Merck and The Hashgraph Group Launch Cocoa Traceability Pilot for Deforestation Compliance
The Hashgraph Group and Merck have teamed up to launch a pilot program aimed at enhancing traceability in cocoa supply chains. The initiative, supported by PwC Germany, is designed to help smallholder farms meet new compliance demands, particularly those related to deforestation. The program integrates three key systems: The Hashgraph Group’s TrackTrace Digital Product Passport platform, Merck’s M-Trust physical authentication technology, and PwC Germany’s consulting services for business process design.
The pilot addresses a critical compliance gap for cocoa processors, who must prepare for EUDR-related deforestation due diligence requirements. These regulations demand detailed proof of product origin, chain-of-custody records, and quality controls. The new system allows companies to verify that their cocoa is deforestation-free and legally produced, providing verifiable production-area information for regulatory submissions. Stefan Deiss, CEO and Co-Founder of The Hashgraph Group, emphasizes that this solution moves beyond fragmented documentation and self-declared claims by linking physical products to trusted digital records.
Each sellable item in the program receives an individual digital passport. The physical product is anchored to a digital twin, where events are recorded alongside origin, supply chain, quality, and compliance data on TrackTrace’s Hedera network. Merck’s M-Trust technology confirms the authenticity of the product or package being scanned, linking the authentication event to the product’s digital history. Thomas Endress, Executive Director and Head of M-Trust at Merck, highlights that digital traceability delivers its full value only when connected to physical proof.
PwC Germany plays a crucial role in providing the operating model through business process design. The firm helps translate business problems across the value chain into technology solutions, ensuring that traceability is operational at scale. Husen Kapasi, Enterprise Blockchain Lead at PwC Germany, notes that the solution addresses critical challenges in maintaining a verifiable trail of raw materials and their compliance history, which is particularly valuable in the event of a food recall or compliance investigation.
The digital product passport architecture is designed for applications beyond cocoa. The Hashgraph Group suggests it could benefit sectors such as food, pharmaceuticals, luxury goods, electronics, and industrial components. Kapasi believes the solution could shift companies’ perception of compliance from a cost burden to a value creation tool.