Solvay utilizes BanQu’s blockchain software to secure guar supply chain and promote farmers’ “digital autonomy”
03 Dec 2021 --- Solvay is partnering with supply chain software specialist BanQu to launch a transactional platform based on blockchain for its Indian supply chain for guar gum, a key ingredient in processed foods and natural hair care formulas. The supplier is the first chemical company to introduce BanQu and its blockchain platform in the country, as part of its Sustainable Guar Initiative.
Guar gum is a key ingredient across many processed foods, as well as eco-friendly hair care solutions found in today’s shampoos, conditioners and repair treatments. In 2015, Solvay partnered with L’Oréal, Hichem and the NGO TechnoServe to create the Sustainable Guar Initiative, with Henkel joining the partnership in 2017.
“This partnership with Solvay is incredible because it sets the standard for how chemical companies should lead with a profit-with-purpose mindset,” stresses Ashish Gadnis, co-founder of BanQu.
Lynn De Proft, Solvay’s chief procurement officer, adds: “We are very proud to launch this blockchain platform as it will ensure that no farmer is disenfranchised from the supply chain.”
Guar is a key ingredient in both processed foods and natural hair care solutions, like shampoos and conditioners.Scope of sustainable guar
Since its launch, the Sustainable Guar Initiative has been deployed in 46 villages across India and enrolled more than 9,000 farmers, of which around 25% are women.
Solvay highlights its co-operative’s aim to give farmers more bargaining power, and women farmers are gaining more recognition by playing a larger role in decision making.
In addition to the training on guar farming practices, about 1,300 women have also been trained to plant and cultivate kitchen gardens in an effort to promote better nutrition and better health.
BanQu was deemed an “obvious partner” for Solvay as it provides a fully digitized and secure non-crypto blockchain platform, specialized in supply chain visibility and working with local contributors.
Solvay stresses that the use of BanQu makes it possible to consider a digital acculturation of the farmers, which raises their digital autonomy.
Returns on human investment
From 2015 to the end of 2020, the Sustainable Guar Initiative led to a 125% increase in guar yields and an increase in revenues to guar farmers of 143%.
Since October, Solvay’s guar transactions started to be recorded on the platform, with the help of its local partner TechnoServe. The scope of this overview spans an estimated 2,000 farmers.
Subsequently, the platform also allows the recording of all the SGI program actions, such as training on sustainable farming practices, school attendance for children, and the programs dedicated to the empowerment of women farmers.
Traceability in high demand
Innova Market Insights’ “Transparency Triumphs” F&B Top Trend for 2021 maintains its hold across the food chain with contact-free and secure product information in high demand.
Advances in AI, blockchain, machine learning, robotics and the Internet of Things (IoT) are anticipated to continue to raise the bar for digital traceability solutions such as smart labeling and digital tracing at speed.
Consumer-facing transparency platforms are increasingly popular features across new product launches, such as scannable QR codes on Triscuit packaging that link consumers to information about the brand’s sourcing of white-winter wheat.
Blockchain-enabled storytelling was similarly leveraged in Segafredo Storia single-origin Honduran coffee released earlier this year by Massimo Zanetti Beverage Group, in collaboration with IBM.
Edited by Benjamin Ferrer
