BeefLedger is an Australian company that is disrupting the beef supply chain industry by providing a range of innovative blockchain solutions. We are proud to have them as key members of Avestix Lab, where they play an invaluable role in disruptive technology solutions.
By BEEF, we mean BeefLedger Tokens, of course! The BeefLedger Token (BEEF) is being developed and incorporated into the world’s first application of distributed ledger, or blockchain technology, to the entire beef supply chain.
Blockchain technology is slowly making in-roads into diverse industries such as real estate and manufacturing, but one of the most immediate uses of blockchain to date has been in supply chain management and payments.
Traditionally, we would see a combination of human and computing assets that keep track of goods as they flow through the supply chain from producers to consumers. The idea behind BeefLedger and its use of blockchain technologies is to provide an unbroken chain from producers to consumers, which can be accessed by anyone, anywhere, and at any time.
Australia is a dominant player in the global beef market, with over 45,000 cattle producers across the country, producing around 2 Billion tons of beef in 2016-2017. Taking into account Australia’s thriving beef industry, there’s no doubt as to why companies like BeefLedger are harnessing blockchain technologies to streamline the beef supply chain.
Protecting Australian Beef
The Australian beef industry is valued at almost $12.7 billion, and one of the main goals for BeefLedger is to ensure that Australian beef being sold in China matches the label. Australian beef is priced at a high price point in China, which increases the risk of fraud. BeefLedger aims to empower the consumer so they know they’re getting what they pay for.
National Transport Insurance (NTI), providers of truck and transport insurance in Australia, have participated in a supply chain trial with BeefLedger to trace the flow of beef from South Australia to New South Wales, and then onto Shanghai.
The pilot run saw premium live cattle transported from South Australia’s Limestone Coast to the processing facility at Casino in New South Wales, and frozen for shipping to Shanghai for consumption.
NTI CEO Tony Clark says “We’re excited by the prospects this presents across several streams of Australian industry: agriculture, animal welfare, transport and logistics. While it’s early stages, we’re optimistic of the outcomes and learning, and what it potentially means for Australian suppliers, exporters and consumers.”
BeefLedger chairman Warwick Powell says the rise in wealth across Asia, particularly China, sees a steady growth in demand for imported beef and increased risk of counterfeiting and poor safety standards.
“Research shows us that ethical standards and concerns for animal welfare, along with authenticity and proof of product origin, are amongst the top priorities for Chinese consumers. It’s also what’s driving consumer interest in Australian products,” Powell says.
Why use cryptocurrency?
Unlike a traditional banking framework, cryptocurrencies are decentralised and have transparent networks. Buyers and sellers have access to data when they are buying or selling.
And the blockchain? Think of this as a huge, public spreadsheet document containing all the details of every transaction ever done. This spreadsheet is available to everyone at any time so no personal or financial institution has the upper hand – and in the case of the beef supply chain, every transaction is traced from source to destination.
BeefLedger takes innovation to a new level by introducing their own cryptocurrency called BeefLedger Tokens or BEEF Tokens. BEEF Tokens are pre-mined utility tokens, which act as a means of payment for data value across the supply chain as well as for the supply of cattle and meat to consumers.
Tokens have been secured by Chinese consumers (retail end-users as well as wholesale import partners), domestic supply chain participants and project partners.
Disrupting the industry
Keeping track of shipments is one thing, but aligning actor contributions to value creation is central to long term supply chain sustainability.
In the beef supply chain, stock is a depreciating good. A single mistake in the supply management system could have detrimental consequences. Timestamps are a fundamental part of blockchain and cannot be altered. Accurate timestamps in the blockchain can reveal the exact times of transportation, processing, shipping and everything in between – allowing everyone to determine how fresh the beef is at any time.
BeefLedger understands the food safety and fraud concerns in places like China. With more beef products being exported to Asia, it makes perfect sense for BeefLedger to improve Australia’s supply chain performance.
BeefLedger’s mission is driven out of the experiences of their team, which has extensive (decades’ long) involvement in beef production and distribution, land management, product packaging innovation, financial services and cross-border trade – particularly with China. The team combines extensive industry experience and expertise with a strong research and development core, which is backed by academic institutional partnerships and allied industry partners.
BeefLedger have been a member of Avestix Lab since our early days, and they have added much value to our innovative and disruptive technology-focused community. At Avestix Lab, we’re honoured to rub shoulders with this exciting and innovative company, who are out to create a long-term sustainable supply chain for everyone.
To learn more about BeefLedger, visit their website.