Blockchain technology is growing in application and the latest use case is by Australian dairy farmers. The industry is looking to use the technology for traceability and access regarding provenance.
The Australian Dairy industry has been on a sharp decline over the years. Its share of the global dairy supply has declined from 16% in the 1990s to the current 6%. The dairy farms in the country have also decreased in the same period from 15,000 to 5,000. This decline has meant a loss of profitability and productivity in the industry.
The industry is looking to blockchain technology to regain its lost glory. The industry already has the Australian Dairy Traceability Guideline that provides common terms and conduct for all the different supply chains in the industry. It provides a standard form with both the farmer and processor given access to allow real-time payments. It also directs how the industry players will use the technology to track supply and payments.
The use of blockchain and smart contracts
In order to meet the increasing Australian and global dairy market, the industry is looking to use blockchain technology for data about milk production, provenance and consumption. It is also looking for ways through which the various parts of the supply chain work together.
With the right information, the industry can produce quality that meets both the local and global expectations. In the end, it is all about ensuring customer satisfaction, just as any other part of the supply chain getting the best output. Whether it is the processors, transporters, distributors or retailers, everyone needs to get fair returns on investment.
Other than information, blockchain technology will also help manage trust among the industry players. All information on the blockchain is recorded on publicly accessible distributed ledgers. The information once recorded cannot be altered by any party. This increases trust among the users as anyone can view any transaction.
The smart contracts on the distributed ledgers will also come in handy for the industry. They work such that various actions occur automatically when an event is achieved. For example, the farmers can opt for immediate payment once delivery is received. Smart contracts help eliminate manual work, reduce delays and reduce the risk of errors.
Smart contracts allow all the parties to set rules that work best for them. This also provides for quality control and less complex processes.
Other Australian industries using blockchain technology
The Australian dairy industry is the latest in a list of other industries that have embraced blockchain technology. In the earlier days, it was all about the finance industry using cryptocurrencies. The success of cryptocurrencies and conducive government regulations has meant various processes could utilise the decentralised and secure nature of the blockchain.
The other industries using blockchain technology include the merino wool industry for transparency in the supply chain. Kakadu plum industry had also earlier embraced blockchain technology for the same reasons.
The success of blockchain technology in industries other than finance, indicates that the use of blockchain will continue to grow as the technology matures.