Promoting Digital Solutions in Uruguay Meat Industry

The Ministry of Livestock, Agriculture and Fisheries (MGAP) together with the Inter-American Institute for Cooperation on Agriculture (IICA), CAF—development bank of Latin America—, the National Meat Institute (INAC) and the Uruguayan Wool Secretariat (SUL) signed today an inter-institutional cooperation agreement to develop digital solutions in the meat sector.

The instrument was announced in a press conference by Fernando Mattos, Minister of Livestock, Agriculture and Fisheries, Rodrigo Saldías, IICA’s representative in Uruguay, Conrado Ferber, president of INAC, François Borit, CAF representative in Uruguay, and Miguel Sanguinetti, president of the Uruguayan Wool Secretariat (SUL).

After completing a series of technical meetings with public and private institutions related to the sheep meat value chain in Uruguay, and identifying the central stakeholders and opportunities to improve efficiency in the sector, CAF—development bank of Latin America—, together with the Inter-American Institute for Cooperation on Agriculture (IICA) finalized a pilot initiative for the application of blockchain in this agri-food chain.  This initiative was achieved through the aforementioned Interinstitutional Cooperation Agreement.

This is the result of the work that started in 2021, following the signing of the Non-Reimbursable Technical Cooperation Agreement for the Project called “Digitalization of Agri-Food Chains through Blockchain to Address post-COVID-19 challenges,” where CAF acted as financier and IICA as implementing agency in Uruguay.

During his remarks, the Minister of Livestock, Agriculture and Fisheries, Fernando Mattos, highlighted the importance of the articulation between the public and private sectors in issues related to the incorporation of technology and the search for solutions for the productive system, in this case for the sheep sector, which he described as traditional but with needs for innovations.

“Blockchain is not widely used in the productive sector. This pilot experience can be the first step of many that can generate information, traceability, guarantees and certify production processes, which are increasingly required internationally. Consumers in the world today are much more informed and demanding, so this tool can represent another step in our differentiation,” he said.

François Borit, CAF representative in Uruguay, noted: “For us, the signing of this Agreement is a reason to be joyful and celebrate, because it opens a new possibility for supporting the Uruguayan productive and export sector, contributing to the development of pilot digital solutions that allow affirming the traceability of processes with public and private stakeholders in the sheep meat value chain.”

The commitment of all parties is the exchange of information relevant to the design of these digital solutions aimed at the processes of this project. In addition, it seeks to provide permanent and mutual collaboration of the technical teams of the institutions involved, in order to achieve the levels of technical detail necessary to achieve traceable systems that help meet the challenges posed by the consolidation of the export of Uruguayan sheep meat.

Other of the goals in this regard is the active and constructive collaboration with each of the public and private stakeholders to achieve digital solutions that facilitate interoperability and data management from their regular operations, complying with the regulatory framework and all relevant protocols.

The possibility of further enhancing the reliability and credibility of the chain's information management through blockchain-based digital solutions can contribute positively to the expansion of bone-in sheep meat exports to demanding markets such as the U.S., or to Europe and Asia.  These technologies can provide valuable data to improve efficiency of the processes in private stakeholders in the field or in the industrial link, while also facilitating management of the controlling roles of the related official agencies.

Rodrigo Saldías, IICA’s representative in Uruguay, noted that this agreement marks the formalization of the work that has been carried out by all participating institutions, and is part of IICA’s efforts to raise awareness of the use of blockchain among all players in agro-industrial chains. “It is of the utmost importance to promote and facilitate access to digitalization and new technologies through these alliances, to reduce existing gaps and bolster the marketing and export processes of domestic producers. The implementation of blockchain technology will help the sector boost its competitiveness, optimize processes, reduce costs, know the traceability of products and thus promote greater confidence in the markets. That is why the Pilot Plan not only seeks to generate the traceability of the product, but also to enhance the sheep sector and generate experience in the adoption of this new technology to achieve scalability and transfer it to other agro-industrial chains in the country,” said Saldías.

Furthermore, INAC President Conrado Ferber Artagaveytia noted that for the entity “the importance of this agreement lies in developing a pilot experience for the production, processing and marketing process applied to the sheep meat chain, which ensures safety and quality of the product for the final consumer.  For the export of bone-in sheep meat to the U.S., this represents an opportunity to build trust in high-value markets, with the implementation of blockchain technology as an instrument that collects inviolable information from the different steps of the chain.”

For the Uruguayan Wool Secretariat, represented in this act by its president, Miguel Sanguinetti Gallinal, the signing of this agreement is very satisfactory, as one of its main achievements is the application of information technologies for the valorization of Uruguayan sheep meat, because blockchain technology will help meet the demands of today’s demanding consumers of sheep meat in different markets.

“This proposal represents an opportunity to add value to our products, providing information on the way sheep meat is produced and processed in Uruguay as a country that stands out worldwide for aspects such as animal welfare, environmental care and social responsibility along the supply chain. In addition, we are pleased to participate in projects in which public and private, local and international organizations work together, each contributing resources and knowledge for the sustainable development of the sheep industry,” said Sanguinetti Gallinal.