Tracking cocoa may be just the beginning for PwC, Merck, Hashgraph provenance system
PwC, Merck, and Hedera have launched a blockchain-based provenance system to track cocoa supply chains from farms to factories. The initiative aims to improve transparency, support EU deforestation compliance, and address issues like child labor and smuggling.
Why it matters
This technology provides a scalable solution for complex global supply chains to meet stringent regulatory requirements and ethical standards.
The system pairs physical markers on cocoa bags with records on the Hedera distributed ledger. The firms say it could help trace batches, support EU compliance and enable peer-to-peer payments to farmers.
Cocoa was chosen because it has one of the most fragmented supply chains in agriculture, with data trapped in separate silos and extensive mixing at the first mile. More than 2 million African farms sell cocoa through layers of middlemen. By the time it reaches store shelves, tracing the source is nearly impossible, creating cover for child labor, deforestation and smuggling .
"While cocoa is the initial showcase, the architecture is designed for broader use in sectors where provenance, authenticity, quality and regulatory compliance are critical, including food, pharmaceuticals, luxury goods, electronics and industrial components,” the three firms said in a statement shared via email.
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