NHJ Nusantara Halal Journal

Vol 2 No 2 (2021) pp 82-88

Fake: The Rise of Food Fraud in the Halal Supply Chain

The Cairns Institute, James Cook University, Townsville, Australia.

Correspondence should be addressed to Adan Voak: [email protected]

Cite this: Nusantara Halal J. 2021, Vol. 2 No.2 pp. 82–88 (Article) | Received 15 September 2021 | Revised
20 November 2021 | Accepted 23 December 2021 | Published 29 December 2021 |
http://dx.doi.org/10.17977/um060.2021v2p082-088

Abstract
We live in increasingly challenging economic times, and the concomitant uncertainty associated with
this state within the food industry has led to an emergence of unscrupulous suppliers and supply
chain actors committing Halal food fraud. As Halal food supply chains become increasingly complex
and global and as the sector continues to develop and grow, more significant opportunities arise for
unprincipled practice. Further, catering to rising consumption and the resultant increased demand
for Halal products and services means consumers in Halal supply chains are particularly vulnerable
to fraud, adulteration and unwitting contamination as global demand outstrips supply. Certification
and its associated labelling of Halal food products alone will no longer engender complete consumer
confidence, particularly as consumers become better acquainted with the rising opportunities for
food fraud, false advertising, and misleading conduct. This report is based on recognizing the
religious importance of Halal food to Muslims and how food integrity is pivotal in the daily
observance of Islamic mores. It examines how vulnerabilities in global supply chains can arise and be
exploited to intentionally deceive and unknowingly contaminate food products consumed by
devoted Muslims. A vital industry issue of concern to this discussion is the increasing importance of
compliance, transparency, and traceability, combined with other risk mitigation approaches needed
within Halal food supply chains to ensure product provenance. This review also examines the
potential human capability development interventions required to strengthen further supply chain
actors' competence and the consumer awareness needed to provide trust and confidence in the Halal
food eco-system.

Keywords: Food fraud, Halal food, Halal food Supply Chain, Human capability development.

Introduction
The food supply chain industry cannot underestimate the religious significance and importance
of controlled food consumption for the Muslim community and needs to appreciate the
devastating impacts that food fraud has on these consumers. Indeed, for every Muslim,

Voak | Nusantara Halal Journal, Vol. 2 No. 2 (2021) 82-88 82

Therefore, it is essential that the industry institutes and then assures continual specific focus on
food fraud prevention, thus precluding recurrent fraud vulnerability throughout the food supply
chain [3]. This is where accurate and reliable food traceability becomes critical. Food traceability
allows companies, stakeholders, and other supply chain actors to trace the origins and handling
history of the products being sold to minimize the risks of inadvertent consumption of non-Halal
food by isolating affected foods quickly. It is also imperative that greater industry awareness is
placed on the religious significance of preserving Halal products, allowing the introduction of
better control measures and the development of cultural competence along and within global
supply chains. As demand for Halal food from suppliers, retailers, and restaurants grows
exponentially, a constant reassessment within supply chains must occur to ensure community
confidence in Halal standards from farm to fork.

Halal Food and its Importance to the Muslim Community

'Halal' in the Arabic language encapsulates an Islamic belief representing things and actions
permissible under Sharia law [2]. An equally important term in Halal is 'Thoyyib', a word that
also comes from the Arabic language, which means 'good and wholesome' [4]. Based on these
religious foundations, the term Halal is used as an indication of quality, connoting considerable
value, benefits, and public religious observance to Islamic consumers and producers [5].
Consuming Halal food forms a fundamental component of the Islamic faith. Haram is, conversely,
the diametric of Halal, describing prohibited or unlawful practices [6]. Haram and Halal are
universally accepted dutiful terms that apply to all facets of a devout Muslim's life. In this regard,
Islam is not only a religious observation, but it also encompasses the dutiful living out of a
balanced way of life.

Food is a ritually fundamental component of Muslims' daily life. For this very reason, Halal food
laws, compliance, and regulation clearly carry a special significance. Muslims do not exist to eat;
in fact, eating faithfully and observantly is a religious expression to preserve survival and
maintain good health. In Islam, eating is considered worshipful, like prayer, fasting, alms-giving,
and other religious activities. It must be appreciated that Halal food regulations cover the
complete range of operations and activities that occur from the farm to final consumption [7].
Thus, undesirable practices that constitute some fraud or malpractice along Halal food supply
chains are very concerning for Muslim consumers [7]. For Muslim consumers, one of the factors
influencing food purchase decisions is religious confidence in offered products. Every Muslim is
strictly obliged to search for evidence of good handling practices before consuming Halal
products [8].

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Food Fraud

Fraud can be understood as offering something that is 'not what it appears to be' and is an action
deliberately used to deceive people, especially for monetary reward. Many opportunities for
fraud are available throughout the Halal supply chain and can materialize in ingredients, raw
materials, food packaging, and the final product. Such deliberate and unscrupulous activities for
financial gain or to cause harm maliciously or intentionally could include substituting or diluting
food ingredients, adulterating raw materials, tampering, mislabeling, or the misrepresentation
of the materials or final products. Deception can also extend to misrepresenting something
through misbranding, counterfeiting, or handling records inappropriately.

Essentially, food fraud falls under two distinct categories: those of (i) technical and (ii) time and
place opportunities [3]. Within the technical sphere, the existence of opportunities for
adulteration or counterfeiting of certain types of products and the general availability of
situations allowing adulteration of material in a particular chain will increase the vulnerability
to fraud. Adulteration includes ingredient substitution, dilution, concealment, artificial
enhancement, allowance of impurities, use of undeclared, unapproved, or banned biocides, and
authentic constituents' removal [9]. Opportunities in time and place increase when potential
fraudsters have legitimate access to the location where fraud can be committed [3]. This could
be direct access to the food product or the ability to interfere with processing lines [3]. In
addition, this area could include activities such as relabeling an inferior product or tampering
with product information in the form of altered date codes, or refilling quality product
containers with lesser quality substitutes [10].

Research has shown that the most common types of food fraud range from substituting cheaper
less wholesome or healthy ingredients for those of higher-cost religiously compliant
alternatives, intentional mislabeling, counterfeiting, dilution, and adulteration the addition of
unapproved enhancements [11]. Other fraud activities include the diversion of unfit pet food
meat into the human food chain, re-dating out-of-date meat, and freezing and substitution of
non-Halal meat (Haram) for genuine Halal products [11]. As a result of the known growing
nature and breadth of these fraudulent incidents, there has been a resultant change in industry
focus from the investigation of food fraud to risk mitigation and vulnerability reduction
strategies [3,12,13].

The Rise of Food Fraud in the Halal Supply Chain

In line with the Shariah jurisprudence highlighted above, it can be concluded that Halal products
must comply with strict religious boundaries. For example, Halal food products must not contain
pork, or its derivatives nor be derived from carcasses and non-Sharia slaughtered farm animals
[14]. Further, they must never be derived from prohibited animals, blood products or from meat
partly cut off from a living animal [14]. More broadly, Halal food must not be harmful to health,
contain elements of fraud, and never contain intoxicating substances [14]. Given these
observance guidelines, the risk of contamination in Halal food supply chains is a substantial
concern for Muslim consumers [15].

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The fake Halal meat cartel scandal of 2020 was perhaps one of the most startling events
pertaining to Halal food fraud in more recent times. The scandal was first revealed to the public
when a local Malaysian newspaper reported that a meat cartel had been smuggling non-Halal
meat from countries such as China, Brazil, Canada, and Ukraine [16]. The initial report linked the
smuggled meat with poor quality and even diseased kangaroos and horses. It was reported that
upon arrival in Malaysia, these meats were mixed with beef in the warehouses before being
labeled as Halal-certified beef [16].

These perpetrators, particularly in the Malaysian and Indonesian meat industries, used harmful
and unsafe materials in assembling fraudulent meat products such as formalin, fake meat, exotic
meat, dyes, and garbage meat [14]. More recently, it is becoming more common for adulterants
to be deliberately and deceptively added to purposively increase visible quantities and reduce
manufacturing costs. Whilst willful debasing of food offered for sale through adulteration
becomes more common [1], it should also be recognized that non-Halal materials may also be
ignorantly or accidentally introduced into the substances because of poor handling and storage
practices, and the supply chain industry must be vigilant at all phases of food transportation and
distribution. This is a human competence issue, which will be discussed later in this paper.

Fraudulent activities have unfortunately not been limited to beef and associated beef products.
Recently, a series of surveys were conducted around so-called Halal labeled chicken products,
and they alarmingly revealed:

- widespread practice of Halal mislabeling.

- deliberate 'pumping up' of chicken meat with water, where examples have been seen
that a ½ half of an overall chicken's weight is added water.

- regarding the unscrupulous practice of 'pumping-up' chicken meat with water, it was
found that the adulterant contained proteins of porcine and bovine origin, which were
deliberate as they aided water retention in the chicken carcasses [17].

Muslims are forbidden to consume either pork or food adulterated with its derivatives.
Alarmingly, in addition, to the bovine protein mentioned previously, it is also highly likely that
they were a derivation of animals slaughtered contrary to Islamic law. Furthermore, it has been
found that these additives used in these chicken products were often not listed on labels [17].

Trade-in, illegal Haram meat, is, unfortunately, big business. For example, in the United Kingdom
(UK), it is now the third largest illegally traded food category, with a trading volume in the range
of £1bn a year [18]. Indeed, the lack of coordination across and within borders [18] is likely to
give rise to greater opportunities to commit food fraud. Unfortunately, it seems that in recent
times, as demand rises and the market grows internationally, irresponsible parties have made
Halal food a significant medium of crime [19]. Therefore, various food crime issues have arisen,
including food adulteration, food fraud, and food terrorism [19], which are all becoming more
prevalent, particularly as global supply chains become more complex.

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Combatting Halal Food Fraud

Combatting and reducing food fraud within global Halal supply chains is a multi-jurisdictional
challenge and needs more than introducing certification and compliance auditing. It needs
honest and trustworthy supply chain actors who are consciously prepared to protect the
integrity of the food eco-system and regulators and lawmakers who have the cultural
competence to ensure the legitimacy of products transiting or leaving their jurisdictions. These
practices are clearly concomitant with the protection of the bonafides of other classes of food
products, including vegetarian, gluten-free, non-allergen, organic, or other religiously or
culturally significant food frameworks. Indeed, effective compliance measures need actors and
stakeholders who evidence the necessary competence to discharge their duties in a culturally
appropriate and respectful way. Respect and trust are fundamental to any complex supply chain
system since consumers rely implicitly on the actions of others to ensure their personal safety,
health, and well-being.

To better understand the critical control points and vulnerabilities in the supply chain, product
flows should be mapped. In this situation, we need to understand the interconnections and
interdependencies within the food distribution system and be aware of the opportunities for
exploitation. Supply chain mapping can be used to give a more complete picture of material flow
and the potential risks present, including those of a socio-economic, behavioral, and geopolitical
nature. Constant vigilance is necessary, with products being able to be traceable from the origin
of foodstuff to the act of consumption. Monitoring strategies deployed in the food chain focus on
origins and label verification, specification management, supplier audits, analytical testing at
critical control points, and anti-counterfeit and cross-contamination warning systems, all of
which contribute to the implementation of traceability systems in Halal food production [20].

However, in Halal food supply chains, there are many more elements to consider ensuring
compliance measures to ensure Halal Tayyiban principles are released. A more holistic,
culturally sensitive Halal Tayyiban lens would also include a more comprehensive investigation
along Halal supply chains to include 'second order' details like resource conservation, animal
welfare, elimination of animal cruelty, slaughtering practices, the housing of animals and their
safe transportation [21]. Other factors that should be included in such compliance assessments
would look closely at agricultural practices, reductions in the usage of fertilizers and pesticides,
and endeavors to eliminate contaminants and pollutant agents [21]. Auditing of Halal supply
chains would also need a comprehensive approach to the food product and flows to ensure
safety, traceability, security, and transparency [21].

To truly understand vulnerabilities in Halal supply chains, control plans should be deployed
which have a strong sense of 'thinking like a criminal’. Compliance and traceability efforts need
to be effective and efficient. One such approach is the deployment of testing technologies that
can aid in identifying food contaminants with the aim of ensuring the integrity of food products
and raw materials [22] in a cost-effective, fast, non-invasive manner. This could be, for example,
by using hand-held near-infrared (NIR) devices [21]. Further, vulnerability assessments can be a
valuable tool to illuminate the existence of three essential elements: those of criticality,
accessibility, and vulnerability [20], thus removing the resultant food adulteration threats.

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Halal Supply Chain Compliance – Building Human Capability

An oft-forgotten important component of the supply chain is the human element. While an array
of tools, systems, and technologies can be deployed in this area, there effectiveness is resultant
on the human discharge of skills, knowledge, and attitudes. The human component of the Halal
food supply chain is a foundational component of ensuring compliance, in not only meeting
certification requirements and regulations pertaining to Halal, but also the establishment of
respectful stakeholder practice needed to ensure consumer trust in the Halal food system [23].
This is needed to be carried out in the face of significant human capability development
challenges, which are unfortunately still particularly evident in globalized and increasingly
complex food supply chains. Halal product provenance, as products are traded and transported
across regions [24], is of particular concern, particularly given that not all jurisdictions have the
necessary regulatory food safety frameworks, corruption monitoring regimes, compliance
checks, human talent, and associated infrastructure and cultural awareness to ensure complete
provenance. Further, to achieve the resultant consumer trust, Halal products, and services, key
supply chain actors and stakeholders need to build competent, attentive, and religiously aware
workforces. Competent and cultural aware supply chain and logistics workforces are also pivotal
in ensuring unwitting breaches, such as inadvertent cross-contamination, do not occur.

Educating consumers is also a very necessary component of ensuring the Halal supply chain and
product integrity. A recent study recommends that Islamic authorities should seek to
continuously find ways to improve consumer awareness around possible areas of Halal food
fraud [7]. Many Muslim consumers are often understandably not well informed as to their
consumer rights and the associated legal protections pertaining to Halal products and Halal
certification procedures [25], and thus must be educated along and throughout the supply chain
[24]. In this regard, ensuring that Muslim consumers purchasing food can accurately identify an
authentic Halal logo, for example, could assist in reducing the possibility of purchasing
fraudulent products [8], since an individual's knowledge and awareness are important
determining factors in building their resultant perception regarding Halal compliance [26].

Conclusions
This discussion aims to raise several key issues around the rapid growth of the Halal food sector
globally. The rise of food fraud has meant that many Muslim consumers are becoming more
aware of the importance of food bonafides and the provenance of Halal food products that they
purchase. This exploratory paper highlights the importance of vigilance and the need for supply
chain actors to become more cognizant of the significant impacts that food fraud has on Muslim
consumers. Non-Muslim countries and their workforces who wish to participate in the Halal
food eco-system need to build their cultural competence to ensure they are discharging their
responsibilities respectfully. Building human capability, both along the supply chain and
amongst Muslim consumers, is also essential in identifying activities of a fraudulent nature. This
development also needs to extend from merely fraudulent responses to ensuring that supply
chain actors do not inadvertently contaminate Halal food products. Further, to reduce
opportunities for food fraud, greater emphasis is needed around mapping supply chain
vulnerabilities, incorporating traceability protocols, mitigating risk, creating transparency, and
building awareness around critical control points that could be exploited by unscrupulous
behaviors.

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