Category Archives: Blog Articles

Are Smallholder Farmers Key to Agriculture Sustainability?

The need for investments in sustainable food systems is highly critical. With the world’s population estimated to rise to 9.8 billion by 2050, there will be greater stress on our current food systems. Additionally, the impacts of climate change bring additional threats to agriculture. A warming climate could cut crop yields by more than 25 percent, while the extreme weather events associated with climate change can have devastating effects on farmers, their land, and crop.

Who are the smallholder farmers?

Smallholder farmers are individuals who grow commercial crops or livestock on less than 2 hectares of arable land. Smallholder farmers can also have numerous landholdings in different nations, but their overall landholdings must be under 2 hectares.

The role of smallholder farmers in sustainable food system

Smallholder farmers can be at the vanguard of global efforts to protect and regenerate nature with the correct support. Empowering smallholders to employ sustainable and regenerative farming practices would allow them to replenish the land for current and future generations while increasing yields and creating agriculture resilience, generating prosperity for farmers and their families and positive effects on the environment.

In Brazil, for instance, a report by the Stockholm Environment Institute found that ‘between 2004 and 2011, landowners with more than 500 hectares (1,235 acres) of property were responsible for about 48% of the deforestation. Areas owned by smallholders accounted for 12% of the forests destroyed during the same period. However, since 2005, the contribution to annual deforestation by the largest landowners has fallen by 63%, while that of smallholders has increased by 69%.’ Smallholder farms are crucial in determining whether a sustainable food system can be achieved

Challenges Faced by Smallholder Farmers for Profitability

Few smallholder farmers have access to formal training, sophisticated farm supplies and equipment, and financial capabilities to increase soil health and production. Many smallholders also lack official paperwork proving ownership of their property, limiting their options for growing what, when, and how. As such, long-term, sustainable farming practices are rarely prioritized.

Smallholders are also hampered by systemic concerns such as gender inequity, health issues, and lack of sanitation. As a result, there are significant obstacles and potential in assisting smallholder farmers in adopting regenerative agricultural principles.

Furthermore, many of these variables have limited the contribution of smallholder farmers to urban consumers. As a result, it is evident that a sustainable food system must be supported by policies that allow smallholder farmers to realize their full potential while managing with externalities and limits.

If smallholder farmers are to play an essential part in a sustainable food system as sustainable food producers and food security providers, they will need to be equipped with training, equipment and financing that rewards them for sustainable farming practices. The challenge would then be to ensure that monitor and ensure help is provided to truly sustainable farmers.

How can Smallholder Farmers Benefit from Data Visibility? 

According to Emergen Research, the worldwide food traceability market size reached $4.54 billion in 2020 and is predicted to reach $9.75 billion by 2028. 

Rising demand for food traceability systems to identify mandatory paperwork and tracking for each stage of food processing is predicted to drive this revenue increase. Increased need for critical technologies in the agri-food sector is a very useful tool for analysing, monitoring, and regulating product flow. By digitalizing farm data and visibility, smallholder farmers can organize and improve their farm for higher profit margins and sustainable growth.  

Additionally, as the demand for food traceability technology has been on the rise for both eco-conscious end-consumers and food businesses alike, visibility on the smallholder farmers actions on their farm fields would be key to be able to track provenance of food products.  

How DiMuto  Helps Smallholder Farmer with Sustainability and Visibility 

L to R: Farm profile, Farm Lot Input Information, Farm Wallet

The DiMuto Farm Management application connects growing, harvesting, selling and payments for better visibility of farm operations with its three functions – Grow, Sell and Services. Using the DiMuto Farm Management Application, smallholder farmers can easily set up their digital identity on the Farm Management mobile application and connect their operations to their buyers such as procurement teams and agronomists from larger traders and packhouses within minutes. Through an intuitive interface, farmers can simplify farm administration, storing and accessing digitalized farm records, transport, and sales information easily. Additionally, they can also obtain yield estimates, track production, and get timely reminders to manage their field.   

With DiMuto Farm Management app, smallholder farmers can now: 

  • Simplify farm administration and easily track all farm-related records all in one place, and access it at anytime, anyplace 
  • Connect growing, harvesting, selling and payments for better visibility of their farm operations 
  • Get better prices, market position and premium buyers with produce that’s traceable straight from the farm 
  • Gain better visibility of planning and yield estimates, track production and identify trends and potential problems

Such farm data is then automatically populated to an aggregated web dashboard for agronomists and procurement team to track the farm and estimated harvests, giving more accuracy to supply planning. The Farm Management also seamlessly connects to Production Management and Trade Management features of the DiMuto Platform, allowing AgriFood companies to track the source of their AgriFood products and raw materials, down to the farm and lot that they originated from. As an added layer of verification, all supply chain data recorded on DiMuto Platform is also uploaded on the blockchain, ensuring immutability and trust.  

With increasing demands from consumers and governments for sustainable sourcing, this down reaching level of supply chain visibility will help AgriFood companies track and verify key sustainability metrics.  For instance, AgriFood procurement teams are now able to track measures such as the farmer that grew the food, the number of approved fertilizers, and water being used for the products that they purchased – enabling them to work more closely with farmers on the ground to ensure sustainability practices. This is particularly important for companies to achieve supply chain sustainability, given that a McKinsey report has shown that 80 of large multi-national companies (MNCs)’ impact on air, land, water, biodiversity and geological resources comes not from internal operations but from its supply chain, and most MNCs are struggling to accurately and efficiently assess supplier activities.  

Research estimates that 70% of smallholder farmers in global Agri supply chains live below the global poverty line of $3.20 a day, amounting to over 122 million people. This is despite the fact that smallholder farmers producing a third of the world’s food.  

The DiMuto Farm Management application also has a Digital Wallet function that helps farmers to track, receive and access digital payments. The payment rails will help DiMuto to execute smallholder farmer financing and insurance opportunities, allowing loans and payments to be directly deployed and rightfully received. The Digital Wallet is also connected to the Trade Management and the Grow aspect of the app, creating the ability to verify purpose and usage of the loans and ensuring that funds can be used for improved resiliency and sustainability of these smallholder famers. 

If you are interested to learn more about how DiMuto helps improve sustainability of food systems for global AgriFood trade, reach us at sales@dimuto.io

Bolster Trustworthiness of Digital Documents in AgriFood Trade

With  growing demand for transparency and traceability of global food supply chains – the Food Traceability market is estimated to be worth as much as US$9.28billion by 2028, it is no wonder that there has been much data-driven innovation in the AgriFood sector. There has also been increasing recognition of the need for a digitalized food system, particularly in the wake of Covid.  

However, critical digital and physical documentation required to conduct AgriFood trade continues to be disseminated, recorded and stored in an inefficient, disconnected and unsecure manner across the various stakeholders in the AgriFood supply chain.    

Importance of Trusted Supply Chain Trade Documents in AgriFood Trade

Agriculture and food commerce are more complicated than manufacturing trade because trade standards are more stringent, documentation is more cumbersome, and logistics are more complicated – these are often necessary to ensure consumer food safety. For food safety, detailed information on traded items as well as the movement of goods in a supply chain is vital and these challenges have been exacerbated by the rise in e-commerce. 

Thus, the need for trusted digital documents showing the food safety status and traceability data of food products is needed more than ever. For instance, in lieu of the pandemic, China has implemented strict policies on food imports and even banned imported fruits and salmon from specific ports.  For AgriFood companies dealing with food import-exports, being able to efficiently and effectively store digital documents and trade information and ensure its validity and authenticity in crucial to ensure trust in the provenance of their food products.   

How Can AgriFood Businesses Be Assured of the Security of Their Uploaded Documents? 

Data breaches, document forgeries, and fraudulence have become a pressing issue for digital documents on the web or businesses’ private platforms. It is crucial to note that although there are several methods for digitizing documents and storing digital documents, the security and efficiency of such methods may not be as seamless and transparent as one might think.  

Current communications occur over different communications platforms such as social messaging apps and emails, causing crucial trade information and documents to be scattered and stored inefficiently, making it challenging for AgriFood companies to ensure timely verification of these documents, or store and retrieve them securely.  

How DiMuto Helps – DiMuto Creates Trade Visibility for “The Messy Middle”


With DiMuto, Retailers and Suppliers can now enjoy greater visibility of all their trade data. Product, document and payment data are all tracked on a single platform. Suppliers, Traders and Retailers are able to easily access all relevant trade documents which are automatically uploaded onto the blockchain, ensuring immutable records of the trade action and documents. 

In addition to utilizing the blockchain to build trust, DiMuto utilizes Dedoco, a decentralized digital signing platform on blockchain, to further authenticate trade documents. 

How DiMuto Authenticates Trade Documents on the Platform with Dedoco 

AgriFood Trade documents on DiMuto are further authenticated with Dedoco’s blockchain-enabled electronic signature platform to increase the credibility of digital documents. Documents are readily signed using Dedoco and registered with a unique blockchain hash when they are published to the DiMuto platform. Documents’ signatures can also be verified  Dedoco web. 


Digital Documents will require signatures that are then embedded with a blockchain hash

With blockchain-verified signatures that act as a guarantee of document authencity, DiMuto ensures credibility of every trade transaction – removing barriers such as security risks, fraudulence, and forgery of documents. DiMuto’s All-in-One trade management platform helps strengthen trust and confidence among AgriFood players in the food supply chain. 

If you are interested to learn more about how DiMuto ensures trust for global AgriFood trade transactions, talk to our sales team today at sales@dimuto.io and find out how DiMuto can support your journey to better trade visibility. www.dimuto.io 

 

 

Challenges of Cross-Border Payments in Global AgriFood Trade

Cross-border Transactions Today

In 2020, the market growth for international payments reached an all-time high with forecasted revenues of $2Trillion USD, according to a recent forecast by Smarter Payments Tracker. However, research has shown that only 1% of small and medium enterprises (SMEs) use digital finance successfully, even though SMEs represent and more than 50% of employment worldwide.

Add that to the complex regulations and infrastructure of cross-border payment systems today, it is no wonder that moving money across borders is still far from an efficient and easy process.  This problem will only become more pertinent as the role of SMEs in the global economy continues to grow. Challenges faced when conducting cross-border payments include:

  • Country-specific regulations
  • Slow processing of transactions
  • Expensive costs
  • Security concerns
  • Lack of visibility

Country-specific rules have impeded international payments, and transactions routed through intermediate institutions can take days to complete and typically come with costs. Due to the numerous intermediaries involved in transferring money from one nation to another, all of which collect fees for their services, cross-border payments are notoriously expensive. Regulatory costs pile up, and FX fees for converting one currency to another will be levied. Compounding this is the lack of clarity when it comes to remittance fee structures.

Additionally, unlike near-instantaneous domestic payments, traditional cross-border bank transfers typically involve numerous exchanges of hands in one transaction and take two to five days to process, making it difficult to expect payments on time.

On top of that, high-level security breaches in cross-border payment systems are common, as evidenced by the $81 Million theft on Bangladesh’s central bank in 2016.  As each country has its own set of rules, the cross-border payment system is vulnerable to hacking whenever funds enter a country with lax security and access policies.

As each country has its own set of rules, the cross-border payment system is vulnerable to hacking whenever funds enter a country with lax security and access policies.

Another core concern of businesses making cross-border payments is the lack of visibility of payment status. according to a poll conducted by SWIFT and EuroFinance in 2017, 64 percent of businesses desire real-time payment tracking capabilities, while 47 percent want improved insight into the costs and deductions involved.

With the longstanding lack of real-time tracking of payment status, businesses often do not have certainty of transaction status. When companies need to know the current status of a payment, they are dependent on operations specialists undertaking manual research to ascertain basic information. Payment inquiries must be directed through correspondent banks, then communicated back to clients to determine any necessary actions. This lack of transparency creates a high informational cost, undermines corporate cash flow forecasts, and can strain relationships with a client’s suppliers and busines partners when funds are not received as expected.

For AgriFood companies with a significant portion of business in export-import trade, the ability to conduct and manage payment transactions across borders in an efficient, secure and visible manner is a concern. The risks of cross-border payments today are especially great for AgriFood companies dealing with a high volume of international trade transactions where one container of fresh produce can easily amount to an average cost of USD$50,000 to 150,000.

A need for trade-centric payment management in global AgriFood Trade 

In global AgriFood Trade, there’s not only a need for cross-border payment methods to have less friction but have a trade-centric perspective as well. This is because product movement is dependent on a multitude of factors and delays and changes in timelines are commonplace. Trade disputes involving quality issues are typical and can cause upwards of 5-15% of trade value.

Trade Dispute Due to Poor Product Quality of Oranges, read more.

Thus, it is particularly important for finance teams to be informed of situations affecting expected payments and cash flow.

DiMuto Unifies Products, Documents and Payments in One

DiMuto connects products, documents and payments on a single platform, giving visibility across departments and functions in a company. We digitalize physical AgriFood products by tagging each fruit or vegetable with a Digital Identity Label (DID).

DiMuto’s DIDs Tagged onto Cartons of Bananas to Provide Visibility Across All Departments, read more.

DIDs act as a digital identifier for each fruit and contain product quality and traceability data and allow companies to connect the product to digital documents and payments on DiMuto Platform.

DiMuto Payment Management

DiMuto allows payment receipts to be uploaded onto the blockchain automatically, ensuring immutability. Payment status is also viewed in the same trade timeline as other trade actions, ensuring that both sales and finance understand the trade situation. The DiMuto Payment Management feature also allows companies to conduct cross-border transactions via the DiMuto Platform.  

DiMuto Payment Powered by OPAL

A partner that we work with to make this possible is OPAL Payments, a Monetary Authority of Singapore (MAS)-licensed Major Payment Institution (MPI), which provide businesses with a less expensive and more convenient method of international payment and cross-border banking through Global Digital Business Accounts.

Through this partnership, companies on the DiMuto Platform will be able to receive payments rapidly in important markets such as the United States, the United Kingdom, the European Union, and more, as well as access local payment networks in 21 countries without the need to set up business operations in these territories. OPAL understands that SMEs encounter challenges when it comes to transacting business on a global basis. 

Beyond connecting payments in traditional currencies, the DiMuto Payment Management can allow transactions in the USD Coin (USDC), through CIRCLE, a uniform platform for businesses to collect payments and send payouts around the world using blockchain technology. Meeting the needs of high-volume trading firms, crypto exchanges, and market makers, the USD Coin (USDC) is a significant advancement in the way businesses utilize money. Digital dollars function similarly to other digital content: they travel at the speed of the internet, can be traded in the same manner that we share content, and are less expensive and more secure than current payment systems.

A Bright Future: Paving the way to trade financing access 

By digitalizing physical AgriFood assets, asset tracking is now possible – the identity, movement and condition of individual products and cartons can now be easily tracked and traced with DiMuto. Coupled with Artificial Intelligence Models  that can objectively assess product quality and trade health, DiMuto helps lower the risk associated with trade financing for agri-perishables, giving AgriFood SMEs opportunities to obtain much needed trade financing options.

The US$1.9 trillion global trade finance gap has deteriorated as a result of Covid-19, which is now projected to be as high as US$3.4 trillion by experts, with SMEs in emerging nations being the hardest hurt. Due to concerns such as creditworthiness, collateral requirements, short-term liquidity, and political or currency risk, SMEs have historically had difficulty obtaining institutional funding.

More efficient and trade-centric cross-border payment methods will not only create more visibility and help business manage their operations and cash flow better but also help to provide them with trade financing opportunities to help their businesses grow greater.  

If you are interested to learn more about how DiMuto helps Agri-Food businesses with cross-border payment management, please reach us here or drop us an email at sales@dimuto.io. 

Leveraging Blockchain Traceability For Brand Building

PT Sewu Segar Nusantara (SSN), a Leading Local Fruit Distributor and Marketer in Indonesia

The Republic of Indonesia is one of the most populated nations worldwide and among the largest countries by total area. In 2020, the total population of Indonesia amounted to approximately 270.2 million. It is the largest economy in Southeast Asia.

PT Sewu Segar Nusantara (SSN) is part of Great Giant Foods, the brand entity of Gunung Sewu Group and a leading vertically integrated food player that cultivates, manufactures, delivers fresh and processed fruits, juice, meat, and dairy.

SSN has a distribution network covering: 133 Cities in 9 Major Regions, 2000 Modern Markets, 52 Sub-Distributors, 65 Wholesalers, 6000 Retailers

A Need For An Efficient Supply Chain Traceability

For some of its local products such as Pisang Mas, Melons and Oranges, SSN employs regional agronomists to work directly with smallholder farmers around different regions of Indonesia.

With the low level of technology adoption amongst these farmers, efficient and cost effective supply chain traceability was needed that could help verify provenance and extend Sunpride’s quality assurance to other local products in their portfolio, ensuring that Sunpride’s brand promise of safe quality products is kept to its consumers.  

The Asian Consumer Perspective: Growing Demand for Safe & Traceable Foods

Over 40% of Asian consumers are concerned over where their food is sourced from and source-checking is a habit for some of them, indicated in a survey by the Asia Food Challenge report done by PwC, Rabobank and Temasek. It is clear that consumers across Asia are demanding stronger reassurance that food is safe, and are turning to brands they feel they can trust. Some consumers also indicate willingness to pay a “trust” premium for food bought directly from their source.

With this trend in mind, there is growing pressure on AgriFood food brands to be able to leverage technology for safe and traceable food solutions in order to buildtrust and credibility with consumers.

Introducing DiMuto’s Solution

DiMuto’s 8 Product Features

See the full picture with Insightful Trade Data 

From Produce, Trade to Market, DiMuto AgriFood Trade Solutions have 8 key Product Features that help you gain visibility of the in-betweens in your supply chain.

DiMuto’s All-In-One Platform

An all-in-one, farm to fork platformOur 8 Product Features include:  

Farm Management 

DiMuto Maximize farm efficiency and profitability, read more. 

Production Management 

DiMuto Organize, track and trace your production, read more. 

Trade Management 

DiMuto ensures that you are in control of your trades with full visibility, read more 

Inspection & Standards Management 

DiMuto Organise, digitize and verify product quality, read more. 

EmVend Marketplace 

DiMuto helps you to Enter new markets and grow your exports, read more. 

SMART Marketing 

DiMuto helps differentiate your brand with traceability, read more. 

Payment Management  

Stay on top of your trade payments & settlements ,read more. 

Financial Services 

DiMuto helps to protect your trades with insurance, read more. 

Tracking Regional Supply Chain with DiMuto

Applicable Blockchain for Food Traceability

Immutable Records of Supply Chain Actions in a single platform

The DiMuto Platform automatically records each transaction onto the blockchain, a distributed ledger technology that uploads information in blocks and adds new information in chronological order to ensure transparency.

Trade Information recorded by the different SSN departments are secured with a blockchain hash to ensure transparency and immutability, achieving supply chain provenance in the most secure manner.

DiMuto SMART Marketing

DiMuto SMART Marketing gives marketing teams of produce brands the ability to seamlessly communicate traceability data that has been recorded by their operational team and display it to their consumers in the form of a Product Passport.

The Product Passport is able to showcase selected Product Certificates that have been uploaded on the blockchain, as well as critical supply chain stages such as Farming, Packing, Shipping and Receiving stages.

This helps produce brands to showcase product provenance and build consumer trust.

Showcasing Sunpride Brand with DiMuto SMART Marketing

Creating Strong Consumer Relationships with Direct Insights and Feedback

With DiMuto SMART Marketing, executing brand marketing campaigns, hosting promotions and lucky draws to raise brand awareness, collecting product-specific feedback from end consumers make has never been easier for PT SSN

Feedback derived from end-consumers directly provide more insights on the individual products, ensuring visibility not only between SSN departments, but also close the loop with regards to product quality at consumer level.

The positive brand engagement ratings from Point-of-Sale promotions indicate strong potential for SMART Marketing to become an important marketing tool to drive sales, better understand end-consumers and build brand loyalty.

DiMuto Helps Brands Communicate Verified Traceability to Consumers

Read more of our Real-Life Case Study about How Deploying Blockchain Traceability Helped to Create Consumer Engagement For A Leading Produce Brand in Indonesia here: Leveraging Blockchain Traceability for Branding Case Study

If you are interested to learn more about how DiMuto helps Agri-Food businesses leverage on blockchain traceability to create consumer engagement, please reach us here or drop us an email at sales@dimuto.io. 

State of Food Traceability in 2022

Entering into the New Era of Smarter Food Safety in 2022 – Food Traceability is an emerging need in today’s world with open global markets and is a step towards making end-consumers become more aware of the food they consume and setting up sustainable and ethical food supply chains.

Food Traceability means being able to know the origin and traces of food products along the stages of the food supply chain – production, processing, manufacturing, distribution and consumption, ensuring visibility and transparency throughout the different stages of the supply chain.

Securing visibility and transparency within the whole food supply chain, traceability for movements of fresh produce will require robust technical solutions such as blockchain technology which enhances the ability to quickly pinpoint potential sources of contamination to efficiently prevent, contain or rectify outbreaks.

Food Traceability Will Lower Implementation Costs And Become a Norm
In The AgriFood Industry

Blockchained Durians

Transparency in terms of blockchain food traceability can validate and authenticate the provenance of food and improve the brand’s credibility. Therefore the use of blockchain technology has become an essential tool to ensure efficiency and transparency for AgriFood trade transactions. Additionally, understanding food provenance is becoming more prevalent among end-consumers, making it critical for AgriFood businesses to better understand, manage and communicate product movement from farm to fork.

Food Traceability Technology will see lower implementation costs and become a norm in the AgriFood industry.
 
Read more on how how Blockchain Simplifies AgriFood Product Quality for a more efficient, sustainable and transparent food supply chain.
 

There Will Be A Strong Growth In Food Traceability Industry On A Global Scale

Between 2000 and 2016, world agricultural trade increased more than threefold in value, rising to USD 1.6 trillion in 2016. Market revenue growth is expected to be driven by rising demand for food traceability systems to identify necessary documentation and tracking for each stage of food processing. Increase in demand for important tools in the agri-food sector represents a very useful tool for analysing, monitoring and managing the flow of products.

Food Safety Concerns And Growing Eco-Consciousness Will Continue Influence Consumer Purchase Decisions

Food safety concerns have become critical in many countries, especially those with lack of standards, regulations, and stringent stipulations governing quality and safety of food and edible products.

Post COVID-19 pandemic, a sizable number of consumers developed some level of fear related to what they eat and who has been in contact with what they consume. This has been playing a major role in a number of companies deploying additional safety measures in order to support brand value, increase consumer trust, and drive revenues. This in turn has been adding a significant boost to demand across certain supply chains that have deployed the right measures and have built trust and enabled better traceability of food products.

With longer and more complex supply chains giving rise to the “Messy Middle”, tracking from farm to fork requires increased scrutiny and accountability throughout the process. 

How DiMuto Helps 

DiMuto Trade Management Solutions provide an all-in-one platform to help AgriFood companies track physical AgriFood products for each trade, down to each carton and product. Using our unique Digital Identities Labels (DIDs), companies can digitalize physical products and combine it with the relevant supply chain data on our blockchain-powered platform. Such traceability information can be shared efficiently within departments of the same organization, as well as with external stakeholders such as buyers, retailers and end consumers.  This can be done by scanning each carton to access a web-based Product Passport, for consumers, or achieved through our “Quick Info” function for trade partners. By making the sharing of verified traceability data, AgriFood companies can now better manage food safety requirements in cross-border supply chains.

If you are interested to learn more about DiMuto’s Trade Management Solutions can help you achieve Food Traceability, talk to our sales team today at sales@dimuto.io.

How AgriFood Supply Chains Can Be More Resilient and Tackle Challenges Posed by COVID-19 and the Future

Pandemics are characterized by their severe negative consequences on the global economy. COVID-19 has had a significant influence on one of the most vital areas of the economy – the whole food supply chain, from the source to the consumer. The disruption to supply networks continues to be severe, with the virus continuing to cause numerous areas and economies impose lockdowns and restrictions, while others struggle to adapt to a post-pandemic landscape. The supply chain will be crucial in providing products and services promptly, reliably, and securely as economies begin to recover.

COVID-19 is causing the ‘Messy Middle’ in operations to be more challenging throughout the world in ways that are difficult to predict and measure. Agri-Food businesses are concerned that they will not be able to meet contractual commitments on time due to the new challenges posed by the pandemic and the lack of visibility; from Supplier to Retailer to End-Consumer. There remain substantial concerns regarding food production, processing, distribution, and demand in lieu of pandemic-related supply chain changes such as limitations to workers’ mobility, changes in consumer demand, the closure of food production facilities, new food trade laws, and financial constraints in the food supply chain.

In addition to the new obstacles posed by the pandemic, COVID-19 revealed previously unknown weaknesses in several sectors – Lead Times, Lack of Diversification and Visibility, and many organizations have experienced heavy losses because of it, exacerbating and hastening issues of the ‘Messy Middle’ that previously existed in the supply chain.

How The Pandemic Impacts the Global AgriFood Supply Chain

From farm to fork, there are five phases of the food supply chain (FSC). Two mechanisms are used in the food supply chain for food consistency and protection. The first focuses on rules and legislation that use mandatory requirements reviewed by government agencies. The second focuses on voluntary principles established by economic law or international organizations. FSC contains important final stages that can easily affect end-consumers. This includes safe food handling, preparation, delivery, the use of personal protective equipment such as helmets and gloves, surface disinfection, and work. Maintaining environmental and even social distance are some safety measures implemented to ensure the continuity of food flow.

The Covid-19 pandemic, unlike foot-and-mouth disease, avian influenza, and Listeria, does not directly infect animals or produce and therefore has no impact on development of diseases via produce. However, because of the pandemic, nations have severely restricted the flow of goods (land, sea and air transport) and the movement of labour around the world to manage and control the rate of transmission of Covid-19 between people.

Reportedly, Australia’s isolation rules have also created shortages of workers to harvest, pack, transport and distribute the fruit and vegetables which leads to strained distribution of food supplies. These conditions are aggravated with Uganda’s authorities demanding fresh testing of Covid-19 by the Kenyan truck drivers upon their arrival at the border with claims that their Covid-19 certificates are falsified, enabling the Truck Drivers to go on a strike due to the stated conditions. These situations greatly delayed the supply of fresh produce.

Chile Scrambles to Regain China’s Confidence on Cherry Imports

Chile’s association of fruit exporters Asoex stated that wholesale purchases of Chilean cherries have decreased to 4% below normal levels in 2021 and retail sales flopped heavily by 63% in China.

The cause of reduction for cherry imports in China is due to reports that have been made stating that some imported cherries tested positive for traces of the coronavirus in Jiangsu Province, which swiftly spread across the Chinese media making the consumers doubt and lose confidence in purchasing them. This incident impacted the cherry sales negatively as cherry sales suffer a devastating blow due to the fear of being contracted with the Covid-19 virus.

COVID-Driven High Freight Rates Makes Receiving Poor Quality Fresh Produce More Costly

According to the Xeneta Shipping Index, there has been an increase in freight rates, with global container prices rising by 3.2% in September 2021, which marks an astounding surge of 91.5% as compared to the previous year. As the costs are high in shipping fresh produce, receiving poor quality fresh produce would further incur loss in sales where a container of Fresh Produce can value between US$50,000 to US$150,000 and wasted costs that are not easily recovered where rises in freight costs are at an all-time high making goods rejection even more costly.

How DiMuto Helps AgriFood Companies Stay Resilient

DiMuto understands the many difficulties in conducting cross-border international agrifood trade, and the various risks involved, due to the disconnected flow of information across global supply chains where buyers and suppliers are often located in very distant geographical areas.

With DiMuto and our trusted network of buyers in the region, you can trade Agri-Food products and fresh produce products with seamless visibility and accessibility. DiMuto’s Global Trade Network is made up of an exclusive network of trusted buyers and suppliers conducting traceable trade on the DiMuto Platform. With full supply chain visibility, growers and retailers can buy & sell fresh produce more effectively and efficiently. 

For Buyers:

When retail stores receive goods that do not fulfil order specifications or products that have some form of quality issues. Moreover, the defects are only known when the fruit or produce has arrived due to a lack of product visibility along the supply chain. This makes trade managing fresh produce challenging for retailers:

  • Unable to see pre-shipment product quality and container loading
  • Unable to quickly respond to inventory changes due to rejections from quality defects
  • Unable to communicate defects easily and effectively between internal teams

With DiMuto, Retailers can now enjoy accessible visibility of pre-shipment and post-shipment quality to better manage any potential loss of sales

  • Pre-shipment product quality down to every single carton easily accessible to commercial team
  • Trade information, documents and actions of each trade seamlessly recorded and presented in timeline view
  • Post-shipment product quality efficiently captured and communicated between QC, commercial and retail teams
  • Dashboard view of Inspection Management to ensure optimal product quality and vendor performance

Read more on How Retailers Can Better Manage the Impact of the ‘Messy Riddle’

For Suppliers:

By joining DiMuto’s Global Trade Network, you will deal with traceable, trackable fresh produce that has been digitized TradeTrust Blockchain Validation, creating data-backed trust and peace of mind when you conduct global produce trade adapting to the pandemic that has disrupted trade.

Read more on How DiMuto Uses TradeTrust Blockchain Validation to Strengthen Trust in Global Trade

Pukuna Farms Using DiMuto’s Traceability for Visiblity and Accessing New Markets

Based on a challenge faced by one of our customers – Pukuna Farms, they were finding a way to expand their market to such an unknown region like Asia, hailing all the way from Ecuador. It is not easy to enter an unknown market and for that, the supplier has to be reliable, where consistent quality is key. Buyers need to be assured that suppliers will sell their fresh produce in good condition and they will be receiving the products as per specified and upon the arrival of the fresh produce and buyers will be required to scan the fruits for visibility on the quality of fruits. For that, it is important to have full visibility in the supply chain.

With DiMuto’s traceability solutions, traceability and digitalization secured with Blockchain-Powered solution, Pukuna Farms was able to improve in sales as each Pitahaya is digitalized with DiMuto QR code so it can be tracked and traced on one single platform to provide full visibility as it moves through the supply chain, making it easier to manage trade dispute based on the information recorded timely on the DiMuto platform.

Product quality, farm information and trade information are captured on the DiMuto platform. Thus, the visibility provided by DiMuto to supply chain partners enables trade traceability and transparency, improving trust and establishing long lasting partnerships between supply chain partners.

Read more on how Pukuna Farms Uses DiMuto’s Traceability. 

DiMuto Creates Trade Visibility for “The Messy Middle” 

DiMuto’s Accessibility of Pre-Shipment and Post-Shipment Quality 

With DiMuto, Retailers can now enjoy accessible visibility of pre-shipment and post-shipment quality to better manage any potential loss of sales 

  • Pre-shipment product quality down to every single carton easily accessible to commercial team 
  • Trade information, documents and actions of each trade seamlessly recorded and presented in timeline view 
  • Post-shipment product quality efficiently captured and communicated between QC, commercial and retail teams 
  • Dashboard view of Inspection Management to ensure optimal product quality and vendor performance 

Fundamental shifts in consumer behaviour, supply networks, and routes to market have made Agri-Food companies face challenges in adapting and resolving them. As a result of the pandemic, companies must expedite the implementation of efficient solutions to navigate the unpredictability.

If you are interested to learn more about how DiMuto helps Agri-Food businesses leverage on an increased visibility to stay resilient amidst the challenges of the pandemic in the supply chain, please reach us here or drop us an email at sales@dimuto.io.

How Retailers Can Better Manage the Impact of The Messy Middle

The Challenges of Managing the Messy Riddle

In the AgriFood industry, it is difficult to track fresh produce along the supply chain due to disconnected visibility. Because of the multiple players involved, critical data regarding product quality is often not shared efficiently between stages in the supply chain.  

Often, buyers and retailers have no visibility on fresh produce products during pre-shipment. Quality issues will only be raised upon goods arrival, making it challenging to ensure consistently good quality supply. Receiving poor quality produce results in rejection-related loss of sales and food waste that can easily amount to thousands of dollars. 

Food Waste Generated by Retailers Worldwide 

In the US, grocery retailers generate a whopping 13% of total food waste, totalling a 10.5 million tonnes that go into landfills annually. Meanwhile, in the EU, supermarkets account for 5% of the food waste problem, sparking a pledge by the EU to cut food waste in half by 2030. 

In Singapore, a central warehouse of a supermarket chain rejects about 15 to 20 pallets worth of fresh produce every day, typically due to not meeting product quality specifications agreed upon with suppliers. Each pallet can contain anywhere between 500kg and one tonne of produce.  

Sources: The Straits Time, Food Print, Global Citizens

How Receiving Poor Quality Fresh Produce Costs Retailers 

A Container of Fresh Produce can value between US$50,000 to US$150,000. When Retailers receive fresh produce that does not meet their product quality specifications, it negatively impacts their inventory and sales. 

  • Loss in sales – where the rejection of fresh produce leads to a decrease in their stock count and inability to fill the floor  
  • Incurred costs not recovered – especially during the Covid-19 pandemic, the rises in freight costs are at an all-time high making goods rejection even more costly 

Sources: Sourcing Journal

Poor-Quality Grapes Rejected at Retail-Level

High-Cost of Poor Quality Produce

In a typical fresh produce trade, buyers and retailers have no visibility on the conditions of the goods that were packed and loaded pre-shipment. This makes it difficult for them to efficiently respond to inventory changes caused by quality issues. 

Based on a Real-Life Case Study on Moving Fresh Produce

  • Programme for 15 containers of fresh grapes from supplier to a supermarket buyer 
  • Lack of visibility on pre-shipment quality from the supplier to retailer 
  • 8 out of 15 containers rejected due to quality issues and poor container unloading conditions 
  • Inefficient communication between Quality Control team and Commercial team regarding quality 
  • Loss of sales from 8 containers amounted to over USD$520,000 
  • Entire programme had to be cancelled and discontinued 

No Data, No Visibility

Often, retail stores receive goods that do not fulfil order specifications or products that have some form of quality issues. Moreover, the defects are only known when the fruit or produce has arrived due to a lack of product visibility along the supply chain. This makes trade managing fresh produce challenging for retailers: 

  • Unable to see pre-shipment product quality and container loading 
  • Unable to quickly respond to inventory changes due to rejections from quality defects 
  • Unable to communicate defects easily and effectively between internal teams 

Introducing DiMuto’s Solution

DiMuto’s 8 Product Features

See the full picture with Insightful Trade Data 

From Produce, Trade to Market, DiMuto AgriFood Trade Solutions have 8 key Product Features that help you gain visibility of the in-betweens in your supply chain.

DiMuto’s All-In-One Platform

An all-in-one, farm to fork platformOur 8 Product Features include:  

Farm Management 

DiMuto Maximize farm efficiency and profitability, read more. 

Production Management 

DiMuto Organize, track and trace your production, read more. 

Trade Management 

DiMuto ensures that you are in control of your trades with full visibility, read more 

Inspection & Standards Management 

DiMuto Organise, digitize and verify product quality, read more. 

EmVend Marketplace 

DiMuto helps you to Enter new markets and grow your exports, read more. 

SMART Marketing 

DiMuto helps differentiate your brand with traceability, read more. 

Payment Management  

Stay on top of your trade payments & settlements ,read more. 

Financial Services 

DiMuto helps to protect your trades with insurance, read more. 

How DiMuto Helps

DiMuto’s Pre-Shipment Quality & Trade Info

DiMuto’s Inspection Module

DiMuto makes all parts of the trade easily visible and accessible to relevant teams within the Retailer. With Trade Management, the commercial, QC, shipping team can access pertinent trade documents and data. 

DiMuto’s Inspection and Standard Management

DiMuto Inspection Management helps digitalize the QC process and allows a more efficient way to standardize, record and evaluate quality inspections for optimal product quality.  

DiMuto Creates Trade Visibility for “The Messy Middle” 

DiMuto’s Accessibility of Pre-Shipment and Post-Shipment Quality 

With DiMuto, Retailers can now enjoy accessible visibility of pre-shipment and post-shipment quality to better manage any potential loss of sales 

  • Pre-shipment product quality down to every single carton easily accessible to commercial team 
  • Trade information, documents and actions of each trade seamlessly recorded and presented in timeline view 
  • Post-shipment product quality efficiently captured and communicated between QC, commercial and retail teams 
  • Dashboard view of Inspection Management to ensure optimal product quality and vendor performance 

Read more on our Real-Life Case Study on Receiving Poor Quality Fresh Produce At The Retail Stage: The Retail Impact of The Messy Middle.pptx

If you are interested to learn more about how DiMuto helps Agri-Food businesses leverage on an increased visibility of Pre-Shipment and Post-Shipment Product Quality, please reach us here or drop us an email at sales@dimuto.io. 

How Blockchain, AI and IoT Simplifies AgriFood Product Quality and Food Sustainability

How Blockchain, AI and IoT Simplifies AgriFood Product Quality for a more efficient, sustainable and transparent food supply chain

In today’s society, AgriFood trading practices have evolved to keep up with consumer demands of high quality, safe and sustainable food products. A key tool to help AgriFood businesses to meet this demand is blockchain.

The use of blockchain technology has become an essential tool to ensure efficiency and transparency for AgriFood trade transactions. Additionally, understanding food provenance is becoming more prevalent among end-consumers, making it critical for AgriFood businesses to better understand, manage and communicate product movement from farm to fork.

What is blockchain technology?     

Blockchain is a shared distributed ledger technology that allows users to share verified, immutable information with each other. In this way, blockchain helps agrifood supply chain stakeholders to share trusted information with each other for each trade transaction, allowing the tracking of food provenance and the building of a more visible, efficient and transparent supply chain. 

Blockchain can be used for applications such as improving food quality control throughout AgriFood supply chains. 

Using Blockchain, AI and IoT to Improve Product Quality Control 

Studies have shown that fruits and vegetables are thrown away due to unsuitable storage and shipment conditions. For instance, in Central and Southern Asia, losses in transport can be as much as 30% of the overall yield, a huge amount of waste.

As AgriFood products are transported along the food supply chain, they often take different routes and go through numerous handlers. This means that the ability to track the produce across the supply chain is challenging, making it difficult to ensure optimal product quality. This is particularly critical in the fresh produce industry where ensuring quality is key to maximizing shelf life. 

The challenges that AgriFood businesses need to overcome to assure product quality are: 

  • Processing large quantities of trade, product and document information 
  • Underutilizing valuable technology  
  • Keeping track of product information 
  • Optimizing processes that ascertain product quality information 

How DiMuto uses Blockchain, AI and IoT to ensure Product Quality

DiMuto uses blockchain technology along with Internet of Things (IoT) and Artificial Intelligence (AI) to determine product quality in an objective and simplified manner.

DiMuto transforms the way of assuring product quality by following four steps: 

  1. Utilizing IoT technology in our Digitial Asset Creation (DACKY) Devices to capture  product data, down to every single carton, throughout the supply chain
  2. Organizing the collected data to be accessible, readable and understandable by different users on our Trade Solutions Platform 
  3. Enhancing the collected data with more insights using AI
  4. Data gets saved on the blockchain to ensure immutability 

DiMuto DACKY devices capturing pre-shipment carton information at various packing facilities. 

Visual Images of each carton of AgriFood product is then automatically uploaded onto the DiMuto Platform, and associated with each trade transaction so that the product, quality control and sales teams across the AgriFood organization can access these data easily.

DiMuto AI and Machine Learning then enhances the information gathered to provide useful insights using predictive models and analysis, this process will procure important product information to assess on its quality score:  

  • Product Identification 
  • Product Size 
  • Product Quantity 
  • Product Quality 

Watch the above video to learn how DiMuto uses AI to determine pre and post shipment product quality 

The insightful data will be stored on the blockchain, ensuring security and immutability through a decentralized node network. 

There is a risk of a single point of failure with the current practice of keeping important information in a centralized server. The data in blockchain, on the other hand, is spread among all nodes in the network. As a result, it prohibits the system from being controlled by a central authority. Thus, accessibility to product quality information is invariably simple and secure. 

This will help to determine the product quality of AgriFood products in a more efficient manner, helping AgriFood businesses to better control food quality at various stages of the supply chain.

With DiMuto’s solution, AgriFood companies can reduce food wastage due to more visible, efficient and reliable product quality controls along the supply chain and take the next step towards food sustainability.

If you are interested to learn more about how DiMuto helps AgriFood companies to utilize blockchain and other technology for a more efficient and sustainable supply chain, please reach us here or drop us an email at sales@dimuto.io.

Strengthening The Farm to Table Brand with Traceability – Newton Orchards

  • Newton Orchards is now able to connect with its end consumers directly, launching a marketing campaign that raises awareness of the Newton Orchards brand while implementing DiMuto’s SMART marketing services to communicate its from farm to table traceability story to consumers in Australia.
  • DiMuto’s QR code-driven SMART marketing services are a cost-effective solution for reaching end consumers and communicating traceability brand stories from farmers and producers.
About Newton Orchards A key Western Australia orchard, Newton Orchards of Manjimup is a family owned and operated business for over 90 years and four generations. Over the years, it has grown to one of the most trusted fruit growers in Australia.
    • Has a fruit derivative beverage line of ciders and juices to reduce food waste
    • Grows a wide variety of crops, such as apples, pears, and cherries
    • Supplies fresh produce to major retail supermarkets such as Coles and Woolworths.
    • Industry: fresh produce
    • Location: Manjimup, Western Australia
Dimuto’s Results
    • DiMuto Digital Asset Creation (DAC) and the trading platform provided trade traceability that helped provide complete supply chain visibility
    • SMART marketing solutions helped engage end consumers and strengthen the Newton Orchard brand
Key Challenges
    •  Unable to engage end consumers directly and learn more about their customers
    • Unable to meet consumer demand for traceability of their fresh produce
    • Difficult to conduct cross-promotion for their fresh and beverage products
    • Challenging to differentiate the Newton Orchards apples from other existing brands in the market
For many growers and producers, it is often difficult to differentiate their products from existing products and brands in the market. This makes entries into new markets or sales channel challenging. Additionally, being at the upstream of the food supply chain, they often rely on intermediaries to deliver the product to the end consumers and as such, have no way of directly communicating with the people who consume their products. At the same time, more and more consumers are looking for traceability when it comes to fresh produce, as they want to be certain that the produce they are purchasing has been safely handled and are of good quality. While farmers have been complying with safety regulations and good processing practices, it is difficult to communicate this to the end consumers. How DiMuto Helps DiMuto’s SMART Marketing solution provides a simple solution that connects the farmers to the end consumers. As part of DiMuto’s trade solutions platform, the Sales & Marketing Retention & Awareness Tool (SMART) Marketing solution allows fresh produce growers and suppliers like Newton Orchards to conduct cost effective marketing campaigns to engage consumers. With DiMuto SMART Marketing, Newton Orchards is able to communicate to end consumers using the DiMuto QR Labels tagged on every apple. When consumers scan the QR code, they now have the power to know the journey behind a simple apple, and learn about the origin of the apples, farming practices and history of the four-generation farm. Newton Orchards SMART Marketing Lucky Draw Campaign Newton Orchards is now also able to conduct direct marketing campaigns through DiMuto SMART Marketing. It has hosted a lucky draw campaign for its Western Australia market, aiming to raise awareness about its apple juices and ciders, as well as its traceability story for the fresh Pink Lady apples. Point of Sales Marketing by Newton Orchards The marketing campaign has garnered positive feedback from consumers on the ground with its point-of sales tasting and marketing, showing that consumers respond to traceability and QR marketing. The lucky draw mechanism also allows Newton Orchards to gain an understanding of the behaviour and profile of their end consumers, and build a relationship with them. Point of sales tasting campaigns in Gilbert’s Fresh Market, Western Australia To utilize DiMuto SMART Marketing, Newton Orchards deploy DiMuto traceability solutions in order to capture their supply chain information, including DiMuto QR Labels. This allows them to communicate a verifiable traceability story to end consumers and use traceability as a tool to differentiate their brand. Newton Orchard Pink Lady Apples with DiMuto Hybrid QR Tags Adam Buckley, Logistics Manager of Newton Orchards, with Charlie Opferkuch, Owner/Manager of Gilbert’s Fresh Market Hilton owner/manager “We are excited to partner with DiMuto as part of our commitment to deliver sustainable and safe food to Australian consumers. By being able to track each apple from the farm to fork, we’re able to guarantee food integrity that customers can enjoy the apples in a way that’s closer to nature,” said Harvey Giblett, owner and manager of Newton Orchards. With DiMuto-verified products and trade, Newton Orchards is now able to leverage traceability to differentiate their brand and strengthen their farm to table brand to end consumers. If you are interested to learn more about how DiMuto helps fresh produce growers to grow their brand with traceability, please reach us here or drop us an email at sales@dimuto.io.

Achieving Visibility of International Humanitarian Response Operations Amidst Covid-19 – Mercy Relief

Mercy Relief is now able to create gain visibility for the entire disaster relief operation – from purchasing of relief supplies to receipt of supplies by affected communities.

About Mercy Relief

Headquartered in Singapore, Mercy Relief was established in 2003 to respond to human tragedies and disasters in the Asia Pacific. Today, we are Singapore’s leading independent disaster relief agency with dedicated leadership, capacity building expertise and an affiliate network operating across the entire disaster management cycle.

Mercy Relief provides emergency aid within 72 hours of an international appeal in the aftermath of a disaster. The objective of our longer-term sustainable development programmes is to uplift and empower communities in five key areas: water and sanitation, shelter, sustainable livelihoods, healthcare, and education. For the past 17 years, Mercy Relief has responded to more than 84 human tragedies with more than $44.6 million in relief across 26 countries. We have implemented more than 65 post disaster projects and impacted over 2.5 million lives.

  • Location: Singapore
  • Industry: Humanitarian aid
  • Present in over 26 countries
  • Provides emergency aid within 72 hours of disasters, delivering emergency aid to affected communities

 

DiMuto Results

  • DiMuto Digital Asset Creation (DAC) helped to create digital identities for humanitarian aid items for remote traceability purposes
  • DiMuto blockchain-powered traceability platform provided line-of-sight on operations of humanitarian response in Indonesia and Bangladesh

Key Challenges: Inability to Travel During COVID-19 Made Operations Oversight and Accountability Challenging

Before covid-19, as part of their international response effort, Mercy Relief used to deploy a member from their programmes team as part of their disaster response team to disaster zones. Having a personnel member to oversee the humanitarian aid response, it allowed Mercy Relief to ensure that the ground operations was flowing smoothly and work closely with local partners to provide help needed.

However, the Covid-19 pandemic meant that travelling down to disaster zones was no longer an option. This made oversight of the NGO’s humanitarian response in the different countries challenging.

“Travel disruptions brought on by COVID-19 have made it difficult for our team to be physically present at disaster zones. Partnering with DiMuto helps us maintain transparency and accountability in all our disaster response efforts and assures timely relief to communities most in need,” said Carol Lee, Executive Director of Mercy Relief.

How DiMuto Helps 

All aid items will be tracked using DiMuto’s traceability solutions. With its full-fledged traceability solution, DiMuto is able to create visibility for the entire disaster relief operation – from purchasing of relief supplies to receipt of supplies by affected communities.

Aid items will be digitalized using DiMuto QR labels and tracked on the DiMuto Platform. Relevant shipping and transaction information will be associated with the relevant aid item. This means that Mercy Relief will be able to see the exact resources and documentation information for every single relief effort, down to individual aid items. To ascertain that funds provided to local partners in disaster areas are being used to help affected families and communities, the receipt of aid by affected communities will also be tracked via the DiMuto Receiver App. All records made on the blockchain-powered DiMuto Platform will be immutable and verified, safeguarding accountability and transparency for the entire disaster relief effort.

Mercy Relief provided Covid-19 swab booths, that were tracked and traced by DiMuto

 

For instance, as part of their Covid-19 Relief Aid & Assistance programme, Mercy Relief supplied 10 hospitals in South Sulawesi, Indonesia with covid-19 swab booths. With DiMuto, they were able to create a unique digital identity for each of the swab booth, and track their distribution on our blockchain-powered platform.

 

The locally made swab booths allow people with coronavirus symptoms to get tested while bolstering the safety of the medical team and their other patients, helping the hospitals to manage covid-19 cases more effectively.

Mercy Relief team scanning QR codes for traceability of their ground operations on DiMuto platform

Covid-19 aid relief items individually tracked on the DiMuto traceability platform

DiMuto provided Mercy Relief operations team the ability to track individual aid items and maintain accountability in their covid-19 response. By deploying DiMuto blockchain traceability, Mercy Relief can continue to ensure receipt by intended beneficiaries, creating transparency and building trust on-the-ground despite ongoing travel restrictions.

Khairul Massuan, Senior Manager, International Programme of Mercy Relief, commented, “DiMuto’s blockchain technology is not only user friendly but it is simple to use. It ensures real time monitoring of the procurement to the distribution of our relief aid items through the scanning of QR code. It helps us maintain traceability & accountability more efficiently. Thank you DiMuto for the partnership.”

With DiMuto, Mercy Relief is now able to efficiently maintain traceability & accountability for their international humanitarian response throughout the region, even with travel restrictions brought about by the coronavirus.

If you are interested to learn more about how DiMuto can help create visibility and traceability for your business, please reach us here or drop us an email at sales@dimuto.io.