Makkah Halal Forum Panel Unveils Blueprint for a Sustainable Halal Supply Chain Ecosystem

The Makkah Halal Forum opened with a thought-provoking panel discussion titled “Halal Supply Chain Management and Ecosystems,” bringing together some of the brightest minds in the Halal industry to address the challenges and opportunities of building a sustainable and globally integrated Halal supply chain. Moderated by Dr. Bandar S. Arab, Executive Director at Savola World Foundation, the panel featured Dr. Marco Tieman, CEO of LBB International (joining virtually); Mr. Riski Otman, Chairman of the Halal Logistics Association, Indonesia; and Mr. Mahayudin Mohd Hashim, Head of the Internal Halal Committee of Kuantan Port (Consultant). Together, they explored how innovation, collaboration, and adherence to Islamic principles can drive the Halal industry toward a more sustainable and ethical future.

With the global Halal market projected to reach $2.6 trillion by 2025, the discussion couldn’t have been timelier. The panelists delved into the complexities of Halal supply chain management, the importance of sustainability, and the role of technology in ensuring Halal integrity from farm to fork. Here’s a comprehensive breakdown of the key insights and actionable strategies shared during the session:

Dr. Marco Tieman set the tone for the discussion by emphasizing the paradigm shift in the Halal industry—from a product-centric approach to a holistic supply chain and value chain perspective. He explained that Halal integrity is no longer just about the end product but involves every stage of the supply chain, from sourcing raw materials like animal feed and vaccines to logistics, operations, and marketing.

Key Insights from Dr. Tieman:

• Regulatory Shifts: Countries like Indonesia are leading the way by mandating Halal certification for cosmetics and pharmaceuticals by 2026. This regulatory push reflects a global trend toward stricter Halal compliance and consumer demand for transparency.
• Dependency on Imports: OIC (Organization of Islamic Cooperation) countries currently rely heavily on non-OIC nations for Halal products, creating a pressing need for self-sufficiency. Dr. Tieman stressed the importance of developing specialized Halal industrial clusters to boost local production and reduce dependency on imports.
• Four Pillars of Halal Ecosystems:
  1. Cluster Organization: Establishing industrial hubs to foster innovation, entrepreneurship, and economies of scale.
  2. Halal Supply Chain Technology: Leveraging blockchain, IoT, and AI to enhance traceability, efficiency, and consumer trust.
  3. Islamic Finance: Integrating Sharia-compliant financing to support Halal businesses and ensure ethical investment.
  4. Sustainability: Embedding environmentally and socially responsible practices into every aspect of the supply chain.

Dr. Tieman concluded with a compelling vision of the future, where these ecosystems would enhance food security, reduce supply chain costs, and position OIC countries as key players in the global Halal value chain.

Mr. Riski Otman took the discussion further by highlighting the critical role of sustainability in Halal logistics. Drawing from Quranic principles, he reminded the audience of the Islamic mandate to avoid excess and waste, quoting Quran Al-Anam 141: “Eat and drink, but do not waste. Indeed, He does not like the wasteful.”

Key Insights from Mr. Otman:

• Transparency and Traceability: In an era where consumers demand transparency, Halal businesses must implement traceability systems to ensure integrity from farm to fork.
• Ethical Practices: Animal welfare and ethical slaughtering practices are non-negotiable for maintaining Halal integrity. Mr. Otman called for stricter enforcement of these standards globally.
• Environmental Responsibility: Halal businesses must adopt eco-friendly practices, such as reducing carbon emissions, minimizing waste, and using sustainable packaging.
• Community Engagement: Companies should actively engage with local communities to ensure their operations benefit society at large, aligning with the Islamic principle of Maslahah (public good).

Mr. Otman’s message was clear: sustainability is not just a trend but a core principle of Halal logistics that can drive long-term growth, consumer trust, and global competitiveness.

Mr. Mahayudin Mohd Hashim brought a fresh perspective to the discussion, focusing on the challenges and opportunities in optimizing Halal supply chains, particularly in port operations. He highlighted the need for standardized practices to ensure Halal integrity across transportation, warehousing, and retail.

Key Insights from Mr. Hashim:

• Halal Control Points: Establishing checkpoints at ports and airports to inspect and certify Halal cargo, ensuring compliance with Halal standards.
• Risk Assessment: Implementing robust risk assessment protocols to prevent contamination or mishandling of Halal products during transit.
• Training and Certification: Equipping personnel with the knowledge and skills to handle Halal products responsibly, including training on Halal standards and best practices.
• Standardization: Developing universal Halal standards for logistics to streamline operations, reduce costs, and build consumer confidence.

Mr. Hashim also emphasized the importance of collaboration among OIC countries to harmonize these standards and create a seamless global Halal supply chain. He shared examples from Kuantan Port, where Halal control points and risk assessment protocols have significantly improved efficiency and compliance.

The panel concluded with a powerful call to action for OIC countries to adopt harmonized Halal standards, as outlined in OIC SMI 17 2020. The experts agreed that collaboration is the cornerstone of building sustainable and efficient Halal ecosystems.

Key Recommendations:

1. Adopt Universal Standards: Harmonize Halal certification processes to eliminate fragmentation and build trust among consumers and businesses.
2. Invest in Technology: Leverage cutting-edge technologies like blockchain for traceability, AI for supply chain optimization, and IoT for real-time monitoring.
3. Foster Cross-Border Partnerships: Encourage collaboration between OIC countries to reduce dependency on non-OIC imports and boost local production.
4. Promote Sustainability: Integrate environmental and social responsibility into every aspect of the Halal supply chain, from sourcing to distribution.

The Halal industry is not just a market—it’s a movement. As consumers worldwide become more conscious of ethical and sustainable practices, the Halal industry has a unique opportunity to lead by example. The insights from the Makkah Halal Forum panel provide a clear roadmap for businesses, policymakers, and stakeholders to navigate this dynamic landscape.

By embracing innovation, collaboration, and sustainability, the Halal industry can achieve its full potential, contributing to global food security, economic growth, and ethical consumption.

The Makkah Halal Forum continues to serve as a beacon of thought leadership, driving the Halal industry toward a future that is not only profitable but also principled. As the panelists aptly demonstrated, the journey toward a sustainable Halal ecosystem is a collective effort—one that requires vision, commitment, and unwavering adherence to Islamic values.

Stay tuned for more updates from the Makkah Halal Forum as we explore the latest trends, challenges, and opportunities shaping the Halal industry.