April 26, 2013

 
Australian beef exporters face halal certification issues
 

Issues surrounding halal certification and pre-slaughter stunning have underlined the on-going challenges Australian beef and cattle exporters continue to face in the market as it awaits confirmation of increased import quotas from Indonesia.

A number of beef exporters in Queensland have stopped supplying orders to Indonesia in recent weeks following the delisting by Indonesia's Muslim clerical body (MUI) of the State's key Halal certifier Australian Halal Food Services (AHFS).

Queensland packers have been told they must now use a Victorian-based Halal certifier, if they wish to continue exporting boxed beef to Indonesia.

The Victorian certifier has reportedly doubled the costs of certification to Indonesia for Queensland exporters. The development has also raised concerns among processors/exporters as to whether they will have to pay different halal certifiers for different markets in future, or whether a monopoly will exist for certification of all halal markets.

Indonesian halal certification is a state-based system in Australia, where historically there has only been one certifier for Indonesia. The Indonesian MUI introduced a policy two years ago requiring that Australian-based halal certifiers for Indonesia must operate within one state only.

The delisting of Queensland's main halal certifier on April 8 is believed to relate to internal disputes between Muslim certifiers over the state-based arrangements and whether certifiers should be able to expand their business across states. Prior to this development, Queensland packers were able to pay a single certifier to handle all of their certification requirements for all halal markets, including Indonesia.

One source explained to Beef Central that the Queensland certifier's accreditation was delisted after it won a contract to supply halal certification services in Victoria for a processor to cover markets outside of Indonesia. This development led to a dispute among local certification bodies about whether certifiers should operate across state boundaries, and resulted in the decision by MUI in Indonesia to remove the Queensland supplier's accreditation and to institute a Victorian based certifier to provide certification services in Queensland.

The delisted certifier, which handles a bulk of the halal certification work for Queensland exporters across all halal markets, is understood to be trying to have its accreditation with Indonesia reinstated. Beef Central is aware that there have been discussions between Industry and the Federal Government around options to improve the current Indonesian certification system and to ensure competition remains in the market for these services.

Meanwhile, Australian livestock export industry leaders are monitoring another halal-related situation in Indonesia which involves an audit of stunning practices in Indonesian abattoirs by the MUI council. Pre-slaughter stunning is deemed as a halal or acceptable practice under Islamic law in Indonesia, but must be performed in a way that ensures animals are not damaged or killed by the stunning bolt and remain alive at the point of slaughter.

While five Exporter Supply Chain Assurance System (ESCAS) accredited abattoirs are understood to be located in the province considering a ban on pre-slaughter stunning, a department of agriculture spokesperson said Australian exporters had confirmed they have access in their approved supply chains to abattoirs that are not affected. Under ESCAS rules, abattoirs that handle Australian cattle must comply with OIE standards as a minimum animal welfare requirement. OIE welfare rules do require abattoirs to practice pre-slaughter stunning.

However, more than 90% of ESCAS-approved abattoirs in Indonesia have adopted the practice, largely because they are finding that stunning is not only better for welfare, but better for their bottom line as well. After installing pneumatic stunning equipment in his Jakarta abattoir last year, Budiman Lakman told Beef Central that stunning had led to quieter cattle, better quality meat, happier customers, and significant time and cost savings for his business.

Australian Livestock Export Council chief executive Alison Penfold said it was understood the national MUI council was very supportive of stunning as a halal practice. "There has been a significant increase in stunning across Indonesia, and we want to ensure that it complies with both ESCAS and halal requirements. Industry will continue to work with authorities to provide any additional training, information or support that is necessary."

Penfold said Australian cattle were still required to be processed in compliance with OIE standards in Indonesia, and said that while those standards did not require stunning, the industry had no desire to see the strong uptake of stunning in Indonesian abattoirs reversed.