Australian businesses are being compelled to sign deals with halal companies to secure lucrative contracts in Asia and the Middle East as certification operators rake in millions of dollars.
The country’s two most prominent Islamic certifiers — the Australian Federation of Islamic Councils and the Supreme Islamic Council of Halal Meat in Australia — last year increased their annual accreditation revenue by almost $600,000 as an increasingly diverse array of producers choose to have their goods certified.
A survey of supermarket shelves by The Daily Telegraph showed an extraordinary number of products are now accredited as halal, including everything from Vegemite and Pods chocolates to Steggles chicken products and Leggos tomato paste, even chewing gum.
Halal fees, which slug small business thousands of dollars, cover testing on colour additives, sweeteners and enzymes, while halal abattoirs can pay more than $12,000 for yearly audits and exported meat is charged up to 25c per carton.
Many businesses signed up for halal certification in a bid to remain competitive, especially in export markets.
Some smaller companies said the costs passed on to customers were minimal, while larger manufacturers such as Nestle claimed they don’t pass on halal costs.
“There is a lot of money to be made in south Asia and in the wider halal market,” an Islamic community source said.
“What they say to the Australian companies is that if they don’t get the certification they won’t be able to sell in those countries.”
The Byron Bay Cookie company earlier this year said it spent $1500 annually on certification fees, while Fleurieu Milk Company — which cancelled its halal accreditation before recertifying this year — spent $1000.
The company won a $50,000 contract to supply the airline Emirates with yoghurt after recertifying.
An Islamic meat industry source claimed the majority of large Australian meat manufacturers paid big sums to organisations including AFIC, SICHMA and Halal Australia. “Big companies like Murray Valley and Red Lea, they have paid for halal accreditation,” he said.
The halal industry is not policed by a parent body and fees are not publicly disclosed. The Islamic community has been conflicted by the standard of halal certification, with Hanafi followers seeking meat and food prepared only through traditional methods.
A senate inquiry, which has attracted more than a 1000 submissions, is probing food certification schemes linked to halal, kosher, organic and genetically modified foods.
AFIC, which operates halal certification and schools, and raked in almost $6 million last year, said revenue from its halal operations helped fund its schools. “AFIC’s other activities, the main one being halal certification, is used to support schools,” it said in a June statement.
Butcher’s Blessing to Certify Own Meat
Two major players dominate the halal accreditation market in Australia but there are ways to avoid forking out big bucks for certification.
Ali Moula — who runs Harris Park butchery Green Farm Meat Products — told The Daily Telegraph he had been sourcing his own meat independently for years and bypassed major halal certifiers such as the Australian Federation of Islamic Councils and the Supreme Islamic Council of Halal Meat in Australia.
Mr Moula, who has been working in the industry for almost two decades, said he had his own butchers who could prepare the meat — sourced from across the state — and had received the blessing of a local mosque.
He said costs to prepare halal food should not be passed on to the consumer.
“It is not the customer’s problem, it’s my problem,” the 18-year meat veteran said.
“I’ve worked in this industry for many years and have sourced my own meat from all around NSW. The big businesses can pay up to $10,000 or whatever the fees are to AFIC and the certifiers but many butchers they can do their own halal checks.”
He said halal certification organisers targeted major manufacturers who sold accredited meat products.
While AFIC and SICHMA are required to provide financial statements for their operations, private halal certifiers are not obliged to divulge their results.
AFIC, which made a $3.84 million profit last financial year, lists various expenses including an imam’s salary — $64,500 — and other donations of more than $91,000.
The certifier also states that its halal operations cost more than $150,000 for supervision and workshop expenses.
The Sydney organisation receives healthy tax breaks as a listed charity and is associated with Islamic schools and colleges in all state and territories, except Tasmania.
AFIC also has property holdings from which it collected $4.1 million in rent.