The initiative is headed by the Malaysian Palm Oil Council (MPOC), an establishment devoted to advertise market growth for Malaysian palm oil and its merchandise, and the expertise supplier that MPOC has chosen is blockchain agency BloomBloc.
“MPOC selected to work with BloomBloc particularly due to its expertise in creating real-time traceable, clear provide chains with respect to sustainable agriculture,” MPCO CEO Datuk Dr Kalyana Sundram informed FoodNavigator-Asia.
“This suits nicely with our purpose to not simply give plantations wealthy information to assist enhance their crop administration and harvests, but in addition to trace working situations and plantation administration.”
BloomBloc shall be pioneering a blockchain app and internet interface along with MPOC that may present safe, clear third-party verification of a ‘complete record of variables’ within the Malaysian palm oil provide chain.
“The blockchain app and internet interface designed particularly for the Malaysian palm oil business is an environment friendly technique of making certain the top consumer that they’re receiving responsibly produced palm oil,” mentioned Dr Sundram.
“Concurrently it provides a layer of accountability to each contact level, from the person oil palm tree by way of processing and product supply – [We] strongly suggest that blockchain be thought of for any crop for which traceability, belief and accountability are vital components amongst end-users.”
The app has already been examined on a pilot scale, and as a subsequent step will probably be made accessible by way of a consumer settlement to all Malaysian oil palm growers and palm oil processors.
Dr Sundram remained coy on revealing whether or not the pilot was run with massive native palm oil producers (akin to Sime Darby) or with smallholders, however mentioned that the upcoming consumer settlement can be ‘a possibility for the plantations and the small stakeholders to implement the expertise’.
In response to queries on whether or not getting smallholders to make use of this expertise can be a tough endeavour, he added that MPOC ‘totally anticipates’ these widespread challenges, and that these are very workable’.
“The largest problem to adopting blockchain or any rising expertise that gives measurable profit, is that schooling resulting in on a regular basis use and acceptance take vital time and assets,” he mentioned.
“[The end-goal is for the app to] reinforce the business’s belief in our plant-to-plate processes, and reassure meals producers who search to trace land utilization and different components contributing to our sustainable certification processes.”
Transparency is essential
Traceability is vital relating to assuring whether or not a palm oil processing chain is actually sustainable, and Dr Sundram mentioned that this expertise would add transparency one other profit for all gamers within the provide chain as nicely, particularly end-product F&B corporations.
“By far, an important advantage of this new blockchain expertise and internet interface to the Malaysian palm oil business is the final word degree of transparency,” he mentioned.
“As soon as entered, the knowledge entered can’t be edited or altered. As a result of that is designed particularly for the Malaysian palm oil business, it logically follows the nation’s licensed sustainable processes and requirements.
“The last word purpose is for everybody producing or utilizing Malaysian licensed sustainable palm oil to earn the market’s belief with this verifiable data.”
He additionally clarified that this app has been particularly developed for the Malaysian palm oil business, which is why though the worldwide Roundtable on Sustainable Palm Oil (RSPO) has its personal tracing expertise (PalmTrace), this was developed individually only for native use.
“The Malaysian Palm Oil Council has long-standing, good cooperation with the RSPO, which has members representing a number of international locations. This specific blockchain app expertise was developed on behalf of the Malaysian palm oil stakeholders,” mentioned Dr Sundram.
Malaysia’s palm oil challenges
Though Malaysia has been one of many world’s largest suppliers of palm oil for a while now, lately it has faced multiple challenges together with unstable costs and persevering with opposition from the European Union (EU) – which might clarify the necessity for the business to show to expertise to guarantee the general public of the commodity’s sustainability.
Dr Sundram declined to answer any queries concerning Malaysian palm oil’s fame or rejection by the EU, nor speculate on the commodity’s future, citing ‘many speedy modifications going down in response to COVID-19’, however did voice hopes that the blockchain app would assist make the ‘realities of palm oil’ clearer.
“As use of the app turns into extra widespread, it’s going to additionally assist us shut the hole between the problems of notion, allegations and the realities of palm oil,” he mentioned.
