Ex-Qantas exec tackles food slavery with block chain

Paul Smith

Former Qantas chief information officer Jamila Gordon has attracted backing from the CSIRO's $240 million venture capital fund Main Sequence Ventures, to expand the operations of her start-up Lumachain, which is looking to use block chain technology to make food production and manufacturing more transparent amid global efforts to eradicate slave labor. The $3.5 million investment comes after the company was earlier accepted on to the start-up scale-up program of US tech giant Microsoft, and will be used to hire staff and begin plans to expand operations overseas. Lumachain CEO Jamila Gordon says her experience in big corporate IT is helping as she establishes her ambitious block chain start-up. Jane Dempster Ms Gordon has previously attracted Australian media coverage for her life story, which began in Somalia, where she was forced to work from the age of five, before being separated from her family by civil war. She moved to Australia with little English skills, washing dishes for $5 an hour to fund studies, which eventually amounted to her establishing a corporate career with IBM, before becoming Qantas' most senior technology executive. She said Lumachain was tackling a huge global issue in making the food supply chain more transparent, and also a massive potential commercial opportunity, as the fresh food industry was one of the least digitised and most inefficient and wasteful. "At present, this space is wide open. It's such an enormous global market, with no established leader. In terms of competitors, we see a mix of legacy software businesses trying to find new revenue streams and niche-focused start-ups, such as track and trace in the fish or pharmaceutical industries," Ms Gordon said. "Slavery is becoming a major issue in supply chains, both here and overseas. Australia passed the Modern Slavery Act in 2018, and this is part of a global trend, where both enterprises and consumers want certainty that products have been ethically and sustainably sourced." Microsoft Australia MD Steven Worrall, Main Sequences Ventures partner Mike Zimmerman, Ms Gordon and Andrews Meat Industries CEO Peter Andrews all have high hopes for Lumachain's growth. Jane Dempster Lumachain uses block chain technology to track and trace the origin, location, and condition of individual items in the food supply chain in real time. It says this can reduce waste, improve product recalls and optimise audits, while also helping businesses ensure products are ethically produced. The introduction of the Modern Slavery Act in Australia has already begun to have ramifications in business investment decisions. Earlier this year a guide for companies, published by the Australian Council of Superannuation Investors, identified the industries (aside from textiles) that pose the greatest risk of modern slavery. Food, beverages and agriculture came third on the list behind mining and construction. Ms Gordon said her experience in big corporate tech environments was invaluable in her new role as a start-up founder. Both she and Lumachain's chief product officer Tony White previously built and implemented many enterprise supply chains around the world, including when they worked together at Qantas and CIMIC, where Ms Gordon was the CIO and Mr White was head of supply chain and procurement. "One of our core values is we 'get stuff done'. You lean in to your background and broad range of experience and skills and that allows you to get through a lot of work every day," Ms Gordon said. An early local customer is Andrews Meat Industries, which is initially using Lumachain in its domestic operations, before turning it on to its Wagyu products that currently export to 20 countries. "Proof of compliance, provenance, sustainability and ethical sourcing are now fundamental requirements in dealing with food service and retail markets," Andrews Meat Industries CEO Peter Andrews said. "Having this level of visibility throughout the supply chain will be very important for our suppliers of livestock, distributors and end users."

(Source: Australian Financial Review, https://www.afr.com/technology/ex-qantas-exectackles-food-slavery-with-blockchain-20190728-p52bgm)

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