grain trade australia information technology advisory committee forum... · tmac & nwpgp, ntms...

Grain Trade Australia Information Technology Advisory

Committee

May 2018

Consolidating market - Assets or alignment to BHCsThe market is developing excess capacity Capacity is hampered by fragmented planning Not conducive to supply chain efficiency as key tenets are missing:

no overarching system S&OP process

lack of integration across suppliers and partners

inability to access critical information

Inability to manage exceptions

The Program for the DayIntroduction

1.00 pm INTRODUCTION & WELCOME

1.05 pm Background, Principles and Objectives of the ITAC Committee Pat O’Shannassy, GTA CEO

1.25 pm Terms of Reference Review Tim Ross, GTA Projects / Operations

1.45 pm Guest Speaker – Myths of Blockchain & Blockchains in Agriculture Professor Sinclair Davidson, RMIT Blockchain Innovation Hub

2.15 pm Committee opportunities / targets Interactive group sessions

(i) Current trade transactional impediments /opportunities; (ii) New technology review and uptake; (iii) Committee opportunities / risks in representing industry and interfacing across

industry and government. 3.00 pm AFTERNOON TEA






The Program for the DayIntroduction

3.00 pm AFTERNOON TEA

3.15 pm Government IT Strategy & Direction for Agricultural Trade Peter Neimanis, Director Business Systems Program, Plant Export Operations, DAWR

3.45 pm Continuation of Committee Opportunities / Targets with Summary Presentations Interactive group sessions

4.15 pm Committee Structure and Outcome of the Nomination Process Pat O’Shannassy, GTA CEO and ITAC Committee Chair & Deputy Chair

4.30 pm Forum Summation and Next Steps Pat O’Shannassy, GTA CEO and ITAC Committee Chair & Deputy Chair

4.45 pm CLOSE

Grain Trading Standards

Trade Rules & Contracts

Dispute Resolution

Services

Trade & Market Access

Training & Development

ReflectRequirements & capabilities in:1. Regulation2. Production

Sector3. Supply Chain4. Consumptive

Sector

Ensure confidence in commercial

dealings by providing legal

rigour

Underpins Contractual

Arrangements

Engaging with Policy makers to

ensure fair & equitable trade and access to

domestic & global markets

Increase Industry capacity by providing vocational

training and development

programs

Industry driven and managed“Self Regulatory Framework”

Core Task – Facilitation of Trade

Draw on industry knowledge & experienceDevelop policy & productsInvolve & engage membersAdvise Board on technical matters & industry perspectiveOversight by Technical Charter & guidelines with oversight by BoardIncludes & Needs Production sector Representation

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Technical Comm’s – key strength of GTA

GTA – Facilitation of Trade

Advocacy & Market Access Trade

CommerceGrain Quality and

AssuranceGrain movement

& logisticsData &

InformationStewardship &

Capability

Policy - Trade & Market Access Committee (TMAC) - Policy

Market Access –TMAC & NWPGP, NTMs

Market Choices Framework (PBI)

Framework – IGTC (IPPC, LLP, MRLs)

Operational –GPPEICC & GIMAF

GTA Commerce Committee

GTA Trade Rules

GTA Contracts

GTA Dispute Resolution Service

Inventory Valuations (LDs)

Operating Guidelines for Pools & Brokers/Agents

GTA Trading Standards Committee

GTA Code of Practice & TGDs

NWPGP

NRS

Technical Engagement

TGDs

GTA Transport Ports and Storage Committee

GTA Industry Working Groups

Storage and Handling Agreements

Transport Code of Practice and Contracts

Chain of Responsibility

GTA Information Technology Advisory Committee

AGIC Conferences, Grain Storage Conference

GTA Member Updates and Market Notifications

Industry Databases

Increase Industry capacity by providing vocational training and development programs

Diploma Grain Management

Code of Practice

COR & Training

Strong Governance

Industry driven and managed

ITAC Committee – a Response to GTA Members Requests

The Principles and guidelines for the Committee have been developed to include:

1. Improve the facilitation of trade2. Collaboration3. Identify areas of no competitive advantage4. Monitor current and future technology developments.5. Encourage collaboration, but also acknowledge that investment,

innovation and differentiation is important to the competitive process and the facilitation of trade.

6. Principles based, commercially agnostic and shall not encroach on any commercial activities

Introduction

Grain Trade Australia Information Technology Advisory Committee

Review of the Terms Of Reference






• Consult • LiaiseScope

ITAC shall make recommendations to the Board on issues and suggested improvements relating to:

• “Consultation and liaison with stakeholders across industry (local and global) on the impacts and opportunities of existing and emerging technology”;

• ITAC is the Information Technology focal point for industry to engage with:

• Government and government agencies;• GTA Board and other Technical Committees; • Local and International Trade associations;• Technology Suppliers, Emerging software developers; and • Industry participants.






• Process • TransactionsScope


• “Cross business grain industry process and transactional issues to improve the facilitation of trade”;

• ITAC provides a forum to review and collaborate on process and transactional issues such as:

• Standardising nomenclature and reference tables;• Capture of standardised Industry Processes;• Opportunity to share, understand and discuss proposed

changes to process or transactions; and• Provides the ability to agree and set industry benchmarks

of proficiency.






• Information Sharing Scope ITAC shall make recommendations to the Board on issues and suggested improvements relating to:

• “Options and opportunities to share information and learnings across industry”;

• The Committee provides a means for industry participants to discuss, share and understand

i. Information technology systems and capability;ii. comprehension of, and compliance with existing

and evolving regulation; iii. research, understanding and the development of a

standard approach to evolving technology;iv. standard industry interfaces (financial, export

documentation, regulatory, etc.); v. transactional processes; and vi. best practice and benchmarking.



lack of integr ation across suppliers and partners



• Collaborative Research• Industry Solution Scope


• “Collaborative research, review on the impact of new technology on the facilitation of trade; and potential collaborative solutions to address such impacts”.

• ITAC can provide the forum for industry to collaboratively analyse opportunities including:

• Monitor developments, identify risks, gaps and opportunities in existing and emerging technology New technology, process changes and adoption of existing tools.

• Upon determination of value ITAC can assess options for industry to capture the opportunities and provide advice and develop appropriate responses for GTA, its members and the Australian grain industry.






• Industry Solution Scope ITAC shall make recommendations to the Board on issues and suggested improvements relating to:

• “Potential collaborative opportunities to improve facilitation of trade such shared resource and data options”.

• ITAC can facilitate the review and analysis of opportunities and propose recommendations to the Board.

• ITAC will provide a forum to discuss and solve capital, corporate and financial structures to support these options.

Activities to be conducted1. Coordinate forums for industry2. Open to approach by any GTA member, government

agency, industry association, supply chain participant, and technology providers.

3. Collaborative review of potential technology/process changes for application within the grain industry.

4. Provision of a clear business case and recommendation for take up by industry of any new technology/process change.

• Industry Solution Activities


Myths of Blockchains and Blockchains in Agriculture

Professor Sinclair Davidson

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Myths of Blockchain & Blockchains in Agriculture

Sinclair Davidson

Grain Trade Australia

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What I’m not going to talk about

• Gory technical detail

• Do you really know how your mobile phone works?

• Investment adviceo It is true that bitcoin is now trading at levels not seen since late last year this does not

mean the technology is a dudo If you don’t understand the investments you are making you shouldn’t make themo Early investors in many new innovations lose moneyo Do not participate in ICOs where the blockchain application is not obvious

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RMIT Blockchain Innovation HubDirector:Prof Jason Potts

Key researchers:Dr Darcy AllenDr Chris BergProf Sinclair DavidsonDr Mikayla NovakA/Prof Marta PobletA/Prof Ellie RennieProf Julian Thomas

sites.rmit.edu.au/blockchain-innovation-hub/

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• A blockchain is a decentralised, distributed ledger

• The challenge with a distributed ledger is ensuring everyone agrees what the ledger says

Distributed ledger with central, trusted server

Distributed ledger with no central authority

What is a blockchain?

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What is a blockchain?

• Two Problemso Double spendo Consensus

• In November 2008 ‘Satoshi Nakamoto’ solved the double spend and the consensus problem when he announced his Bitcoin blockchain invention to the world

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The Bitcoin blockchain• Bitcoin is a digital currency powered by a blockchain• Blockchains consist of five complementary technologies that give it its

properties of:Secure:

Asymmetric (or ‘public key’) cryptography

Distributed:Peer to peer networking

Ledger:Append-only databases

Incentive compatible:Game theory

Consistent:Consensus algorithms

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Ledgers • Ledgers confirm identity/ ownership/ status/ exchange, map

relationships• A ledger is a tool for mapping and verifying agreed facts about

relationships• Ledgers are everywhere

o Bitcoin has shown us that money is a ledgero Property rights are ledgers (see Hernando de Soto)o A firm is a ledger, structuring capital, labour and processeso The social security system is a ledger o Citizenship is ledger

• Ledgers are about trust

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Ledger-centered view of the economy• Hard to see, because ledger technology unchanged (centralised) until 2009

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Blockchains are distributed ledgers• When ledger technologies change, so do economies

o Blockchain is not just a new general purpose technology.o Blockchain is a new institutional mechanism to organise economic

activity and behaviour

• Blockchains industrialise trusto Right now this is very expensiveo New technology often is very expensive

• Blockchains are enormously successful proof of concept around distributed ledger technology

Berg S, Davidson S, Potts J (2017) “The Blockchain Economy: A Beginner’s Guide to Institutional Cryptoeconomics” https://medium.com/@cryptoeconomics/the-blockchain-economy-a-beginners-guide-to-institutional-cryptoeconomics-64bf2f2beec4

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So what sort of technology is blockchain?

• Production technologyo General purpose technologyo Lowers production costs

• Exchange technologyo Lowers transaction costs

• Institutional technologyo Lowers information costs

• There already exists a body of economic theory that examines the consequences of both information costs and transaction costs.o Ronald Coase 1990 Nobel Laureate o Oliver Williamson 2009 Nobel Laureate

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• Slow (block confirmation times)• Expensive (mining, transaction

fees, storage requirements)• Hard to scale (transaction

times)• Horrible consumer

experience (exchanges, key storage)

• Unnecessary (there are simply better databases, trusted third parties aren’t that bad)

• May destroy the planet (mining)

Blockchains are incredibly inefficient

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Why are we excited?

• The economic problem:o How to coordinate economic activity when faced with distributed

information, and positive transactions costs (including trust)?

• Before 2009:o Priceso Trusted 3rd partieso Government regulation

• After 2009:o Priceso Trusted 3rd partieso Government regulationo Distributed ledgers

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What are people worried about?

• Privacy.

• Loss of economic opportunity.

• “Order 66” problem.

• “Skynet”.

• Erosion of established institutions:o Hierarchy.o Information intermediation jobs are all in trouble.o Jobs that facilitate trust to generate transactions are all in trouble.

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Use case: supply chains

Containerised shipping• Radically lowered transportation

costs.• Facilitated intermodal transport.• Combined within other transportation

technology such as air freight.

Global coordinating institutions • Agreements and organisations such

as the GATT and WTO facilitated negotiation to reduce the direct political costs

• Made it cheaper to move goods across borders.

• Lowering trade costs expands the potential number of beneficial trades.

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• When we think supply chains we often think transportation costs.

• But information costs can be higher than transportation costs:o Where does my wine (really) come from? o How old is this meat? o Is this organic?o Is this is a genuine pharmaceutical product?o Does this present a biosecurity risk?

o Who needs this information?o Consumerso Governments / regulatorso Firms

Trade as an information problem

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• Information is valuable

• Information can be resold

• Smart farms and IoT (blockchain enabled supply chains)

o Eliminate middlemen

o Deliver greater value to primary producers

o Drive premium pricing

o Pricing of product characteristics

Niche products

Trade as an information problem

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IBM and Maersk

https://www.youtube.com/watch?v=tdhpYQCWnCw

https://www.youtube.com/watch?v=tdhpYQCWnCw

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Conclusions

• The blockchain is not just a tech upgrade

• The blockchain is not just another general purpose technology

• The blockchain is a new institutional technology that will botho Complement current organisational forms and economic activityo Substitute for current organisation forms and economic activity

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Keep up to date with our work

• http://sites.rmit.edu.au/blockchain-innovation-hub/

• http://cryptoeconomics.com.au/

• http://medium.com/@cryptoeconomics

• Twitters: @BlockchainRMIT @cryptoeconomico@chrisberg @sincdavidson @profjasonpotts


Committee Opportunities/Targets

Interactive Group Sessions

The Process

1. Break into working groups

2. Perform a SWOT on the 3 key focus areas of the Committee

3. Workshop the topic through to 3pm

• Current opporunities• Future• Industry Interface SWOT

Shaping the Committee Group 1. Current trade transactional impediments /opportunities;

1. Need to be Done Now2. Low Hanging Fruit 3. Remove the impediments

Group 2. New technology review and uptake;1. Analysis & Review2. Coordination amongst industry 3. Implementation

Group 3. Opportunities / risks in representing industry;1. Industry 2. Government 3. Structural considerations for Projects


Teams

Group 1. Team Leader Rebecca Reardon;1. Current trade transactional impediments /opportunities

Group 2. Team Leader Ole Houe1. New technology review and uptake

Group 3. Team Leader Pat O’Shannassy1. Opportunities / risks in representing industry;



Government IT Strategy and Direction for Agricultural Trade

Peter Neimanis

Government IT Strategy & Direction for Agricultural Trade

Peter NeimanisDirector, Business Systems ProgramPlant Export Operations

Developments and collaborations

9 May 2018

Developments, Collaborations and Awareness

Department of Agriculture and Water Resources

Government IT strategy & direction for agriculture tradePeter Neimanis

41

- Australian export perspective- Global initiatives

9 May 2018

IT initiatives to deliver better integration between plant exporters and DAWR

Department of Agriculture and Water Resources 42

Australian export perspective

9 May 2018Government IT strategy & direction for agriculture tradePeter Neimanis


Plant Export Operations

Provides export inspection and certification services for plants and plant products, including grains, fresh fruit and vegetables, hay and straw, timber, logs, woodchips, bark, dried fruit, seeds, cut flowers and foliage (fresh and dried), nursery stock, processed plant products and miscellaneous plant material.

• Issuing a Phytosanitary Certificate, as per ISPM 12, to meet importing country requirements


Plant Export - developmentsPlant Exports Management Systems (PEMS)

• Empty container inspections

• Bulk vessel inspections

• Containerised grain inspections

• Bulk into hold grain inspections

• Horticulture inspections

Department of Agriculture and Water Resources 449 May 2018Government IT strategy & direction for agriculture trade

Peter Neimanis


• Reduce data entry by pre-populating inspection records from ExDoc

• RFP reload capability to support RFP amendments in ExDoc

• Single electronic repository of inspection data and supporting docs

• Validates AO competencies to perform inspections

• Validates approvals and their expirations

• Calculates FFS and Overtime

• Supports business analytics through EDW integration


Peter Neimanis


• Offline functionality

• Ability for AOs to join Bulk Vessel Inspections

• Checking container approvals prior to supervising loading

• Calibrations and certification

• Reporting through SAS


Peter Neimanis


PEMS v2.0 rolled out to Departmental AOs from the 23rd of Jan 2017

• 7,370 inspections recorded by 115 AOs (out of 139 registered) • Resourcing tool for DAWR

PEMS v2.1 release to address critical issues and enhancements identified post deployment of v2.0

• Empty container inspections• Bulk vessel inspections• Containerised grain inspections• Bulk into hold grain inspections


Peter Neimanis


PEMS v3.0 to address

• Calibrations (horticulture)• AO life cycle management• Integration with

• Third party client systems – critical for Grain• N/EXDOC and ER • DAWR finance management system


Peter Neimanis

Plant Export - collaborationGrain and Plant Products Exports Industry Consultative Committee (GPPEICC)

• IT sub-committee• Direct engagement with export companies• Implementation and benefits realisation plan


Peter Neimanis

DAWR Enhanced Traceability Project• Replace Establishment Register (ER)• NEXDOC to replace ExDoc

Export Regulation Review

• Export Control Bill 2017• Plant Export Rules development – 2018• GPPEICC legislation working group

http://agriculture.gov.au/biosecurity/partnerships/consultative-committees/gppeicc

http://agriculture.gov.au/market-access-trade/export-regulation-review

Plant Export - awareness

Trade Facilitation Agreement• National Committee on Trade Facilitation (NCTF)• Single Window (SW) to Government• PWC SW commercialisation scoping study


Peter Neimanis

Industry developments• Maersk/IBM: Global Trade Digitisation (GTD)• AgriQual: blockchain for oats with CBH in South Australia• Commonwealth Bank: blockchain trial using almonds exports

expected in June 2018

Importing country requirements• Food safety• Traceability

https://www.homeaffairs.gov.au/Busi/engaging-with-the-department/committees-and-fora

http://dfat.gov.au/trade/exporters-and-importers/Pages/single-window-for-international-trade.aspx

http://www.abc.net.au/news/rural/2017-08-07/cbh-bockchain/8777806

IPPC ePhyto project and trade facilitation


Global perspective



International Plant Protection Convention (IPPC)

To support the increased harmonized adoption of electronic certificates, the Commission of Phytosanitary Measures (CPM) has directed the IPPC Secretariat to develop the ePhyto Solution which consists of

1. A "hub" to facilitate electronic exchange of certificates between countries based upon a harmonized security and communication protocol

2. A generic ePhyto national system (GeNS) which allows countries with limited infrastructure and capacities to produce, send and receive electronic phytosanitary certificates

3. Supported by harmonised message structure and coding


ePhyto- developmentsWhat is ePhyto?


Peter Neimanis

• ePhyto is the electronic version of a phytosanitary certificate in XML • NOT a copy of a printed phytosanitary certificate that is emailed• Secured data set using XML for electronic transmission between the NPPO's

of exporting and importing countries.



Peter Neimanis

Harmonisation - The National Plant Protection Organizations (NPPO) use harmonised terms and codes for the contents of the certificate when exchanging ePhytos

•Appendix 1 to ISPM 12 is critical to global harmonization – it describes the format and the contents of ePhytos and their exchange•Harmonisation of the following

• XML message structure, contents (UN/CEFACT XML schema and data mapping)

• Country names• Scientific names• Consignment description• Treatments• Additional declarations



Peter Neimanis

The Hub - Single point multilateral exchange mechanism for transfer of certificates from the NPPO of the exporting country to the NPPO of the importing country using a harmonised protocol

• Use is voluntary• A single, multilateral system, available 24/7• No information (messages, transactions) should be lost• Centralized server to facilitate exchange of ePhytos between NPPOs• Participating countries will require a National System (or GeNS) to

exchange ePhyto through the Hub• Generic or National ePhyto system communicates with the Hub and

• Pushes certificates to the Hub• Receives certificates from the Hub by pull or push

• ePhyto messages only kept in the Hub until delivered



Peter Neimanis

• Single exchange protocol• IPPC determines UN/CEFACT schema version• An envelope is used to send messages to the correct destination• Verification on the envelope of the transmitted ePhytos• The Hub does not validate the ePhyto (message) content. The privacy of

the message content is maintained as only the destination NPPO is allowed to read the message

• Secure NPPO access• Electronic certificates carried within secure folder from NPPO (export)

through Hub to NPPO (import)• Uses internet based security processes to protect transmission



Peter Neimanis

Generic ePhyto National System (GeNS) - Allows NPPOs that do not have a National System to produce, send and retrieve ePhytos via the Hub for exports and imports.

GeNS is a basic, secure web based that will allow• Importing NPPO to obtain/view reports, certificates, etc.• Exporting NPPO to prepare certificates for the importing NPPO

United Nations International Computing Centre (UNICC)

Developed specifications for implementing the Hub and GeNS for the IPPC with funding provided by the Standards & Trade Development Facility (STDF)

ePhyto- developments


Peter Neimanis



Peter Neimanis

• ePhyto is the electronic version of a phytosanitary certificate in XML • NOT a copy of a printed phytosanitary certificate that is emailed• Secured data set using XML for electronic transmission between the NPPO's

of exporting and importing countries.

Pilot Countries

ePhyto- developmentsePhyto next steps


Peter Neimanis

Hub • Technical pilot complete = proof of concept• Harmonisation = in progress• Industry pilot = next phase

GeNS• Design and build – Q1-2 2018• Pilot – Q3 • Implementation – Q4

Business model

Implementation guidance

ePhyto - collaborationePhyto and trade facilitation


Peter Neimanis

Objectives of the WTO TFA

• Expedite movement, release & clearance of goods • Improve cooperation between customs/other authorities• Enhance technical assistance and capacity building



Peter Neimanis

Although paperless certification is not a specific component of the Trade Facilitation Agreement (TFA), its implementation achieves some of the objectives.

ePhyto benefits address quarantine concerns with trade facilitation• Better identification of risk• Targeting in advance of arrival• Better use of resources based upon risk

ePhyto - collaborationIPPC ePhyto Governance


Peter Neimanis

Industry Advisory Group (IAG) - established to provide practical guidance and advice to the IPPC on ePhyto. The IAG includes:

•Federation of Cocoa Commerce Limited•International Community of Breeders of Asexually Reproduced

Ornamental and Fruit Varieties (CIOPORA)•International Grain Trade Coalition (IGTC)•International Seed Federation (ISF)•International Wood Products Association (IWPA•Union Fleurs (International Flower Trade Association)•European Seed Association (ESA)•Europatat – European potato trade association•Freshfel Europe – European fresh fruit and vegetables chain•The Global Express Association•International Cotton Advisory Committee

https://www.ippc.int/en/ephyto/ephyto-industry-advisory-group/

ePhyto - collaborationIPPC ePhyto Governance


Peter Neimanis

ePhyto Steering Group - provide oversight, guidance and advice on IPPC efforts to facilitate the international exchange of electronic phytosanitary information among contracting parties.

Australia is current chair

ePhyto Project Advisory Committee - link the ePhyto Project to other international initiatives on electronic certification. The PAC monitors the delivery of the project based upon the performance indicators specified in the project plan and evaluates project development by reviewing progress reports.

Australia is the current chair

https://www.ippc.int/en/ephyto/ephyto-steering-group/

https://www.ippc.int/en/ephyto/ephyto-project-advisory-cxommittee/



Peter Neimanis

World Bank

Assisting countries with the implementation of Trade Facilitation Agreement (TFA). Collaboration with ePhyto in • Samoa• Sri Lanka – early scoping • Viet Nam – early scoping

World Customs Organisation (WCO)

• Mapping WCO data model and UNCEFACT (ePhyto) schema• Formal agreement between IPPC and WCO on collaboration

https://www.ippc.int/fr/news/the-ippc-and-the-world-bank-working-together-to-assist-samoa-in-the-implementation-of-ephyto-for-trade-facilitation/

ePhyto - collaborationePhyto in the region


Peter Neimanis

Asia Pacific Plant Protection Commission (APPPC)• Action Items from ePhyto Symposium • Build on experiences of Hub and GeNS piloting• Plan implementation across APPPC and prioritisation of countries• Develop funding proposal• Strong interest in ePhyto

• Malaysia• Japan• Thailand• Indonesia• Philippines

Workshops planned in Africa and Latin America

ePhyto - awarenessFuture state


Peter Neimanis

• Implementation in 20-30 countries (4-5 years)• Change management• Sustainability• Benefits realisation

• European union and ASEAN• Food and other commodities• Impact of changing technology

• Single Window – govt• Blockchain - industry

Grain Trade Australia Information Technology Advisory

Committee

Committee Structure and Nomination Process

The Technical Committee Process

1. Technical Committee members are appointed by the GTA Board of Directors

2. Committee will include Board representative/s as Chair and Deputy Chair

3. Information Technology Advisory Committee works within the TOR and addresses issues that may have a potential impact on GTA services to members

4. Where required the Committee advise the Board and recommend appropriate action.

5. Meeting cycle is normally on a 4 to 6 weekly cycle but will be scheduled to meet objectives.

• Review• Advise • Recommend Role

The Technical Committee Nominees received:

Nominees

Nominee Company

Ashley Cooper Grain Growers Ltd

David Houghton Market Check

Dominic Dillon Cargill Australia

Josh Whiting Emerald Grain Pty Ltd

Julie O’Dea Viterra

Mark Sloan Plansafe Logistics

Scott McClure GrainCorp

Tristan Coram Australian Grain Technologies


Summary & Next Steps

grain trade australia information technology advisory committee forum... · tmac & nwpgp, ntms...

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