SWITZERLAND – Nestle is partnering an innovative blockchain platform, OpenSC to pilot a program that aims to enhance supply chain traceability and transparency using blockchain technology.
The technology will first trace milk from farms and producers in New Zealand to Nestlé factories and warehouses in the Middle East.
It will later cover the palm oil supply chain in America which Nestle says will help provide consumers with verifiable data and drive the market towards transparency.
The program is expected to improve food safety and quality control.
The data will be collected through each step of the value chain and recorded on an open platform and the company may plan to include data from other monitoring systems, such as satellite imaging of farms.
“We want our consumers to make an informed decision on their choice of products – to choose products produced responsibly,” said Magdi Batato, Executive Vice President, Head of Operations, Nestlé S.A.
“Open blockchain technology might allow us to share reliable information with consumers in an accessible way.”
Nestle first launched blockchain technology in 2017 after it joined IBM Food Trust as a founding member.
In April, it partnered with French retailer Carrefour to offer full traceability of famous mashed potato brand, Mousline purée using blockchain.
This is part of Nestle’s journey towards full transparency with a goal to build trust with consumers in the food they eat.
“This open blockchain technology will allow anyone, anywhere in the world to assess our responsible sourcing facts and figures,” said Benjamin Ware, Global Head of Responsible Sourcing, Nestlé S.A.
“We believe it is another important step towards the full disclosure of our supply chains announced by Nestlé in February this year, raising the bar for transparency and responsible production globally.”
To drive transparency, Nestle has published data across its supply chain including information on food waste and food loss.
It has confirmed that three-quarters of its agricultural commodities are verified as deforestation-free as 77% of raw materials are sourced from areas not associated with deforestation.