Supply chain integrity and blockchain company Security Matters (ASX: SMX) is progressing to the third phase of testing of its seed integrity solution as part of a pilot project with global seed supplier Hazera Seeds.
The Israel-based ASX newbie announced the proof of concept partnership in November last year, which focuses on exploring the feasibility of embedding Security Matters’ ecological markers into seeds to provide additional brand and product protection.
In an update today, Security Matters reported the completion of its second phase of testing, which involved the company applying the markers into seeds using a drop-in method during the production process.
According to the company, independent external expert tests have confirmed that the markers can be successfully read using its proprietary ‘reader’.
In addition, the tests confirmed the markers did not have any negative impacts on any of the seeds’ key properties, including its genetic code or physical characteristics.
The markers have also been proven to have no impact on any material processes including conservation, delivery, marketing, sprouting or growth, Security Matters stated.
Phase three testing is set to commence in the second quarter with completion expected in June.
Security Matters said commercial discussions with Hazera was now reaching “advanced stages”, with the conclusion of the third phase expected to symbolise full commercialisation of the company’s agricultural offering.
“This supports SMX’s agriculturally focused farm-to-plate growth strategy of ensuring genuine food provision to consumers globally by providing quality assurance across the entire production process and supply chain,” Security Matters founder and chief executive officer Haggai Alon said.
According to the company, the global seeds market is forecast to reach US$113 billion (A$156 billion) by 2022 with an average annual growth rate of 9.9%.
Security Matters hopes to capitalise on this growing market, claiming its technology is the only authentication solution that addresses the end-to-end process cycle, from the ground through to sale and consumption.
Mr Alon said the company has targeted Australia as “its first strategic market to launch its breakthrough agricultural track and trace technology, with the goal of ensuring Australian consumers their food is safe and made from high-quality products”.
Ecological marker technology
Security Matters listed on the Australian Securities Exchange in October last year after raising $6 million through an oversubscribed initial public offering.
The company is working on commercialising its unique, patented technology that uses a hidden chemical-based barcode to mark any object, whether it is solid, liquid or gas.
Security Matters has used blockchain technology to record and protect stored data that can then be accessed when using its unique ‘reader’ to decipher the barcodes.
In addition to its proof of concept project with Hazera, the company has secured a pilot project with leading animal feed supplier Ambar. The first phase of this project is on track to commence this month.
Security Matters is also working with strategic partners to commercialise its technology in the other sectors including mining, electronics, plastics, and paints and coatings.