Page 43 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 2, 2017, pp. 43 - 50

HALAL PRODUCTS SYSTEM AUDIT AND ITS IMPORTANCE FOR THE CZECH

REPUBLIC EXPORT STRATEGY

Ondrej Krocil, Assoc. Prof. Richard Pospisil

Palacky University, Department of Applied Economics, Olomouc, the Czech Republic

E-mail address: [email protected] Phone: +420 728 823 690

Received 25 September 2017; accepted 12 December 2017; published online 25 December 2017

Abstract

There is a great Muslim population in the world so there is also a significant demand for halal
products. Therefore, halal certification is a current trend on the food market. The aim of this
paper is to analyze the halal certification process with focus on administrative and audit
processes related to the certification and the potential of Czech halal food producers to export to
Muslim countries and to fulfil the Czech Republic export strategy.

Keywords: halal, certification, audit, SWOT, export.

JEL code: D 11, L 15, L 66

1. Introduction

There is a large Muslim population of approximately 1.8 billion and the demand for halal
products is constantly growing. Therefore, the halal certification presents an important
competitive advantage and a large economic tool for the Czech exporters to enlarge the sales
volumes. Czech business focus on halal products is present mainly on the food market.

There are strict norms related to the halal certification that are to be kept by the businesses. There
are also administrative demands and a yearly business audit carried out by the related
certification center.

Halal production encompasses all food products including beverages that are in line with Islamic
rules. It includes beef, mutton, chicken, non-predatory wild animals (e.g. deer) or non-predatory
birds (e.g. pigeon, quail). Animals permitted by the Islamic rules must be hunted and slaughtered
according to the Islam canon. Apart from the listed meat there is also an acceptance of all
cereals, fruits, vegetables and selected bird’s eggs and milk from animals that are on the
approved list.

Some production is forbidden by the Islamic rules and this is called haram. It includes pig and
wild pigs, dogs, cats and birds of prey. The products cannot include any blood or alcohol. Halal
includes standards and lists permitted and forbidden products.

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