Verstegen: nutmeg on blockchain 04/12/2018

Verstegen Spices & Sauces products are sourced worldwide. The family business asked Fairfood to trace the supply chain of Indonesian nutmeg from tree to plate, using blockchain. With the technology we were able to verify two claims made by Verstegen to their customers: good price & good quality. Right now, in the beta version of the interface, the journey of the nutmeg is being logged step-by-step.

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Verstegen Spices & Sauces wants to invest in a sustainable and future-proof food system, with transparent and short chains. The family business actively builds relationships with all actors in their supply chains and wants to provide products of the best quality. 

Better position for the farmer

By using blockchain technology to actively involve the farmers in the production chains and give them access to new information, Verstegen wants to stimulate their entrepreneurship. At the same time, the position of the farmer is strengthened because he or she can confirm whether or not they were paid the agreed upon price. Ultimately, farming should become an attractive career for future generations.  

Farmer identification

Verstegen’s nutmeg is grown by a large group of small-scale nutmeg farmers. Between these farmers and Verstegen there is a so-called collector and supplier. Thanks to blockchain, Verstegen is able to learn more about the farmers behind their nutmeg, and about their living conditions. Ultimately, Verstegen wants to work with the farmers to produce the best quality nutmeg and foster sustainable trade relations.

Claim verification and consumer loyalty

With blockchain technology, the consumer can personally see the verification of two claims made by Verstegen: good price and the best quality. Verstegen chooses to make the farmer payment confirmation visible to the consumer. Additionally, the verification of quality claims, which takes place in laboratories, is logged on blockchain. The various claims, together with the journey of the nutmeg, are visible for the customer on a Verstegen-branded interface.

Living income

Verstegen commissioned Fairfood to carry out a light-weight study on the level of a living income for nutmeg farmers on the Indonesian Sangihe Islands. Currently, Verstegen is already paying a premium on top of the usual market price for nutmeg, but the company wants to learn whether this is enough for the farmers to earn a living wage. Based on the results of the research, Verstegen will know whether or not future targets can be set.

The pilot project is expected to be extended to other Verstegen products.