Spain’s ChainWood group plans to implement blockchain to improve transparency and efficiency for the forestry industry’s supply chain.
The group was set up by the Ministry of Agriculture, Fisheries, and Food and comprises eight industry players coming from Galicia, Madrid, Andalusia, Castilla y Leon, and Asturias.
It received a €93,530 subsidy, of which 80% is from EAFRD (European Agricultural Fund for Rural Development) Funds. And the balance came from the General State Administration. The project is currently at the design stage and will need additional funding for execution.
The plan is to use blockchain, big data and machine learning to develop software which would improve the flow of information through the supply chain.
Implementation could yield a few advantages to industry players. For example, merchants would have more transparent access to find the best prices and guarantees over product quality. Plus they’d benefit from real-time information on its status.
Furthermore, supply chain transparency would help logistics companies work out where best to deploy their services. Wood processors would know more about the source, quality, and classification of the raw material. And quality control authorities can certify the timber faster.
Once the software development is completed, there will be three pilots in Castilla y León (poplar), Asturias (chestnut) and Galicia (oak).
The final objective is to apply the technology to all industry products such as solid wood, cellulose paste, and biomass.