August 27, 2020

Australia rolls out blockchain and traceability framework for Australian dairy farmers

David Littleproud, Australia's Minister for Agriculture, Drought and Emergency Management announced the first stage of a blockchain and traceability framework project for Australian dairy farmers.

The project aims to develop a real-time payment system and supply chain information sharing capacity for domestic dairy farmers utilising blockchain.

Littleproud said blockchain technology provides transparent business transactions, creating an open and trustworthy system for the dairy industry's long-term sustainability and global competitiveness.

The first phase of the project aims to increase industry awareness of blockchain technology and the benefits of traceability, using short video and information paper.

Terry Richardson, president of Australia Dairy Farmers (ADF) said blockchain will help demonstrate provenance and lower costs for improved domestic and global competitiveness.

The blockchain project supports ADF's response to an Australian Competition and Consumer Commission inquiry in 2018. The inquiry looked into domestic dairy industry price competitiveness, trading practices and the supply chain.

Participants for this project include the ADF, GS1 Australia, Data61|CSIRO and the Australian dairy industry.

The transparent blockchain technology creates a decentralised peer-to-peer network, which keeps track of milk sold by farmers to a processor in a ledger. The ledger also tracks contracts, ordered and delivered milk, test results for milk quality and payments. Access to this shared ledger is only opened to the related farmer and the processor.

-      Australian government; Minister for Agriculture, Drought and Emergency Management