What’s Going On?
Alibaba Australia is to launch a pilot that will see orders made through the company’s blockchain-powered Food Trust Framework to improve supply chain traceability, reported ZDNet.
Why Does It Matter?
Size counts. Alibaba is the most likely of the top six internet brands to reach $1 trillion in market cap by 2020, say analysts, with Apple, Alphabet (Google’s parent company) Amazon, Facebook and Chinese holding company Tencent all in the running.
And there are rumours Alibaba is planning to acquire the remaining 68% stake of its food delivery unit Ele.me in a $9.5 billion takeover that could make it one side of a powerful duopoly in China, alongside rival Meituan.
A Trillion Dollar Business Opportunity?
Alibaba believes blockchain can help put a stop to food fraud, reported CoinDesk, a practice that involves swapping out genuine produce with lower quality, often counterfeit ingredients.
But Alibaba isn’t the first company to invest in this area of food tech. Last week Blockchain 24-7 reported US retail giant Walmart is urging produce partners to submit supply chains to the blockchain to help reduce waste, better manage contamination and improve transparency. In Europe, major grocery chain Carrefour uses blockchain to help its customers identify the origins of meat products.