The first phase of a Blockchain and Traceability Framework for Australian Dairy Farmers is underway to reduce the threat of fraudulent product entering the supply chain, protecting farmers, processors and consumers by building on standards already used in transport and logistics.
Minister for Agriculture, Drought and Emergency Management David Littleproud has announced the first phase of a Blockchain and Traceability Framework.
Minister Littleproud said building on standards already used in transport and logistics, warehousing, distribution, retailing and eCommerce ensures Australian producers and processors can participate efficiently and effectively in global markets.
Blockchain and distributed ledger technology will allow farmers and processors to benefit from improved data accuracy and verification and will help improve supply chain performance.
The project delivers on an Australian Government election commitment to develop a real time dairy payment system and supply chain information sharing capacity using blockchain technology.
“Blockchain can assist in providing a shared view of truth about business transactions,” Minister Littleproud said.
“All sides know they are all looking at the same records and the history of their business relationship. Open, transparent and trustworthy systems are important for long term sustainability and global competitiveness.”
According to the Australian Dairy Farmers, the national advocacy body representing dairy farmers across the six dairying states, demand for dairy products continues to rise across the globe, but to remain globally competitive, Australian dairy must think differently.
“The industry is embracing new ways of capturing and sharing data through the supply chain to drive productivity and meet the demands of customers in Australia and abroad,” Australian Diary Farmers said in a social media post.
ADF President Terry Richardson said blockchain technology would be integral to helping improve the profitability and efficiency of the Australian dairy industry.
“The transparency and security of shared information using blockchain technology will demonstrate provenance and reduce costs to compete more aggressively in local and global markets,” Terry said.
“This first phase is all about education. It is a precursor to a field trial that will quantify benefits and set us up for a more digitalised future.”
The project will support ADF’s response to the 2018 ACCC inquiry into the competitiveness of prices, trading practices and the supply chain in the Australian dairy industry.
Led by ADF, project participants include GS1 Australia, Data61|CSIRO and the dairy industry.