Posted 1 year ago | by Ben Armstrong

Malaysia Launches Blockchain App to Track Palm Oil

The Malaysian Palm Oil Council or MPOC has partnered with a blockchain startup BloomBloc to develop a blockchain app that will allow users to trace palm oil throughout the entire palm oil supply chain.

The system based on blockchain and is now available in a pilot that helps local oil palm growers, palm oil processors, plantations and family-owned smallholders. It recently passed a successful test, according to the food industry publication Foodbev Media.

The system allows users to track the journey from the plantation, to mill, and on to the final product, by registering information on each tree. Blockchain is being considered for numerous sully chain applications.

Palm Oil is Big Business in Malaysia

The new app may help with the implementation of the mandatory Malaysian Sustainable Palm Oil or MSPO certification standard, which can applied to palm oil produced in Malaysia.

Datuk Dr. Kalyana Sundram, the CEO of MPOC, said:

“It speaks volumes about our trust in our supply chain. And it is yet another way Malaysia is showing the world that we value our people and our planet. We hope that by creating this platform and demonstrating the benefits of using blockchain technology, we will encourage others who are practicing sustainable agriculture to follow our lead.”

Knocking Down Deforestation

Using the blockchain-based system may also help to mitigate deforestation. Sustainability within the oil palm industry is an issue in Malaysia due to illegal logging and the replacement of forests with plantations.

According reports, palm oil producer Radiant Lagoon was responsible for destructing 730 ha of forest in the Malaysian state of Sarawak. The company is reportedly partnered with Double Dynasty, which is known as a supplier of palm oil to manufacturers, including Nestlé, Unilever, Mondelēz and P&G.

The government is fighting this by introducing more than 60 regulations that aim to improve forest management practices and promote various activities that support zero deforestation.

Large Income from a Small Footprint

According to the palm industry, the total planted area of oil palms in the country which is 5.74 million ha and equates to just 0.11 percent of global agricultural land, but it is responsible for 20% of global fats and oils exports.

There is no doubt that the oil palm industry is important for Malaysia, and this new program could help the industry to become more responsible.

Malaysia is actively turning to blockchain technology. Last year, the Malaysian state of Penang also stated to consider using blockchain to trace the origin of food products, which could allow it to warn consumers about outbreaks of dangerous foodborne diseases.