Food and Agribusiness Talking Points | 21/09/18

In today’s talking points the agricultural supply chain can massively benefit from blockchain, Scott Morrison announces tough new criminal penalties for food tampering and Chinese soybean importers move to wean off American reliance amid the escalating US-China trade war.


The Agricultural Supply Chain Can Massively Benefit From Blockchain

The use of blockchain technology could revolutionise the agriculture sector.  As the agribusiness industry explores the potential of blockchain, in the next coming years we could see lower food costs and greater consumer trust.  Consumers will be able to know exactly where and how their food is grown and sourced, and all of the hands involved in the supply chain. Blockchain technology could potentially eliminate fraudulent labelling and sales.  It looks promising that this technology will provide more transparent information about the production process of food products.

Blockchain could also be used on a global level to reduce disruptions to the supply chain in circumstances of natural disasters.  Companies will be able to work together to transport goods and services according to pre-developed contingency plans.

Source: Forbes

Scott Morrison Announces Tough New Criminal Penalties for Food Tampering

Since the start strawberry contamination crisis on 9thof September, there have been more reports of contaminated strawberries and other fruits. As a result, six brands of strawberries have been recalled nation wide.

In response to the needle contamination in Australian strawberry industry, Prime Minister Scott Morrison has announced that the criminal offence for food tampering will be increased from 10 years to 15 years in prison. Australian Queensland government has approved a $100,000 AUD reward for information on the contamination, which did lead to an arrest.

Social media hoaxes and posting, in relation to showing food contamination will have consequences for up to 10 years in prison.

Source: The Age


Chinese Soybean Importers Move to Wean off American Reliance Amid the Escalating US-China Trade War

Mr. Mu Yan Kui, an executive from one of China’s largest soybean processors outlined plans for China to slash demand for US soybeans in response to Chinese retaliatory tariffs. China revealed that it will tariff US soybean imports by 25 per centas part of measures in response to President Trump’s tariffs.

Experts and academics say that Chinese farmers could cut soymeal rations by nearly half without harming pigs’ growth. If China cuts the soy ration for hogs from the typical 20 percent to 12 percent it would equate to a demand reduction equal to 82 percent of Chinese soy imports from the United States last year.

Source:  CNBC