When you buy fresh veggies, it’s hard to trace their journey to your basket. Our current food tracking system has gaps. This makes it challenging to ensure food safety.
However, the role of blockchain in food supply chain, a new digital ledger technology, could be the answer. It offers a clear, unchangeable record of a food item’s path from farm to table.
Even major companies like Walmart and Nestle are looking into how blockchain can enhance the transparency of our food sources.
Contents
Problems in the traditional supply chain process
Before getting to know anything, let’s find out the problems that actually exist in the supply chain process.
Food Deception
The global food system can be tricky. There’s an increase in issues like tampering or misrepresentation. According to NSF, such problems cost around billions each year.
Commonly affected items are dairy, tea, coffee, fruit drinks, olive oil, syrup, seafood, and honey.
On the other hand, back in 2008 in China, tainted milk became a big issue. It led to the loss of six infant lives and over 50,000 hospitalizations. The main cause is a compound named Melamine is found in various foods.
Foodborne Diseases
For every 10 people, 1 might get ill from consuming bad food. The World Health Organisation’s data says that about 420,000 people die from food contamination every year.
This affects health, economy, and tourism.
Seafood Issues
Many love seafood, but there are concerns. A good portion of seafood might come without proper checks. Challenges include untracked or illegal production.
A Marine Policy journal report stated that 24-36% of seafood Japan imported in 2015 had doubtful origins or was illegal. This doesn’t just hit the wallet; it’s a health risk, too.
Food Recalls
Sometimes, agencies like the FDA or USDA need to recall food items. Such recalls can be expensive.
In 2010, a Grocery Manufacturers Association survey stated that the average recall costs around $10 million. This includes lost sales and brand damage.
Even big brands like Pepsi and Nestle have faced recalls and the financial challenges that come with them.
Challenges of Paper Records
Right now, everyone in the global food supply chain has their own set of paper records. You can imagine the confusion. If there’s an issue, finding the root cause becomes a guessing game. Why?
It’s because all these records are separate and, well, manual. This old-school method has its flaws, like mistakes in recording or updating.
Delays in Problem-Solving
When there’s an issue, time is crucial. With manual records, tracking the problem’s origin becomes a time-consuming hunt. The longer it takes, the bigger the impact.
Blockchain to the Rescue in Supply Chain
To solve all the problems above you have to use blockchain. This technology could be our way out. It’s all about keeping records that can’t be changed. Imagine having a clear history of a product, right from its origin to your plate.
It connects key players and can bring everyone on the same page. For example:
- Farmers growing the food
- The folks responsible for moving it (logistics providers)
- Those refining or processing the products
- Government officials ensure everything’s up to mark
- Retailers selling it to you
- And of course, you, the consumer
With blockchain, all these players could see the same, clear record. No more confusion, just transparency.
How Blockchain and the Food Supply Chain Work
Let’s navigate through how blockchain might revolutionize our food supply chain.
1. Farmer’s Role and The Initial Step
Farmers can stow away crucial details about their crops onto the blockchain with the help of a mobile app. This includes where it’s grown, what crop it is, sowing methods, and how it’s stored.
This data isn’t hidden, though. Anyone in the network, from processor to consumer, can take a look.
Moreover, farmers can snap pictures of their crops through the power of Machine Learning and AI. They assist refineries in assessing crop quality.
Plus, with smart contracts in place, all information entered must adhere to set rules. Make sure it has straight-up compliance.
When crops are ready, off they go to food processing companies for the next steps.
2. Processors and the Art of Refining
Once the crops are at the processing companies, the bidding begins. Thanks to smart contracts, companies can lay down their bids for crops.
When a bid is accepted, the details of how the food is processed are saved on a public blockchain.
This transparency enables anyone. Be it a retailer or you, the consumer, to check whether the food underwent appropriate processing. Smart contracts also ensure every processing step sticks to food safety regulations.
3. Wholesalers: The Middle-men with Smart Bidding
After processing, it’s time to bid again. But now the processed goods are up for grabs. Wholesalers throw in their bids via smart contracts. And once accepted, the processed food is on its way to them.
The transportation info is updated on the blockchain.
This confirms that retailers (and subsequently, consumers) can keep tabs on the food’s journey, verifying its condition upon arrival.
4. Consumers and the Safety Check
Every tiny detail, from the farm where it all began, batch specifics, journey data, expiration details, and more, is digitally linked to food items on the blockchain.
Each transaction detail is verified by every stakeholder.
It builds consensus and then gets added to the broader transaction chain. Also, it forms a permanent, unalterable record.
Consumers can then check for themselves whether what they’re consuming is safe, tracking its journey on the blockchain.
This clear information helps both consumers choose wisely and government officials quickly review crop prices and quality using blockchain records.
Benefits of Blockchain in Food Supply Chain
Food businesses have an exciting tool on their hands and that is blockchain. Think of it as giving food companies a clear window into their supply chains.
And with that window, they can add an extra shield against problems. Such as:
Transparency
Here’s the thing. When data is logged at every stage and is open for everyone in the network to see, the whole supply chain lights up.
From the moment an item is produced to when it’s sold, it’s all on the record. This means fewer chances of unexpected surprises like food frauds or recalls.
Speedy and Efficient Operations
Blockchain isn’t just about transparency. It’s also a game-changer for efficiency. It reshapes how food gets tracked, moved, and sold. Instead of stacks of paper, every detail gets a digital stamp.
And should there be a need for a recall or a check? The process becomes perfect, thanks to blockchain’s ability to trace everything from start to finish.
Safe and Fast Transactions
Another great thing about blockchain is it’s quick. Once you have your data checked and verified, it’s broadcast across multiple networks. That not only makes it fast but super secure, too.
Safety First
Let’s not forget the big picture: keeping our food safe. Blockchain has a promising role to play here.
By keeping unchangeable records, the risk of food-related mishaps drops. This could mean fewer health scares and more savings.
Conclusion
The future of our food supply chain looks promising with the integration of blockchain technology. As we’ve explored, blockchain has the power to revolutionize transparency, efficiency, and safety in the food industry.
While the journey to a fully transparent food system might be a long one, the rewards in terms of safety, trust, and efficiency are too significant to ignore.
For anyone in the food business, now’s the time to utilize this technology and lead the change.
Ready to embrace the future of the food supply chain? Let’s chat at Webisoft about how blockchain can be your game-changer. Reach out to us at, where innovation meets expertise.
FAQS
Is the information on the blockchain tamper-proof?
Yes, once information is added to the blockchain, it’s nearly impossible to alter. This makes it a trustworthy source of data.
How does blockchain handle data privacy concerns?
Though blockchain is transparent, it’s designed to be secure. Personal data can be encrypted. Hence, the only necessary information related to food safety and traceability needs to be publicly accessible.
Can blockchain identify counterfeit or adulterated food products?
Blockchain tracks the journey of food for transparency. To spot fake or altered products, tools like sensors or tests are needed.
