Webinar Recap: Trusted Digital Traces on ESG from Farm to Consumer

Host: Gabriela Cabezas - (Global Market Analyst)

Presenters: Ben Lategan - (Global Market Analyst)

Panelists:

Alper Akkurt – (Global Supply Chain Manager - Türkiye)

Guilherme Rua – (Engagement Manager - Seafood - Portugal & Spain)

Susanne Emonet – (CEO of Farmer Connect)

Agenda:

1. Ways to achieve company targets and improve operational efficiency in the ESG framework

2. Importance of regulatory compliance

3. Panel discussion

Tridge’s April webinar, “Trusted Digital Traces on ESG from Farm to Consumer”, spoke about how trusted digital trails on ESG from farm to fork encourage openness and accountability in the supply chain, allowing purchasers to make more informed decisions about agricultural commodities. Speakers also discussed current compliance difficulties and solutions to operational challenges.

Ways to achieve company targets and improve operational efficiency in the ESG Framework

Tridge’s analyst, Ben Lategan explained what ESG is, its benefits, and ways to achieve company targets by developing a clear strategy, real-time monitoring of the key aspects, and the importance of collaboration with stakeholders and other parties involved in the supply chain. Also, ESG frameworks and standards were described, with reference to global institutions and relevant authorities.

Importance of regulatory compliance

The second part of the presentation focuses on the risk of not complying with regulations, guidelines, and its importance for investors, and finally for consumers.t ESG has substantial benefits and will become more important in the future both from a regulatory perspective as well as from a consumer perspective.

Panel Discussion

During the panel discussion, speakers were asked specific questions regarding digital traces in the ESG framework. The questions and the response from the speakers are as below.

Who can benefit from blockchain technologies in the farm-to-consumer chain?

Sussane Emonet: Supply/Value chains from farm to fork are complex and consist of many different players, each with different needs, and each with different infrastructure. In order to foster any improvements, be that of environmental nature or of social nature for example fair salaries, and no child labor, there needs to be an understanding of the current status as well as an idea of the impact that is targeted. In the EU, more than 70% of consumers want to purchase sustainably sourced products, however, the trust in existing data is low. This is where blockchain comes to play: At its base, it is a technology that creates traces or data points that cannot be changed without leaving clear evidence. In other words: it allows the different players in the supply chain, all the way to the consumer, to trust the data. The farmer who does not employ children or apply organic standards will be able to prove that he does so. This becomes especially interesting as farmers or cooperatives can be identified as potential new suppliers based on the traces. The cooperatives are able to prove origin as well as specific standards, and the traders and big brands are able to prove sustainability to their consumers and also to the governments as regulatory compliance e.g. around deforestation becomes a requirement to enter the EU market.

Alper Akkurt's answer focused on four key points:

· Processors: Processors can benefit from blockchain by having a transparent and traceable supply chain, which can help them to ensure the quality and safety of the products they produce.

· Distributors: Distributors can use blockchain to track the movement of products through the supply chain, which can help them to optimize their logistics and reduce costs.

· Retailers: Retailers can benefit from blockchain by having access to reliable and transparent information on the origin and quality of the products they sell, which can help them to build trust with their customers and increase sales.

· Consumers: Consumers can benefit from blockchain by having access to reliable and transparent information on the origin, quality, and safety of the products they purchase.

While Guilherme Rua explained the benefits for farmers through improved transparency and efficiency in the supply chain, reduce food (or seafood) waste, and providing info about the quality of their products; as well as the requirements for the processors.

How can traceability and digitalization give an advantage in the global supply chains?

Sussane Emonet: Global supply chains go across many different players – often entities, that do not have a direct trust relationship with each other. For many logistical aspects, that is not a problem, as you can validate and verify things. E.g if you order a specific quantity, you can check if you have received the right quantity. If you order a specific quality, you can check the quality. When it comes to sustainability, these checks are much harder…how can you check if a product really comes from an environment that is deforestation-free? Anyone could make these claims, validation is difficult…unless you have traceability in place. This is the basis for trust and therewith allows that effort that are made across the supply chain (be that with regards to organic, social, or other environmental targets) are visible and can be monetized. In addition to this, there is a strong uptake in sustainability-related regulation, e.g. around forced labor or deforestation. With the new EU regulation on deforestation as an example, traders and operators that seek to import specific products (coffee, cocoa, timber, etc.) will need to prove that the product comes from deforestation-free zones. This will require a high level of traceability – so in many cases, it will be a must requirement to operate across global supply chains.

Traceability and digitalization can provide several advantages in global supply chains, according to Alper Akkurt. Digitalization can provide real-time visibility into the movement of goods throughout the supply chain. Overall, traceability and digitalization can help to optimize supply chain operations, reduce costs, improve quality, and enhance social and environmental responsibility, providing a significant advantage in today's global marketplace.

Guilherme Rua explained how is the situation in Seafood companies: tracking the origin and every movement in the supply chain, monitoring quality in real-time, providing consumers with info about the sustainability and social impact of the seafood product, improving transparency and efficiency, reducing waste and ensuring compliance with regulation and industry standards.This data is then recorded on the blockchain, creating an immutable record of the seafood product's journey through the supply chain.

Case study

Sussane Emonet: As a case study, I would like to speak about a project that we are doing with the Savannah Fruits company, a Ghana-based company that is active in the Shea supply chain. Savannah Fruits believes that business can (and should) produce social good and contribute to the sustainability of our planet. Savannah Fruits Company works with almost 60,000 women who pick shea nuts – mostly women who have very limited access to technical infrastructure. Together with Savannah Fruits Company, Farmer Connect has had the huge pleasure to develop a solution that will give each of these women a recorded identity, a profile to allow recording of their collected products, and build the base of growth opportunities – incl. targeted education. The onboarding of these women allows to creation of full traceability of organic shea-butter from the collection of nuts in West Africa to worldwide clients.

Guilherme Rua for the case study presented using existing tools and explained step by step process: Regular inspections of quality before any loading; Traceability: We use App Tridge or Tridge FMS where we can easily access the following info related to our suppliers and buyers: • Sales Contracts and Purchase Orders (every deal is classified with an RFQ number for easier track) o Origin and destination o Quality and product’s varieties o Certifications available • Invoices and Packing lists o Contain price per kg o Incoterms o batch number or batches (lots) numbers • Shipping docs o containers tracking.

On the other hand, Alper Akkurt gave an outlook of the system that enables olive oil producers to track their products from farm to table in Türkiye, providing buyers with reliable information about the origin, quality, and sustainability of the olive oil they purchase. The Aegean Olive and Olive Oil Exporters Association in Türkiye has implemented a traceability system that tracks olive oil from production to export and the Turkish Ministry of Agriculture and Forestry has implemented regulations and standards for olive oil production that require traceability systems to be in place. Thus, in Türkiye, counterfeit and low-quality oil production is prevented. Especially in organic production, the traceability rate is increasing significantly.

Click here to view the recording of the webinar, or click here to view the slides.