ARTICLE REVIEW

Name & Student Number : aa

Faculty & Class : aa

Awareness and Demand for 100% Halal Supply Chain Meat

Products
Syed Ghazaly Alqudsi (Australian Maritime College, University of Tasmania,
Launceston, 7250, Australia, 2013)

Do you think fried chicken in “KANTIN TEKNIK” is halal? And have you thought about how
fried chicken in “KANTIN TEKNIK” was slaughtered in accordance with Islamic rites to render
them halal? As we know, Muslim consumers globally must assure that the food they consume
meets halal requirements under Islamic law. Meat and poultry must be slaughtered in accordance
with Islamic rites to render them halal. It is believed that most consumers who prefer halal meat
products are not aware of the halal supply chain principles. This is the reason why I choose this
article for this assignment.

The main objective of this article is to investigate Muslim preference and demand for 100% halal
meat products supply chain, their knowledge about halal food requirement and meat products’
supply chain. The writer took the example in two non-Muslim countries and one Muslim
country. There are Singapore, Malaysia, and Australia and chosen 200 participants from those
countries. The writer placed two research questions in order to investigate the awareness and
demand for 100% halal supply chain meat products. They are

- Are consumers of halal meat products in Singapore, Malaysia and Australia aware of
100% halal supply chain?
- Is there a demand for 100% halal supply chain? And if so, are consumers willing to pay
premium for it?

Refers to the law of supply and demand in economic, when demand increases, supply will
decrease and so the common trade-off is the increase in price. And as we know, in terms to law
demand, we know when price rises, quantity demanded falls, and when price falls, quantity
demanded rises. But, this article tells us that Majority of the respondents (Muslims) from
Singapore, Malaysia and Australia are willing to pay a premium for halal meat products with
100% halal supply chain even though the price of it rises, because halal is likely linked to Islamic
values which influence the Muslim lifestyle and food consumption patterns. Islam is a religion
governed by rules and customs. Muslims are ordered to make an effort to obtain halal food of
good quality. And this is their religious obligation to consume only halal food. So, religion is
really influencing consumer behavior.

Refers to Elasticity of demand which measuring how much demand for goods and services
(consumption) changed when the price changed. A kind of Elasticity of demand in this case is
perfect inelastic demand (elasticity = 0). The changes of price do not affect the amount of
demand. Thus, the curve is vertical. Vertical in the curve means that regardless of the price
offered, the quantity of goods or services remain unchanged. It is very clear that halal meat
product is the example of perfect inelastic demand. And this research provides knowledge for us
that the elasticity of demand factors in this case is religion.

Talking about religion which really influencing people behavior, well-being and lifestyle, some
research claimed that religion is the main pushing factor in making decision to purchase goods. It
will cause religiosity likely administer an individual’s behavior as it is part one’s faith. In
addition, the impact of religion on consumer behavior can differ from one culture or country to
another.

Halal is likely linked to Islamic values which influence the Muslim lifestyle and food
consumption patterns. Islam is a religion governed by rules and customs. Muslims are ordered to
make an effort to obtain halal food of good quality. And this is their religious obligation to
consume only halal food.

Majority of the consumers from the three countries believed that the presence of halal mark from
a recognized organization on the packaging is extremely important attribute. Majority of the
respondents also felt that it is extremely important that the leading supermarket or the butcher
store display their halal logo and certification. The display of halal logo will give consumers
particularly in Singapore and Australia, the confidence to purchase the halal meat products
because companies involved in halal business are mainly the non-Muslims.

In addition, respondents highlighted that it is very important that halal meat products be handled
by trained employees and/or workers.

Respondents from Singapore and Malaysia also stressed that it is extremely important for Halal
meat be stored inside a separate cold room of the store and/or supermarket.

Many respondents stressed that training for employees is crucial to the success of Halal supply
chain meat products. Respondents did not place any level of importance to the prices of Halal
meat products before making a purchase or they were indifferent.
Majority of the respondents from the three countries are aware of the halal food laws
requirements and are willing to pay a premium for halal meat products with 100% halal supply
chain.

Dynamic learning in halal will offer some positive impacts on the supply chain performance. As
such, companies have to develop systems which best meet their own supply chain needs that will
meet the halal meat laws. It serves a variety of goals and prevents individuals from escaping their
duties, rights and responsibilities because self-restraint is much more efficient and effective than
outer restraint: “And He is with you where so ever you may be. And Allah is Seer of what you
do” (Al-Baqarah: 110).

I think this article also one of the unique because there are less article discus about whether the
food in such countries can be eaten or not to Muslim since Islam has strong regulation toward it.
But I think so, this article has lackness in presenting why those factors can be happen and how
much the different or marginal in demand for such those country in Halal food. In addition, the
article also failed to explain why it takes those three countries to be presented in this article it
self.