities are common in retail market due to increasing outlets
of companies and availability of resources but unfortunately in export market
it’s exactly the opposite in Pakistan. Private sector has its own chiller vans
used for transportation (mainly private carriers) because the installation of
chiller’s is heavy investment and due to less governmental support, companies
are making it on their own the way to tackle such problems.
Logistics is an essential part and due to ambient/temperature operated
vans it has become the most important. All the respondents have emphasized
mainly on elimination of direct contact and cross contamination in storage and
preservation procedure but while working in export market there isn’t any

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facility where the product can be stored if shipment is delayed so for that
purpose chiller vans are used as temporary storage facilities which in itself
increases cost.
Correspondingly, less usage of technology such as GPS has
exacerbated the situation because any chance of increase in visibility has been
turned down as to know where the particular product is heading towards. Even
companies have to train their labor (technicians) in case of any malfunction
during shipment so that product can maintain its integrity and freshness and
true taste. This is the main reason why Pakistani exporters have not been able
to enter the European market.
4.4 Hindrances in Traceability
While working in extremely fast moving consumer market, traceability
is very important because it overlaps the degree of sincerity of that particular
company with its consumers. Around the globe, extreme measures have been
taken for that purpose and technology is been used highly so as to trace the
point of origin to the point of consumption but Pakistan is lacking behind the
world. Potentials are there but heavy finances are required to install such
facilities all over and it can’t be don’t without governmental support.
Meat producers in Karachi are using ear tagging system for traceability to the
supplier whereas in Brazil and Australia RFID is used as centralized base of
information exchange. Ear tagging or coloring the skin of animal is used to

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trace the supplier so that it can be known from whom it was purchased. It also
helps in identifying the lot if any disease is found in animal and it’s
transformational so that supplier is accountable.
Once the meat is stored is container, the visibility of supply chain
decreases drastically because of less usage of technology and companies do
face problems in calling back their product because of low exchange of
information which is called Reverse Logistics. So, government should
establish certain parameters and finance these institutions especially for export
market where traceability is regarded as key factor of any product whether it
can be pre-purchase or post purchase activities.
4.5 Barriers in Implementing Full Quality Assurance
Halal is a brand which creates barriers in training of labor, hygiene
factor and trust issues. Training of slaughter man, handling of material,
holding cost, short shelf life, distribution on time needs intense consideration
and these are all the factors that creates integrity in the minds of consumer.
Slaughter man needs to Muslim first of all and when there is a machine
operated slaughter house or abattoir, the availability of technical staff is
foremost in following guidelines of compliances.
Quality assurances are directly proportional to cost in terms of
production. Usage of chiller facilities with intense examination of every part
of an animal after slaughtering and even before slaughtering increases

A Case from Karachi
39
operational cost. Furthermore, dealing in export market has its own cost
because of custom documentation, proper examination of product. Such
barriers can only be minimized by proper training of employees and even of
their technical staff. The freight forwarder must be agile in completing the
proper documentation before time so that time cost can be eliminated.
On the other hand, stamping the Halal logo is essential before
movement of product from warehouse, so that ink is also been procured by
Dar-ul-Ifta in Lahore so it takes time when companies run out of stock. The
whole production is been stopped due to such a negligence by planning
department. In addition to it, while these meat providers have installed such
state of the art facilities so the cost of production has also increased this can’t
be built-in to their product because of cultural heritage.
Having said that, though past researches have concluded that Muslim
consumers are willing to pay more but it’s a niche market segment with a
share of 10% of the total population according to Al-Shaheer.
4.6 Increasing Visibility through Information Exchange
The exchange of information is an essential of any supply chain and
notably when you are working in an FMCG industry. Unfortunately, a need of
centralized information system is recognized but it hasn’t been implemented
due to heavy finances which has increased the barriers for dealing in
international market. Subsequently, the Pakistan Standard Code 3733 for Halal

A Case from Karachi
40
meat also has no stipulation for the pre-purchase form the supplier which has
created a hiatus in implementing such a system and tracking the quality
measures.
Such centralized information system will help obligatory to create
events and portals of supplier once bidding is done and they compete on
different factors such as pricing, delivery time, services, quality. Alternatively,
it will help in selecting the best supplier and also supplier performance
evaluation can be done of different supplier and categorizes them into
different classes depending on the nature of business and KPI’s set by
incumbent organization SOP’s for their goals in purchasing and supplier
evaluation.
It may also classify different suppliers according to the Grades system
or classes through scoring on set KPI’s for example: Class A, Class B and
Class C suppliers. It can also help organization’s goals and even suppliers so
as to compete with their competitors as they are aware of their inefficiencies
through classifications. In recent times, the effective use of information
sharing have helped in creating relationship of trust and mutual benefits by
finding the right or best supplier and helping procurement department either in
terms of bulk buying enjoying discounts or extending their credit terms.

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41
4.7 Establish a Regulatory Body
To have a purview on the operations and pricing Pakistan needs to
establish a Regulatory Body for Halal products at federal level and to enter in
the international market. Pakistan being ranked the 9th biggest exporter of beef
is still running without a regulatory body or council which shows the lack of
interest of the incumbent government.
More so, a centralized body will ensure competition and pricing of the raw
material just like in Malaysia and India. In fact, such bodies can help in
establishing stringent regulations for import meat or animals procured from
different countries which will eventually help this industry to grow with high
barriers on quality.
As a matter of fact, it will not only create market more agile but a
legislative body will minimize redundant supplier’s to improve their quality
through proven standards. Such monitoring body should help in developing
policies relating to:
1. The operations of the certification body.
2. Financial position of the companies as well as of the certification body
shall be supervised.
3. Contractual arrangements should be made within supplier and in
manufacturers.

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4. Set policies and procedure can be monitored as per International
export guidelines.
5. Marketing of Pakistan’s Halal products can be done with a team
consisting from different industries to improve the quality.

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Chapter # 5

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44
5.0 Conclusion
In the modern era, Halal has emerged as a brand used to maintain
quality, hygiene and trust factor in order to reach long term financial and
health related objectives. Previous researches have shown positive impact of
implementing quality and food safety measures20. The major reason of Halal
certification and compliances is to ensure overall operations being carried out
in accordance to the guidelines of the Islamic Sharia.
This research paper has been carried out on processed meat providers
functioning in Karachi. The challenges has been identified by inscribing five
key questions of factors, Halal integrity in Supply chain, Halal logistics, and
financial hurdles faced in execution, Halal certification and technology usage
in traceability. The above factors have been already discussed in detail with
respondent’s experiences and they can be used as standard for further
researches.
In addition, the responses collected from interview of professional’s
working in meat industry implies that firms are taking serious steps to protect
processed meat in terms of partial technology and various elements. In
contrast, the challenges faced include installation of reefer storage facilities,
barriers in implementing full quality assurances, no proper information
exchange and absence of a regulatory body.
20 Botonaki(2006)

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45
In 2014, a bill was moved in Parliament by Ministry of Industries for
establishing a Halal Authority at Federal level. Now, provincial government of
Punjab has set up an organization called Punjab Halal Development Agency to
prescribe the standards and processes for certification of halal products.
Moreover, strategic sourcing with suppliers has also become difficult because
of unawareness of stock at critical points or in emergency circumstances.
On the other hand, low literacy level in rural areas where most of the
purchasing is carried out is also a tormenting problem because of hygiene and
environment controlled vaccinations. As a result, Pakistan while being the 9th
biggest exporter of beef is restricted to operate and trade in European market
because of unavailability of pre-purchase activities.
5.1 Recommendations
In the final analysis the results concluded that still there are difficulties
in implementation of Halal and the challenges faced can be turned into
potential’s with respect to industry objectives. Below are some suggestions for
the government and equally important for the meat providers operating in
Karachi and likewise local exporters.
Given these points, more researches are required to probe health and food
safety measures and it’s also important to identify downward stream of the
supply chain (including retailer and consumer) views in the same aspects of
Halal cognizance perpetuating in the Muslim world.

A Case from Karachi
46
1. All parties in the supply chain, downstream and upstream, must take
individual and joint responsibilities to protect the Halal food products
from being cross contaminated, whether intentionally or
unintentionally.
2. Producers should also focus on foreign market especially capturing the
EU market by fulfilling the prerequisites of destination countries by
making available pre-purchase information.
3. One major challenge is to ensure the availability of auditors in Karachi
rather than calling from Jamia Mansoora, Lahore which not only
increases time but the operational costs.
4. Likewise Malaysia, GOP should also promote local standards in
international market so as to increase the trust factor for Muslim
population settled overseas.
5. Electrical stunning is allowed by JAKIM by conditioning of
monitoring of competent authority but in Karachi specifically
unavailability of such authority has created doubts in the operations.
6. The segregation must be either in racks system or compartment system
or by proper labeling. It should also be applied in employees handling
materials, equipment.
7. 3PL services with proper dedication for Halal products can be formed
which will not only increase the availability of product but
organizations can also outsource their non-competency which will
ultimately fulfill Halal product objective.

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47
8. Government and certification bodies should work closely and training
and knowledge sharing seminars must be organized in order to educate
key players about Halal products with rapid responses in changes in
demand.
5.2 Future Recommendations
1. Further research can be proceeded in the direction of customer
perspective their thoughts and complaints if any regarding halal meat.
2. Unbranded meat producers can also be taken into sample population to
know about their approach in the matters of slaughtering, handling and
what hurdles they face in making their business.
3. Another aspect that needs to be highlighted is of overall food safety
and its halal nature like vegetables, fruits, cosmetics and other
processed items.
4. More importance must be given to producers of meat and it by-
products operating outside Karachi region as well as in different
Muslim countries that have already established meat market.

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48
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Appendices

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7.0 Appendix
7.1 Appendix “A”
Q: Which guidelines and principles are essential for the Halal integrity of
Halal supply chain?
We deal in raw product not a finished good so for a raw product it becomes
very simplified when it comes to Halal implementation but there are
compliances and we are certified by JAKIM for our functionalities of Halal. In
process industry every product needs to be evaluated even if it’s a flavor, its
CO Etc. but when you are dealing in raw meat so we have to ensure that the
animal was slaughtered in accordance to the guidelines of the Shariah.
Basically, Halal standards comes from different region for example Malaysia
has JAKIM a popular standard then we have different Madarsa’s (local
standards) we do we have a compliance with them. An audit is been run by
different companies such as SGS but it’s a Quality audit company. It audits the
way an animal is being slaughtered, its handling through-out in that process,
and the ambient for that product wasn’t contaminated. In our company the
whole process is being carried out by a factory hand slaughtered then we make
sure that direct contact surface of the meat shouldn’t be done and for that
purpose we use rawlin cotton to wrap that meat produced till the time it
reaches to the cutting tables. So throughout this procedure either the meat is in
hanging position or wrapped in rawlin cotton until it reaches to the chiller vans

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56
so we have to run a cold supply chain through-out this process till the time it
reaches to the shopping bags of the customer.
Q: What is Halal from a logistics, supply chain point of view?
A: Contamination comes in with different outcomes like meat having a direct
contact with surface or the storage of meat with any other product even with
chicken so as to minimize the chances of cross contamination. We can’t have
the same storage chiller for red meat and fish so we have different chillers and
storage facilities for different product category so it has a different process
where the cross contamination is minimized. We have different fleets foe
every 3 raw product so it doesn’t escalates the chances of contamination, then
its stored in distance so as the blood of 1 product can’t be mixed with another.
So basically, this is what happen when you try to minimize the chances of
impurity with different product categories, contamination with any material
for that matter so you can’t store anything or any material even the offal’s
can’t be stored because its pure red blood.
Q: What are the financial hurdles in implementing Halal Supply Chain?
A: When we talk about implementation of Halal process it brings itself
Quality in it which escalates cost. Halal & Quality are combined and definitely
cost increases when you take measures to ensure quality and we can’t built in
that cost in our product prices because that will create a negative impact in the
end user so certainly market compatibility issues are there because people see

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us in a certain price specially in Pakistani market and all these standards have
their own price.
Q: How technology can create an impact in traceability and tracking of
meat in Logistics?
A: Traceability is one component of Halal and Quality but it’s very costly
because RFID’s code is linked with animal so to trace it in overall process its
very expensive and you need heavy finances to run such kind of a process
because this industry is a not even an FMCG its very very fast moving
consumer good because it’s extremely perishable so once packed it’s very
difficult to recall it. But yes, we do recall it if the whole lot has been found
spoiled or anything and then we try to sell it on discounted offers after having
clearance from our quality department or we use it in feeds of animals or
dump it if totally found lousy. Yes, we discuss such projects but we don’t
discuss in terms of Halal but because of Quality measures and customer
satisfaction. Yes, traceability is there globally but in frozen generally fresh
meat doesn’t need that strict traceability.
Q: How much impact certifications play when you deal in B2B?
A: Massive, you can’t deal in export market without certifications because the
audit process binds to have such certifications and proper documentation, so it
gives us process compliance. In the last 5 years or so we have seen drastic
changes in meat market, at first we didn’t have any B2B customer but now it

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has expanded and quality certifications is a major factor for such a boom. We
have our NIMCO as our customer and they purchase mince from us for their
fired items so he’s now demanding us to write a formal letter on our letter
head as a MeatOne customer so he can build a customer confidence so yes
certifications play a critical world especially in a world of globalization.

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7.2 Appendix “B”
Halal supply chain?
In Al-Shaheer what we have done is that we have formed our own Sharia team
headed by Mufti Mujeeb then we have Sharia advisor Mufti Farhan, then Me
Sabeen Mehmood as Sharia Compliance Officer because according to JAKIM
it is mandatory to have at least one Sharia compliance officer at the facility.
He/she or would be responsible for any issues during the operations. We have
merged PS-3733 and JAKIM commonalities into our checklist so as to
monitor the operations from initial to final stage. As we are certified from both
countries Pakistan and Malaysia so we have merged the guidelines of both
certifications so as to save our time and increase the worth of the document.
For example HCP-1 ensures the source of the product as halal. In HCP-2 an
anti-bottom inspection is carried out to examine the body temperature, or any
food or mouth disease in our animals.
Antibiotics is usually given to animals that are required for increased dairy
production for meat its totally the opposite because muscles of an animal takes
time to grow so the operations doesn’t allow us to wait until those hormones
start effecting. In meat production its only permissible to give antibiotics in
diseases that can only be cured by such medicines even our suppliers
guarantees us that present cattle are disease free. Even after giving the

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antibiotics where it is necessary the waiting time of that particular animals is
fifteen days because there certain residue in meat which are harmful for
human body. After that a veterinarian carries out thorough inspection before
slaughtering the animal.
Before slaughtering the animal a minimum rest of twelve hours is necessary as
per the guidelines of JAKIM so that it covers travelling etc. because the
negative effects are huge due to biochemical changes due to stress and they
are very harmful for meat consumers. So a second anti bottom vet is
performed to ensure a disease free animal.
While slaughtering there is checklist which is necessary to be realized for
instance, sharp knife, slaughterer must be Muslim whereas, JAKIM states that
he can even Christian or Jew. Further the company’s dictates that a takbeer
before slaughtering is recited and the animal must be facing qibla, and all the
veins must cut through as prescribed the Islamic sharia. Another condition is
that the animal cannot be offloaded until its complete death and it certain
feature must be evident for example eye color, tongue coming out of the
mouth, body temperature or body becoming motion less. After being
slaughtered further process is to remove the skin, and medical inspection is
carried out while removing of the head as the disease are reflected through
head in an animal. If there are any signs of any harmful disease then the whole
animal will be rejected and buried as per the condition of JAKIM for disposal
of waste materials. For meat cutting brisking procedure is followed is either

A Case from Karachi
61
half or quarterly chopped for export requirements then washing is done and
meat is stamped with halal logo which then again is procured by “Jamia
Ashrafia” and then it is stacked in chillers until its totally dried from the
outside. After this we wrap the meat in Rawlin cotton sheets and labeling is
done having a 10 day expiry but according to PCSIR only we are certified for
a shelf life of 15 days condition to temperature and ambient.
In logistics cross contamination is avoided through making sure that it is not in
contact with any impure/harmful materials even the red offal’s are stored
separately. Still we don’t use any kind of GPS technology so we ear tag the
animals. GPS technology is highly expensive and as an exporter our freight
forwarders do have a GPS tracking system so we can track our products at
live. Halal doesn’t come alone it brings quality with it so for quality assurance
we can track through animal number or supplier code. For distribution
purposes we use the tagging on animals legs and shoulders so that we can
know where that particular product is heading towards. We are also training
our suppliers in different location for traceability purpose so as to increase our
visibility.

A Case from Karachi
62
meat in Logistics?
In Pakistan the concept RFID and technology of RFID is still not fully
implemented only few MNCs are using such technology there are for few
standards developed in Punjab side but its implementation is arduous due to
low literacy level and that it’s an expensive project because RFID’s are linked
with a system where the whole information is centralized. Al Shaheer is also a
part of that team striving to bring such technologies but barriers are high and
such issues restrict us from entering in European market because it demands
the pre-purchase of livestock.
According to the set protocols of our company if an animal is identified with
carrying a disease, it is returned to the supplier. Moreover there is established
process of our own in which color tagging and holding is carried out just to
make our traceability system more effective. By tagging the animals according
to the color designated for a specific supplier traceability measures are taken
into account so that we know what provided by whom in case of adversity or
return ability.
Hurdles do come in when you are taking about quality and halal is a brand
itself so yes financial hurdles do come in when we talk about Halal because
our promise is hygiene and natural process slaughtering so we do face hurdles

A Case from Karachi
63
not only financial but operational also like training of slaughter men etc.
talking about finances so yes we have to take extreme care of contamination or
impure remnant so yes they do come in but they are curable enough unless
there is a breakdown in our operations or facilities because our chilling system
is what makes the product curable to consume.
Q: How much impact certifications & Halal compliances play when you
deal in B2B?
No response

A Case from Karachi
64
Appendix “C”
Halal supply chain?
To ensure production of healthy chicks we even raise their parents with an
environment controlled poultry houses we have a team of doctors which
ensures their health throughout this process. Halal is an integral part of any
company operating in Muslim world and even in Non-Muslim region because
of the vast spreading of Muslim population. So halal is basically part of
quality which ensures the religious side as well as from a business point of
view hygiene and trust factors which essentially is a win-win situation for both
the consumer and the producer. Now the world has taken serious measures and
there are certification which ensures the operational process through internal
audit by different compliances and we are certified by Darul-Ifta by Jamia
Naeemia and Jamia Ashrafia and these certifications make our processes
Halal.
We have our own fleets of logistics which enhances our visibility of our
products even in a container and because chicken meat is highly demanded by
consumers so we have to be very agile because competition is increasing.
Once the product is packed and stacked in container so we have to observe a
certain ambient and temperature for preservations otherwise it will start to

A Case from Karachi
65
appear fluffy so yes for that we have chiller container operating at -6C but
GPS technology is expensive so we can only exchange information from the
operating room where the order has reached. In case of malfunction we have a
technician with that fleet so that it can be corrected then and there but
definitely it hurts in our kpi of otif. If a serious problem occurs than we have
to move that product into another container which increases our handling cost.
In chicken meat industry use of antibiotics is minimum yes normal vaccination
is done in the initial stages of chick so as to cure it from diseases because it’s a
very very fast moving product so antibiotics are used in rare case and it the
repercussions are high by the use of such vaccine. We have our own farm so
chickens are raised in highly hygienic environment so there is a very little
chance of birds getting diseases and even if they do get it we don’t use them
for production because of our protocol.
No response
Q: How much impact certifications & Halal compliances play when you
deal in B2B?
Certifications have a huge impact on consumers especially when you are
dealing in export market because the legal implications are so tough that you
have to be certified from a certain body operating in your region whether its
halal or quality or HACCAP but in retail market now its evolving more

A Case from Karachi
66
towards such certifications because of the use of internet and people gaining
knowledge which actually is good because you don’t want to consume
anything which is harmful and then you have to pay for it as well. We have
our customers forcing us to show the required certifications or documents
before starting business and this is the reason we haven’t captured a large size
of European market because of inflexible legalities from them. Now
companies are focusing more towards this point and hopefully it will be a
turnaround in the next 3 years or so.
meat in Logistics?
The technology which we are using is coloring our chicken; we place a spot on
their skin with a designated color so that we can trace it rather it’s a procedure
not a technology. RFID is expensive and private sector can’t implement it on
its own for that we need governmental support. Most of the countries are using
this technology for traceability and tracking but in Pakistan there has been any
effort from either side for the use of such technology because to run such a
project you will be in need of high finances with highly technical people
because it’s kind of like a centralized information exchange where you can
trace that this bird was procured by this supplier form this region and that in
forward distribution the information will be at live so the communication gap
also minimizes by such projects but for that you need governmental support.

A Case from Karachi
67
Q1
Which guidelines and principles are essential for the Halal integrity of Halal
supply chain?
Initial Coding Focused Coding
Respond 1
We deal in raw product not a finished good so for a raw product it becomes very
simplified when it comes to Halal implementation but (there are compliances
and we are certified by JAKIM for our functionalities of Halal). In process
industry every product needs to be evaluated even if it’s a flavor, its CO Etc. but
when you are dealing in raw meat so we have to ensure that the animal was
slaughtered in accordance to the guidelines of the Shariah. Basically, Halal
standards comes from different region for example Malaysia has JAKIM a
popular standard then we have different Madarsa’s (local standards) we do we
have a compliance with them. (An audit is been run by different companies such
as SGS but it’s a Quality audit company). It audits the way an animal is being
slaughtered, its handling through-out in that process, the ambient for that product
wasn’t contaminated. In our company the whole process is being carried out by a
factory hand slaughtered then we make sure that direct contact surface of the
meat shouldn’t be done and for that purpose we use rawlin cotton to wrap that
meat produced till the time it reaches to the cutting tables. So throughout this
procedure (either the meat is in hanging position or wrapped in rawlin cotton
until it reaches to the chiller vans) so we have to run a cold supply chain
through-out this process till the time it reaches to the shopping bags of the
customer.
 Halal compliances
 External audit
 Minimizing the
risk of
contamination
7.4 Appendix “D”

A Case from Karachi
68
Respond 2
In Al-Shaheer what we have done is that we have formed our own Sharia team
headed by Mufti Mujeeb then we have Sharia advisor Mufti Farhan, then Me
SabeenMehmood as (Sharia Compliance Officer because according to JAKIM it
is mandatory to have at least one Sharia compliance officer at the facility.)
He/she or would be responsible for any issues during the operations. We have
merged (PS-3733 and JAKIM commonalities into our checklist so as to monitor
the operations from initial to final stage.) As we are certified from both countries
Pakistan and Malaysia so we have merged the guidelines of both certifications so
as to (save our time and increase the worth of the document.) For example
(HCP-1 ensures the source of the product as halal. In HCP-2 an anti-bottom
inspection) is carried out to examine the body temperature, or any food or mouth
disease in our animals.
 Sharia Compliance
 PS-3733
 Reduce
examination time
 Anti-bottom
inspection
 Merger of
Halal
Compliances
Respond 3
To ensure production of healthy chicks we even raise their parents with an
(environment controlled poultry houses) we have a team of doctors which
ensures their health throughout this process. Halal is an integral part of any
company operating in Muslim world and even in Non-Muslim region because of
the vast spreading of Muslim population. So halal is basically part of quality
which ensures the religious side as well as from a business point of view
(hygiene and trust factors which essentially is a win-win situation for both the
consumer and the producer.) Now the world has taken serious measures and
there are certifications which ensure the operational process through internal
audit by different compliances and we are (certified by Darul-Ifta by
JamiaNaeemia and JamiaAshrafia and these certifications make our processes
Halal.)
 Environment
controlled poultry
houses
 Hygiene and trust
 Darul-ifta by
jamianaeemia and
jamiaashrafia
 Curtailing
Inspection
Criteria
Q2 What is Halal from a logistics, supply chain point of view?

A Case from Karachi
69
Respond 1
Contamination comes in with different outcomes like meat having a (direct
contact with surface) or the storage of meat with any other product even with
chicken so as (to minimize the chances of cross contamination.)We can’t have
the same (storage chiller) for red meat and fish so we have different chillers and
storage facilities for different product category so it has a different process where
the cross- contamination is minimized. We have different fleets for every 3 raw
product so it doesn’t escalates the chances of contamination, then its (stored in
distance so as the blood of 1 product can’t be mixed with another.) So basically,
this is what happen when you try to minimize the chances of impurity with
different product categories, contamination with any material for that matter so
you can’t store anything or any material even the offal’s can’t be stored because
its pure red blood.
 Direct contact with
surface
 Cross
contamination
 Chiller vans
 Storage and
preservation
Respond 2
In logistics cross contamination is avoided through making sure that it is not in
contact with any impure/harmful materials even the red offal’s are stored
separately. (Still we don’t use any kind of GPS technology) so we (ear tag) the
animals. GPS technology is highly expensive and as an exporter our freight
forwarders do have a GPS tracking system so we can track our products at live.
Halal doesn’t come alone it brings quality with it so for quality assurance we can
track through animal number or supplier code. For distribution purposes we use
the tagging on animals legs and shoulders so that (we can know where that
particular product is heading towards.)We are also (training our suppliers) in
different location for traceability purpose so as to increase our visibility.
 Non usage ofGPS
technology
 Ear tagging
 Supplier
Development
 Enhancement of
visibility
 Installation of
Reefer Storage
Facilities

A Case from Karachi
70
Respond 3
We have our (own fleets of logistics) which enhances our visibility of our
products even in a container and because chicken meat is (highly demanded by
consumers so we have to be very agile because competition is increasing). Once
the product is packed and stacked in container so we have to observe a (certain
ambient and temperature for preservations) otherwise it will start to appear fluffy
so yes for that we have chiller container operating at -6C but (GPS technology is
expensive) so we can only exchange information from the operating room where
the order has reached. In case of malfunction we have a (technician with that
fleet.); so that it can be corrected then and there but definitely it hurts in our
(kpi.) If a serious problem occurs than we have to move that product into another
container which increases our handling and transportation cost.
 Private carrier
 Agility
 Operating at
particular
temperature
 Non usage ofGPS
technology
 Availability of
technical staff
 Key Performance
Indicator
 Hindrances in
Traceability
Q3 What are the financial hurdles in implementing Halal Supply Chain?
Respond 1
When we talk about implementation of Halal process it brings itself Quality in it
which escalates cost. Halal & Quality are combined and definitely (cost
increases when you take measures to ensure quality and we can’t built-in that
cost in our product prices because that will create a negative impact in the end
user) so certainly market compatibility issues are there because people see us at a
certain price specially in Pakistani market and all these standards have their own
price.
 Barriers to
implement full
quality assurance
due to extensive
pricing

A Case from Karachi
71
Respond 2
Hurdles do come in when you are taking about quality and halal is a brand itself
so yes financial hurdles do come in when we talk about Halal because our
promise is hygiene and natural process slaughtering so we do face hurdles not
only (financial but operational also like training of slaughter men etc.) talking
about finances so yes we have to take extreme care of (contamination or impure
remnant so yes they do come in but they are curable enough) unless there is a
breakdown in our operations or facilities because our (chilling system is what
makes the product curable to consume.)
 Increasing
operational cost
 Training of labor
 Reefer storage
facilities
 Barriers in
Implementing
Full Quality
Assurance
Respond 3 No response
Q4
Howtechnology can create an impact
in traceability and tracking of meat
in Logistics?
Respond 1
Traceability is one component of Halal
and Quality but it’s very costly because
RFID’s code is linked with animal so to
(trace it in overall process its very
expensive and you need heavy
finances)to run such kind of a process
because this industry is not even an
(FMCG its very very fast moving
consumer good because it’s extremely
perishable so once packed it’s very
difficult to recall it). But yes, we do
recall it if the whole lot has been found
spoiled or anything and then we try to
 Challenges in RFID usage
 Barriers in Reverse Logistics
 Improving customer satisfaction

A Case from Karachi
72
sell it on discounted offers after having
clearance from our quality department
or we use it in feeds of animals or
dump it if totally found lousy. (Yes, we
discuss such projects but we don’t
discuss in terms of Halal but because of
Quality measures and customer
satisfaction.) Yes, traceability is there
globally but in frozen generally fresh
meat doesn’t need that strict
traceability.
Respond 2
In Pakistan the concept RFID and
technology is still not fully
implemented only few MNCs are using
such technology there are for few
standards developed in Punjab side but
its implementation is arduous due to
low literacy level and that it’s an
expensive project because RFID’s are
linked with a system where the whole
information is centralized. Al Shaheer
is also a part of that team striving to
bring such technologies but barriers are
high and such issues restrict us from
entering in European market because it
demands the pre-purchase of livestock.
 Establishing a centralized information exchange system
 No pre-purchase information available
 Increasing
Visibility
through
Information
Exchange

A Case from Karachi
73
Respond 3
The technology which we are using is
coloring our chicken; we place a spot
on their skin with a designated color so
that we can trace it rather it’s a
procedure not a technology. (RFID is
expensive and private sector can’t
implement it on its own for that we
need governmental support). Most of
the countries are using this technology
for traceability and tracking but in
Pakistan there hasn’t been any effort
from either side for the use of such
technology because (to run such a
project you will be in need of high
finances with highly technical people)
because it’s kind of like a centralized
information exchange where you can
(trace that this bird was procured by
this supplier form this region and that
in forward distribution the information
will be at live) so the communication
gap also minimizes by such projects but
for that you need governmental support.
 No governmental support
 Need heavy finances
 One window solution
Q5
How much impact certifications &
Halal compliances play when you
deal in B2B?
Respond 1
Massive, you (can’t deal in export
market without certifications because
the audit process binds to have such

A Case from Karachi
74
certifications and proper
documentation, so it gives us process
compliance.) In the last 5 years or so
we have seen drastic changes in meat
market, at first we didn’t have any B2B
customer but now it has expanded and
quality certifications is a major factor
for such a boom. We have our (NIMCO
as our customer and they purchase
mince from us for their fried items so
they are now demanding us to write a
formal letter on our letter head as a
MeatOne customer) so he can build a
customer confidence so yes
certifications play a critical role
especially in a world of globalization.
 Essential in export market
 Strict legislation in destination countries
 Supplier relationship
Respond 2 no response
Respond 3
Certifications have a huge impact on
consumers especially when you are
dealing in export market because the
legal implications are so tough that
(you have to be certified from a certain
body operating in your region whether
its halal or quality or HACCAP but in
retail market now its evolving more
towards such certifications) because of
the use of internet and people gaining
knowledge which actually is good
 HACCAP
 Strict export requirements
 More focus on globally known certification body
 Establish a
Regulatory
body

A Case from Karachi
75
because you don’t want to consume
anything which is harmful and then you
have to pay for it as well. (We have our
customers forcing us to show the
required certifications or documents)
before starting business and (this is the
reason we haven’t captured a large size
of European market because of
inflexible legalities from them). Now
companies are focusing more towards
this point and hopefully it will be a
turnaround in the next 3 years or so.

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