The design of blockchain network of palm oil FFB supply from certified farms and traceability system of CPO from independent smallholders

Abstract

Mills produce Crude Palm Oil (CPO) from procurement channels of their plantation, plasma farm, and independent smallholders’ farm. The mill manufactures Fruit Fresh Bunch FFB from all channels and sells CPO with low Free Fatty Acid (FFA) CPO for foods and CPO for industrial. CPO with low FFA for export consists of premium-grade CPO with FFA level < 2% and super-grade CPO with FFA level <3.5%. This Low FFA CPO is exported for food to developed countries. The food industry as a CPO customer needs a lot of information about the origin of the CPO commodity and information about sustainable oil palm agriculture governance. The challenges of building low FFA CPO traceability system raw material of CPO come from three-channel of FFB procurement and produce the various quality of CPO. This study aims to map the FFB supply at PT. RSI from Roundtable on Sustainability Palm Oil (RSPO) certificate farm in independent smallholders groups channel in the Hyperledger Fabric blockchain network and smart contract. The interaction of entities with smart contracts is described in the ERD diagram, and the form of collaboration between entities is illustrated in the sequence diagram. The design of blockchain network of FFB supply and traceability of FFB from independent smallholders group procurement channel was based on CPO sales data from the exporter. The contribution of independent smallholders group channels to produce low FFA CPO was calculated. By presenting the CPO supply system on a map, independent smallholders’ farms’ source of low FFA CPO can be identified. Finally, various sustainable information in the farms can be shared.