TrustBix blog: Meeting the Demands of Halal Beef Markets Inside and Outside Canada

Have you ever seen the label “permitted” at grocery stores? Even if you have never bought such items, you have definitely come across them in all departments: meat and poultry, dairy, etc

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“Permitted” is the direct translation of the word “halal” from Arabic. Halal is a universal term applied to all facets of life, but in terms of food, it is the dietary standard described in the Qur’an. Generally speaking, halal food is free from any ingredients that are prohibited by Islamic laws, for example, gelatin if its origin is not known, and the whole supply chain leading such food from farms to tables meets the requirements of Islamic laws regarding production, cleaning, etc.

In other words, while in the meat and poultry food industry many animals are considered halal, they must be prepared according to Islamic laws for their meat to be suitable for consumption. What does it mean for Canadian internal and external markets? Is the demand for halal meat high globally? In this blog, we are answering these questions. 

“Being one of the largest red meat exporters in the world, Canada should channel part of its efforts into reaching the halal market worldwide”

 

Halal Food for Canadians

According to Canada Beef, in 2019, there were 23 federally registered beef packers in Canada. Eighteen of them offered halal-certified products. Although it is a clear indicator that there is a demand for halal meat products, the question is if we meet this demand on a national scale. Statistically, the number of Canadian Muslims doubled from 2001 to 2011, surpassing one million people, and is expected to make up 6.6% of Canada’s total population in 2030. The main reason for such fast growth is immigration from Pakistan, India, and other countries of the Muslim World. 

What Canadian producers, processors, and retailers should consider is the fact that while halal consumers represent a growing demographic, it remains a largely untapped market. Another survey conducted in 2014 found that food companies did not meet the needs of 70 percent of halal households, and 61 percent of respondents felt underserved by major grocery chains.

Trust is also a serious issue. Before 2016 there used to be a growing concern among Canadian Muslims regarding the “halal” label on food items: they could not see any proof that the production met halal requirements, they lacked trust. Fortunately, in April 2016 the Canadian Government enforced new requirements making it obligatory for all halal claims on food labels to be accompanied by the name of the organization that certified it as halal. Such changes in regulations made the Canadian marketplace of halal products more consistent and supported Canadians in making informed decisions about the food they buy.   

Canada as a Halal Beef Exporter

The Muslim population is growing not only in Canada but also globally. In 2016, the global halal food and beverage market was valued at almost 440 billion USD. As the State of the Global Islamic Economy Report 2020/21 indicates, global spend on Halal food and beverage is forecast to hit US$1.38 trillion by 2024. Another universal trend is the shift in consumer perceptions: now, halal is not only a traditional religious notion but also the entire concept of fresh and clean food production. This information shows potential growth for halal products and services in the food industry. 

Being one of the largest red meat exporters in the world, Canada should channel part of its efforts into reaching the halal market worldwide. In 2019, Canada exported $3.1 billion worth of beef, making up 41 percent of domestic production and setting a new record high in beef export value. The markets we ship to are diverse, covering Japan, Mexico, and South Asia, but 72 percent of all beef exports go to the United States. While there are more than 60,000 Canadian farms that derive half of their income from beef production, we must ensure that the export share is getting more diversified each year.

TrustBIX is honoured to support the sustainability initiatives covering food supply chains across the world, and the halal beef chain is not an exception. We see the current demand for traceability in halal beef production and are eager to promote the idea of developing and meeting the consistently high standards of this sector.

Contact us today to discuss how we can make Canada a prominent halal beef exporter together.