Serbs keen on Halal, but…

There is a marked increase in awareness of Halal certification within the Serbian business community; but two main factors are hindering its progress – the credibility of the Halal logo and the high fees to obtain one. 

Speaking on the sidelines of Gulfood 2008 in Dubai, Remer Y. Lane, the USAID Agribusiness Project in Serbia Marketing and Export Lead, said Serbian manufacturers pursue Halal certification primarily based on the domestic opportunity and market access to key Muslim markets.  

“The companies pursue Halal based on market opportunity,” said Mr Lane. “It is also based on strong historical trade ties with Middle Eastern and North African countries. Therefore, there is a very strong push to pursue Halal, which they hope to provide a competitive advantage. However, it needs to be credible and recognised.”

Lane said that although there are three main Halal certifiers in Serbia, each of them have their own set of standards. “Within Serbia, we have one in Belgrade, and he has his process, which is by far the most recognised. In Novi Pazar, another city in the south, we have two Imams, and they each have their own process, some of which is in correspondence with Belgrade, but not always.  

“Unfortunately, Serbian companies are saying that it looks like they are all looking for a substantial fee,” he said.

There is also a great deal of misunderstanding, it seems, about what needs to be Halal and what does not. “Does a frozen fruit processor need to be Halal? Or is it required for people who only deal with animal products?” he asked. 

Unlike the certification process for meat-based suppliers – who had to undergo a thorough check in all stages of slaughter, the certifiers are so far not doing any kind of standardised checks for frozen fruit manufacturers. 

“On the meat side, they actually stay for the slaughter, the bleeding, the inspection, and soon. However, one example we have is that it costs up to 500 Euros a week, for every time they are there. That is 2,000 Euros a month! That is what Halal in Serbia is costing, especially for the meat industry,” he said. 

Lane also cites an example where a poultry company outside of Novi Pazar did not have to pay a single cent, nor get Halal certification at all because they are “a member of the Imam’s mosque”.

“This is why it is very, very important to have a brand and standardisation,” Lane suggested. “There should be a single stamp that is recognised worldwide and everybody must get that stamp to be Halal. Otherwise you will get all these different people doing their own thing, charging their own fees and having an expensive and difficult time getting their Halal logos internationally recognised.”

Lane suggests the industry authorities to buck up, and realise the immense opportunity with Halal and come up with a unified global seal – one that incorporates certain standards and administered by a central body with authorised bodies in each country.

“That way it will give more credibility to it more than anything else, the way EuropeGap transitioned into GlobalGap, and enforcing their standards all over the world. Why can it not be the same with Halal?”

Despite these known issues, more and more Serbian companies are getting themselves Halal certified. Lane also mentioned that the Mufti in Belgrade has been very proactive in reaching out to the Serbian food industry.

The Mufti has even begun educating companies on what is Halal and the size of the global Halal markets, as well as assisting them in making market contacts in other countries where Halal is in demand. So far, 25 companies have been certified by the Islamic Community of Serbia’s Halal Certification Agency.

“At least ten companies from Serbia attended the Halal fair in Abu Dhabi last month, and they are all Halal certified. In Gulfood this year, Serbian companies raked in over USD6 million of expected sales, and definitely a better understanding of the opportunities in the global Halal market,” he added.