When Australia moves from becoming an Asian culinary bowl to its delicacy, one thing will be key: traceability – which means blockchain.
Those working in agriculture have long been worried about the prospect of middle-class growth in Asia, believing that they will demand better agricultural products to feed a growing population.
From the export of beef, wine, macadamia nuts, Australia has been able to take advantage of competitive advantages in agriculture to reap great benefits.
Export to Asia increased 115 percent to $ 31 billion in 20 years to 2018and they accounted for more than half of total agricultural exports.
Against the backdrop of a great reputation for supplying clean and fresh agricultural products, it was expected that Asia would continue to bring great value to the sector: but this is far from guaranteed.
Especially when agricultural competitors such as New Zealand, Canada and the US continue to emphasize their green powers.
The winners are those who not only consider their products clean, but can prove it: and this is what Australia is focusing on.
According to in a White Paper compiled by the Government of Australia [PDF]traceability is identified as a key competitive advantage if we are able to come up with a solution.
“Trading partners want better confidence that Australian products are high quality, safe and free of pests, diseases and weeds,” the report said.
“Our trading partners are increasingly expecting robust tracking systems to verify product integrity at all stages of the supply chain. Modern tracking systems are likely to be a mandatory requirement of the importing country in the future.
The formation of the blockchain as a key to Australia’s agricultural future
Although several attempts have been made in the past to implement tracking and tracking solutions, at best it has been in parts.
A technology game on the ASX list, Security Issues (ASX: SMX) has been working hard to prove its technology “track and track” with various partners around the world – and it has looked to Australia.
“I think what’s happening, especially in Australia, is that there’s a real desire to create labeling and tracking techniques to create accountability,” said SMX CEO Hagei Alon. Star investing.
“There was also a desire to have technologies that could be used from end to end, from cultivation and production to marketing.
“We see the big players in the industry moving in that direction and outlining that vision.”
He is not mistaken.
Speaking at a conference organized by him The Economist in late 2017, Graincorp CEO Mark Palmquist complained about the lack of a through decision.
“We need to find ways to track identity and have that traceability … the way it’s done in the past is a very cumbersome physical process that is very expensive,” he said.
“Is blockchain a good way to install this proven system? Is it the Internet of Things, sensors that travel, but can’t be forged? ”
Alon and SMX are betting on it.
In recent months, SMX has managed to link Litigation with similar agricultural giants Hazeera Seeds and Barn.
Together with its own tracking solution that labels products without changing them, SMX creates a solution for verification using blockchain technology.
As an all-in-one supplier, he hopes to reduce costs for supply chain participants.
“I think those who work in the supply chain are thrilled with our technology because it’s one technology, one method, one service provider, whereas before these tracking and tracking solutions were disabled and they had to use several technologies, ”Alon said.
“So in the end it was never done. It’s difficult and therefore more expensive. “
Having a traceability solution is vital if Australia wants to take advantage of changing Asian tastes.
Not only about safety, but also about marketability
Palmquist said the game in Asia has changed fundamentally.
“In the past, it was all about trying to find ways to move a huge amount of grain,” he said.
“What we find now is that the consumer is absolutely changing, and part of that is that the world is getting richer with the big middle class.”
For example, he said that in recent years, what Japanese consumers want from buckwheat noodles has changed.
“The real value for the consumer is right when it is cooked at home – what smell smells in the room. What does the color of the water look like? ”Palmquist said.
“When noodles are steamed, what is its quality and density?”
The problem is that the information is not currently recorded in the supply chain, but if Australian agricultural operators can find a way to get this information from the source of supply, track it and then authenticate the product, they may have a marketing position. up.
“I think consumers want to better understand the production process, and regulators are trying to create a complete ecosystem without blind spots,” Alon said.
“I also think manufacturers are starting to understand this demand and want to look at their hard work.”
That’s why blockchain-based solutions like SMX are attracting attention in agricultural circles.
Operators know that only by collecting and verifying information will they be able to prove the value of their products to the end consumer.
That’s why Australia could move from creating on the back of a sheep to creating on the back of a blockchain.
This content was developed by Star Investing in a commercial partnership with Security Matters. This article is not advice on financial products. You should consider getting independent advice before making any financial decisions.