“Halal Logistics” caters to the growing demand for halal products among the Muslim population in Germany.
The growing Muslim population in Germany –the country has the largest Muslim population in Europe – has created a niche market for halal food products and, with it, the need to have a well-functioning halal logistics network.
Players in the logistics sector have realized, both in Germany and other countries aspiring to penetrate the halal markets in Europe, that this is a growing niche market inherent with strong demand for halal products.
Research studies have been commissioned to assess the market potential of halal products in a number of European countries. One such study was undertaken by Prof. Dr. Yvonne Ziegler, specializing in air-transportation management, from Frankfurt University of Applied Sciences (Frankfurt UAS).
The study “Halal Logistics – Air Freight” examined the level of demand for halal products among the five million plus Muslim population in Germany and establishing a halal supply chain. The term “halal” in Arabic means “permitted” according to Islamic principles. The production and supply chains for such products – besides food products, the term also applies to cosmetic and pharmaceutical products –also need to conform to halal guidelines. The study was undertaken in collaboration with the halal certifying organization Halal Council and Lufthansa Cargo.
The study, which examined the willingness of the Muslim population to pay higher prices for halal food products and conducted a survey among 772 Muslims in Germany, found that almost all the persons said that halal food was important (88%) or moderately important (9%) for them. Some 94% of those questioned said they would prefer food products certified as halal while more than half of those questioned (59%) said they were willing to pay more for the food prepared under halal guidelines.
An interesting revelation was their willingness to pay a higher price, regardless of their earning capacity. Some 80% were willing to pay between five and 20% more for halal products. In fact, the remaining 20% were willing to pay 50% for halal products above the price of non-Halal products.
The study also analyzed various aspects of halal logistics in the airfreight sector, particularly at Frankfurt airport. The study examined Frankfurt airport’s potential as a hub for halal products in Europe and the conditions to be met for creating such a hub.
Germany Meat Exporter to Islamic Countries
Germany has also become a leading meat exporter to Islamic countries. Germany’s annual air-borne meat exports amount to more than 3 billion Euros to the world’s top ten Muslim countries. The study which also interviewed 20 exporting companies, found that for a supply chain to conform to halal standards all the equipment and tools used in the transportation should be deployed exclusively…
View the full article free in the AJOT Digital Edition or by Logging in!View Digital Edition