TECHONEY - Development of a blockchain-based ecosystem that allows an improved positioning of small producers of honey on local and international markets

The sale and consumption of honey during the COVID 19 pandemic has multiplied because many people believe its consumption can help prevent diseases, including coronavirus. However, in 2020, the beekeeping sector recorded a 40% drop in honey yields because of droughts and floods in Europe. The EU does not enjoy self-sufficiency, as it only provides 64% of the honey marketed in its territory, importing honey to cover its domestic consumption, mainly from China. Honey prices continue to fall and there are no adequate tools, such as the absence of clear origin labelling and the problem of adulterated honey. This situation endangers European beekeepers and makes it impossible for other honey. A significant percentage of imported honey is adulterated and the reduction in the price of honey in the Med’s main producing countries has put beekeepers in a difficult position. Food fraud is rampant in honey production and has devastating consequences for honey producers. The economic damage to beekeepers who produce authentic honey is approximately $1 billion. Consumers often think they consume local honey, when a proportion of that honey is a blend of national and foreign honey, often adulterated. In the Med. countries, especially in rural areas, there is a lack of quality labelling systems and traceability, which does not allow the small beekeepers to be identifiable by consumers along the food supply chain. About 20% of the honey is declared as blended EU honey or unblended honey with a geographical reference related to a member state suspected of containing added sugar. The percentage of suspect honey was around 10% for blends of EU and non-EU honey, blends of non-EU honey and honey of unknown origin. On the other hand, COVID has changed the shopping habits of consumers affecting the sale of honey.

1. Map the current added-value chains and complexity level for honey products in five case studies (Spain, Algeria, Tunisia, Turkey, Luxembourgh and Morocco) TECHONEY will analyse the current situation of beekeepers and stakeholders in the honey value chain in 5 case studies, identifying their problems, their capacity to adapt to market changes and climate change, the different business models applied, and the prices applied in each link of the chain, offering a diagnosis and real knowledge about the needs and opportunities on which to act. 2. Increase the competitiveness and power of the beekeeping supply chain by understanding consumers’ and retailers’ opinions and acceptance TECHONEY will analyse the opinions, suggestions, demands and willingness of consumers and retailers in relation to: 1) new models of purchasing, distribution, security and trust; 2) Use of ITC tools for purchasing and payment in relation to products in the honey value chain; 3) Measuring premium prices from a short supply chain of smallscale beekeepers, using viable smartphone applications and improved honey-labelling systems 3. To promote the traceability to differentiate local honey and guarantee the food safety of honey produced in the Med. area by characterising it in a reliable, certifiable and documentable manner The characterisation of the different kinds of honey is not something that is already done. The biochemical characteristics of honey differs substantially depending on various factors (location, botanical origin, season, etc.) so it is necessary to fully characterise each honey from all countries to determine its origin, so that any consumer can easily trace the sample to that origin and can compare it with other kinds of honey claiming to be from the exact location, botanical origin, etc.TECHONEY will generate a honey quality characterisation database to be able to detect any adulteration 4. Development of a new “Multichannel distribution” e-commerce platform implementing a new business model and Exploring the feasibility of new traceability ecosystems and effective business models across different stakeholders. TECHONEY will enable an innovative honey production and distribution traceability ecosystem, enabling the creation of innovative business models across the honey value chain, demonstrating its efficiency, applicability, and adaptability to different geographical, business, regulatory and contractual frameworks. Traceability ecosystems network oversees authentication, validation, management and storage of traceability data through smart contracts. TECHONEY will identify ex-ante business models and enable contracting schemes based on smart contracts (blockchain) between stakeholders. It will enhance and enable the integration of contracting schemes through a blockchain distribution network. 5. Maximize the exploitation and transference of the findings through the creation of a website ITC Tool. TECHONEY contribute to maximising the capacities, production, attractiveness, competitiveness and sales of beekeepers and stakeholders of the honey value chain by exploiting and transferring the project results (traceability blockchain network, new business models and smart contracts). TECHONEY will maximise the positive impact of honey production on the demand side, improving the traceability of honey produced in the Med. area, building consumer confidence, and opening up new business models based on the use of the Techoney ITC Tool. The TECHONEY will improve the capacity to produce honey in purchasing power with a positive effect on income and the resilience of beekeepers. TECHONEY will improve the performance of bee farms and the honey value chain in the Med. area. TECHONEY ICT tools to ensure the execution of honey e-commerce transactions in a secure and traceable manner while broadening honey sales markets and opening up new markets based on a short supply chain. 6. Maximize outreach and beneficial influence of the project results and reach the target users (beekeepers, small-scale food manufacturers and local distributors, canteens and retailers, and local public authorities) through an effectively established communication and dissemination plan, including innovative training capsules

phase 1: Develop a multidimensional honey value chain framework to establish a bottomup participatory approach of all stakeholders through the creation of a Honey Innovation and Learning Living Lab (HILE). WP 1 Phase 2 Needs analysis and definition of the requirements of the traceability system taking into account the barriers and changes in the sector, the characterisation of honey from beekeepers in Med. countries and the opinions/needs/wishes of consumers WP2-WP3 Phase 3 Design and create a traceability and new business models based in blockchain WP 4-WP 5 Phase 4 Integration/testing/validation on a prototype in simulated environment inside HILE WP%