Sustainable Seafood Gets a Boost from IBM Blockchain Technology for Insight into the Journey from Sea to Table

Rhea-AI Summary

IBM has partnered with Atea and the Norwegian Seafood Association to launch a blockchain network aimed at improving transparency in Norway's seafood supply chain. This initiative allows companies like Kvarøy Arctic to track their products from ocean to retail, ensuring sustainability and quality. The network responds to rising consumer demand for traceability, as 71% are willing to pay more for assured origins. The Norwegian seafood industry, valued at over $800 million annually, aims to enhance its competitive edge by reducing fraud and food waste, leveraging IBM's technology.

Positive

• Partnership with Atea and the Norwegian Seafood Association enhances supply chain transparency.
• 71% of consumers value traceability, suggesting potential for premium pricing.
• Opportunity to improve sustainability and reduce seafood fraud, benefiting producers.
• Norwegian seafood market valued at over $800 million annually, indicating significant growth potential.

Negative

• None.

ARMONK, N.Y. and OSLO, Norway, June 25, 2020 /PRNewswire/ -- Atea, IBM (NYSE: IBM) and Sjømatbedriftene, the Norwegian Seafood Association, today announced a new cross-industry collaboration to use blockchain technology to share supply chain data throughout Norway's seafood industry to provide safer, better seafood to consumers worldwide.

Several Norwegian seafood companies are now in the process of putting data onto the network. One of these companies is Kvarøy Arctic, a leading provider of naturally sea farmed salmon, who will soon begin delivering products to leading retailers in the United States and Canada using the tracking and provenance technology. BioMar, a leading provider of high-grade fish feed, has also joined the network allowing Nordic seafood companies to provide insight into the origin and quality of seafood as well as the quality of feed the fish consume.

"It is important for our customers to know that the seafood they eat is not only safe but produced in a sustainable and healthy manner," says Alf-Gøran Knutsen, CEO of Kvarøy Arctic. "Blockchain lets us share the fish's journey from the ocean to the store. This is now more timely than ever, as consumers want more information about where the food they eat comes from." 

Norwegian seafood is known for its quality and the country exported more than -2019%2F&a=2.7+million+tons" rel="nofollow">2.7 million tons of seafood in 2019, the equivalent of 25,000 meals per minute.  At the same time, monitoring where the fish comes from, its growing and storage conditions, and reducing food waste remain of critical concern to seafood consumers who care deeply about sustainability.

Robert Eriksson, CEO of the Norwegian Seafood Association, believes that the technology will be of great significance going forward and that it will increase the competitive edge of the industry: "Norwegian seafood is known for its quality. Yet we still do not have the ability to trace where the fish came from, how it was grown or how it was stored. This creates the potential for fraud and food waste. Blockchain can help eliminate these problems with a transparent, accountable record of where each fish came from. We believe that this is only the start of something that will mean a great deal for the industry by creating more sustainable food production, which in turn will increase the return for producers," Eriksson states.

Blockchain technology can help seafood producers create a "single version of the truth" about supply chain events, allowing consumers to trace their seafood products directly back to the source and enabling producers to tell stories about the products, where they come from, and how to prepare them. The private blockchain network records data about catch location and time, supply chain events like shipping updates and customs clearance, and even temperature, which can then be shared with permissioned parties.

According to a recent IBM study, 71% of consumers indicate that traceability is important to them and that they are willing to pay a premium for brands that provide it. Customers are also demanding more documentation about the food they eat. This new blockchain-based network will allow customers in-store to know the fjord where the fish is from, when it was fished, the feed it has eaten and whether the facility uses sustainable methods. Customs agencies will be able to more easily access data about volume and location of shipments to expedite customs clearance. By sharing all this information across the supply chain, seafood producers who invest in quality will also be able to charge a premium, increasing pay for the people who catch your fish.

"The Norwegian seafood industry exports more than $800 million worth of fish a year, making this an incredible opportunity to improve the quality of the products Norway shares with the world. While this specific application of the technology will be used in the seafood industry, we feel it has great potential in other prominent Nordic industries such as agriculture and retail.  Working through the Atea Innovation Center, we will help network members innovate using the platform and drive new efficiencies," says Steinar Sønsteby, CEO of Atea ASA.

The blockchain network uses IBM Blockchain Transparent Supply, an innovative offering from IBM using the underlying technology behind Food Trust. It enables organizations and consortia to rapidly build out their own sustainable blockchain-based ecosystem for improved supply chain operations across numerous industries. IBM Blockchain Transparent Supply promotes transparency and collaboration, allowing networks to manage their own membership, securely share documents and create a permanent record of the history and lifecycle of physical and digital assets.

"Blockchain is about enhancing flexibility and transparency, and IBM Blockchain Transparent Supply provides just that to clients who are interested in rapidly launching their own blockchain network with ecosystem partners, and using their own branding," said IBM Food Trust General Manager Raj Rao. "This powerful technology gives network members the option to develop their own governance and determine how and what information is shared."

More information about IBM Blockchain Transparent Supply can be found here.

About Atea

Atea is a leading provider of IT infrastructure solutions in the Nordic and Baltic region with NOK 37 billion in revenue and more than 7,500 employees. Atea is present in 85 cities in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia.

About IBM Blockchain

IBM is recognized as the -1%26h%3D2159414065%26u%3Dhttps%253A%252F%252Fwww.juniperresearch.com%252Fpress%252Fpress-releases%252Fibm-ranked-no-1-blockchain-technology-leader%26a%3Dleading%2Benterprise%2Bblockchain%2Bprovider&a=leading+enterprise+blockchain+provider" rel="nofollow">leading enterprise blockchain provider. The company's research, technical and business experts have broken barriers in transaction processing speeds, developed the most advanced cryptography to secure transactions, and are contributing millions of lines of open source code to advance blockchain for businesses. IBM is the leader in open-source blockchain solutions built for the enterprise. Since 2016, IBM has worked with hundreds of clients across financial services, supply chain, government, retail, digital rights management and healthcare to implement blockchain applications, and operates a number of networks running live and in production. The cloud-based IBM Blockchain Platform delivers the end-to-end capabilities that clients need to quickly activate and successfully develop, operate, govern and secure their own business networks. IBM is an early member of Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies. For more information about IBM Blockchain, visit -1%26h%3D2188242310%26u%3Dhttps%253A%252F%252Fwww.ibm.com%252Fblockchain%252F%26a%3Dhttps%253A%252F%252Fwww.ibm.com%252Fblockchain%252F&a=https%3A%2F%2Fwww.ibm.com%2Fblockchain%2F" rel="nofollow">https://www.ibm.com/blockchain/ or follow us on Twitter at @ibmblockchain.

Contact:

Leesa D'Alto
IBM
Leesa.dalto@ibm.com

Vince Smith
IBM
smithv@uk.ibm.com

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SOURCE IBM

FAQ

What is the purpose of the IBM blockchain collaboration in Norway's seafood industry?

The collaboration aims to enhance transparency and traceability in Norway's seafood supply chain, ensuring sustainability and quality.

Which companies are involved in the IBM blockchain initiative for seafood?

IBM, Atea, and the Norwegian Seafood Association are key partners in this blockchain initiative.

What percentage of consumers are willing to pay more for traceable seafood according to IBM's study?

According to IBM's study, 71% of consumers are willing to pay a premium for traceable seafood.

How much is the Norwegian seafood industry worth annually?

The Norwegian seafood industry is valued at over $800 million annually.

What technology is IBM using for the seafood supply chain project?

IBM is using its Blockchain Transparent Supply technology for the seafood supply chain project.