Food Ethics (2020) 5:13

https://doi.org/10.1007/s41055-020-00072-7

RESEARCH ARTICLE

Understanding halal food market: Resolving

asymmetric information

Bamidele Adekunle 1,2 & Glen Filson

1

Accepted: 1 May 2020/

# Springer Nature Switzerland AG 2020

Abstract
People consume food not only to satisfy hunger but also for cultural, religious and social
reasons. In Islam there is an emphasis on cleanliness in both spirit and food (Agriculture and
Agri-food Canada 2011). Eating is perceived to be a form of worship (Talib et al., 2015). Halal
is Islamic dietary law derived from the Quran and Hadith, the practices of the Prophet
Mohammad, Ijma and Qiyas (Regenstein et al., 2003). Halal goes beyond religious obligation.
It is part of the Islamic way of life which includes not only dietary requirements but also
behaviour, speech, dress, and conduct (Talib et al., 2015a). Furthermore, observing the tenets of
halal can guarantee food safety and serve as a business model for the Canadian export market.
The benefits of halal notwithstanding, a lack of trust in the market can jeopardize the food’s
perceived authenticity and provide traceability challenges. This especially affects Somali,
Syrian, Pakistani and Afghani Canadians who prefer halal meat’s taste and require it for cultural
and religious reasons. New policies are therefore a prerequisite to strengthening the halal food
value chain thereby reducing asymmetric halal information.

Keywords Halal foods . Asymmetric information . Crypto-labelling . Somalis . Immigrants . Food

sovereignty . Canada

Introduction

To improve our understanding of the halal food market in Canada, including the challenge of
imperfect information imminent in the market, this paper: (a) reviews the halal food market;
A version of this paper was presented at the Canadian Council of Small Business and Entrepreneurship (CCSBE)
2018 annual conference, May 3-5, Halifax, Nova Scotia, Canada.

* Bamidele Adekunle
badekunl@uoguelph.ca

Glen Filson
gfilson@uoguelph.ca

1
SEDRD, University of Guelph, Guelph, ON, Canada
2
Ted Rogers School of Management, Ryerson University, Toronto, ON, Canada
 13 Page 2 of 22 Food Ethics (2020) 5:13

(b) presents a conceptual framework on how asymmetric halal food market information can be
resolved; (c) analyzes the halal niche market in the Greater Toronto Area of Canada using
Somalis as our unit of analysis; and (d) recommends workable and desirable policies to
promote the halal food sector in Canada.

Halal food

People consume food not only to satisfy hunger but also for cultural, religious and social
reasons. Islam emphasizes cleanliness in both spirit and food (Agriculture and Agri-food
Canada 2011). Eating is considered a form of worship (Talib et al., 2015). Halal food is based
on the Islamic dietary standard derived from the Quran and Hadith as well as the
practices of the Prophet Mohammad, Ijma and Qiyas (Regenstein et al., 2003). Halal
goes beyond religious obligation to the point where it is a vital constituent of the
Islamic way of life which includes not only dietary requirements but also behaviour,
speech, dress, and conduct (Talib et al., 2015a).
Islamic Jurispudence determines what is permitted or ‘halal’, and what is prohibited or
‘haram’ (Regenstein et al. 2003; Fuseini et al., 2017). Halal applies to meat and dairy products,
prepared and packaged foods, cosmetics, pharmaceuticals, nutritional and dietary supplements,
and packaging materials (Regenstein et al. 2003). To be considered halal products must not
break such Islamic dietary standards as the inclusion of prohibited animals and their
byproducts. As well, the animals must be slaughtered in a specific manner to be considered
halal (Regenstein et al. 2003; Fuseini et al. 2017). According to the Quran, all food created by
Allah are permissible except pork, carrion, blood or the meat of animals that died of causes
other than proper slaughtering, food that has been dedicated or immolated to someone other
than Allah, alcohol, intoxicants and inappropriately used drugs (Quran II:172; Quran II:168;
Quran XX:81). Healthy eating is also a very important part of halal dietary laws. Specifically,
prohibited items also include animals that have been killed by strangulation or falling from a
height. Also prohibited are animals that have been gored or devoured by wild animals,or
exposed to inappropriate drug use (Quran V:3, Chaudry 1992; Regenstein et al., 2003;
Adekunle 2019).
The slaughtering process is a major component of halal meat. The law (Quran II:172;
Quran II:168; Quran XX:81) states Muslims are only permitted to consume meat that was
blessed, which is typically interpreted to be at the time of slaughter (Regenstein et al., 2003:
112). When an animal is slaughtered, it must be killed by a sane (mentally reasonable and
capable), adult Muslim by “cutting the throat in a manner that induces rapid and complete
bleeding, resulting in the quickest death” (Regenstein et al., 2003: 121). Some believe that
halal food requires only Muslims to slaughter an animal, it can still be considered halal if the
animals are slaughtered by other people of the book (“Ahl-al-Kitab”) including Jews and
Christians1 (Quran V:5; Chaudry 1992; Regenstein et al. 2003). Many halal and non-halal
eaters are not aware of this important tenet of halal food.
There are differences of opinion regarding what constitutes lawful halal food. For instance,
controversy exists over the stunning of animals before slaughter, using machines to slaughter,
and the recitals/prayer prior to slaughter (Sungkar and Hashim 2009; Fuseini et al. 2017). Even

1
Herein, ‘people of the book’ refers to Muslims, Jews and Christians as is generally agreed to by Islamic schools
of thought.
Food Ethics (2020) 5:13 Page 3 of 22 13

though halal is an Islamic dietary standard, Muslim communities are not homogenous so there
are differing opinions and interpretations. As explored later in this paper, this needs to be
considered when businesses seek halal certification and sell their goods domestically and
internationally.
This article explores halal foods within the food sovereignty and food ethics context. Food
sovereignty is “the right of each nation to maintain and develop its own capacity to produce its
basic foods respecting cultural and productive diversity” (Patel 2009). It involves people’s
right to dictate their own food and production systems, putting them at the centre of the food
system instead of markets and corporations (Patel 2009). People have the right to obtain
healthy and culturally appropriate food produced through appropriate and desirable methods.
They also have the right to acquire adequate information about how the food was produced. To
be trusted as halal, people must own their food systems (Wittman and Desmarais 2012;
Adekunle et al. 2015; Adekunle 2016). The culturally appropriate food of a particular ethnic
group is cuisine which reflects their own values, norms, religion and preferences. It is usually
dynamic and may change over time. (Adekunle 2016).
Adekunle et al. (2015) presented a framework among Refugee Path Immigrants (RPIs),
food sovereignty and community economic development in Winnipeg, Canada. They argue
that RPI integration can be fostered by the availability of and access to culturally appropriate
foods. This access provides them with enhanced food sovereignty which is essential to feeling
part of the multicultural fabric of the country. Since halal foods are very important to the
integration of recent Canadian Muslim immigrants, it is important to ensure that these halal
foods are authentic and trusted. RPIs can enhance their food sovereignty by belonging to
community shared agriculture (CSA) where their cultural foods can be grown. It is also
beneficial when they can buy from a trusted specialized butcher store and attend farmers’
markets where foods are fresh and locally produced.
Securing a desirable ethical standard in the halal food market from production and
slaughtering, to processing is essential for Muslim Canadians’ achievement of food sover-
eignty. A trusted halal food market guarantees access to culturally appropriate foods for
consumers who intend only to eat halal foods. Because some stakeholders have doubts about
whether some products labelled or presented as halal are not necessarily halal, trust must be
established in the halal food market. According to Miele (2016), the most pressing issue that
will need to be addressed is not how to kill farm animals ‘humanely’ while finding ways to
reduce the number of animals that need to be killed for food. Having halal food is one way to
ensure that only desirable meats are in the market. This also requires that mass production be
significantly reduced. This notwithstanding, there are problems with the authenticity of halal
food in Europe (Miele 2016) and elsewhere (Demirhan et al. 2012). Ethical issues include
mislabelling, illegal slaughter, and contamination (Fuseini et al. 2017; Chuah et al. 2016;
Murugaiah et al. 2009; Demirhan et al. 2012). These issues underline the need to ensure
authenticity (Murugaiah et al. 2009; Demirhan et al. 2012; Miele 2016).

Halal food and the certification process in Canada

Asymmetric information arises as a result of lack of desirable information about the product
offered for sale. The seller has more information about the quality of the product than the buyer
and may offer a lower quality product to the buyer. This is a challenge in the halal food market
because certification may be compromised, the process of production may not follow the
 13 Page 4 of 22 Food Ethics (2020) 5:13

standard stipulated by the tenets of halal and there may be misconceptions about what is
permissible.
Halal certification and pertinent laws in Canada, New Zealand, and Malaysia including
global halal standards are discussed below. These countries were selected based on their
activities in the halal certification process, their interest in reducing asymmetric information in
the global halal food market including their halal authentication and the consumer trust issues
along the halal supply chain. We then present a conceptual framework which explains the
impact of asymmetric information and conclude with an analysis of halal stakeholders among
the Somali community in the Greater Toronto Area (GTA).

Methods and data

Because the halal food market is a global niche market, we review relevant food theory
literature appropriate to the understanding of the asymmetric information in the halal market in
Canada and worldwide prior to developing a conceptual framework derived from our field
experiences. To validate the conceptual framework regarding asymmetric halal food market
information (Fig. 1 below), Somali Canadians2 in the GTA constituted our unit of analysis. We
organized three focus groups with Somali refugee path immigrants (RPI)3 in Etobicoke,
Ontario (mostly people from the south of Somalia including Mogadishu); Scarborough,
Ontario (respondents from the northern part of Somalia – referred by some as Somaliland
including Hargeisa); and the campus of Ryerson University with Somali undergraduate
students from Ryerson University, York University and University of Toronto. The focus
group at Etobicoke had eight participants (Sept. 5, 2015), seven participants were present at the
Scarborough meeting (Sept. 12, 2015), and nine participants mostly students of tertiary
institutions attended the third focus group (Nov 20, 2015). Notes were taken at the location
and documented. Apart from the three focus group discussions we did in-depth interviews with
18 people from the community who are knowledgeable about the Somali food preferences,
including a few Somali Islamic scholars, who did not participate in the focus group. The 18
interviewees were selected based on the snowball technique4 and they include the main
grocery buyers from different households, Somali restaurants and grocery stores owners and
community leaders. All the interviews were recorded and transcribed. This empirical approach
has been used in several studies including Adekunle et al. (2015). We reached a saturation
point by the time we interviewed 10 respondents. Even though we do not have enough data in
this study component to use inferential statistics, the findings nevertheless allow us to make
moderatum generalizations (MG) (for a detailed explanation of MG see Williams 2000).
All procedures performed in this study were approved as appropriate ethical research
standards by the Research and Ethics Board (REB) of our University with regard to the use
of human subjects for focus group discussions and in-depth interviews. All participants also

2
Somalis were selected because this was part of our Social Science and Humanities Research Centre funded
project examining refugee path immigrants’ food preferences. Somali Canadians are the largest RPI group in the
GTA.
3
People who enter Canada through refugee routes are referred to as Refugee Path Immigrants (RPIs) (Adekunle
et al. 2015).
4
This purposive sampling technique required the referral to our ECV Ontario research group by people who are
knowledgeable about the phenomena examined. The sample was thought to have achieved saturation when there
was little or no new information being provided by additional respondents.
Food Ethics (2020) 5:13 Page 5 of 22 13

gave their consent to participate in the research. The data from our fieldwork are anonymous
and confidential.

Market for halal foods

There were 1,053,945 Muslims in Canada, according to the 2011 National Household Survey
(Statistics Canada 2017). This number is expected to grow to approximately 3 million by
2030, comprising more than 6 % of Canada’s population (Pew Research Centre 2011). The
demand for halal in non-Muslim countries can be explained by the migrant population’s efforts
to maintain their religious and cultural identities in a host country that encourages the
availability of culturally appropriate foods promoting integration (Adams 2011), as well as
the increasing halal awareness of non-Muslims (Aziz and Chok, 2013). For immigrant
populations, especially among second and third generation Muslims, halal is tied to identity
and familiarity. Moreover, halal food is not only connected to religion, but also holds symbolic
and emotional value (Adams 2011; Bonne and Verbeke, 2008).
The demand for halal food in North American countries is increasing (Agriculture and
Agri-food Canada 2011; Abd Latif et al. 2014). The Muslim population in the United States is
developing a stronger market presence every year (Regenstein et al. 2003; Abd Latif et al.
2014). Within the United States, domestic sales have increased more than 70% since 1995

Fig. 1 Asymmetric Information in the Halal Food Market

 13 Page 6 of 22 Food Ethics (2020) 5:13

(Agriculture and Agri-food Canada 2011). There is an increase in the number of halal markets
and ethnic food stores5 throughout the United States and Canada (Regenstein et al. 2003;
Govindasamy et al., 2007; Filson and Adekunle 2017). Not only is the population of Muslims
in North America growing, but the Pew Research Centre (2011) expects that the global
population of Muslims will expand within the next 20 years, from 1.6 billion in 2010 to 2.2
billion in 2030. This is an increasingly important market, not only because of the population
growth rate, but because the GDP of Muslim countries is growing at a faster rate than that of
the global West (Agriculture and Agri-food Canada 2011; Talib et al. 2015a) and they can
afford to demand for more halal certified products from their domestic market and interna-
tionally. The halal food market is estimated to make up 16% of world trade and is worth
around USD6356 billion a year (Agriculture and Agri-food Canada 2011; Saleem 2011;
Zulfakar et al. 2012), while the growth rate of this industry is estimated at 7% (Aziz and
Chok, 2013). Most of the global demands are concentrated within Asian countries, including
the Gulf countries (Sungkar & Hashim 2009). The middle class and purchasing power in
Muslim countries has been rising, increasing the value of the global halal market (Kabir 2015).
There are opportunities for producing and marketing halal food in North America, as well
as globally, to Asian countries with large Muslim populations (Regenstein et al. 2003). Halal is
no longer just “by Muslims, for Muslims,” thus non-Muslim countries are able to supply the
demand for halal food within their own countries and around the world (Talib et al., 2016).
Muslim countries produce less than 20% of the global halal meat demand (Ghani 2012).
Largely non-Muslim countries including Argentina, Australia, Brazil, Canada, China, France,
India, New Zealand, the UK and the United States are already producing and exporting halal
meats (Muhammad et al. 2009; Ontario Agri-Food Technologies, n.d.; Sungkar & Hashim
2009). For example, the GCC (Gulf Cooperation Council) countries import over 54% of its
halal meat from Brazil (Sungkar & Hashim 2009). Production of halal can be a business model
that enhances competitive advantage.
Canada has the potential to meet its own domestic demand for halal food and to help meet
the global demand, particularly in the Middle East and Malaysia. Canada is already the world’s
fourth largest food exporter. As such, Canada possesses the resources, innovation, technology,
the supply chain, and the reputation for high quality products (Ontario Agri-Food
Technologies, n.d.). Barriers to Canadian exports into this global market exist including
certification requirements, low market awareness and market presence, lack of cultural
awareness, low resources and funding, no collaboration between the government or companies
(Ontario Agri-Food Technologies, n.d.). Even though Canada needs to reduce these barriers,
certification is central to accessing the halal market (Agriculture and Agri-food Canada 2011).
Currently the Islamic Food and Nutrition Council of America (IFANCA) is recognized around
the world (Agriculture and Agri-food Canada 2011). Thus, if producers and processors attain
certification from the IFANCA, they can access the global halal market (Agriculture and Agri-
food Canada 2011).
However, when entering the global halal market, it is important to acknowledge that
Muslims and the halal market are not homogenous (Agriculture and Agri-food Canada
2011). The market is divided by location, income, ethnicity, and various other factors

5
Stores developed to provide the needs of specific cultural groups, such as the increasing number of halal
butcher stores serving the needs of Somalis, Pakistanis, Afghanis among others.
6
As of March 20, 2020: 1 USD = 1.42 CAD, and 1Euro = 1.56 CAD (https://www.bankofcanada.
ca/rates/exchange/daily-exchange-rates/)
Food Ethics (2020) 5:13 Page 7 of 22 13

(Agriculture and Agri-food Canada 2011). Moreover, many Muslim countries still mainly rely
on local non-tradable food products (Agriculture and Agri-food Canada, 2011) and studies
have shown that most consumers approve of specific countries of origin (Rios et al., 2014). For
example, a Kuwaiti study found that consumers favoured products from the Gulf countries
because they trust their halal certification (Rios et al. 2014). Trust, as will be discussed later, is
therefore a major part of product preference. If companies wish to compete in the halal
industry in the Gulf countries, they should seek a certification that is authenticated by Arab
institutions (Rios et al. 2014), such as IFANCA.
Not only are non-Muslim countries producing more halal foods, halal consumption is
growing among non-Muslim groups (Aziz and Chok, 2013; Muhammad et al., 2009).
Travelling and exposure to other cultures have changed the way non-Muslims eat. Halal is
even becoming a symbol for quality, safety, hygiene, more humane and ecological production,
and connected to a healthy lifestyle in both Muslim and non-Muslim circles (Agriculture and
Agri-food Canada 2011; Aziz & Chok 2012; Saleem 2011; Talib et al. 2015; Zulfakar et al.,
2012). Halal awareness, halal certification, and perception of the halal brand have positive
effects on the intention of non-Muslims to purchase halal foods (Aziz & Chok 2012). Thus
there are considerable opportunities for marketing halal foods to Muslims and non-Muslims
alike, in Canada and around the world for those Canadian farmers and merchants able and
willing to take advantage of the opportunity.

Halal certification for businesses

Businesses must obtain a halal certificate to access halal markets. Halal certification is a food
safety certificate that indicates companies, including abattoirs, production and distribution
facilities follow halal practices (Lam & Alhashmi 2008; Talib et al.2015). The certification is
typically issued by an Islamic organization that has inspected and declared that the products
and their constituent ingredients meet Islamic dietary standards set out by the certifying body
(Lam & Alhashmi 2008; Riaz 2010; Talib et al. 2015, 2016). Each certifying body tends to
have a unique logo that is displayed on the product packaging or within a business (Regenstein
et al. 2003; Talib et al. 2015). This certification process is intended to protect “Islamic cultural
and religious prescriptions” (Adams 2011), while also allowing for companies to make legal
claims, have credibility with consumers and expand market opportunities (Regenstein et al.
2003). When seeking certifications, companies should be aware of several factors: the
organization’s name, and the organization’s responsiveness and willingness to explain and
problem solve (Regenstein et al. 2003). The company needs to ensure that what the certifica-
tion organization is offering aligns with their needs (Regenstein et al. 2003).
Businesses become halal certified because they want to provide consumers with what they
value (Ghani 2012). Currently there is asymmetric information in the halal market, leaving
producers and processors with more knowledge about the product than the consumers.
Consumers may have reservations about whether the meats from mainstream grocery stores
were processed based on halal standards and certification is an important step to conveying
information and building trust between processors and consumers. Other reasons for a business
to become halal certified include: demand and pressure from consumers, product safety and
quality, government regulatory policies, market expansion opportunities, market competition
and reputation and employee capacity development (Talib et al. 2015). On the other hand,
limitations to certification include lack of skills and knowledge in the workforce, training
 13 Page 8 of 22 Food Ethics (2020) 5:13

investment, in both time and money, low employee motivation with respect to certification,
resistance to change in standards, lack of market awareness, insufficient capital and training
(Talib et al. 2015).

Halal in Canada and the world

Canadian laws & certifying bodies

While Muslim countries have centralized agencies to oversee halal regulations (Zulfakar et al.
2012), governments of non-Muslim countries hesitate to become involved in religious-based
food policies (Adams 2011; Hui 2016). These reservations arise from legal, political, and
socio-cultural issues, such as different interpretations of halal rules, and tensions between
animal rights activists and religious groups regarding stunning prior to slaughter (Adams 2011;
Alhabshi 2013; Hui 2016). As such, the kosher7 and halal regulations in Canada are written so
that the Canadian Food Inspection Agency (CFIA) is not involved in constructing or
commenting on religious definitions of dietary laws because they may be perceived to be
contentious (Charles 2016). Halal agencies in Canada are private, voluntary organizations, so
the government does not interfere except in sanitation and hygiene issues (Alhabshi 2013;
Zulfakar et al. 2012).
After growing concerns about halal fraud, as of April 4th, 2016, the CFIA requires all foods
labeled or implied to be ‘halal’ to state the name of the certifying body (Canadian Food
Inspection Agency 2016; Hui 2016; Kilkenny 2016). Although this is a step in the right
direction, there are still concerns that the CFIA does not properly oversee the certifying bodies
(Hui 2016). The agency does not indicate which organizations are qualified to certify products
as halal, nor determine the criteria for goods that are labeled ‘halal’ (Charles 2016).
There are a number of halal certifying bodies in Canada that generally follow the same halal
guidelines which include, but are not limited to, the Islamic Society of North America’s
(ISNA) Halal Certification Agency (HCA), Halal Monitoring Authority, The Islamic Food and
Nutrition Council of Canada (IFANCC), Halal Advisory Group, and Canadian Halal Food (see
Table 1). Certifying authorities may interpret halal guidelines differently or perform assess-
ments dissimilarly. Some halal certifying bodies in Canada regularly inspect facilities, while
others perform regular audits (Hui 2016).

New Zealand

New Zealand has relatively few Muslims, however, it was the first predominantly non-Muslim
country to create a halal food industry (Ghani 2012). The country has taken advantage of the
global halal meat market and exports halal foods to several Muslim markets (McKenzie 2010).
While Canada has dozens of certifying bodies, New Zealand has a national Muslim organi-
zation called The Federation of Islamic Associations of New Zealand Inc. (FIANZ) that
certifies 90% of the halal meat production in the country (FIANZ 2014; Ghani 2012).
Government regulation is used to protect the halal export industry. As of 2010, this

7
Kasruth defines the foods that are permitted for the Jews and how they should be prepared. The dietary laws
have Biblical origin, mainly from the five books of the Holy Scriptures, the Torah. They set standards that
community members should follow without a need for explanation (Grunfeld, 1972; Regenstein et al., 2003)
Food Ethics (2020) 5:13 Page 9 of 22 13

organization and all other halal certification bodies in New Zealand are regulated by the
government’s New Zealand Food Safety Authority (NZFSA) to ensure halal standards, and
credibility with trading partners (McKenzie 2010). The NZFSA has developed a set of rules
halal certifiers must follow (McKenzie 2010). FIANZ is the sole certifier of exports that are
sent around the world (FIANZ 2014; Ghani 2012). New Zealand exports 80–90% of its
agricultural products, in which 10% of the meat and dairy products are exported to Muslim
countries, equating to the value $2–2.2 billion (Ghani 2012).

Malaysia

Malaysia is another major global halal food producer. Malaysia’s Muslims constitute approx-
imately 62% of the population (Aziz and Chok, 2013). Even within Malaysia non-Muslim
consumers have a great awareness and acceptance of halal goods (Aziz and Chok, 2013). As
such, Malaysia is one of the world’s leaders in the halal industry and it is the only country with
an organized and systematic halal assurance system (Islamic Tourism Centre of Malaysia
2017). The government provides support to the certification process that has allowed the
industry to develop a homogenous set of halal standards (Aziz and Chok, 2013; Muhammad
et al. 2009). This has transformed the local halal industry into a global competitor in a growing
global market (Islamic Tourism Centre of Malaysia 2017). The Malaysian halal certification is
the well-established and widely recognized certification globally (Muhammad et al. 2009).
With the help of the Malaysian Government’s efforts to strengthen the halal supply chain and
create a halal assurance system, Nik Muhammad et al., 2009) suggest that Malaysia can
become a global halal hub. Government investment and involvement in the halal food sector is
beneficial for the industry. Food safety and assurance can only be guaranteed when govern-
ment is involved with the regulatory process. Even if the private sector is in charge the
government should regulate, monitor and audit the organizations.

Australia

Australia’s proximity to the Asian-Pacific Muslim population provides opportunity for halal
production and export (Kabir 2015). For instance, Indonesia’s population is approximately
87% Muslim. These Indonesians mainly prefer higher quality halal products from abroad
possibly due to credible standards (Cochrane 2017). Australia is already a global leader in beef

Table 1 Canadian Halal Agencies

Certifying Agency Website

Islamic Society of North America: Halal http://www.isnahalal.ca/

Certification Agency (ISNA: HCA)
HMA Canada (Halal Monitoring Authority) http://hmacanada.org/
Canadian Halal Food http://www.canadianhalalfoods.com/
The Islamic Food and Nutrition Council of Canada (IFANCC) http://www.ifancc.org/
Halal Advisory Group http://www.halaladvisory.ca/
Canada Halal Examination and Certification (CHEC) http://www.canadahalalec.com/chec/
Halal Montreal Certification Authority http://www.halalmontreal.com/
BC Muslim Association http://www.thebcma.com/
Canadian Halal Food Certifying Agency http://www.chfcahalal.com/
Halal Expertise http://www.halalexpertise.com/
 13 Page 10 of 22 Food Ethics (2020) 5:13

production, thus collaboration with Muslim countries could expand its potential to be a global
halal beef producer (Kabir 2015). This potential extends beyond beef production into all meat
and animal byproduct production. Approximately 50% of all Australian chicken and about
32% of cheese is halal (Cochrane 2016). As explored by Shahriar Kabir (2015), “During 1990-
2011, on average, Australia supplied 11.52% of the total global market demand for halal,
followed by the USA with 7.4% and Brazil with 6.23%” (Kabir 2015: 63). Currently India and
Brazil are meeting approximately 80% of the growing demand for halal beef, Australia has 123
halal-certified abattoirs, 21 private (not public) certifying authorities (Cochrane 2016). There is
no national plan or government oversight of the halal industry in Australia (Cochrane 2016). A
regulatory body would improve the system and increase transparency and traceability, which
would then help facilitate trade (Poniman et al., 2015).
Australia is also a unique case, as only 2.2% of its population are Muslim, indicating that
much of the halal production is destined for export (Kabir 2015; Cochrane 2016). In 2015
Australia exported an estimated $13 billion in halal foods (Cochrane 2016). However, in the
past decade there has been an anti-halal movement in Australia that has pressured companies
to remove their halal certification thus endangering trade contracts (Cochrane 2016; Thompson
2015). The anti-halal movements make claims that halal certification companies support and
fund terrorist organizations, a claim that was investigated by the Australian Government and
found to be false (Cochrane 2016; The Holy Quran and Thompson, 2015). Some halal
certification organizations, such as Halal Australia, have attempted to correct these miscon-
ceptions about halal by providing information about halal, how it benefits the Australian
economy, and how funds from halal certification are used (Halal Australia 2015). Moreover,
they stress that halal funds are not used for terrorist activities or other extreme political
religious organizations (Halal Australia 2015).

Global halal standards

As discussed earlier, because halal is a religious issue, many states are not willing to be
involved in the certification process, leaving certification to be conducted by many small
agencies (Sungkar & Hashim 2009). There are hundreds of halal certifying bodies around the
world, however, there is no unified standard of halal because of the differences in the schools
of thought within the global Muslim population (Alhabshi 2013). Nor is there is a global
monitoring body that is capable of overseeing the use and abuse of halal logos (Adams 2011;
Agriculture and Agri-food Canada 2011; Sungkar & Hashim 2009). Several researchers
(Alhabshi 2013; Ghani 2012) advocate the creation of a Global Halal Standard or an
International Standards Organization model that is adopted worldwide. Within Canada, the
authors believe that the government should create a national monitoring agency that can set out
a national halal standard, oversee certifying agencies to ensure legitimacy and facilitate the
trade of halal goods.

Authenticity and consumer trust

The halal food industry is characterized by asymmetrical information, where producers and
sellers possess more knowledge than consumers (Alhabshi 2013). Authenticity and consumer
trust are crucial to ensure the success of the global halal supply chain. Because the character-
istics of halal are not visible, they cannot be evaluated by consumers at the point of purchase.
Food Ethics (2020) 5:13 Page 11 of 22 13

They can be referred to as experience goods8 under ‘information economics’ because the
desirability of the food is known after consumption, thus, consumers need to trust the
information with which they are provided (Bonne and Verbeke, 2008). In an industry where
fraud and authenticity are huge challenges (Talib et al. 2015), trust plays an important role in
halal product preference (Rios et al. 2014). Trust is about information being converted in a
transparent way (Bonne and Verbeke, 2008).
Several halal authenticity cases have arisen including fake labels, cross contamination –
when halal food comes in contact with non-halal food or nonfood product (Riaz and Chaudry,
2004), improper slaughter and treatment of animals, that have tarnished the halal food
industry’s credibility (Lam & Alhashmi 2008; Sungkar & Hashim 2009; Zulfakar et al.
2012). Since the food chain has lengthened and lifestyles have changed, there is increasing
skepticism and suspicion regarding halal products (Bonne and Verbeke, 2008; Nakyinsige
et al., 2012; Rios et al. 2014). Muslims are becoming increasingly concerned about the
authenticity of the meat they eat, especially due to the incorporation of prohibited ingredients
such as L-cysteine, glycerine, gelatine, use of pork and blood ingredients in supposedly halal
food as well as inappropriate methods of slaughter (Nakyinsige et al. 2012; Zulfakar et al.
2012). Studies have found that Muslim consumers in Europe trust local Muslim butchers more
than the meat products found in mainstream supermarkets (Bonne and Verbeke, 2008;
Zulfakar et al. 2012). Another study conducted in Vancouver found that shopping patterns
are tied to religion, as well as ethnic connections and established trust with shop owners
(Alhabshi 2013). There are also increasing concerns about the risk of cross-contamination,
which means monitoring and regulation should be ensured throughout the entire supply chain
(Nakyinsige et al. 2012). Furthermore, there should be separate spaces and clear labelling for
halal and non-halal products (Nakyinsige et al. 2012). Transparency could be increased
through “crypto-labelling,” a digitized process based on blockchain technology that would
trace and record the product’s path from farm to store, then allow consumers to scan and read
the crypto-labels in the store. Crypto-labelling would enhance trust between producers and
consumers, as well as allow for food sovereignty to coexist within international trade
(Adekunle 2016).

Supply chain management

Supply chain management is the “integration of business process from end-user through
original suppliers that provide products, services and information that add value for customers”
(Talib et al. 2015a: 47). Supply chain management involves the internal coordination and
integration of every link along the chain (Talib et al. 2015a). The main stages in the supply
chain are origin, agricultural system, primary and further processing, final processing, distri-
bution, retail, food services, and consumption (Zulfakar et al. 2012). For Muslims, the entire
halal supply chain must be halal, from “seed to fork” (Tieman 2011). The halal supply chain is
similar to other supply chains except that within the halal supply chain, each component, from
raising animals to the consumer, must follow the elements of halal practices, processes and
procedures, including the absence of haram, and reduction of the risk of halal contamination
(Talib et al. 2015a; Tieman 2011; Zulfakar et al. 2012). In sum, the Muslim consumer’s trust

8
In the halal niche market, our fieldwork revealed that even after consumption, very few consumers can
categorically state that a meat is halal or not. Only people who are very familiar with the taste of halal food,
properly processed and slaughtered, can usually discern a non-halal meat just after consumption.
 13 Page 12 of 22 Food Ethics (2020) 5:13

requires that contamination be avoided along the food supply chain (Tieman 2011) and clear
steps are available to ensure that this is done.
Integrity is difficult to maintain throughout the supply chain when there are logistics issues
with cross-contamination between stages of the supply chain, such as in storage or transpor-
tation (Tieman 2011; Zulfakar et al. 2012). A number of factors can be employed that will
develop the halal supply chain including assets dedicated to the segregation of halal goods
along the supply chain, information technology for tracking and monitoring, human resource
management for a skilled work force, stakeholder collaborative supply chain relationships,
halal certification authenticity and halal traceability to monitor and improve safety as well as
increase transparency (Talib et al. 2015a).
Enhanced traceability can be achieved through the use of information technology such as
Radio Frequency Identification Device (RFID), barcodes (Zulfakar et al. 2012) and crypto-
labelling based on blockchain technology (Adekunle 2016). Cost-effective software has
already been developed that collects data using hand-held electronic devices coupled with
an online cloud system to create reports (Roberts n.d.). This kind of traceability system allows
any mistakes to be caught before the product reaches the consumer (Roberts n.d.). For
instance, the local government in Dubai has attached smart halal labels produced by a Swiss
company which allow customers to scan each item to view its origin and other important
information about the product (Whitehead 2016).
Integrity and trust are therefore necessary in order for the halal food industry to be
successful (Agriculture and Agri-food Canada 2011; Zulfakar et al. 2012). The integrity of
the halal supply chain needs to be preserved to maintain consumer confidence and trust in halal
goods (Bonne and Verbeke, 2008; Sungkar & Hashim 2009). Muslim consumers tend to be
educated and aware of their food consumption (Zulfakar et al. 2012), however, many are
concerned about the entire supply chain (Zulfakar et al. 2012) and are generally willing to pay
a premium for reliable halal supply chain logistics (Talib et al. 2015a). For instance, Islam
emphasizes the ethical and humane treatment of animals throughout their lives (Quran V:3;
Hadith (Bukhari) 42:11; Regenstein et al., 2003), therefore halal producers should be procur-
ing their meat from sources that treat their animals humanely.
To improve the halal supply chain there is a need for governmental support to promote the
halal industry, to aid in logistics, to create legislation to protect consumers and to provide
incentives for businesses to certify (Talib et al. 2015a). Governments should provide busi-
nesses with support in the form of tax exemptions or provide grants for small companies to
enable them certify their food halal (Talib et al. 2015). The government could also provide
support in transportation planning, logistics, information technology, halal certification and
traceability (Talib et al. 2015a). As with the New Zealand and Malaysian governments, the
requisite backing for their halal industries should be provided by creating a homogenous set of
halal standards and supporting the halal certification process thereby ensuring its credibility
with consumers abroad (Aziz and Chok, 2013; McKenzie 2010; Muhammad et al. 2009).
Canada has the capacity to increase production of halal food to meet the growing domestic
and global demands for halal food (Filson and Adekunle 2017). However, Canadian busi-
nesses face halal certification barriers including the various certification requirements, the
relatively low level of market awareness and market presence, insufficient resources and
funding, a lack of collaboration among federal and provincial governments and some prob-
lematic issues associated with the companies that are attempting to produce for the halal food
market (Ontario Agri-Food Technologies, n.d.). Novertheless, government involvement in this
industry has the potential to support this industry not only through regulating certification
Food Ethics (2020) 5:13 Page 13 of 22 13

bodies and creating a set of standardized halal rules, but also by helping to raise awareness
among people along the halal food supply chain. To enable this business to expand in a
manner that is credible to halal consumers, greater government funding is required than is
presently available particularly in research and development. Federal agencies like Health
Canada, the Canadian Food Inspective Agency (CFIA) and Agriculture and Agri-Food Canada
(AAFC) must work with key Provincial government ministries. The Ontario’s Ministry of
Agriculture, Food and Rural Affairs (OMAFRA) and Québec’s Ministry of Agriculture,
Fisheries and Food (MAPAQ) as well as the Ministries of Health and the Ministries of
Agriculture and Food and municipal health authorities, hospital boards and school boards
could and should be involved in the development of the sector. Collaboration along the halal
value chain will promote credibility in the sector. The global halal supply chain also needs to
be strengthened to foster greater consumer trust. Traceability systems need to be implemented
using IT solutions, such as crypto-labelling.

Conceptual framework

The framework presented in this model (Fig. 1) is based on the ‘economics of information’
(Akerlof 1970) that addresses the implications of lack of information in the market. In the halal
food market, the seller, butcher, or processors have more information than the buyers and this
scenario translates to adverse selection in the market. We developed the framework to posit
how certification and labelling (Marette et al. 1999; Strausz 2005; Verbeke 2005) and
monitoring which ensures traceability (McCluskey 2000; Hobbs 2004; van Amstel et al.
2008) can reduce adverse selection in the halal food market. Accessibility to authentic halal
food in an ethical food system (Murugaiah et al. 2009; Demirhan et al. 2012; Chuah et al.
2016; Fuseini et al. 2017) will help to guarantee food sovereignty for consumers for whom
halal food is culturally appropriate (Patel 2009; Wittman and Demarais 2012; Adekunle et al.
2015; Adekunle 2016; Filson and Adekunle 2017).

Asymmetric information in the halal food market9

Figure 1 explains the hidden and visible asymmetries in the halal food market. We present our
framework with the understanding that consuming halal food is a pseudo-experience good10
because one can only confirm the food’s desirability after consumption if one is highly familiar
with the taste and/or smell of halal food. It is not a search good11 because one can not discern
the qualities when buying through inspection as one would do for a car, or after tasting in the
case of experience goods. It is pseudo-experience because not all consumers know the taste of
halal food for sure even after consuming it. In this market, it is only experienced halal
consumers, who have tasted both halal and non-halal food over the years, who can usually
see through the opacity of the food. This is still very difficult to discern for a lot of people who
consume halal. They just consume hoping that it’s truly halal and if not, the consumer of halal
for religious reasons thinks the sin of deception is on the sellers who succeeded in convincing

9
This framework is based on information economics as presented in a George Akerlof’s (1970) seminal paper
“The market for “lemons:” Quality and the market mechanism.”
10
A good that the quality may be discerned after consumption if the consumer has a prior experience.
11
A product that quality can be observed based on physical appearance.
 13 Page 14 of 22 Food Ethics (2020) 5:13

the consumer to believe that the non-halal food was halal food. This explanation will suffice if
consumers’ benefit is only religious but there are health benefits associated with the consump-
tion of halal that will be lost if the bad ‘haram’ food was mistakenly selected as good ‘halal’
due to asymmetric information.
If the probability of getting halal is q, then the probability that a product is non-halal is 1-q.
Availability of appropriate information will reduce adverse selection in the market for halal
food. Appropriate information transforms halal customers into well educated consumers.
Consumer education, third party monitoring, crypto-labelling, and appropriate regulation can
increase the probability that the market can be moved from 1-q to q. If this is not addressed, the
‘bad’ will often crowd out the ‘good’. Budgets may make many people purchase a cheap
product thus making the undesirable bad state the more likely. Moreover, if the label is
deceptive, the people who can afford to pay a premium for the halal attributes will also end
up purchasing the bad (non-halal) product. All these anomalies make the problem of adverse
selection damaging.
The probability that a given food is halal will be enhanced by adequate monitoring
by a third party such as government or a body accredited by the government.
Monitoring will ensure that food processing abides by the stipulated standards ex-
pected of a product that is halal. It is important to ascertain that product and process
are appropriate and contamination is eliminated. The possibility for cutting corners
and shirking arise because of mass production and the intention of cutting corners to
maximize profit, a trait that is inherent in all businesses. If monitoring is in place,
moral hazard12 is reduced or completely alleviated. Furthermore, food safety is a
public good which creates positive externality in terms of healthy food consumed by
the populace and the indirect impact on government activities by reducing the amount
of money spent on health care and the number of days employees who take sick leave
from their organizations due to the consumption of a dubious diet (Adekunle and
Filson 2017).
As stated above, moral hazard and the probability of producing a bad product will
be reduced via monitoring – for example, meat inspectors should be present in
abattoirs (slaughter-houses) and DNA testing should be done on processed foods by
government agencies. The production of authentic halal food can also be enhanced by
certification in the case of large organizations and interpersonal relations in the case
of small stores. In the large stores’ consumers will buy a product once they see a
certification by an organization, they know is credible in terms of halal certification.
In the case of small stores, a logo may not necessarily be required if the consumers
trust the vendor often due to a long relationship. For example, if one knows one’s
butcher personally and has been purchasing meat from that person for a while the
established rapport guarantees credibility.
In sum, asymmetric information is present in the halal food market because the
sellers have more information than the buyers. It is even more challenging because
they are pseudo-experience foods. The asymmetric information can lead to a situation
where the probability of bad occurrence (1-q) will crowd out the probability of the
good (q). In other words, there will be adverse selection because non-halal (haram)
will be purchased in place of halal food. To resolve these issues appropriate consumer

12
A principal-agent problem occurs where it is difficult to monitor the activities of an agent. For example, it is
difficult to confirm that processors follow the halal standards.
Food Ethics (2020) 5:13 Page 15 of 22 13

education, third party monitoring by a certifying body, use of logos by credible

certifiers, and trust based on a close interpersonal relationship with one’s vendor,
for example one’s butcher, should be enhanced.

A case study – halal consumption and value chain

Our analysis discovered that more than 80 % of our Somali-Canadian respondents emphasized
the importance of halal regarding their preferred meat consumption, but halal is more than that.
Most consumers do not really understand the meaning of halal. Some think it is is all about the
way the animal is slaughtered – zabiha. The key themes that came out of the analysis of our
focus group discussions and in-depth interviews are listed below:

Cost

Most respondents thought that the GTA’s meat is expensive and the price keeps increasing.
They preferred purchasing from small halal stores but it is expensive yet considered unafford-
able by some. For Somalis meat is a staple and it is therefore non-negotiable to their diet, so
price is not necessarily a disincentive. An individual said that lamb used to be inexpensive, but
the demand by immigrants made it a more valued variety of meat. It may also be as result of
importation from Australia and New Zealand.13 Most lamb consumed in Canada is imported
and respondents’ felt as well that the carcass quality of imported lamb and goat is better than
the local product.
Somali restaurant owners in Etobicoke, Ontario also believed that the carcass quality was
superior. Several of them said that non-halal may cost $4.50/lb. whereas halal meat may be
about $6.00/lb. Of the halal meat, especially chicken, in mainstream stores is usually cheaper.
This may be due to mass production and economies of scale or at times the supermarkets may
be selling it cheaper as a loss leader, to get people into their stores. Somalis typically spend an
average of $200 - $300 per month on meat alone. Kabul Halal Meat and Seif were discussed as
comparatively inexpensive locations to purchase halal meat. A Somali-Canadian who immi-
grated some time ago, said that despite being more accessible, halal meat is more expensive
now than it was 25 years ago. Additionally, others argued that because of its cost, halal meat is
relatively inaccessible to them.
Somali-Canadians would like to consume halal camel milk and meat but camel is rarely
available. In Somalia it is the most expensive meat in part because camel ownership is a sign of
wealth and power.
In Canada, some Somali families will purchase whole portions of animals, such as a half
goat, or share a whole goat. Somalis usually prefer goat to chicken and beef.
The asymmetric information regarding price is diverse. For instance, fresh meat is more
expensive than frozen meat. Price is also affected by location. Ethnic stores may be more or
less expensive than supermarkets. Imported meats are usually less expensive than what is
locally produced. If the community participates in the value chain as with community shared
agriculture or farmers’ markets this can affect the price. And the type can affect price, goat
being usually more expensive than beef, for example.

13
One Somali restauranteur claimed that imported goat and lamb meat is cheaper than local goat and lamb.
 13 Page 16 of 22 Food Ethics (2020) 5:13

Location

This theme can be interpreted as convenience, proximity and/or community. Usually halal
foods are readily accessible. More than 70% of Somali-Canadians patronize ethnic halal stores
in large part because they believe that the meat is halal. Others patronize small stores,
supermarkets (No Frills, Freshco, Food Basic, etc) or they buy directly from a farm. Most
Somalis we interviewed believe that smaller locations have better tasting meat than larger
supermarkets such as those run by Chinese (e.g. T & T, though it’s owned by Loblaw,
Canada’s biggest). The cut type (O’dkac, suqaar) is very important for the Somalis and certain
locations have expertise in specific cuts. In other words, consumers purchase certain cuts of
meat at certain locations. They are often willing to pay extra and go to multiple locations for
these Somali cuts, though they prefer it if all the cuts are available in a single store. The
preferences of consumers are currently limited because options are not many even though the
members of this group are willing to buy close substitutes including processed foods at the
grocery store such as chicken nuggets.

Non-halal consumption and varieties of meat

The asymmetries in our daily life are also imminent in the halal food market (Chuah et al.
2016; Fuseini et al. 2017; Demirhan et al. 2012; Miele 2016; Adekunle 2019). Some
consumers indicated that they do not really care or invest time looking for halal food because
they believe that labels are not credible and small butchers, including those from some ethnic
groups, are not trustworthy. Furthermore, an individual interviewed eats non-halal meat from
restaurants and grocery stores and another individual indicated while living in France she
would eat outside what was considered non-halal. Goat meat was the most commonly
discussed meat. In the absence of camel meat, our respondents ranked their order of preference
as goat meat, camel, beef, chicken, lamb and ox. Regarding internal organs, kidney and liver
are the most preferred.
Preferences can be based on habits the respondents developed based on their past experi-
ences, as a consequence of which they have been familiar with doing it this way for many
years. The cut of the meat is one of the most important parts of the food – o’dkac, suqaar – for
Somalis. When Somalis list their most preferred food at least 25% will be meats. The
importance was further enunciated by one individual indicated that three out of the four most
preferred foods were meat. As indicated by multiple people, most Somalis eat meat two or
three times a day. They are comfortable with locations where halal is the presumed product
sold in the market.

Availability

For Somalis a meal is incomplete without meat. Pasta/rice, meat and spices are the main
ingredients eaten at least once a day. Paying a premium for halal food is ascribed to lack of
choice. Their belief system makes it mandatory for them to consume only halal and they are
not supposed to question why. As a survival strategy some grocers buy halal beef or chicken as
a substitute for goat which may be unavailable or too expensive. These meats are usually
purchased from Somali and other halal ethnic stores. More than 60 % of the participants
Food Ethics (2020) 5:13 Page 17 of 22 13

indicated the consumption of a lot of goat meat while at home in Somalia, had been reduced
significantly since they migrated to Canada. Now they consume more chicken or beef than
they did in Somalia.
Though more than half of the participants said that halal is not hard to find, some still felt it
is scarce, so they buy a large quantity and store it. Goat meat is expensive and not readily
available. Camel meat (and milk) is largely unavailable, so they substitute for it with beef or
goat. A few times when camel is available it is expensive which still makes it inaccessible. The
Somalis tend to be conservative with the observance of halal so they usually pay attention to it
when they buy their groceries in mainstream stores and often in places where they can also
purchase packaged halal food. Focus group discussions alluded to the fact that 80% of places
visited have halal meat options. The availability of desirable meat is obviously less than in
Somalia. Their food sovereignty including their ability to control their food system, is therefore
often compromised. Participants repeatedly said that their integration into Canada would be
enhanced if more halal options were available in supermarkets.

Trust & traceability

In this community, people are interested in ascertaining the source country of their food but the
shortage of resources makes it difficult for this to be a priority. In one of the focus groups, half
of the participants highlighted their concern that some halal meat sold in shops and markets is
not actually halal. Some Somali-Canadians have reservations about buying halal meat sold by
Pakistani and Indians though this could just as easily be ascribed to xenophobia and the
frustration accompanying their perceived inability to control their food sovereignty, given the
relative absence of Somali-Canadian halal butchers. Unfair or unexpected food price are often
blamed on people who have immigrated from other parts of the world.
This lack of trust is a big concern for some Somali-Canadians who felt that it is inappro-
priate to have to pay a premium for non-halal produce. Moreover, the focus group with young
people, mostly undergraduates, resoundingly indicated that the halal meat from No Frills, a
discount banner for Loblaw) is questionable. Participants generally didn’t trust the label on the
Zabiha Halal meat. On the other hand, a few respondents said they fully trust the HMA
certification label and will purchase their meat from NoFrills or FreshCo. Another respondent
said she would purchase prepared halal meats in grocery stores that are from companies such
as Alsafa & Alzabha. This is an indication that the trust that consumers have of certification
and outlets is a controversial issue among the Somali people in the GTA.
We also have our questions about the halal meat carried by some mainstream stores.
Informal discussions with 25 non-Muslim immigrants of other ethnicities of European and
Afro-Caribbean origin, who are unaware of the meaning of halal, revealed that they sometimes
purchase halal chicken because it is the cheapest meat. Goat, whether halal or not, is generally
unavailable in most mainstream stores. If halal chicken is cheap in mainstream stores but not in
ethnic halal stores, maybe there are procedures waived by the stores and the meat may not
necessarily be completely halal.
Seif, a Somali grocery store, is a respected source of halal meat according to the partici-
pants. There is face-to-face interaction, the owner is there to address their concerns and he’s
Muslim. The meats are also fresh, and they cut them in front of the consumers. This approach
signals transparency unlike when the meat comes already packaged. However, an interviewee
said that as a consumer, her faith is put in the person selling halal meat. If that person is
 13 Page 18 of 22 Food Ethics (2020) 5:13

dishonest then the onus is on the seller, not the consumer. This is acceptable for religious
reasons but not the health reasons that will be compromised if the consumer buys non-halal
instead of a halal food.

Quality: freshness and taste

Somali people and other ethnocultural food consumers want their food to have such desirable
qualities as freshness and taste. Even though local goat production has been increasing, Somali
restaurant owners we interviewed complained about local carcass quality. In this case, they
overlook their preference for fresh meat and opt for frozen goat. Somali consumers usually
prefer small ethnic stores where it is more likely that their meat will be fresh and the meat will
be cut into pieces in front of the consumers. Products are frozen and packaged at No Frills
though some of their outlets have started selling fresh goat which, however, is not necessarily
halal. Most focus group participants also said that small ethnic store halal meat usually tastes
better than the meat from ethnic superstores.
The vast majority of respondents also felt that the best way to get the fresh food desired by
the family is to buy it directly from the farmer. A participant gave an example of a farmer who
trucks fresh produce out to a market set up next to the mosque in Scarborough. This ‘direct to
consumer’ strategy was discussed by others at length and reveals that Canadian farmers can
benefit financially from marketing specifically to the halal market. Even though consumers
preferred fresh produce some participants including one restaurant owner believe that imported
lamb from Australia tastes better than the Ontario produced lamb and has higher carcass
quality. We think this challenge can be resolved if more farmers produce meat for this market.
This approach will strengthen the value chain and guarantee the food sovereignty of Somali
people when eating halal chevon and lamb.

Willingness to pay

The issue of respondents’ willingness to pay a premium for a halal depends on the participants’
income, as well as preferences for halal and their impression about the health benefits of halal
meat. Participants are willing to pay more when its cultural (staple) food is halal, supports the
community and has health benefits. They are willing to substitute camel with beef and Indian/
middle eastern food for Somali when there are challenges with availability.

Certification and regulation

Respondents largely knew about the certifying bodies in Canada but there was no consensus
on the desirability of this bodies. This may stem from the fact that they don’t have the same
standards (for example, stunning versus no stunning). They are generally happy with the
position of the CFIA which stipulates that any product with a halal logo should indicate the
name of the certifying body but they think more needs to be done to make the halal market
more structured in order to reduce the imperfect information in the market. Moreover,
appropriate regulation is necessary for a market that keeps growing, otherwise consumers
may end up paying more for a meat marketed as halal which is actually not. There is a need for
Food Ethics (2020) 5:13 Page 19 of 22 13

appropriate, workable and desirable policies that will enhance the production and marketing of
authentic halal food in the Canada and global market.

Conclusion

The lack of desired information in the food market, including halal market, creates
opacity and adverse selection. To enhance the availability of information that makes
decision making easy for consumers, certification, labelling and monitoring need to be
incorporated to the supply chain through appropriate regulations. Food sovereignty is
guaranteed when consumers have access to the halal food they want instead of a
mislabeled, contaminated and improperly slaughtered meat. As we have presented in
our conceptual framework and the Somali Canadian case study, promotion of food
sovereignty among halal food consumers should include the involvement of govern-
ment regulators, private certifying bodies operating under well-defined standards, well
informed consumers and a futuristic use of technology such as cryptolabelling, a
blockchain technology, to ensure traceability, transparency and authenticity.
Even though this paper contributes to the promotion of appropriate information in the halal
food market our analysis is based on a small sample so there is no possibility for inferential,
deductive analysis. This notwithstanding, this article suggests that there is a need for more
research about certification, monitoring and harmonization of processes and procedures in the
halal market.

Acknowledgements We are grateful to the Social Sciences and Humanities Research Council of Canada
(SSHRC) for the research grant. Also deserving special commendation are our community-based Morgan
Sage Warsame Warsame, Gasira Abdulkarim and Ilham Ismail. This article also benefited from the comments
of the reviewers.

Funding Information This study was funded by Social Sciences and Humanities Research Council of Canada
(430–2015- 00173).

Compliance with Ethical Standards

Conflict of Interest Adekunle and Filson declare that we have no conflict of interest in the way this study was
funded or implemented.

References

Abd Latif I., Zainalabidin M., Sharifuddin J., Abdullah A. M. and M. M. Ismail. 2014. A Comparative Analysis
of Global Halal Certification Requirements, Journal of Food Products Marketing, 20:sup1, 85–101, DOI:
https://doi.org/10.1080/10454446.2014.921869
Adekunle B. 2016. How nations can navigate the difficult path to food sovereignty. Huffington Post https://www.
huffpost.com/entry/how-technology-can-help-n_b_12454210
Adekunle B. 2019. Halal food: Conception, misconceptions and certification. ECVOntario: University of
Guelph.
Adekunle, B. Cidro, J. and Filson G.C. 2015. The political economy of culturally appropriate foods in Winnipeg:
A case of refugee path immigrants (RPIs). Canada Center for Policy Alternatives: Winnipeg.
Adams, I.A. 2011. Globalization: Explaining the dynamics and challenges of the halal food surge. Intellectual
Discourse 19 (1): 123–145 Retrieved from http://journals.iium.edu.my/intdiscourse/index.php/islam.
 13 Page 20 of 22 Food Ethics (2020) 5:13

Agriculture and Agri-food Canada. 2011. Global pathfinder report: Halal food trends. Ottawa, ON: Government
of Canada Retrieved from https://www.gov.mb.ca/agriculture/market-prices-and-statistics/food-and-value-
added-agriculture-statistics/pubs/halal_market_pathfinder_en.pdf.
Akerlof, G.A. 1970. The market for "lemons:" quality and the market mechanism. Quarterly Journal of
Economics 84: 488–500.
Alhabshi, S.M. 2013. Halal food dilemmas: Case of Muslims in British Columbia, Canada. International Journal
of Asian Social Science 3 (4): 847–870 Retrieved from http://www.aessweb.com/journals/5007.
Aziz, Y.A., and N.V. Chok. 2013. The role of halal awareness, halal certification, and marketing components in
determining halal purchase intention among non-Muslims in Malaysia: A structural equation modelling
approach. Journal of International Food & Agribusiness Marketing 21 (1): 1–23 Retrieved from
http://www.tandfonline.com.subzero.lib.uoguelph.ca/doi/abs/10.1080/08974438.2013.723997.
Bonne, K., and W. Verbeke. 2008. Muslim consumer trust in halal meat status and control in Belgium. Meat
Science 79 (1): 113–123 Retrieved from http://www.sciencedirect.com.subzero.lib.uoguelph.
ca/science/article/pii/S0309174007002823.
Canadian Food Inspection Agency. 2016. Method of production claims: Halal. Ottawa, ON: Government of
Canada Retrieved from http://www.inspection.gc.ca/food/labelling/food-labelling-for-industry/method-of-
production-claims/eng/1389379565794/1389380926083?chap=5.
Charles, R. 2016. Halal labelling rules kick in today, but certifying organizations remain unregulated. CBC news.
Retrieved from http://www.cbc.ca/news/canada/halal-certification-1.3519910
Chaudry, M.M. 1992. Islamic food laws: philosophical basis and practical implications. Food Technology
46(10): 92.
Chuah, L., X. Bin He, M.E. Effarizah, Z.A. Syahariza, A.K. Shamila-Syuhada, and G. Rusul. 2016. Mislabelling
of beef and poultry products sold in Malaysia. Food Control 62: 157–164.
Cochrane, P. 2016. Overview: Australia’s $13 billion halal food industry. Global Islamic economy gateway.
Retrieved from http://www.salaamgateway.com/en/story/overviewaustralias_13_billion_halal_food_
industry-salaam14092016063348/
Cochrane, P. 2017. Indonesia chasing quality to boost halal industry development. Global Islamic economy
gateway. Retrieved from http://www.salaamgateway.com/en/story/indonesia_chasing_quality_to_boost_
halal_industry_development-salaam30012017052618/
Demirhan, Y., P. Ulca, and H.Z. Senyuva. 2012. Detection of porcine DNA in gelatine and gelatine-containing
processed food products-halal/kosher authentication. Meat Science 90: 686–689.
Fuseini, A., S.B. Wotton, T.G. Knowles, and P. Hadley. 2017. Halal meat fraud and safety issues in the UK: A review
in the context of the European Union. Food ethics 1: 127–142 https://doi.org/10.1007/s41055-017-0009-1.
FIANZ. 2014. Halal trade. Wellington, NZ: FIANZ Retrieved from http://www.fianz.co.nz/halal-trade.
Filson, G. C. and Adekunle, B. 2017. Eat local, Taste Global: How Ethnocultural Foods Reach our Tables.
Wilfrid Laurier Univ. Press. Waterloo.
Ghani, A. 2012. Halal certification of New Zealand food products [PowerPoint slides]. Presented at global halal
economy. NZ: Auckland Business School Retrieved from http://docs.business.auckland.ac.nz/Doc/NZin-
Halal-Economy-Dr-Ghani.pdf.
Govindasamy, R., W. Sciarappa, V.S. Puduri, R. VanVranken, A. Ayeni, K. Pappas, et al. 2007. A market driven
approach to ethnic crop production for the US East Coast. In Issues in new crops and new uses: Proceedings
of the sixth National Symposium Creating Markets for economic development of new crops and new uses,
ed. J. Janick and A. Whipkey, 261–273. Alexandria, Virginia: ASHA Press.
Grunfeld, I. 1972. The Jewish dietary Laws. London: Socino Press.
Halal Australia. (2015). Clarifying misconceptions about halal. Retrieved from http://www.halal-australia.com.
au/clarifying-misconceptions-about-halal/
Hobbs, J.E. 2004. Information asymmetry and the role of traceability systems. Agribusiness: An International
Journal 20 (4): 397–415.
Hui, A. 2016. New rule for halal labelling leaves industry open to deception, critics say. The globe and mail.
Retrieved from http://www.theglobeandmail.com/news/national/new-rule-for-halal-labelling-leaves-
industry-open-to-deception-critics-say/article29254281/
Islamic Tourism Centre of Malaysia. 2017. Malaysia: the world’s leading halal hub. Government of Malaysia.
Retrieved from http://www.itc.gov.my/tourists/discover-the-muslim-friendly-malaysia/malaysia-the-worlds-
leading-halal-hub/
Kabir, S. 2015. Growing halal meat demand: Does Australia miss out on a potential trade opportunity? Economic
Papers 34 (1–2): 60–75 Retrieved from https://journals-scholarsportal-info.proxy.queensu.ca/pdf/08120439
/v34i1-2/60_ghmddamoapto.xml.
Kilkenny, C. 2016. Halal labels now regulated by Canadian food inspection agency. Radio Canada International.
Retrieved from http://www.rcinet.ca/en/2016/04/06/halal-labels-now-regulated-by-canadian-food-
inspection-agency/
Food Ethics (2020) 5:13 Page 21 of 22 13

Lam, Y., and S.M. Alhashmi. 2008. Simulation of halal food supply chain with certification system: A multi-
agent system approach. In International conference on multi-agents, ed. Pacific Rim, 259–266. Berlin:
Springer-Verlag Retrieved from https://pdfs.semanticscholar.org/c0fc/090bd79c2f43b80a2c591183c7125
dcf4cd5.pdf.
Marette, S., J.M. Crespi, and A. Schiavina. 1999. The role of common labeling in a context of asymmetric
information. European Review of Agricultural Economics 26: 167–178.
McCluskey, J.J. 2000. A game theoretic approach to organic foods: An analysis of asymmetric information and
policy. Agricultural and Resource Economics Review 29 (1): 1–9.
McKenzie, A. 2010. Carving out new rules for halal meat. Ministry for Primary Industries, New Zealand
Government. Retrieved from http://foodsafety.govt.nz/elibrary/industry/Carving_Rules-Important_
Consumers.htm
Miele, M. 2016. Killing animals for food: How science, religion and Technologies affect the public debate about
religious slaughter. Food ethics 1: 47–60 https://doi.org/10.1007/s41055-016-0004-y.
Muhammad, N.M.N., F.M. Isa, and B.C. Kifli. 2009. Positioning Malaysia as halal-hub: Integration role of
supply chain strategy and halal assurance system. Asian Social Science 5 (7): 44–52 Retrieved from
http://ccsenet.org/journal/index.php/ass/.
Murugaiah, C., Z.M. Noor, M. Mastakim, L.M. Bilung, J. Selamat, and S. Radu. 2009. Meat species
identification and halal authentication analysis using mitochondria DNA. Meat Science 83: 57–
61.
Nakyinsige, K., Y.B.C. Man, and A.Q. Sazili. 2012. Halal authenticity issues in meat and meat products. Meat
Science 91 (3): 207–214 Retrieved from http://www.sciencedirect.com.subzero.lib.uoguelph.
ca/science/article/pii/S0309174012000605.
Ontario Agri-Food Technologies. n.d. Halal food: A global market opportunity. ON: Guelph Retrieved from
http://www.oaft.org/userfiles/file/halal-food.pdf.
Patel, Raj. 2009. Food sovereignty. Journal of peasant studies, 36(3), 663–706. Retrieved from http://www.
tandfonline.com.subzero.lib.uoguelph.ca/doi/ full/https://doi.org/10.1080/03066150903143079.
Pew Research Centre. 2011. The future of the global Muslim population. Retrieved from http://www.pewforum.
org/2011/01/27/the-future-of-the-global-muslim-population/
Poniman, D., S. Purchase, and J. Sneddon. 2015. Traceability systems in the western Australia halal food supply
chain. Asia Pacific Journal of Marketing and Logistics 27 (2): 324–348.
Regenstein, J.M., M.M. Chaudry, and C.E. Regenstein. 2003. The kosher and halal food laws. Comprehensive
Reviews in Food Science and Food Safety 2 (3): 111–127 Retrieved from http://onlinelibrary.wiley.
com/doi/10.1111/crfs.2003.2.issue-3/issuetoc.
Riaz, M.N. 2010. Fundamentals of halal foods and certification. Prepared Foods 179 (1): 71–76 Retrieved from
http://go.galegroup.com.subzero.lib.uoguelph.ca/ps/i.do?&id=GALE%7CA219449001&v=2.1&u=
guel77241&it=r&p=AONE&sw=w&authCount=1.
Riaz, M.N., and M.M. Chaudry. 2004. Halal food production. LCC, Boca Raton, FL: CRC Press.
Rios, R.E., H.E. Riquelme, and Y. Abdelaziz. 2014. Do halal certification country of origin and brand name
familiarity matter? Asia Pacific Journal of Marketing and Logistics 26 (5): 665–686 Retrieved from
http://search.proquest.com.subzero.lib.uoguelph.ca/docview/1679428626?OpenUrlRefId=
info:xri/sid:primo&accountid=11233.
Roberts, L. n.d. Traceability software eases supply chain management for specialty food products. Global food
safety resource. Retrieved from http://globalfoodsafetyresource.com/traceability-software/
Saleem, K. 2011. Exploring potential of global halal products market. Pakistan & Gulf Economist, 30(49).
Retrieved from http://go.galegroup.com.subzero.lib.uoguelph.ca/ps/i.do?&id=GALE%7CA274415317
&v=2.1&u=guel77241&it=r&p=AONE&sw=w&authCount=1
Statistics Canada. 2017. Religion (108), immigrant status and period of immigration (11), age groups (10) and
sex (3) for the population in private households of Canada, provinces, territories, census metropolitan areas
and census agglomerations, 2011 national household survey (Catalogue No. 99–010-X2011032). Ottawa,
ON: Government of Canada. Retrieved from http://www12.statcan.gc.ca/nhs-enm/2011/dp-pd/dt-td/Rp-eng.
cfm?LANG=E&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=0
&PID=105399&PRID=0&PTYPE=105277&S=0&SHOWALL=0&SUB=0&Temporal=2013
&THEME=95&VID=0&VNAMEE=&VNAMEF=
Strausz, Roland. 2005. Honest certification and the threat of capture. International Journal of Industrial
Organization 23: 45–62.
Sungkar, I., & Hashim, D. 2009. The global halal food market and updates on global halal standards
[PowerPoint slides]. Presented at the World Bank first EAP regional agribusiness trade and investment
conference. Retrieved from http://halalrc.org/images/Research%20Material/Presentations/GLOBAL%20
HALAL%20STANDARDS.pdf
 13 Page 22 of 22 Food Ethics (2020) 5:13

Talib, M.S.A., A.B.A. Hamid, and T.A. Chin. 2015. Motivations and limitations in implementing halal food
certification: A Pareto analysis. British Food Journal 117 (11): 2664–2705 Retrieved from http://search.
proquest.com.subzero.lib.uoguelph.ca/docview/1748939297?rfr_id=info%3Axri%2Fsid%3Aprimo.
Talib, M.S.A., A.B.A. Hamid, and M.H. Zulfakar. 2015a. Halal supply chain critical success factors: A literature
review. Journal of Islamic Marketing 6 (1): 44–71 Retrieved from http://search.proquest.com.subzero.lib.
uoguelph.ca/docview/1661301737?rfr_id=info%3Axri%2Fsid%3Aprimo.
Talib, M.S.A., S.S. Sawari, A.B.A. Hamid, and T.A. Chin. 2016. Emerging halal food market: An institutional
theory of halal certificate implementation. Management Research Review 39 (9): 987–997 Retrieved from
http://s3.amazonaws.com/academia.edu.documents/48902095/RG.pdf?AWSAccessKeyId=
AKIAIWOWYYGZ2Y53UL3A&Expires=1487180518&Signature=SmfRp75N2F1JbtBkLLa5oRuI1
Ak%3D&response-content-disposition=inline%3B%20filename%3D2016_Emerging_Halal_Food_
Market_An_Inst.pdf.
Tieman, M. 2011. The application of halal in supply chain management: In-depth interviews. Journal of Islamic
Marketing 2 (2): 186–195 Retrieved from https://search-proquest-com.proxy.queensu.
ca/docview/874844771/fulltext/EDCC6291C44846AAPQ/1?accountid=6180.
The Holy Quran. Thompson, G. 2015. The truth about halal. Four Corners, ABC. Retrieved from http://www.
abc.net.au/4corners/stories/2015/09/07/4305337.htm
van Amstel, M., P. Driessen, and P. Glasbergen. 2008. Eco-labeling and information asymmetry: A comparison
of five eco-labels in the Netherlands. Journal of Cleaner Production 16: 263–276.
Verbeke, W. 2005. Agriculture and the food industry in the information age. European Review of Agricultural
Economics 32: 347–368.
Whitehead, R. J. 2016. Dubai to implement smart halal logos to improve traceability. Retrieved from
http://www.foodnavigator-asia.com/Policy/Dubai-to-implement-smart-halal-logos-to-improve-traceability
Williams, Malcolm. 2000. Interpretivism and generalisation. Sociology 34 (2): 209–224.
Wittman, H., and A.A. Desmarais. 2012. Movement growing to control our own food and agriculture. The
Monitor, Sept 2012. Canadian Centre for Policy Alternatives. https://www.policyalternatives.
ca/publications/monitor/food-sovereignty-canada.
Zulfakar, M. H., Jie, F., & Chan, C. 2012. Halal food supply chain integrity: From a literature review to a
conceptual framework. 10th ANZAM Operations, Supply Chain and Services Management Symposium,
1(16). Retrieved from https://www.researchgate.net/profile/Mohd_Zulfakar/publication/275964284_
HALAL_FOOD_SUPPLY_CHAIN_INTEGRITY_FROM_A_LITERATURE_REVIEW_TO_A_
CONCEPTUAL_FRAMEWORK/links/554c19c50cf21ed2135b978d.pdf

Publisher’s Note Springer Nature remains neutral with regard to jurisdictional claims in published maps and
institutional affiliations.