Membership update

Blockchain prototype platform

By Matt Kealley, CANEGROWERS Senior Manager - Membership Engagement & Innovation

CANEGROWERS’ Blockchain initiative is a step closer to becoming reality with the creation of a prototype platform that enables the tracking of sustainably produced sugar from paddock to product manufacturer, potentially unlocking value for cane-farming enterprises verified as operating at or above industry standard.

The prototype is looking promising and creates the option for the Sustainable Sugar Project to move to Phase 3 – proof of concept – with Blockchain technology used to track 'real life' Smartcane BMP accredited cane through the growing, harvesting, milling, storage, and export stages to test the possibility of achieving premium payments for traceable, sustainably produced sugar. CANEGROWERS has been working closely with KPMG to develop the Blockchain platform based on industry data, while also looking for opportunities to create value for growers and organisations in the Queensland sugar value chain.

MASS BALANCE TRACEABILITY WORKS FOR SUGARCANE

The platform will use a mass balance traceability model, which is one of the more popular traceability models for bulk commodities as it enables organisations to make certification claims without significant changes to physical infrastructure or processes. For example, if 20% of the sugar purchased by a food manufacturer is sustainably produced, then 20% of the products made from that sugar can also be considered sustainable – even if these might not physically contain sustainable sugar.

Mass balance is used because the supply chain is complex and its expensive to physically separate certified sugar from noncertified sugar.

MASS BALANCE MODEL DATA EXCHANGES AND TAXONOMY

Data is required for traceability. A data taxonomy is a way to define all key participants and data required to create linkages, which are then used to trace sugar through the supply chain, showing provenance from the grower to the end-user. This data is also used to build the prototype.

The data taxonomy is designed to allow participants to share and view data that verifies the movement of sugarcane produced by growers certified under the Smartcane BMP program as it is processed into raw and then refined sugar.

The model has been designed to also incorporate the tracking of other sugar certifications throughout the supply chain.

ECONOMIC VALUE STREAM IDENTIFICATION

CANEGROWERS is investigating how a digital supply chain solution could help support the creation of new economic value streams for the Queensland sugar industry.

The current sugar value stream is very linear, and each participant’s value is determined largely by the next participant; with the exception of the sugar price, which is determined on a global market.

The project has identified three categories and a number of opportunities to evaluate as economic value streams:

1. If Smartcane BMP credentials can be tokenised and sustainable sugar physically traced, then what premium can be created? 2. Can sustainability be incentivised for the benefit of more than just growers? 3. How can alternative value streams be generated so that cane is valid for more than just CCS or sugar? Industry opportunities identified include market premiums, alternative finance, sustainability credits, natural capital, incentive payments, sustainable bi-products and nonsugar products. While it’s early days, the project has shown that growers could be rewarded and recognised for their efforts on sustainability. 

The Sustainable Sugar Project is funded by the Australian Government under the National Landcare program Smart Farming Partnership.