Muslims will be able to shop with more confidence because of the increased usage of blockchain for product tracking in the Halal supply chain. This was the highlighted issue of the Global Halal Brazil forum.
Sao Paulo – With the use of modern technologies, Muslims will be able to buy and use items that are truly Halal (permissible in Islamic law). On Tuesday, March 7, experts at the Global Halal Brazil Business Forum touted blockchain’s enhanced traceability as a way for Muslim consumers to verify the legitimacy of the goods they purchase.
When asked, “What are the opportunities presented by blockchain?” Marco Tieman, founder & CEO of Malaysia’s LBB International, gave the answer. He said, “It provides the Muslim consumer with accuracy, which is about the Muslim consumer checking the status of the Halal product or service and the decency of the chain.”
The demand for Halal products continues to rise alongside the complexity of the systems used to produce them. Blockchain technology can be leveraged to facilitate rigorous oversight of all relevant operations. Tieman explained that blockchain technology is here to automate compliance checks in consumer markets. In this market, “you must assure that the entire chain fits the criteria.”
Arab Brazilian Chamber of Commerce (ABCC) IT Manager Marcos Bulgarelli, who moderated a panel titled “Digitization and Blockchain: The New Frontier for the Global Halal Industry,” revealed that customers may track the origin of their Halal purchases by scanning a QR code with their phones in the store. That way, they’ll be fully informed of the product’s journey from farm to store.
Tieman cited the increased openness and trust that blockchain technology will provide as one of the main advantages. Any flaw in the chain is pinpoint, allow certifiers to perform a speedy audit, and resolve the problem. As well as allow the product to be classified as Halal or non-Halal. According to the LBB’s chief executive officer, “There is a relationship between trust and purchasing intent.”
Complexity of Brands
There are a lot of confusion surrounding brands.
Egyptian participant Ashraf El Tanbouly, CEO of Islamic Chamber Halal Certification Services, discussed the proliferation of Halal company names and logos and the potential confusion this causes for customers. He said that the Islamic Consumer Council had identified over 400 Halal products. There will always be both reliable and shady verification services available. He explained that while some businesses actually get certified, others may merely utilize the logo.
As a result, the Islamic Chamber of Commerce is developing a universally respected Halal label. The consumer needs “a mechanism to confirm that,” he said, “a QR code via which they can check that it’s Halal.” According to Tanbouly, in order to establish a reliable brand within the Islamic community, it is necessary for consumers to accept and demand it.
Global Digital Market
Nicholas Buhmann, the company’s director of commercial operations, introduced the TradeLens platform as an effort to leverage technology to connect supply chains throughout the world. Digitalizing international trade is the goal of this joint project between Maersk and IBM. The platform includes cargo tracking as one of its functions, and today 50% of the enterprises participating in international container transportation are members.
According to Buhmann, Tradelens’s several partners are one of the company’s strongest points. He remarked, “Whoever is using the technology makes all the difference.” According to him, initial fears regarding data sharing are warranted. People “used to assume they had to safeguard their information,” he said. “Now they understand that by sharing certain data, everyone can work together in a more streamlined approach. They benefit from more openness across the supply chain.”
The commercial manager stated his belief that Arab countries such as Saudi Arabia, the United Arab Emirates, Qatar, and Egypt are more advanced in regard to digital change than other parts of the world. They are more eager to accept new technologies and adopt blockchain. He argued that “the opposite end of the chain,” which may be Brazil or other countries that conduct commerce with the Middle East, should be integrated as quickly as possible.
Phases of the Market
Marco Tieman, in addition to discussing traceability, outlined the many stages at which a Halal market might be, stressing the need of doing so for suppliers. First, there’s a scenario in which confidence between purchasers and vendors is the sole factor in financial transactions. Second, Halal certification is the foundation of this faith. In the third place, Halal requirements must be met all the way through the supply chain, from production to retail.
According to Tieman, “it’s developing from Halal businesses and product entities, value chain.” His research suggests that nations like Malaysia, Indonesia, and Turkey are currently in stage three. The variables like sustainability, Islamic finance, branding, and marketing are still into account in the final step. He said, “It’s crucial that we understand the depth of interest in the Muslim market we’re squaring up against,”.
Hayat Sindi, chief advisor to the president of the Islamic Development Bank in the areas of Science, Technology, and Innovation delivered the keynote address before the panel discussion. The BBC named Sindi one of the 100 most impressive women in the world in 2018. She is also a UNESCO Goodwill ambassador. There was a distant discussion between her and the other panelists.
Sindi discussed the importance of incorporating cutting-edge research and technology into the booming Halal market. The advisor claims that governments and businesses all over the world are becoming increasingly interested in the Halal system. This interest has led to a proliferation of related institutions and industries. It includes universities, trading companies, investment funds, and business incubators.
With the help of Apex-Brasil, BRF, Pantanal Trading, Portonave, and Report, the ABCC and the Federation of Muslim Associations in Brazil (FAMBRAS Halal) host the annual Global Halal Brazil meeting. Renata Maron, a journalist, hosts the show. You may catch the action live on the event website or on ABCC’s YouTube page. Portuguese and English translations are included. There is still time to register.