CHO Utilizing IBM Blockchain to Improve Olive Oil Production

One of the biggest producers of olive oil in the Mediterranean – CHO announced today that it is now utilizing IBM Blockchain for traceability purposes for its Terra Delyssa extra virgin olive oil over eight quality assurance checkpoints. These checkpoints include the orchard where the olives grow, the mill where they are mashed, and the places where the created oil is filtered, bottled and distributed.

The latest harvest, which is currently bottled, will allow Terra Delyssa customers to scan a QR-code on the label and view the record of origin. Consumers can now stop worrying about the source of their olive oil as every step of the product’s journey will be documented. This includes all the quality checkpoints, detailed information on the origin of the product and even images of the olive field where it comes from.

CHO is only the most recent provider to join IBM Food Trust – the blockchain network that provides users with immediate access to actionable food supply chain data, from farm to store and consumer.

Terra Delyssa is a premium olive oil brand that is popular not only for its smooth flavor, but for its production transparency. Their olives grow in pesticide-free orchards with 320 days of sun and get pressed through a mechanism following the highest quality standards.

Food Trust is already used for recording and tracing of the extra virgin line of the company, which according to the International Olive Oil Council and the USDA is the best type of olive oil.   

An increase in distrust by consumers has been caused by news reports on acts of illicit counterfeit and mislabeling of olive oil, in addition to a common lack of knowledge on how olive oil is blended. Even with highly-respected brands consumers will always call for transparency of the production process.

A recent study made by the IBM Institute for Business Value showed that 73% of customers would pay more for products that provide full transparency on their production process.

Nowadays this transparency is achieved through blockchain technology, which keeps information on the origin, manufacturing process and journey of every single bottle of olive oil. All these details are useful not only to the end-consumer but to distributors, retailers and other members of the supply chain.

CEO of CHO America, Wajih Rekik shared comments on the ancestry of the company:

“Our families have been olive farmers and olive oil millers for generations. We created Terra Delyssa with a unique, smooth flavor profile to be the ambassador of Tunisian olive oil,” and shared his views for the future “With Food Trust, we believe we are among the first olive oil producers to use blockchain to provide our consumers a window into each step that goes into making our olive oil so exceptional.” 

Blockchain technology establishes trust between the members in the supply chain because it builds a stable digital chain of transactions that cannot be modified. With real-time access to detailed product information, farmers, milers and retailers can collaborate more efficiently.

“This is yet another example of Food Trust’s commitment to strengthening the food system from farm to table,” noted Raj Rao, IBM Food Trust General Manager. He explained in more details:

“In terms of food provenance, olive oil presents a difficult challenge, as the product must work its way from an olive grove to an international base of retailers while retaining its purity and freshness. Thanks to Food Trust, information about the origin and purity of the product can be made available in near real time for both consumers and CHO’s distribution partners.”

While this application is aimed at consumers, another enterprise app, that will provide laboratory analyses and audit information, will be launched especially for the needs of retailers and distributors.

The most recent Terra Delyssa harvest started in November and its data is currently being implemented into the distributed ledger. It is expected that this first batch of bottles will arrive at shops in U.S., Germany, France, Canada, Japan and Denmark in March this year.