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VeChain is the first public blockchain protocol to join the new APAC Provenance Council, a consortium for tracking food exports, such as wine, barley, beef, grapes and other produce, from Australia to China, the former’s largest trading partner.
The new supply chain ecosystem is helping to reduce typical payment terms from 30 days to same-day. Using VeChain’s blockchain and transactions powered by AliPay and Mastercard, the network’s food suppliers will gain access to instant payments and will also be able to trace transactions on Mastercard’s permissioned ledger.
With the breakdown of key systems worldwide across a number of industries due to the coronavirus pandemic, blockchain technology is emerging as a cost-efficient, secure and fast way to integrate multiple participants for cross-continental trades and keep supply chains running smoothly.
According to VeChain,
“On one hand, the pandemic is posing a direct threat to food and beverage manufacturers and vendors around the globe, escalating the challenges of maximizing profits, conserving healthy cash flow and creating value. Particularly in cross-continental trading, the financial pressures facing suppliers are heavily impacting their cash flows, which calls for immediate invoice finance to quickly unlock unpaid invoices and stimulate business growth. On the other hand, the public awareness of food safety is unprecedentedly high.”
VeChain also cites a Shanghai study tracking new behaviors in light of the global pandemic. It confirms that Chinese consumers, still affected by the coronavirus outbreak despite recent reports that China has flattened the curve, are prioritizing food safety and health.
David Inderias, APAC Provenance Council Executive Chairman, says providers such as Fresh Supply Co, Source Certain International and Laava, all network members, can leverage integrated financing and payments.
“In a post-COVID world when many commercial entities are in decline, we are growing by making sure we are delivering economic value, meeting industry needs, as well as including funding sources for industry.”
VeChain ToolChain will allow food suppliers in Australia to receive faster payments while recording the product’s entire delivery cycle on the blockchain.
The tech will generate immutable data that is fully transparent and accessible, including dispatch and vehicle information, logistics updates, required carrier licenses and cargo temperature.