April 30, 2021
JBS begins operations on blockchain platform for cattle traceability
JBS announced that registration began this month of producers on the Transparent Livestock Farming Platform, a tool which, using blockchain technology, will make it possible to extend, to suppliers of its suppliers of cattle for the industry, socioenvironmental monitoring with security of the data, reliability and producer engagement.
Signing up is voluntary. Beef cattle producers who directly supply JBS will list their suppliers of animals on the platform developed by specialised company Ecotrace. As the platform is an open one, other companies within the industry can use the system.
The data will be sent electronically for validation by Agri Trace Rastreabilidade Animal, the system of the CNA (Brazilian Confederation of Agricultura and Livestock Farming). Once authorised by the producer, the CNA checks if the list of suppliers is complete.
Companies accredited on the platform, like Agrotools, will process the socioenvironmental compliance analysis based on the same criteria currently used by JBS, in an agreement with the Federal Prosecution Office (MPF), to check for the existence of: deforestation, respecting the Brazilian Forest Code; invasion of indigenous lands or environmental conservation units; hard labour; and use of areas embargoed by IBAMA.
The outcome of the analysis will be sent directly to the JBS supplier who, for the first time, will be able to view socioenvironmental compliance throughout their entire supply chain. This means they will be able to develop plans to mitigate risks and engage in actions that help producers to regularise their situations when necessary.
JBS will only have consolidated analysis of its suppliers, and not have access to sensitive information. Blockchain technology makes it possible to safeguard the confidentiality of third-party information.
All beef cattle suppliers of JBS are said to sign up to the programme by end 2025, in line with an ongoing supply chain engagement strategy.
According to the Net Zero 2040 commitment announced by JBS, the company's beef cattle supply chain would be free of illegal deforestation in the Amazon Biome and other biomes in Brazil by 2030. The Net Zero target also includes JBS' efforts to achieve net zero emissions in 2040.
For Renato Costa, CEO of Friboi, the Transparent Livestock Farming Platform, which is open to any farmer, will contribute to the industry's visibility regarding preservation of the Amazon Biome and the development of increasingly sustainable livestock farming. "We are very confident. We want this to be an inclusion process that assists all producers," Costa says.