Nestlé and OpenSC Partner to Enhance Transparency in Food Industry with Blockchain
The Swiss multinational food and drink company Nestlé, announced the launch of a blockchain pilot project that will allow consumers to track product sustainability and provenance on July 02, 2019. The project stems from the collaboration between Nestlé and OpenSC, an innovative blockchain platform that allows consumers to track their food right back to the farm.
Nestlé Integrates Blockchain Services
According to a press release, Nestlé started a collaboration with OpenSC, an innovative blockchain platform founded by WWF Australia and The Boston Consulting Group Digital Ventures, in order to increase transparency in the food and beverage industry.
OpenSC developed a platform that will give anyone, anywhere access to independently verifiable sustainability and supply chain data. Initially, the project will focus on tracking milk from New Zealand producers up to the factories in the middle-east area.
Subsequently, however, the project can be adapted to any product. Nestle declared that once the technology is ready, it will be tested using palm oil sourced in the Americas. In this way, Nestlé will be able to analyze how scalable the system is and what problems it may incur.
Food Trust? No, Thank you
Nestlé’s first interest in blockchain can be traced back to early 2017 when it joined the IBM Food Trust project, which combines data from a number of food producers, retailers, farmers, and distributors. In April, Nestlé and French supermarket chain Carrefour allowed consumers to trace the origins of Mousline purèe.
However, the Swiss company opted for an alternative solution for this initiative and reasons are still unknown.
Blockchain and other distributed ledger technology systems are becoming very popular in the food and beverage industry. As discussed on BTCManager on June 20, the food-tech startup Ripe.io, announced that it would use R3’s Corda Enterprise blockchain solution to enhance transparency and trust in food and agriculture supply chains leveraging cloud computing service, Microsoft Azure.
However, these solutions are all in an experimental phase and it is still necessary to see if the use of the blockchain in this sector will succeed in increasing transparency and responsible production. The main problem is that the data entered into the supply chain are inserted from external source, leaving space for bad actors to input falsified entries.