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An Australian agriculture and technology company is partnering with a US brewer on an ingredient-tracking blockchain pilot.

Blockchain technology from BlockGrain will be used by Mountain State Brewing Company in West Virginia in the US to track where its beer comes from.

BlockGrain allows farmers to track their commodities from the paddock to manufacturers, such as malt houses and breweries, all the way to the end consumer. It also enables farmers to create, manage and track commodity contracts, including invoices, payments and inventory, in a single, mobile application.

The partnership will explore how blockchain can overcome the lack of transparency in the beer industry, allowing consumers to fully trace the product's ingredients from the source through to the entire supply chain.

Blockchain technology enables for the recording and storing of millions of transactions in one single computer network to empower consumers all along the supply chain with data they can trust.

The BlockGrain pilot aims to overcome the lack of transparency in the beer industry, allowing consumers to fully trace the product’s ingredients from the source through to the entire supply chain.

Consumers today increasingly want transparency and authenticity, according to Mountain State Brewing Company co-owner and co-founder Brian Arnett.

“As we reach a stage of excessive product proliferation, both consumers and manufacturers alike are looking for the next level of differentiation," he said.

“In the case of the beer industry, we believe this can be achieved through secure ‘barley to beer’ traceability, allowing for single origin products to be adopted at mass scale. Capturing and sharing this type of information with our customers will be key to the continued success of our business.”

BlockGrain CEO Caile Ditterich said, “BlockGrain was started by farmers and the technology we bring is for farmers. We’re committed to support any individual or company out there that is in the business of returning value to farmers and this is exactly what we saw in Mountain State Brewery Company.

“The team there is a great bunch of forward thinking individuals, who not only have a leading product in the market, but they are also not afraid to adopt technologies like blockchain to provide more value and get closer to their end customers.”

The pilot will run for a month.