Alibaba will use blockchain to solve the problem of counterfeiting food

Alibaba will solve the problem of counterfeiting food products thanks to its Food Trust Framework, a food-tracing system based on blockchain technology to enhance consumer confidence in the provenance of the products they’re buying.

To do so, Tmall International, a B2C platform part of Alibaba Group, incorporates a bunch of standards and controls to manage the supply-chain process, including blockchain technology and product tagging with unique QR codes. The technologies will authenticate, verify, record and provide an ongoing ledger that is made public to report on the transfer of ownership and provision of products and goods.

The Food Trust Framework simplifies the tracking of products, from the moment they leave the Australian and New Zealand factories, to online sales in China. In addition to the control of the supply chain through the blockchain, the Alibaba system makes use of the collaboration of the Australian and New Zealand Post, which deal with the transport of goods.

Alvin Liu, general manager of Tmall Import & Export declared:

“Food fraud is a significant global challenge, particularly with the growing complexity of supply chains. In response, we have created a coordinated, world-leading and robust framework that involves stakeholders from across the supply chain to improve visibility and enhance the confidence of both consumers and merchants.”

Alibaba explained that the counterfeiting in the food sector costs the global industry more than 40 billion a year. If the trial in New Zealand and Australia is successful over the next year, they will expand the system globally.