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El Ordeño joins blockchain-based technology IBM Food Trust to monitor TRU milk products

Wed, 04 Mar 2020, 15:18 pm UTC

Dairy producer El Ordeño announced a new solution to support Ecuador’s dairy industry and produce 5 million liters of milk every year.

In a press release detailing the partnership, El Ordeño has joined tech firm IBM Food Trust to monitor its TRU milk products, which have been relaunched with new packaging featuring a QR code. Customers can scan the label of the products with their mobile devices and access the information about the path that their TRU milk has traveled. The data includes information about producers, quality centers, cold chains and distribution centers the milk traveled before reaching the customers’ table.

El Ordeño is a company based in Ecuador that specializes in the production, innovation, and marketing of sustainable foods and has a pillar in its management based on innovation. IBM FOOD Trust uses blockchain technology to enhance visibility and accountability in the food supply chain.

"We are constantly transforming the way we do business to ensure the best possible quality for all our products," said Guilherme Franklin, El Ordeño COO. "Blockchain technology provides the transparency we need to show that our products comply with quality processes and steps before they reach Ecuadorians’ table. Global milk production is expected to reach 981 million tons by 2028, according to the Food and Agriculture Organization of the United Nations (FAO); and production will increase 1.7% annually.”

Using blockchain technology will allow supply chain partners to securely and selectively connect ecosystem data with transparency. Meanwhile, it will give the customers the information they need about the product which will prompt producers to minimize waste and fraud.

"Consumers are increasingly aware of how important it is to know the origin and traceability of the products they consume," says Martín Hagelstrom, IBM Blockchain Leader for IBM Latin America. “IBM Food Trust provides El Ordeño with a single, immutable and transparent source of information about how their milk products are distributed throughout the country. Most importantly, Food Trust allows consumers to access this information in real-time when they buy the products and to make purchase decisions based on the data.”

In February, Avril Group, a French agro-industrial group, also joined IBM Food Trust. Its products also use QR code in each egg box to give buyers access to a wide range of data related to the eggs they purchase and consume.​

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