Australian Wool Innovation to trial blockchain wool traceability project

Digital transparency firm Everledger and not-for-profit company Australian Wool Innovation (AWI) are partnering to bring traceability in the lifetime journey of authentic wool products in the Australian wool industry.

Australian Wool Innovation and Everledger’s new partnership will use blockchain technology, through the Electronic Chain of Custody Tool (ECCT), to capture asset information along the wool supply chain to enable provenance and chain of custody verification.

Everledger will build and host the ECCT on its platform, which in its initial stage, will function as a proof of concept.

The ECCT will trace the journey of wool from farm to the end consumer, by identifying and capturing the necessary documentation at each stage of the value chain.

AWI Chief Operations Officer John Roberts explained that running the proof of concept initiative will inform the organisation about the applicability of blockchain technology to showcase and gauge industry appetite.

“A proof of concept will allow a more prudent use of growers funds, as from the project findings we will then determine whether we will invest in a full platform or look to participate in an alternative,” Roberts said.

“Traceability and transparency are critical for safeguarding the global reputation of Australian wool. This partnership with Everledger will help us to ease the flow of information up and down the supply chain to all parties, and so communicate wool’s benefits to a wider audience,” he said.

He continued that AWI and its stakeholders have been monitoring the rapid escalation in emphasis being placed on provenance, corporate social responsibility, and the perennial concerns regarding supply chain efficiency and biosecurity.

“Ultimately, this is good news for our farmers and related small businesses that rely on these remarkable sheep to make a living,” he said.

The ECCT is set to showcase sustainability and compliance best practices. It is also described to provide confidence on the authenticity and provenance of the wool product, allowing retailers or end consumers to verify where and when in Australia the original wool was sourced.

Everledger said that different participants at each stage of the supply chain will be able to connect through standardised data, according to best practices for the apparel industry. Recorded evidence can be used to demonstrate compliance, while participants can also explore additional technologies to enhance material and chain of custody integrity.

In a statement, Everledger CEO Leanne Kemp said blockchain, combined with other technologies, can generate significant economic value to a range of sectors in Australia, contributing an estimated global annual business value of over $175 billion by 2025.

“AWI are taking a lead for other traditional industries in Australia to follow,” Kemp said.

“We’re delighted to design and manage a solution that will help AWI to deliver a more transparent value chain. By sharing provenance information securely – from farm to consumer – all participants can enjoy the benefits of traceability,” she said.

Merino sheep are celebrated globally for producing the world’s finest, softest and most beautiful wool. Australia produces around 90 per cent of the world’s fine apparel wool and contributes significantly to the Australian economy.

Source: Australian Wool Innovation