Interview publised in Bernama News, August 2018
Use blockchain technology to Boost palm oil sustainability, says expert
Last update: 29/08/2018
By Nurul Hanis Izmir
KUALA LUMPUR, Aug 29 (Bernama) – Malaysia’s palm oil industry should adopt the blockchain technology, which allows end-to-end tracking to heighten its effort in sustainability, said Managing Partner of Lardi & Partner Consulting GmbH, Strategy and Business Advisory, Kamales Lardi today.
If adopted, Malaysia would be the pioneer in the palm oil industry to do so, she said.
It would also show Malaysia’s effort towards maintaining the sustainability of the crop and enhancing its marketability, she told Bernama at the end of a two-day Palm Oil Trade Fair and Seminar, here.
Although the technology is synonym with the financial industry, it is now being widely adopted in fisheries, agriculture and mining. Lardi cited olive oil planters, diamond miners as users of the technology.
“Using blockchain technology will speak volume of the country’s trust in its supply chain,” she said.
She believes the country could implement it within the next five years and elevate its position at the global level as one of the top sustainable producers of palm oil.
During her presentation earlier, Lardi said besides allowing an automatic end-to-end tracking across the value chain, blockchain technology also enabled digital identity tracking, traceable, immutable data records, transparency for stakeholders and also give accurate information to end consumers.
The blockchain technology could be explained as an incorruptible digital ledger of economic transactions that could be programmed.
For the palm oil industry, Lardi said it could, among others, benefit the smallholders to gain irrefutable credibility as a sustainable supplier of palm oil and reduce costs and production waste, while at the same time, increase production through a real-time infrastructure.
“With the higher smartphone penetration in the country, this blockchain technology can be applied as easy as downloading the application, register the tree and the information can then be uploaded into the system and from that point onwards, most of the checkpoint will be done via the smartphone.
“The entire process becomes simplified and less burden for the planters, regulators and the whole supply chain,” she said, adding that the big companies such as Sime Darby and Unilever are currently experiencing the technology.
She also stressed that the adoption of the technology would not reduce the workforce but it basically simplified the work and make it more efficient and productive.
Although there are challenges in adopting any new technology, she believes that with good understanding among all parties, blockchain technology can easily be adopted in agriculture as well.
-- BERNAMA