PwC has announced that it will work with Alibaba’s Australian subsidiary to develop a framework for preventing fraud and building trust in the supply chain of food products traded on Alibaba’s platform. The framework will include the use of blockchain technology. A memorandum of understanding (MoU) was signed at Parliament House, Canberra on March 24.

The framework will initially be piloted for goods imported into China from Australia and New Zealand. Ultimately, it is envisioned that the framework can be applied across all of Alibaba Group’s e-commerce markets.

Research conducted by Michigan State University shows that fraud costs the global food industry an estimated US$40 billion each year. Furthermore, PwC research shows 39% of food companies say it is easy to fake their food products and 42% believe there is no method for detecting fraud, beyond standard food checks.

“Fraud is a growing global problem in the supply chain, and no product is immune to it,” says Raymund Chao, PwC’s Greater China chairman. “Food fraud is particularly concerning as it undermines the integrity of products, erodes the trust of consumers, and impacts the health of communities.”