SUSTAIN Assurance & Innovation Alliance Uses Blockchain to Fix Palm Oil Production
Addressing Palm Oil Problem with Blockchain
The demand for palm oil has increased significantly over the last decade. Not only can it be used in cooking, but it is often added to beauty and hygiene products. The trouble is, growing palm oil is far from sustainable and it often destroys the landscape. Growers are currently looking for ways to resolve such issues, while also maintain enough supply to meet demand.
Regulatory bodies, consumers, and producers believe that blockchain may be the answer to closing gaps in the supply chain and to promote transparency concerning the production of sustainable palm oil.
Industry leaders recently announced the establishment of a group called Sustainability Assurance & Innovation Alliance (SUSTAIN). The group’s goal is to establish a blockchain-based palm oil platform to address landscape-level sustainability problems, along with meeting the goals related to the No Deforestation, No Peat, No Exploitation. The collective is comprised of palm oil companies such as Asian Agri and Apical.
Digital News Asia also reported that the organization will offer access to the system by allowing parties to download tools to monitor the traceability, compliance, trade FFBs, and practice goals.
There are also groups that believe blockchain can be used to support system structure and to determine the geolocation of harvested fruit bunches. It will then store the information concerning palm oil workers and harvesting time. Further, the structure enables government agencies and NGOs to receive better information concerning employment status and working conditions. It also allows policymakers to receive more information about farming practices before crafting land use policies.
Finally, some believe that blockchain can be used, when combined with Internet of Things (IoT) sensors, to monitor shipping and transport conditions. This can single out the low-quality batches of palm oil before they reach the market.