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Major Australian Grain Handler is Testing Blockchain Technology For Distribution

Major Australian Grain Handler is Testing Blockchain Technology For Distribution

Major Australian Grain Handler is Testing Blockchain Technology For Distribution

​​Australia-based CBH Group, the handler of West Australian Grain, is actively testing a blockchain-based platform in collaboration with agriculture technology company AgriDigital to oversee and facilitate the sale of organic oats out of South Australian distribution company Blue Lake Milling.

Since early 2016, an increasing number of companies reliant on supply chains and large-scale distribution of products have started to utilize blockchain technology to facilitate trades and sales. Experts and analysts including Kimani Mbugua, CEO of Greenspec, have emphasized that blockchain technology has the potential to significantly impact the agriculture and food industries with its cryptographically-secured timestamp-based ledger.

The blockchain application has huge potential in three key areas of Agriculture which consist of Real Time Management, Supply Chain and Mobile Payment and Financing. With the blockchain, you’ll be able to know from the label what and how they used to produce the food when you buy it and they can never shortcut you,” Mbugua said in an interview.

Agriculture and distribution companies including West Australian Grain and Blue Lake Milling are required to rely on third party service providers in the three abovementioned areas of agriculture mentioned by Mbugua. Usually, companies rely on financial service providers, suppliers and professional services firms to ensure that financing, mobile payments, supply chain and real-time management are handled separately.

With blockchain technology however, companies like West Australian Grain can oversee real-time management with the immutable blockchain technology, supply chain with its ledger, and mobile payments and financing with cryptocurrencies and tokens.

CBH Chief Executive Andrew Crane explained that with the pilot test of West Australian Grain’s blockchain technology, the company and its developers are focusing on security and flexibility in payments. He stated:

"Blockchain can be used in a range of different ways be it smoothing out transactions, better security or quicker payment methods or as a proof of where the grain has come from and where it's been on its journey through to the customer. "These are three real benefits there and we are testing all of those,"

In order to demonstrate a high level of security, especially for large-scale agriculture firms, the implementation of a public blockchain network that has large hashpower support and nodes is key. Bitcoin and Ethereum are possible candidates, but the latter is more likely due to its flexibility and utilization of smart contracts.

Crane further noted that the development team behind West Australian Grain is also focusing on creating a transparent system with which the suppliers, customers and distributors can access data in real-time.

"We are looking at being able to track from farm all the way through Blue Lake Milling as a processor, to the buyer of those oats and being able to prove that those oats have not only come from a particular origin but also their organic status in this case," said Crane.

The blockchain network that is being implemented by AgriDigital has not been disclosed. However, the implementation of any blockchain networks and successful commercialization of the blockchain platform will spur the growth of the blockchain industry within Australia.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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