Transparent trading through digital transactions
Digital contracts are an important tool for reducing transaction costs between buyers and sellers in the food chain and ensuring compliance with international trading laws. To this end, ICT startup Plataforma Agrocontratación (AgroC) has developed a platform to facilitate efficient and transparent transactions within the meat sector.
Experience shows that the platform meets a pressing need. Since a new EU directive established a minimum list of unfair trading practices in the agri-food supply chain in 2019, the Spanish agency responsible for administering EU legislation has imposed more than 1,900 sanctions, including fines in excess of EUR 11 million.
AgroC has established a testing environment and R&D roadmap to update its platform with new technologies, such as blockchain. However, to ensure the best value from future investments, the company needs to validate the needs of the meat sector, including requirements for legislative compliance.
In this exploration project, AgroC is working with three partners to review legal aspects, develop technical updates and finalise the testing process, so the platform can be launched on the market.
The ultimate goals are to reduce the cost of complying with food chain legislation, certify traceability and good practices, and increase supply chain efficiency by up to 12%.