Transparency in the food chain is considered a very positive concept. More importantly, transparency is seen as a key driver of trust. As the Halal market booms globally, the question is whether increased transparency can improve the trust and overall integrity of the global Halal supply chain.
Efforts to increase food chain transparency rely on the wave of globalization, advances in information technology, and governments' increased attention to sustainability, environmental accountability and information disclosure. Scholars believe the real benefit of transparency may come from the questions it forces organizations to consider, rather than the results it ultimately achieves.
When applied to the Halal food field, the concepts of transparency and trust force us to engage with the complexity and nuances of the industry. I recently spoke with Brij Sahi, CEO of SwissDeCode, a Geneva-based provider of mobile analytical testing technology for food safety and food authenticity.
Brij noted: 'We know that Muslims must ensure that the products they use or consume are Halal and permitted, which is a huge challenge that relies on transparency and trust in the Halal food industry.'
Indeed, there are many challenges to achieving this; in the globalized Halal food chain, blind trust in supply chain participants and regulatory oversight is not the best option.
Historically, Halal food chains were local, clustered in tight-knit communities in villages, towns and cities around the world. Halal consumers would visit local greengrocers, butchers, bakeries and bulk food suppliers, and transparency and trust were built on their face-to-face interactions.
However, the globalization of the food chain means that Muslim communities now have access to more Halal products, often produced in non-Muslim countries. These products can also travel longer distances and pass through many hands, which increases the opportunities for fraud by bad actors engaging in economically motivated adulteration, such as claiming that a product and its ingredients are Halal.
Economic theory helps us understand the challenges we face in enhancing transparency and trust in the Halal food chain. For example, food can have search, experience or credence attributes.
Search attributes can be price, product size and availability, and consumers can search this information for free before purchasing the product. Of course, the data must be available, accessible and accurate.
Experience attributes such as claims that a product is nutritious, heart-healthy or delicious can only be verified after the consumer has eaten or drunk the product.
In contrast, credence claims such as Halal are regarded as 'unobservable' claims and are usually seen by consumers as unverifiable attributes. This means that, for consumers, it is usually impossible to verify credence claims such as food quality, food safety, or whether food is organic, free-range or Halal, either before or after purchase. Therefore, the key question is:
How can we help consumers handle their primary search and certification needs?
The EU is a good example, having established comprehensive regulations (EU 1169) requiring that the digital information of food must be identical to the physical product label. In addition, allergens must be clearly indicated online, on the product, and on restaurant menus.
I recently spoke with Diana Sabrain, CEO of Halal e-commerce hub OneAgrix. Diana's vision of Halal food chain integrity includes access to accurate and verified product information and verified sources of credence claims. When I asked for an example, Diana noted,
'Muslims consume Halal food according to their own customs, and what they need is a trustworthy brand supported by a trust system—this is evident from end consumers' demands for food traceability and transparency.
'OneAgrix uses advanced technologies including blockchain and smart contracts, and works with partners that provide food packaging security features. At the ingredient level, we are now exploring the easy-to-use Halal food testing tools provided by SwissDeCode. They can provide us with 100% assurance at the DNA level that Halal products are uncontaminated. These tools will help us position food companies as reliable sources that Muslim consumers can trust.'
SwissDeCode's Halal test, called 'DNAFoil Pork,' was launched in 2016 and was one of the first solutions to rapidly detect pork. DNAFoil is a versatile 'sample-to-result' test kit that can detect pig DNA in any food. More importantly, because the test is an on-site or point-of-use test, it can be carried out by an operator rather than a scientist, without worrying about the integrity of the test results. The test is specific to pork DNA and has successfully identified pig DNA as low as 0.01% in many foods. Examples of successful tests include minced or mixed meat, processed and convenience foods, cheese, dairy products, finely ground foods and more.
OneAgrix is helping brands and consumers address two key challenges: facilitating online searches to obtain credence attributes about Halal products, and providing the infrastructure and tools that enable consumers to verify credence claims before purchase. This is unique because an invisible credence claim (such as certified Halal) is then transferred to a search attribute that consumers can verify online before purchase to confirm whether a company and product comply with Halal certification.
Regular market monitoring and on-site testing using SwissDeCode tools can help reduce the risk of counterfeit or contaminated products, because they can be quickly detected and removed from the Halal chain.
Diana explained that their platform links to authoritative sources of trust claims, such as food audit companies, Halal certification bodies and other agencies responsible for verifying claims or issuing certificates of conformity. This means that, independent of the brand owner, independent sources can be used to verify credence claims. Diana explained: 'This process enhances the integrity of the Halal food chain.'
As some rogue companies continue to falsely claim that their processing plants and products are Halal, solutions like OneAgrix, leveraging modern technologies such as blockchain and analytical science tools such as SwissDeCode DNAFoil, will make a huge difference. They will help reduce information asymmetry between brands and consumers, increase transparency and enhance consumer trust in Halal products.
As food fraud is a growing global problem, we should salute CEOs Brij and Diana, congratulating them and wishing them all the best in facing these challenges.