However, its maintenance on high-scale production can cause some flaws in the system. Using Blockchain technology is on the rise to eliminate such issues from the system.
Blockchain is a technology used in agriculture that enables the wise use of raw materials and natural resource utilization to cultivate crops and curtail harmful environmental hazards.
The food we use in our everyday life passes through a long process in its production, and a proper check and balance system is maintained. This check and balance system is employing the use of technology, one of which is blockchain. Malaysia and Indonesia account for 84% of the total palm oil production.
With blockchain, Malaysia aims to ensure transparency to their customers in palm oil supply chains, focusing on sustainability simultaneously.
BLOCKCHAIN IN SUPPLY CHAIN MANAGEMENT:
In the supply chain, blockchain plays a prominent role in transparent and accurate tracking. The assets from production to delivery are efficiently tracked, and decentralized records of all the transactions are secured. Blockchain benefited the supply chain by efficiently improving the coordination between buyers and producers.
BLOCKCHAIN AND PALM OIL:
Malaysia is rich in oil palm plantation and is the most significant source of production of palm oil. Its product widely serves people around the globe. To raise the use of palm oil and its product, Malaysia Palm Oil Council (MPOC) is using blockchain technology.
Blockchain technology ensures the sustainability and transparency of palm oil and relevant products. Malaysian Palm Oil Council (MPOC), in collaboration with a blockchain firm BloomBloc, is working to increasing the productivity and traceability of palm oil and its relevant products.
For doing so, a mobile application is developed, which is named BloomBloc. It represents all the data regarding every palm tree, its extraction, and the harvesting process.
PALM OIL PRODUCTION CHALLENGES and use of blockchain:
Some large supplier countries of palm oil face changes in its production, one of which is the opposition from the European Union. But the use of blockchain technology successfully degrades the challenges by providing everything in the form of data.
In the use of any product, the main aspect after its cultivation is the customers’ satisfaction, especially in the case of food items. Because the consumers are very much concerned about their health and they must use the healthy product as well. Blockchain satisfies the customer by tracking recorded data; therefore, the customers can calmly buy and use the product.
SUSTAINABLE PRODUCTION OF PALM OIL:
Blockchain technology provides the organization with verified evidence that palm oil production is sustainable. As seen, palm oil production faces many challenges due to its effects on the environment. However, blockchain technology offres a chance to deny misinformed claims in an evident-based and verified manner.
Before making a mindset on the negative impact of any item and denying its use, we must be well aware of the positive impact of the product.
Even under the brunt of a high level of misinformation and negativity, Malaysia, one of the biggest contributors to palm oil, is working to make its production more sustainable.
Simultaneously, it uses blockchain technology to enhance traceability, raising the level of trust about its efforts to promote sustainability and transparency in the palm oil supply chain. We have a clarified palm oil data and its effect; we can use it frequently without hesitation.