Security Matters (ASX:SMX), a blockchain technology company focused on digitising objects as part of the global circular economy, has been busy building out a global pipeline of strategic partnership across some of the world’s largest industries.

And in its latest development, the company’s food division – which encompasses seeds, animal feed and wine/spirits – announced an expanded functionality with the successful application of the company’s invisible marker technology for the oyster industry.

The test confirmed that SMX’s food-grade marker can be applied to a live oyster without altering its quality or appearance.

The marker can also be scanned through plastic and shows no effects from refrigeration and other transport logistics practices that are unique to the oyster industry.

With confirmation of its successful trial, SMX has now opened the door to a significantly expanded addressable market within the global superfood industry.


Global superfoods

Known as one of the more luxurious and high-end options within the global seafood market, oysters also have a number of health attributes.

A recent report from the market research firm IMARC Group on the 2021-2026 oyster market outlook highlighted that oysters provide a rich source of omega-3 fatty acids, as well as vitamin C and other key minerals.

Oysters also assist with “enhancing muscle growth, improving overall cardiovascular health, maintaining bone strength, boosting immunity and promoting weight loss”, the report said.

In that context, the oyster industry is set to play a role in the rapid expansion of the global superfood industry, as consumers increasingly move to healthier dietary options.

In its outlook report, IMARC said the global oyster industry is expected to group at a compound growth rate of 5% p.a. over the next five years.

And with the latest application of its technology, SMX is positioning its market-leading product tracing and circular economy solution at the forefront of this fast-growing market.


Commercial potential

In light of its successful laboratory test, SMX said commercial discussions with multiple suppliers in the industry have already commenced.

The company added that it expects marking activities with a number of early adopters to commence before the end of the March quarter.

The move into oysters represents a continuation of SMX’s strategy to build market share in low-volume, high-value products, adding to its existing partnerships including a mine-to-marketplace gold tracing solution with the Perth mint and a supply chain deal with the Métiers d’Art division of global luxury leader LVMH (Moët Hennessy Louis Vuitton).

The application of SMX’s technology offers clients “the ability to ensure brand provenance, protection of quality, traceability, and authenticity of the premium oysters for clients and their consumers”, the company said.

“Providing special security features, the use of SMX’s marker will enable the invisible labelling of oyster shells with information on its exact geographical origin.”

Such features provide a crucial value-add for Australian oyster exporters, given the domestic industry’s global reputation for quality which leads to the increased risk of counterfeit products.

The market technology can be seamlessly incorporated into the oyster cleaning and packaging process, allowing users to detect and determine its origin precisely in real time at any point along the value chain.

The data is then linked back to the company’s blockchain-based data management system, providing a forgery-proof ‘digital twin’ of each product read-out in the supply chain.

At the same time, utilising effective proof-of-origin technology allows oyster suppliers to “increase the marketability of products which has the potential to increase sales”, he said.

The update marks a key step forward in SMX’s food department, where the company has a number of other initiatives planned for the year ahead.

“In 2022 the SMX food department will expand its operations further by including the ability to mark, track and trace cocoa, palm oil, soy and other kinds of seeds,” the company said.

Across its global network, SMX is also exploring opportunities in the European Union, including work with organisations such as the French government’s Appellation d’origine contrôlée (controlled designation of origin) for the identification and marketing of specific controlled designation goods.

This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.