New Zealand dairy brand Fonterra has teamed up with Alibaba Group to pilot the  blockchain-based Food Trust Framework to trace the supply chain from the dairy producer in New Zealand to consumers in China. This blockchain pilot project aims to improve the traceability and transparency of the entire “end-to-end” supply chain as well as to fight against counterfeit consumer goods.

The products from Fonterra’s Anchor range have become the first to be shipped as part of a pilot of the cross-border food trust framework. Chinese consumers would be able to purchase these products through Alibaba’s Tmall e-commence platform.

Zhu Xiaojing, the Greater China president of Fonterra stated that, this initiative continues Fonterra’s commitment to delivering global best practice supply chain traceability. As an emerging technique, blockchain has the potential to bring greater value to consumers.

“We understand that in China and many other markets, consumers want to be able to trace the products they purchased online. So we are willing to be a part of creating a globally respected framework to protects the reputation of food companies and give greater value and consumer confidence,” she said.

Liu Peng, the general manager of Tmall Import & Export, emphasized:

“Food safety becomes a big issue across the world  and the supply chain is getting more and more complex. To face this challenge, Alibaba Group has build a coordinated, word-leading and robust framework that involves stakeholders from across the supply chain to improve transparency and enhance the confidence of consumers and merchants.”

Zhu also disclosed that,

“in addition to blockchain, this framework also could be used in products with QR codes to authenticate, verify, record and provide on-going reporting throughout the product’s whole lifecycle which has been already applied to Fonterra’s Anmun infant nutrition range.”

As a large part of Alibaba’s e-commerce operation in China is the delivery of foodstuffs and produce. Thus, Alibaba also intends to increase accuracy and transparency in its supply chain and enable costumers to have a better shopping experience in its Tmall platform.