Nestlé joint blockchain platform OpenSC, launching a new blockchain supply chain tracking pilot

According to Coindesk's July 2 report, food industry giant Nestlé announced a blockchain-based supply chain tracking pilot program.

Impression (Source: Visualhunt )

Nestlé will work with the blockchain platform OpenSC to develop a distributed ledger system. It is reported that the system will be independent of the IBM Food Trust blockchain project that Nestlé has been involved with.

A representative from Nestlé said that the pilot will last for six months, and success will depend on "system viability, survivability and scalability" and the ability of the system to validate data. Once launched, the service may involve QR codes, mobile apps and portals.

A Nestlé spokesperson said:

For us, the key point is that information access should be as smooth and convenient as possible so as to attract stakeholders and consumers.

Nestlé said the move aims to provide consumers with independent, verifiable data to drive market transparency. At the same time, the mechanism will improve food safety and improve quality control.

Nestlé Executive Vice President Magdi Batato stated:

We hope that consumers can make informed decisions when choosing products and choose responsible companies. Open blockchain technology allows us to share reliable information with consumers in a convenient way.

The project will first track the milk of New Zealand farms to Nestlé in the Middle East and then expand to palm oil production in the Americas. Subsequently, Nestlé will determine the scale of application of the project. However, some retail products require some time to integrate.

A company representative stated:

To test the use of the system at the local level, we chose to track the American palm oil supply chain. In addition, since the product itself is a liquid, this adds to the complexity of traceability.

We will collect data from each step in the value chain and record it on an open platform. The representative also said that Nestlé may plan to include data from other surveillance systems, such as farm satellite imaging.

All users can see any updates or modifications in the system on the open platform, because the original data of the platform cannot be deleted.

In 2017, Nestlé joined IBM's Food Trust and began experimenting with blockchain. In April of this year, Nestlé announced that it has partnered with Carrefour to track the Mousline brand mashed potatoes from the Nestlé factory to Carrefour using a blockchain.

In June of this year, Carrefour attributed the increase in sales to the use of the blockchain tracking platform.

We want to meet the needs of consumers. Consumers are increasingly demanding food information, and they are eager to learn about the source of the ingredients, whether the procurement process is responsible, and how the food is made. The blockchain will collect trusted data from the entire value chain for consumers.

Nestlé Ware, Head of Global Purchasing at Nestlé, said:

The open blockchain technology will allow anyone anywhere in the world to evaluate the facts and data about our purchases.

IBM's blockchain will have a QR code printed on the product. After scanning the code, various information such as date of harvest, farm location and owner, date of packaging, time of shipment of the item, and instructions for eating methods are presented.

Founded in January 2019, OpenSC is a consortium of WWF-Australia and Digital Ventures, a division of Boston Consulting.