CHO, one of the largest olive oil producers in the southern Mediterranean, announced on 14 January that it is using IBM blockchain technology to ensure the traceability of its Terra Delyssa extra virgin olive oil. The company is the latest major food supplier to join IBM's Food Trust Network.
The use of blockchain enables CHO to track Terra Delyssa at eight quality control points, including the orchard where the olives were grown, the mill where the olives were crushed and the plants where the oil was filtered, bottled and distributed.
CHO America's CEO Wajih Rekik told Cointelegraph that CHO olive oil is produced by Tunisian farmers, which is indicated on the label of each bottle. Although the company managed to create transparency by informing consumers where their olive oil comes from, the CHO wanted to add a layer of trust to its products.
IBM's Blockchain technology, based on Hyperledger Fabric technology, allows Terra Delyssa retailers to scan the QR code on each bottle's label to find out the origin of the product.
Rekik explained that Terra Delyssa's fully traceable Terra Delyssa extra virgin olive oil is currently being bottled and is expected to hit the shelves of major retailers in the United States, Canada, France, Germany, Denmark and Japan by March.
According to Rekik, mislabelling of olive oil, especially in the case of high-end indications such as 'extra virgin', is extremely common. Tests carried out by the National Consumer League in 2015 and 2019 show that half of all olive oil on the shelves contained misleading labels, beyond the issues related to taste profiles.
A recent survey by the IBM Institute for Business Value showed that 73% of consumers will pay a premium for full transparency of the products they buy.