Everledger, a digital transparency company, and Australian Wool Innovation have announced a strategic collaboration to capture information along the wool supply chain in order to enable provenance and chain of custody verification using blockchain technology.
The aim is to track and validate the exchange of ownership of selected wools as they move up the supply chain from farm, to overseas processing and through to finished products.
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.
In this initial stage, an Electronic Chain of Custody Tool will act as a proof of concept.
It 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.
The ECCT will demonstrate sustainability and compliance best practices and provide more confidence on the authenticity and provenance of the wool product.
It means a retailer or end consumer could verify where and when in Australia the original wool was sourced.
Different participants at each stage of the supply chain will be able to connect through standardised data, in line with best practices for the apparel industry.
AWI chief operations officer John Roberts said running the proof of concept initiative would 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,” Mr Roberts said.
“Traceability and transparency are critical for safeguarding the global reputation of Australian wool.
“Ultimately, this is good news for our farmers and related small businesses that rely on these remarkable sheep to make a living.”
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