How a Bio Nutraceutical Company Leveraged TraceX Solutions for Socio-Economic Sustainability

Problem: 

Rose cultivation industry in Turkey faces a multitude of challenges, including land scarcity, production issues, labor exploitation, and declining tradition. These challenges not only hinder the industry’s growth but also compromise the quality and sustainability of rose products sourced from the region. 

Solution: 

By leveraging TraceX’s blockchain-powered traceability solutions, the Bio Nutraceutical Company addressed these challenges effectively. They implemented transparent supply chain traceability to monitor the entire journey of roses from cultivation to processing. Additionally, it facilitated the oversight of labor practices, ensuring fair wages and ethical treatment of workers.  

Result: 

As a result of implementing TraceX solutions, the company achieved significant improvements in production monitoring, labor practices, and overall supply chain transparency. Equitable wages for migrant workers were ensured, enhancing social responsibility and compliance with ethical standards. Data-driven decision-making empowered the company to tackle challenges proactively and optimize their operations. Moreover, consumer trust and brand reputation were strengthened, leading to increased demand for their ethically and sustainably sourced rose products. 

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Rose Farming in Turkey, stands as a crucial industry, contributing significantly to the economy. Nestled in the picturesque landscapes of southwestern Turkey, Isparta stands out as the enchanting “City of Roses.” Renowned for its breathtaking natural beauty, this region is a floral haven with vast expanses of rose gardens that paint the countryside in hues of pink and red. The city has earned its reputation as a global hub for rose oil production, where the Damask rose, known for its exquisite fragrance, is cultivated with meticulous care. 

Primarily utilized in food and perfume manufacturing, essential oils, such as rose oil, play a pivotal role in the cosmetic industry. Turkey and Bulgaria stand out as key global producers. Turkey, with its advantageous location and climate, has a long-standing tradition of cultivating rose flowers, mainly as organic products. Due to these favorable conditions, numerous medicinal and aromatic plants, including the revered rose, are organically cultivated. Essential oils extracted from various plant parts, such as flowers, leaves, fruit, seeds, stems, and roots, contribute to Turkey’s rich diversity, with the rose being particularly significant and widely esteemed. 

Rose Cultivation

Turkey ranks among the top producers of rose flowers globally, second only to Bulgaria. For more than a century, the cultivation of roses has been concentrated in Isparta county, situated in the southwestern region of Anatolia.  

Harvesting occurs in May-June, during a 40-day flowering period, with humidity and cloud cover influencing yield and quality. The essential oil content in rose petals is minimal, less than 1%. To capture the highest content, flowers are handpicked daily, typically before sunrise due to the volatility of rose oil. Roses for oil production are often cultivated without chemicals. 

Challenges in the Rose Industry

Rose cultivation in Turkey faces a complex array of challenges encompassing agricultural, economic, and social aspects, contributing to a decline in this traditional industry. 

  • Despite its advantageous position in rose cultivation, Turkey faces a significant reduction in the amount of land dedicated to rose farming. 
  • Problems during rose flower production and harvesting contribute to the challenges faced by Turkish rose cultivators. These issues may include diseases, pests, or unfavourable weather conditions that impact the yield and quality of roses. 
  • Rose orchards established on predominantly unfertile soils pose a challenge to cultivation. The lack of soil fertility may affect the overall health and productivity of rose plants. 
  • Inadequate and irregular rainfall in rose cultivation areas adds to the challenges. 
  • Tens of thousands of seasonal workers migrate to agriculture production areas in Turkey every summer. The majority, particularly from southeastern Turkey, work in family groups, moving from crop to crop. 
  • Labor intermediaries recruiting migrant workers often promise daily wages, transportation, food, and accommodations. However, deductions for transportation, housing, food, and commissions significantly reduce workers’ take-home pay. 
  • Larger producers increasingly rely on migrant farm labourers, including Syrian refugees. This shift in the workforce composition may introduce additional challenges related to integration, legal issues, and potential exploitation. 
  • The tradition of rose cultivation is fading due to factors such as a shrinking rural population, a preference for less labour-intensive products, and aging rose bushes. 
  • The time-sensitive nature of rose oil production, requiring pickers to harvest flowers at sunrise and transport them to processing plants within two hours, adds complexity to the cultivation process.

How a Bio Nutraceutical Company Leveraged TraceX Solutions

A US-based Bio Nutraceutical Company with European headquarters in France turned to TraceX to solve production monitoring and socio-economic challenges they were facing while sourcing roses from Turkey. 

Supply Chain Traceability 

The company leveraged TraceX’s blockchain-powered traceability solutions to establish a transparent and traceable supply chain. This allowed them to track the entire journey of roses from cultivation to processing, ensuring visibility into each stage and facilitating quality control. 

Labor Practices 

TraceX provided a mechanism for the company to monitor and oversee child labour practices within their supply chain. By tracing the labour intermediaries’ involvement and ensuring fair wages, ethical treatment, and compliance with child labour standards, the company aimed to address issues of worker exploitation. 

 

Equitable and Fair Wages for Migrant workers 

TraceX solutions significantly enhanced the tracking of equitable wages for migrants by introducing technological innovations, transparency, and compliance measures. This not only benefited the workers by ensuring fair compensation but also empowered organizations to meet ethical standards and legal requirements in their labour practices. 

Data Driven Decision Making 

By collecting and analysing data through TraceX, the Bio nutraceutical Company gained valuable insights into the challenges faced by their rose cultivation. This data-driven approach empowered them to make informed decisions, implement targeted interventions, and continually improve their processes. 

Consumer Trust 

Implementing TraceX’s traceability solutions allowed the company to showcase their commitment to transparency and quality. This, in turn, helped build consumer trust, enhance brand reputation, and meet the growing demand for ethically and sustainably sourced rose products. 

Training Sessions 

Ground staff underwent comprehensive training sessions to master the product’s features, usage, and deployment strategies, ensuring proficiency in delivering efficient and seamless operations. The training aimed to equip them with the necessary skills to maximize the product’s potential and enhance overall operational effectiveness.

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Key Takeaways

In conclusion, TraceX’s innovative blockchain traceability solutions emerged as a transformative force for our bio nutraceutical partner, fostering socio-economic sustainability across their entire rose value chain. By instilling transparency, fair labour practices, and efficient supply chain management, TraceX enabled the company to navigate and overcome the challenges prevalent in the rose industry. The robust traceability framework not only elevated product quality and market competitiveness but also contributed to the well-being of local communities, reinforcing the company’s commitment to ethical business practices. As a result, the collaboration with TraceX not only revolutionized the way the company approached its rose production but also exemplified how cutting-edge technology can catalyze positive socio-economic change within the intricacies of the global supply chain. 

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