=Paper=
{{Paper
|id=Vol-3642/paper16
|storemode=property
|title=Improving the supply chain management via Blockchain: an olive oil case study
|pdfUrl=https://ceur-ws.org/Vol-3642/paper16.pdf
|volume=Vol-3642
|authors=Mariam Lahami, Faten Chabaane
|dblpUrl=https://dblp.org/rec/conf/tacc/LahamiC23
}}
==Improving the supply chain management via Blockchain: an olive oil case study
==
https://ceur-ws.org/Vol-3642/paper16.pdf
Improving the supply chain management via
Blockchain: an olive oil case study
Mariam Lahami1,* , Faten Chaabane2
1
ReDCAD Laboratory, ENIS, University of Sfax, Tunisia
2
DESLAB, Data Engineering and Semantics Research Unit, Faculty of Sciences of Sfax, University of Sfax, Sfax, Tunisia
Abstract
One of consumers’ primary concerns is verifying the traceability of sensitive foods, such as olive oil.
Henceforth, recently, ensuring that olive oil supply chain is reliable and safe has become highly required.
The current state of this supply chain involves a variety of stakeholders with different interests, often
reticent to share traceability information. In this paper, we present BOOSCh, a fully decentralized
olive oil traceability solution built on Ethereum blockchain. Compared to the existing approaches, the
proposed work uses both the secure InterPlanetary File System (IPFS) for off-chain data storage, and smart
contracts to manage interactions among stakeholders, insuring transparency and efficiency Through
this combination, BOOSCh eliminates intermediaries, ensuring an immutable and trusted transaction
history. We provide implementation details of the approach to show its effectiveness, offering a template
for improving supply chain processes in other industries.
Keywords
Blockchain, smart contract, supply chain, traceability, olive oil, DApp
1. Introduction
The future of agriculture depends critically on the capacity to trace food. A food traceability
system is required to retrieve any or all of the information relating to the product under
examination, throughout its life cycle. Any traceable food or product in the supply chain is
referred to as a Traceable Resource Unit (TRU), which is the object under investigation. The
two goals of traceability are to track the transaction history and the TRU’s current location.
Consequently, the food traceability system should guarantee food safety and quality control,
permit authentication, prevent fraud, and be under the authority’s control. It should also
increase customer safety and confidence. One of the most important agricultural activities that
requires an efficient track-and-trace system is olive oil production because of its potential health
benefits, its delicious taste, and its nutritional and culinary advantages over other edible oils.
Thus, it can be a target for fraud and adulteration during its transformation process due to its
high prices and low production volume.
Many Mediterranean countries, Tunisia foremost among them, rely heavily on such industries
to contribute to their socio-economic development. In fact, growing olives in Tunisia is one
TACC 2023: Tunisian-Algerian Joint Conference on Applied Computing, November 6 - 8, Sousse, Tunisia
*
Corresponding author.
$ mariem.lahami@enis.tn (M. Lahami); faten.chaabane@isimg.tn (F. Chaabane)
0000-0002-2231-6917 (M. Lahami); 0000-0001-8136-3230 (F. Chaabane)
© 2022 Copyright for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR
Workshop
Proceedings
http://ceur-ws.org
ISSN 1613-0073
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Proceedings
of the main activities in agriculture, and it is considered a strategic sector. Indeed, Tunisia is
considered the most olive-growing nation in the southern Mediterranean, which is also the
third-largest exporter of olive oil in the world (after Spain and Italy) and the fourth-largest
producer of olive oil globally (172,000 t/year) [1]. As a result, this industry greatly helps the
country to reach its objectives for economic development, food security, job creation, higher
export profits, and the protection and improvement of natural resources. Although Tunisia
has a long history of exporting olive oil, its growth strategy has always been centered only on
increasing productivity, with the quantitative target of "produce more to export more" serving
as the primary objective.
Traditional systems to handle the olive oil supply chain are complex and difficult to manage
due to the involvement of several stakeholders [2]. They have to follow the production process
of quality olive oil from the farmer through the oil factory to the final consumer while recording
all these transactions in centralized databases. Consequently, tampering olive oil information is
relatively easy and difficult to detect. Moreover, the use of various centralized databases may
affect the scalability and interoperability of the proposed solutions.
In order to make olive oil supply chain secure, traceable and efficient, various recent efforts
in the literature make use of the blockchain technology due to its numerous applications,
particularly in supply chains and logistics, such as [3, 4, 5, 6]. Nevertheless, these solutions
are not mature enough to be applied in the Tunisian market and suffer from missing some
functional requirements, especially the inspection and certification of olive oil.
To overcome such limitations and to improve olive oil traceability, we present in this paper
BOOSCh, the Blockchain-based Olive Oil Supply Chain, using the Ethereum platform. The local
blockchain Ganache, Truffle IDE, web3js, and JSON-RPC features of the Ethereum blockchain
are employed in this study. Smart contracts are developed using the Solidity programming
language, which ensures the security of data provenance and the immutability of all stakeholder
interactions. In addition, an off-chain InterPlanetary File System (IPFS) storage is adopted to
store confidential data. As the only information maintained on-chain is the IPFS hash, this
prevents sensitive information from ever being disclosed to anyone browsing the blockchain.
The remainder of this paper is organized as follows. Section 2 discusses a critical review
of existing efforts with respect to the traceability of food supply chain, particularly to the
olive oil case study. This is followed by a description of the olive oil supply chain in Section
3 and key concepts about Blockchain and its benefits in Section 4. Section 5 highlights the
proposed Blockchain-based Olive Oil Supply Chain, followed by its implementation details in
section 6. Section 7 concludes the paper, summarizing contributions and highlighting possible
improvements for future work.
2. Related Work
To ensure the ultimate consumer’s health and safety and to avoid fraudulent behaviour, several
research works on integrating blockchain technology to ensure food traceability have been pro-
posed in literature [7, 8, 9]. Regarding Olive oil Supply chain, we outline current initiatives aimed
at resolving the issue of olive oil traceability and highlighting suggested anti-counterfeiting
methods. We have included in this study both blockchain and non-blockchain-based solutions
and categorized them accordingly.
2.1. Non-blockchain-based solutions for olive oil traceability
Authors in [2] proposed a platform based on Web and mobile technologies. All the stakeholders
involved in the olive-oil supply chain can access to a Relational Database Management System
(RDBMS) platform, built using MySQL Workbench. They may have different access rights (i.e.,
olive growers, transporters, oil mill managers, control authorities, analysis laboratory and final
consumers). The proposed track-and-trace system used Django1 to create the Web application
and Flutter2 for the mobile one. The latter is used by the final customer to scan the QR Code
put on the product label. This QR code summarized all relevant data related to olive grower,
oil mill manager, transporter and analysis laboratory. Nevertheless, this platform struggles
essentially from the centralization issue caused by the use of a relational database which impacts
its scalability and its performance.
The study in [10] suggested using smartphones equipped with NFC technology at every stage
in the olive oil supply chain to deliver information to the final customer. The low cost and ease
of the suggested method enabled its use in micro and small farms. The developed applications
and the database architecture have been adjusted to the extra virgin olive oil process. However,
this solution suffers from scalability issues since it is dedicated to micro and small farms and
cannot be used for big ones. Similarly to [2], the use of centralized database makes it less
secure and data related to olive oil, such chemical and organoleptic characteristics, can be easily
tampered.
2.2. Blockchain-based solutions for olive oil traceability
Blockchain technology has proved its effectiveness in the development of supply chain manage-
ment systems. Several research works are currently available in this regard.
Among them, we cited the study in [11] that introduced a blockchain-based application called
BRUSCHETTA for the traceability and the certification of extra virgin olive oil. It supported
track-and-trace of the olive oil from the plantation to the market by including several processes :
the farming, harvesting, production, packaging, conservation and transportation. This solution
exploited Internet of Things (IoT) technology to link sensors for extra virgin olive oil quality
monitoring and enabled their operation on the blockchain. BRUSCHETTA uses Hyperledger
Fabric as a private blockchain technology. This choice improves the scalability of the proposed
solution but it may suffer from security and centralization issues.
The work in [6] discussed the importance of combining also blockchain with Internet of
Things (IoT) to improve the visibility and avoid fraud in the olive oil supply chain. Authors
proposed a new configuration for the olive oil supply chain while giving theoretical details
about supported partners, collected and shared data however no implementation was done to
prove the feasibility of the proposed system.
[5] suggested an embedded IoT-based agricultural system for keeping track of an olive field.
Only two actors (i.e., farmers and vendors) were considered in this study and were connected
1
https://www.djangoproject.com/
2
https://docs.flutter.dev/
via a wireless sensor network. Collected data from sensors such as temperature, humidity and
luminosity were saved on a real time database. To track-and-trace the different transactions,
the blockchain technology is used with the aim of securing data which are encrypted using the
Keccak 256 algorithm and cannot be accessed only by using the public key of the sender and
the private key of the receiver. The final prototype was based on Ethereum Blockchain and
was embedded on a Raspberry Pi 4 platform. Similar contributions were made by authors in
[4, 3]. Three actors are involved in this blockchain-based system: the farmer, the producer (who
handles production, processing, and packing, quality control, shipping, and logistics), and the
consumer. Each component of this proposal was a Blockchain node, running on a Raspberry PI
3. Each transaction was recorded by the developed smart contract. The main problem within
this solution is that all data are stored on-chain which leads transactions to be time consuming
and more costly.
Another interesting work in [12] provided a general solution that facilitates the implementa-
tion of supply chain management systems and it illustrated its feasibility by the use of olive
oil supply chain as case study. The idea here was to use Domain-Specific Graphical Language
to represent supply chains. A simple graphical interface for making such representations, and
a set of tools for translating the obtained graphical models into solidity smart contracts were
offered by the proposed *-Chain Platform. However, the major issue with this platform is that
its use is almost difficult for inexperienced administrators and the generated solidity code lacks
validation.
3. Theoretical aspects about the olive oil supply chain
Traceability systems are used today to ensure the quality and safety of many different types
of food items, including milk, fruit, vegetables, and meat. In this study, we concentrate on
the analysis of extra-virgin olive oil traceability systems. According to [13], Extra-virgin olive
oil (EVOO), virgin olive oil, regular virgin olive oil, and lampante virgin olive oil are the four
categories of virgin olive oil. Due to its exceptional health benefits and organoleptic qualities,
extra-virgin olive oil is regarded as the oil of the highest quality and price. Therefore, consumers
are increasingly demanding authentic and high-quality olive oil and full transparency of its
supply chain process.
The olive oil supply chain includes several stakeholders and several activities are carried out
by each one of them as specified below :
• Farmer: He is in charge of farm management. He provides data about the ownership of
the land plot, planting olive trees, cultivating and harvesting olives. The main factors
that are collected by the farmer are the weather conditions (i.e., humidity, temperature,
air pollution, etc.), the chemical composition of the land, and the harvesting method (i.e.,
by hand or by machines).
• Manufacturer: He is responsible for the transformation process of olives into olive oil.
Moreover, he is charged with the packaging process and labelling details of every batch
of product, etc.
• Inspector: Called also a certification entity, he takes samples of extra virgin olive oil to
test organoleptic and chemical properties (i.e., acidity, fatty acid and sterol composition).
Then, he generates a digital certificate proving that the olive oil under inspection is an
Extra Virgin Olive Oil.
• Distributor: also called a logistic supplier, he is charged with the transportation method
used, and real-time data recorded about humidity, temperature, and other environmental
conditions that may affect olive oil quality during the transportation period.
• Retailer: Data about the current stock of olive oil bottles, storage details, expiry date, and
period at the market up to the consumer’s purchase is provided by the retailers.
• End Consumer: he scans the QR code printed on the olive oil bottle to get all the informa-
tion about this product from farm to store and get an idea about the safety and quality of
this olive oil.
4. Key concepts on blockchain and its benefits
Blockchain was introduced for the first time by Nakamato et al. [14] as the technology underlying
Bitcoin3 . It is a decentralized and distributed ledger based on a peer-to-peer network. It is
also considered a complex data structure that manages the flow of data without requiring
central authority. The internal structure of a blockchain is composed of a linked list of blocks.
Each block is linked to the previous one through the use of cryptographic hashes. It contains
secure transactions signed with digital signatures and validated by several peers in the network
according to a consensus protocol.
One of the most important features that has been proposed by several blockchain platforms
is the Smart Contract (SC). Indeed, SC is a software program that was designed to develop
business logic in order to make Blokchain suitable for several domains, either the financial one,
especially eHealth [16] and supply chain management[9, 17]. Smart contracts are deployed
on the immutable ledger and executed by specific types of transactions. They can be used to
transfer digital currency, record information, and interact with other systems.
As mentioned in [15] and shown in Figure 1, the use of Blockchain technology in the context
of food supply chain management presents several advantages. Firstly, food authentication,
which is the compliance of foods with their label descriptions (e.g., geographic origin, produc-
tion method, technology used in processing, composition, etc.) is guaranteed by Blockchain
technology since all information and data are recorded in the immutable ledger. Second, due
to the transparency feature of blockchain, there is no need to worry about food fraud. Any
change made is visible to everyone in the network. Also, food safety and security are achieved
because Blockchain transaction records are exceedingly hard to attack since they are encrypted.
Furthermore, since every entry on the distributed ledger is connected to the previous one and
so on, hackers would need to change the entire chain to change any record.
5. Development of Blockchain-based Olive Oil Supply Chain
The proposed Blockchain-based Olive oil Supply Chain (BOOSCh) is highlighted in Figure 2.
The stakeholders that are involved in this work are: Farmer, Manufacturer, Inspector, Consumer.
3
The first application of Blockchain that allows nodes to transfer digital currency without the need of a trusted third
party like a central bank.
Figure 1: Blockchain benefits in food traceability and safety [15].
All their interactions with the developed smart contracts generate transactions stored on the
blockchain. Each actor has a unique Ethereum address and has specific privileges to connect to
the Dapp solution and perform its tasks. We use modifiers in the functions of the smart contract
to apply restrictions to the unauthorized participants.
Olive Cultivation Olive harvest Olive Milling Quality Inspection Packaging Distribution Retail
Buying
Activities
olive
oil
bottle
Inspector Packaging Distributor Retailer Consumer
Farmer Manufacturer
Actors
Farmer
manufacturer
Agriculture area Milling Date
Olive varieties Date information
Enviornment Quantity Containers
conditions
Blockhain
Figure 2: Blockchain-based Olive Oil Supply Chain System.
Figure 3 depicts interactions between various supply chain actors within the proposed system,
and may be loosely separated into five phases that are described below.
Harvesting olives: The farmer initiates the process of the olive oil supply chain by adding a
new record in the blockchain about the olive harvest at the suitable time. He provides harvest
information such as the harvested land plot, location, variety, the time period required for the
harvesting process and the weight of olives. Moreover, the harvesting technique (i.e., by hand
or by machines) must be recorded because it may affect the acidity of the olives and, as a result,
the quality of the extra virgin olive oil.
Milling olives: The manufacturer receives a notification when a given olive harvest is added
to the system. Note that for simplicity reasons, the olive transportation from the farm to the
olive factory is actually done by the farmer itself. The milling process starts and follows several
tasks: de-leafing, washing, crushing, malaxing, decanting, and separation [11]. At the end
of the milling process, the obtained olive oil is filled in containers with the aim of storing it
before bottling. We assume that mixing olives obtained from different land plots, varieties and
harvesting date is not possible. Each oil container stores olive oil obtained from a given harvest
and a given land plot. A request is sent to the inspector from the manufacturer in order to
obtain extra virgin olive oil certificate before bottling.
Inspecting olive oil: Once the inspector receives the certification request from the manu-
facturer, he starts the inspection and certification process. Its primary contribution consists
of validating and documenting the final olive oil’s specified qualities and characteristics using
specific sample analysis. He conducts chemical-physical studies (involving acidity, peroxides,
etc.) and organoleptic assessment by a test panel. The output of this phase is a digital certificate
proving the compliance or not of the obtained oil with extra virgin olive oil, which is stored on
the IPFS system. The obtained hash is then forwarded to the smart contract and recorded on
the blockchain.
Packaging olive oil: Once the manufacturer receives the digital certificate of the olive oil
under examination, he can proceed with the packaging and bottling activities. By adding an
intelligent label with a QR Code to each oil bottle, the main objective is to enhance the food
tracking process and to avoid fraud and ensure authenticity. The QR Code label adds value to
the oil bottle by enabling the consumer to confirm the accuracy of the data on the label and
defend the product’s pricing. It summarizes all relevant information to this olive oil such as
the land plot location, harvesting date, milling date, the oil quality certificate, the packaging
date, etc. Once this step is completed, olive oil bottles are delivered to retailers and then to the
market.
Consuming/Buying olive oil: The end consumer may verify the authenticity and quality
of extra virgin olive oil by scanning the QR code attached to the oil bottle. Consequently, the
use of QR code may increase the consumer’s trust and is also useful to manage olive oil quality
and safety from farm to market.
It is worthy to note that IoT smart devices and sensors to collect farm data (e.g., soil, water,
temperature, and humidity) are not included in this current work. In the cultivation phase, the
farmer provides manually collected data about land plots, olive tree varieties, fertilizing, and
pesticides. A new transaction can be started when the farmer proceeds with olive cultivation
and new records are created in the blockchain. Moreover, temperature monitoring is highly
required either during the milling process or transportation process, therefore, temperature
sensors should be deployed on the box containing the olives at the end of the harvest or on the
Figure 3: Sequence diagram showing the different supply chain stakeholders and their interactions
through the smart contract.
olive factory especially on oil containers. Actually, this information is collected manually, and
the use of temperature sensors is also out the scope of this paper.
6. Implementation details
The proposed solution is developed using a public Blockchain called Ethereum. To implement,
deploy and test our solidity smart contracts, we use the truffle4 Framework, which is a very
familiar tool for Blockchain developers to create a smart contract project. It offers a project
structure, files and folders that make easy the deployment and testing of Ethereum smart
contracts.
Figure 4 presents the architecture of the olive oil Dapp which is made up of three layers. The
front-end layer is implemented using the React5 Framework, and each actor connects to the
Dapp using the Metamask6 wallet. The business layer is implemented in NodeJs and is composed
of two kinds of APIs (Application Programming Interface). First, an API for blockchain access
4
https://trufflesuite.com/
5
https://fr.legacy.reactjs.org/
6
https://metamask.io/
Presentation Layer
Graphical User Interface
API Gateway
Business Logic Layer
API for Service Layer (NodeJS)
API for Blockchain Access API for Data Access
Data Layer
Distributed Ledger Database storage System
Smart Centralized Decentralized
contracts mongodb IPFS
Figure 4: The architecture of the Olive Oil Dapp.
is responsible for invoking smart contracts deployed on the Ganache7 local blockchain. The
library web3.js8 is adopted to perform actions like reading and writing data from smart contracts.
Second, an API for data access is provided to manage data access and off-chain storage. Due to
performance and compliance reasons, centralized (i.e., MongoDB) and decentralized (i.e., IPFS)
database storage systems are used in the data layer. For example, olive oil certification details
are stored off-chain, and the IPFS-hash of the generated document is stored on-chain.
Figure 5 illustrates the GUI interface used by the farmer to provide details about the harvesting
activity. Also, the GUI interface of the inspector profile is depicted in Figure 6.
7. Conclusion
In this work, we have investigated the challenge of food traceability within the olive oil supply
chain. To address this issue, we developed a decentralized solution based on blockchain tech-
nology, called BOOSCh. The latter is built on Ethereum blockchain and makes use of several
promising techniques: smart contracts to easily manage interactions among stakeholders, IPFS
for the off-chain storage and QR code to get detailed information regarding the olive oil’s path
to the store. Through BOOSCh, the traceability, security and scalability of the olive oil supply
chain is achieved. Moreover, we demonstrated that the olive oil supply chain management
becomes more practical and cost-effective. At the end, we provided the high level architecture
of BOOSCh and its implementation details in order to show its effectiveness.
Although the functions in the developed smart contract were implemented for the olive oil
supply chain, they can be easily extended to other supply chains like the drug supply chain and
the seafood supply chain. Moreover, we think that further research and development are needed
in order to apply Blockchain and IoT devices in supply chain. For instance, we can investigate
7
https://trufflesuite.com/ganache/
8
https://web3js.readthedocs.io/en/v1.10.0/
Figure 5: Screenshot of the GUI interface for adding olive harvest.
Figure 6: Screenshot of the GUI interface for inspecting olive oil.
the deployment of IoT sensors to collect real time data about temperature, humidity, etc. These
sensors can be placed at the boxes containing the olives at the end of the harvest activity, at
the oil container at the end of milling procedure or at courier trucks used for transportation.
Despite the several advantages of blockchain technology, its development is still challenging and
requires verification and validation efforts to obtain efficient, safe and secure blockchain-based
solutions.
Acknowledgments
Thanks to the student Engineers Ibrahim Ben Lakhal and Abir Grati and Mohamed Ben Salah
for the development of the olive oil Dapp solution in the context of their Second Final Year
Project.
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