“作为向澳大利亚消费者提供可持续和安全食品的承诺的一部分,我们很高兴与DiMuto合作。通过能够追踪每个苹果的从农场到餐桌的过程,我们能够确保食品的完整性,让顾客以更接近自然的方式享受苹果,” Newton Orchards的业主兼经理Harvey Giblett表示。通过经过DiMuto验证的产品和贸易,Newton Orchards现在能够利用追溯性来区分他们的品牌,并加强他们向最终消费者传达农场到餐桌品牌的能力。
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.
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.
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.