The purpose of this study is to propose a halal cluster concept to better organise production and trade of halal food.
This paper builds further on previous work published in the Journal of Islamic Marketing on halal food supply chains and value chains. A cluster analysis is conducted on the Malaysia and Dubai halal cluster to provide a better understanding of their halal cluster models and sustainability.
Food production and trade has been described as the weak link in the halal value chain. To guarantee availability of and access to halal food, a new paradigm is required in better organising the production and trade of halal food through halal clusters. A halal cluster model is proposed based on five pillars, namely, Muslim consumer, education and research, halal integrity network, halal supply chain and enablers.
This conceptual paper proposes a halal cluster model to scale up the production of halal food for the world. However, more empirical research on halal purchasing, halal network development, halal trade and halal parks is needed to support the development of these halal clusters.
To better address today’s issues in the halal industries (ingredients, certification, logistics, etc.), there are evident benefits of producing in strong halal clusters, hereby providing easy access to halal ingredients and access to attractive Muslim markets.
As halal is going through an evolution, towards a halal supply chain and value chain, new business models are required. It is the first study investigating halal clusters.
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