Credibility of Halal Beef Value Chain in Malaysia and Willingness of Consumers to Pay Premium Prices

Introduction Beef industry in Malaysia has been growing at a slow rate over the last decade. As a result, the country has been unable to meet the demand given the rapid increase in Halal beef consumption. The per capita consumption of Halal beef has increased from 1kg to over 6kg (Mohamed et al. 2008 p. 58).Advertising We will write a custom case study sample on Credibility of Halal Beef Value Chain in Malaysia and Willingness of Consumers to Pay Premium Prices specifically for you for only $16.05 $11/page Learn More The low production of beef has forced the government to import beef from the neighboring nations to meet the ever-growing demand. The low rate of production is mainly attributed to farm inefficiencies, which has also led to high cost of production (Mohamed et al. 2008, p. 59). There are five categories of beef producers in Malaysia, namely: ranch integrators, vast estates, commercial feedlots, and customary agriculturalist. The five categori es differ in animal numbers, a system of management and size of land. They are all involved in the production of both cattle and buffalo beef. The customary agriculturalists are the majority and possess nearly 80 percent of cattle and buffalo farms (Mohamed et al. 2008, p. 60). The ever-increasing demand for Halal beef products and services has had a significant impact on the local beef industry (Yeong-Sheng et al. 2015, p. 43). Since Malaysia is a predominantly Muslim nation, there is a special attachment to Halal products. Muslims abide by the strict dietary rule and are only permitted to eat Halal products. Therefore, Halal is very significant in the country’s food sector, including beef industry (Hamdan et al. 2013, p. 55). In addition, the growing demand for Halal products all over the world means that Halal food sector is no longer an industry that conforms to spiritual necessity, but is turning into an economic force in its own right (Noordin et al. 2009, p. 1). Genera lly, Muslim consumers often have a tendency to buy certified Halal products for a sense of security. For this reason, consumers in Malaysia are more concerned about the quality of Halal products than their prices. Malaysia Department of Islamic Development is the body responsible for Halal accreditation in Malaysia (Yeong-Sheng 2015, p. 5). According to Yeong-Sheng et al., demand for beef in Malaysia is inelastic to expenditure and price, which means consumers are willing to pay premium prices for quality beef products. However, the price elasticity of beef is relatively lower compared to advanced nations due to the general income level (42).Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The slow growth of beef industry and its enormous potential provides the rationale for choosing the topic under study. Moreover, businesses are now moving away from consumer-geared approach to value- driven approach to increase profitability and to build brand equity. Brand equity is defined as â€Å"any given brand name that has a specific significance and value to consumers and, therefore, influences future earnings and consumer loyalty (Westberg Pope 2012, p. 3). Beef industry in Malaysia and Concept of Halal and its traceability From the early 1960s to 2010, the individual consumption of beef in Malaysia has grown from 1kg to over 6kg. This is mainly attributed to increase in income and population, as well as the affordability of beef products (Mohamed et al. 2008, p. 58). Since more than 60 percent of the population is Muslims, food items must be prepared using Halal methods. In addition, consumers in Malaysia are increasingly becoming vigilant and conscious of the ingredients in food products and, therefore, are very selective. Some authors attribute this to a high level of literacy and increased concern for food safety, quality, and legitimacy. The global food safety cr isis also prompted Malaysia people to demand transparency in the production of Halal beef products (Hamdan et al. 2013, p. 55). Halal basically refers to food that has no trace of swine or pork and does not cause any harm to the body or physical wellbeing. Pork and Swine are highly forbidden in Islam. In other words, any food can be considered to be Halal as long as it is prepared or processed according to Islamic Shariah law (Lokman 2008, p. 2). The Halal guidelines and procedures are not just limited to Islamic law, but also hygiene and quality regulation. The materials and equipment used must also conform to Islamic law. Additionally, the production process must be observed and regulated by a qualified Muslim inspector. Food products, including beef that has met the Halal standard, are said to be Halal certified (Lokman 2008, p. 3; Hamdan et al. 2013, p. 57). Consumer Purchasing Pattern As already been mentioned, demand for beef in Malaysia is inelastic to expenditure and price, which means consumers are willing to pay premium prices for quality beef products (Yeong-Sheng et al. 2015, p. 42). The concern about the quality and safety of beef products in Malaysia has been aggravated by the recent fraudulent activities and safety incidences, for instance, the traces of pork DNA found in Cadbury chocolates in Malaysia two years ago. For this reason, consumers only purchase products that are certified and have markings and logos (Yeong-Sheng et al. 2015, p. 31).Advertising We will write a custom case study sample on Credibility of Halal Beef Value Chain in Malaysia and Willingness of Consumers to Pay Premium Prices specifically for you for only $16.05 $11/page Learn More The majority of Halal beef consumers trust local butcheries manned by Muslims than supermarkets. This happens despite the fact that meat products are highly regulated in Malaysia. The prices of beef are slightly higher than other meat products because the beef indus try is controlled by cartels. However, the willingness to pay premium prices for Halal beef products depends on consumer income levels. Low-income consumers in Malaysia tend to overvalue low-quality beef, whereas high-income consumers tend to overvalue high-quality beef (Hamdan et al. 2013, p. 60). Malaysia Overview The growth of the beef industry is still slow in Malaysia. However, the industry’s prospects are enormous given the increasing demand for Halal beef both locally and globally. This provides the rationale for choosing the topic under study. In addition, Halal beef consumers in Malaysia still have trust issues with their supply and value chain system. As a result, the majority of them only buy beef products from local butcheries and shops instead of supermarkets. This because consumers are more concerned about the quality and safety of beef products than prices. They are even more willing to pay premium prices for Halal accredited products (Yeong-Sheng 2015, p. 42; Hamdan et al. 2013, p. 60). Therefore, the case study will contribute to the body of knowledge aimed at improving the country’s Halal beef supply and value chain. Malaysia Halal Beef Industry Value Chain Analysis Value chain basically refers to an array of activities or processes used by businesses to enhance the quality of products. It also refers to a methodical way of splitting business operations and how they add value to the consumers. The main elements of Halal beef value chain are processes, information, and stakeholders (Backer Miroudot 2014, p. 55). The term value chain was first introduced by Porter in 1985. Porter (1985, p.34) defined value chain as organizational activities connected to a company’s competitive position. There has been a considerable shift in Halal beef marketing from client-based approach to value-based approach. The Malaysia government is striving to align the beef supply chain and value chain to enhance consumer experience and satisfacti on. Citizens had started to question the integrity of the existing supply chain due to its complex nature and inability to detect matters of integrity. The susceptibility of the supply chain was also attributed to its size and increasing demand for Halal beef (Mohamad Backhouse 2014, p. 3).Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The accreditation process ensures that beef products are prepared in accordance with Islamic principles and procedures (Tieman, van der Vost Ghazali 2012, p. 222). The certification process is managed by the Malaysia Department of Islamic Development. Besides, State Islamic Religious Department and Council are also mandated with the responsibility of issuing Halal licenses and logos (Muhammad, Isa Kifli, 2009, p. 54). Critics argue that the challenges facing the Halal accreditation in Malaysia is not with the process, but implementation. The issues affecting the implementation process include operational inefficiencies and governance (Noordin et al. 2009, p. 7). Mapping Halal Beef Industry Value Chain Analysis Value chain rests on the division of various operations and mapping of relations that might create value or costs in the production process. Value chain maps illustrate the industry players and functions. It usually contains a number of elements, which include: input supplie rs, production, processing, wholesale, retail, and consumers. These elements assist in organizing important information regarding the players/actors in the value chain (Backer Miroudot 2014, p. 6). The Halal beef value chain in Malaysia has developed over the past decade into an array of complex components involving different players that include ranch integrators, vast estates, commercial feedlots, and customary agriculturalist. However, the largest share of Halal beef in Malaysia is produced by customary agriculturalists. They account for nearly 80 percent of the total production. They are often found in the countryside where access to market and infrastructure is inadequate. Market and pricing information are unattainable. Earlier attempts to organize smallholder farmers into cooperatives and self-help groups have been futile. Therefore, these players in the value chain are not doing enough to add value to their products (Muhammad, Isa Kifli, 2009, p. 57). The village middlemen , on the other hand, usually gather animals from remote locations and take them to slaughterhouses where they are well fed and watered. The middlemen are autonomous operatives who utilize their local knowledge and social-economic relations to gain access to local markets. Most of them are restricted to certain geographical region due to financial constraints. They frequently distort prices and benefit at the expense of the farmers. In addition, they charge ridiculous fee and add no value. Instead, they add more than 10 percent of the abattoir gate price. In a nutshell, middlemen are not offering much in terms of value addition, yet they extract a fee from the value chain system that can barely sustain the additional cost. Therefore, there is a need to design and implement reliable information dissemination mechanism to enhance trust and collaboration between different players in the value chain (Muhammad, Isa Kifli, 2009, p. 59). Large estates and ranches often have feedlots for fa ttening both young and mature animals. The fattened young animals are basically for the export market, whereas the mature animals are for the local market. The feedlots are always located near the urban areas where there is a ready market. Nevertheless, the cost of operating feedlots has increased significantly, while the earnings from animals have gone down. This is mainly attributed to the inflated cost of inputs (Mohamad Backhouse 2014, p.9). Among the existing slaughterhouses, only 12 are operational. All of them have facilities for goats and sheep. However, facilities for cattle and buffalos are limited. Upon arrival, the animals are taken through a bodily inspection and rested for 72 hours in the holding areas where they are fed and watered. 12 to 24 hours before slaughtering, they are placed in a lairage where they are given water only (Mohamad Backhouse 2014, p.9). At the lairage, they are taken through another examination process. Animals that have passed the test are the n slaughtered using Halal procedures and methodology. The slaughtering process must be observed and regulated by a qualified Muslim inspector. A while later the remains are chilled at – 2 to 2 degrees Celsius for a day. In most occasions, slaughtering is done when a client makes an order (Mohamad Backhouse 2014, p.11). The only processing that takes place is putting the carcasses in stockinet ready for transportation or shipment. All the abattoirs have their own refrigerated trucks for transporting Halal beef products. However, the cold stores are limited. The abattoirs in Malaysia sell both Halal beef and by-products, for instance, blood, organs, and intestines. The sale of by-products helps the slaughterhouses to break even. The main responsibility of the wholesalers is basically picking the Halal beef products from the slaughterhouses and selling them to the retail market. They have limited storage capacity and, therefore, do not hold beef for long. The wholesalers and re tailers grade and repackage the Halal beef products (Muhammad, Isa Kifli, 2009, p. 59). Figure 1: Schematic description of the beef value chain Table 1: Summarizing the Value Chain Mapping Beef Production Processing Distributing Wholesaling Retailing Inputs Commercial feeds and minerals Pesticides Money Ice Packaging Beef Beef Beef Activities Zero grazing and open grazing Feed formulation Purchasing inputs Processing includes slaughtering, handling, preparation, inspection and packaging Distributing beef from slaughterhouses to wholesalers Picking up beef from slaughterhouses and sell products to retail market Most of the whoesalers have limited storage and, therefore, do not hold beef for long. Selling to consumers Outputs Beef cattle or Buffalo Beef Beef Beef Income Actors Ranch integrators, vast estates, commercial feedlots, and customary agriculturalist Abbattoirs Malaysia Department of Islamic Development State Islamic Religious Department and Council Middlemen fr om the villages Wholesalers Retailers, Supermarkets and local butcheries Problems Farm ineficiencies, which has led to high cost of production Poor methods of production Strong role of informal lenders and middlemen that have trapped farmers in poverty Fragmented markets Uncertainty of raw material suppliers Accreditation challenges Lack of adequate fund to modernize the faccilities Trucking facilities without coolants Poor road infrastructure in some areas which increases transportation cost Most wholesalers lack adequate storage facilities and, therefore, can not stock large quantity of beef The industry is controlled by cartels who regulate prices It is difficult to control the entire value chain in order to maintain standard quality and quantity Lack of consumer trust Low-income consumers tend to overvalue low-quality beef, whereas high-income consumers tend to overvalue high-quality beef Short product shelf life Lack of business and management skills Possible solutions Intr oducing scientific production methods Training farmers Providing affordable loans and promoting farmers cooperatives to eliminate the middlemen Establishing adequate buffer stock for raw materials Restructuring the accreditation process and enhancing public awareness Modernizing public abbattoirs Improving the road networks to reduce transportation cost Providing trucks with refrigerated facilities at affordable price Building more warehouses Introducing a stringent law to eliminate the cartels Enhancing the entire value chain to enhance product quality and quantity, which will also deal with the trust issues Providing free or affordable training to traders Recommendation to Improve Halal Beef Industry Value Chain In order to improve the existing value chain and make Malaysia a global Hub for Halal beef, the country should embrace the Western USA (California) model. The model targets five aspects, namely: institutional structures, improved productivity, improving local infrastruc ture, training players in the value chain, and stimulating demand for beef products. Currently, the beef industry in Malaysia is divided and has ineffectual umbrella body, as well as a poor grading system. The country should form a meat board like in the US. The body will oversee the formulation and implementation of a sound regulatory system, facilitate various segments within the value chain, enhance productivity across the value chain, improve credit access for abattoirs and processing companies, improving access to international market; come up with a standard grading system, and advise the government on matters related to beef sector. The government should support the formation of cooperatives and self-help groups. The cooperatives and self-help groups will not only help farmers to access credit facilities, but also market their products. The government should also increase access to loan facilities by providing interest-free loans and subsidized inputs through the cooperatives and self-help groups. In addition, training and public awareness on modern production methods should be carried out through these groups. The training should focus on livestock breeding, animal well-being, feeding and grazing land management, and fiscal management. The local infrastructure can be improved through the following ways: modernizing all the public abattoirs to international standard; improving road network; introducing feedlot facilities to help in fattening young calves and livestock ready for market; strengthening the certification body through adequate staffing and funding; providing cold storage facilities, including trucks and warehouses; and providing livestock scales at local markets among others. Figure 3: Change in the Halal beef Value Chain after the suggested intervention Conclusion Halal beef consumers still have some trust issues with the country’s supply and value chain system. This arose after the recent fraudulent activities and safety incidences , for instance, the traces of pork DNA found in Cadbury chocolates in Malaysia. In order to increase the credibility of Halal beef, each stage in the value chain have to be restructured. This can only be achieved by embracing the Western USA (California) model, which targets five aspects, namely: institutional structures, improved productivity, improving local infrastructure, training players in the value chain, and stimulating demand for Halal beef. References Backer, K Miroudot, S 2014, Mapping Global Value Chains, OECD Publishing, Paris. Hamdan, H, Issa, Z, Abu, N Jussof, K 2013, ‘Purchasing Decisions Among Muslim Consumers of Processed Halal Food Products’, Journal of Food Products Marketing, vol. 19, pp. 54-61. Lokman, A 2008, Shariah and Malaysia Halal Certification System, Universiti Sains Islam Malaysia (USIM), Kuala Lumpar, Malysia. Muhammad, M, Isa, F Kifli, B 2009, ‘Positioning Malaysia as Halal-Hub: Integration Role of Supply Chain Strategy and Hala l Assurance System’, Asian Social Sciences, vol.5, no. 7, pp 44-50. Mohamad, N Backhouse, C 2014. ‘A Framework for Development of Hala Food Products in Malaysia’, Proceedings of the 2014 International Conference on Industrial Engineering and Operations Management, Bali, Indonesia, pp. 2-11. Mohamed, Z, Shamsudin, M, Radam, A Serin, T 2008, ‘The efficiency of beef cattle production: A case study in the target area of concentration in Johor, Malaysia’, Economic and Technology Management Review, vol. 3, pp. 57-74. Noordin, N, Noor, NL, Harshim, M Samicho, Z 2009, ‘Value Chain of Halal Certification System: A Case Study of the Malaysian Halal Industry’, European and Mediterranean Conference on Information System, Izmir, Turkey, pp. 1-14. Porter, M 1980, Competitive strategy: Techniques for analyzing industries and competitors, Free Press, New York. Tieman, M, van der Vost, J Ghazali, M 2012, ‘Principles in Halal Supply Chain Manage ment’, Journal of Islamic Marketing, vol. 3, no. 3, pp. 217-243. Westberg, K Pope, N 2012, ‘Building brand equity with cause-related marketing: A Comparison with sponsorship and sales promotion’, Journal of Marketing Communications, pp.1-19. Yeong-Sheng, J, Shamsudin, M, Mohamed, Z, Abdulla, Z Radam, A 2015, Demand for beef in Malaysia: Quantity or Quality, Sage Publications, London, UK. This case study on Credibility of Halal Beef Value Chain in Malaysia and Willingness of Consumers to Pay Premium Prices was written and submitted by user Matilda B. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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Beginning in the mid nineteenth artists such as Degas, Morisot and Monet, began to break the norm of academic painting, by giving up on the detailed stillness of the academic painting and bringing in the restlessness of the world around us into art. The name impressionistic was coined from the inspiration behind the art, which is as the human eye sees it. Impressionist artists tried to capture movement as best as they could, for which they employed light as their favorite element, with different angles of accentuating light being used to depict movement in place and time. This was done with the help of free and short brush strokes of called broken strokes, colors were unmixed giving vibrancy to the design. The difference between impressionistic art and the art before it can be captured by looking at a tree outside the window, if we observe the tree closely we observe minute details and i f we look at it fleetingly we get a different impression. Thus the earlier art aimed to capture every details of the tree, impressionistic art would capture the tree as we will see it if we just casually look up while walking past it, a little hazy, a little blurred, swaying with the wind, with the light making the same green look like a million different colors. One of the most famous artists of this era was Claude Monet and his most famous work Soleil Levant or Sunrise, painted in 1872, oil on canvas. It is probably the work of art that gave rise to the term Impressionistic as it was described the impression of the harbor as Money saw it from the window. Another special feature of this work is the use of color makes the setting sun look more vibrant than the rest of the sky, but that is just the perception of the human eye, as a black and white copy of the painting proves that the sun just disappears into the sky, capturing the nature perfectly. 20th Century Surrealism As depicted by the name, Surrealism aims to blur the lines between dreams and reality. The main characteristics of this form of art are that the concepts and scenes chosen were illogical and strange to the point of being shocking in many cases, but they were drawn with photographic precision, such that they seemed to be picked out of some unnerving alternate reality. Elements used were surprise, drawing something so far removed from the viewers imagination such that oddity would drive them in, this was achieved in many cases by juxtaposing reality and fiction, good and evil, truth and falsehood and sometimes by breaking the sequence of actions that we automatically assume would follow a certain pattern. Surrealism was also believed to be inspired from the Dada movement which began in Europe after World war I. It was led by Parisian artists, still fresh from the horrors of The Great war attempting to leave reality behind, driven by the belief that bourgeois rationality in thought movement and action had brought the war upon them One of the more controversial artists of the movement was Andre Masson, for he used a technique viewed with skepticism by many, Auto- drawing or automatic drawing, he would go for days without food and water and use drugs to put himself in a trance like state do that the work of art is truly drawn from point in the mind between dreams and consciousness. This can be very clearly seen from his work also called Automatic Drawing, drawn in 1924, ink on paper, the vivid eyes seem to belong to creatures from some dreamlike state and curvy lines seem like an attempt to five them human form Late 20th Century Minimalist This form art was one of the very few that began by finding its footing in post-World War II America, often seen as an reaction to Abstract Expressionist art of the previous decade, minimalist art as suggested by the name aims to shed all the excesses carried by the design to bring out the true form. This can also be viewed as a reaction to modernism, that encourages society to shed it excesses or it can also be called as a reductionist form of art. Another way to understand it is that the art aims to expose the essence and it does by slowly removing all the non-essential forms incumbent upon the form. Many designs are depicted by geometric patterns where the edges are thin and sharp, and colors have not been used in modulation. This work of art is almost always the artists perception, derived from a personal experience, it need not follow any mathematical or lyrical sequence, and it is an attempt to present what is exactly as it is, as seen by the eyes of the artist Frank Stella was one of the earliest artists to take up the minimalistic form, her work Die Fahn Hoch! Painted in 1959, enamel on canvas is regarded as a forerunner of minimalist art. The painting on the outset seems like a simple collection of lines, it brings out many hidden meanings and interpretations on closer inspection. Another feature of this and many other paintings by Stella is that the title chosen would be ringing with emotions of temper and hatred like Die Fahn Hoch which is eerily similar to the Nazi title. By using such emotive titles for her simplistic interpretations, Stella lets irony do the talking. Though each form of art chosen above, on its own has broken the norm of the current age, Impressionistic art seems to be the most intriguing. It broke the norm of the day by bringing out, that the only purpose of art is not depiction of form, painting can be truly emotive and intriguing if perceptions and personal views are made to play a part in the final outcome, in many ways Impressionist Art laid the foundation for many other styles to come

Shakespeares Hamlet Essay: Who is Gertrude? -- GCSE Coursework Shakes

Hamlet –Who is Gertrude?  Ã‚        Ã‚   This essay intends to explore Gertrude’s situation in the play in an attempt to answer many questions about her, the queen, wife of Claudius and former wife of his deceased brother, King Hamlet.    Back in 1883 Samuel Taylor Coleridge in Lectures and Notes on Shakspere and Other English Poets comments on what he interprets as a problem or inconsistency in the presentation of the character Gertrude in Shakespeare’s tragedy, Hamlet:      Ã‚  Ã‚  Ã‚   Ham. A bloody deed;- almost as bad, good mother,   Ã‚  Ã‚  Ã‚   As kill a king, and marry with his brother.   Ã‚  Ã‚  Ã‚   Queen. As kill a king?    I confess that Shakspere has left the character of the Queen in an unpleasant perplexity. Was she, or was she not, conscious of the fratricide? (364-365)    Remember that the ghost does tell Hamlet not to prosecute the queen, but only Claudius. So she would seem to be innocent of the murder.    At the outset of the drama, Hamlet’s mother is apparently disturbed by her son’s appearance in solemn black at the gathering of the court, and she requests of him:      Ã‚  Ã‚  Ã‚   Good Hamlet, cast thy nighted colour off,   Ã‚  Ã‚  Ã‚   And let thine eye look like a friend on Denmark.   Ã‚  Ã‚  Ã‚   Do not for ever with thy vailed lids   Ã‚  Ã‚  Ã‚   Seek for thy noble father in the dust:   Ã‚  Ã‚  Ã‚   Thou know'st 'tis common; all that lives must die,   Ã‚  Ã‚  Ã‚   Passing through nature to eternity. (1.2)    The queen obviously considers her son’s dejection to result from his father’s demise. She joins the king in asking Hamlet to stay in Elsinore rather than returning to Wittenberg. Respectfully the prince replies, â€Å"I shall in all my best obey you, madam.† So at the outset the audience notes a decidedly good relation... ...zine, 285:2011 (July 1898), 33-41. Rpt. in Women Reading Shakespeare 1660-1900. Eds Ann Thompson and Sasha Roberts. New York: Manchester University Press, 1997.    Burton, Philip. â€Å"Hamlet.† The Sole Voice. New York: The Dial Press, 1970. N. pag. http://www.freehomepages.com/hamlet/other/burton-hamlet.htm    Coleridge, Samuel Taylor. Lectures and Notes on Shakspere and Other English Poets. London : George Bell and Sons, 1904. p. 342-368. http://ds.dial.pipex.com/thomas_larque/ham1-col.htm    Jorgensen, Paul A. â€Å"Hamlet.† William Shakespeare: the Tragedies. Boston: Twayne Publ., 1985. N. pag. http://www.freehomepages.com/hamlet/other/jorg-hamlet.html    Shakespeare, William. The Tragedy of Hamlet, Prince of Denmark. Massachusetts Institute of Technology. 1995. http://www.chemicool.com/Shakespeare/hamlet/full.html No line nos.