Blockchain in the Food Supply Chain Industry

By offering an immutable, transparent, and secure record of the whole supply chain, blockchain technology has the potential to transform the food sector.

FREMONT, CA: Blockchain technology aids in the creation of tamper-proof records of the movement of food goods from their place of origin to their point of consumption in food supply chains.  This encompasses all phases, including production, storage, processing, packing, conveyance, distribution, sale, and consumption of food goods. Many parties, including farmers, processors, distributors, wholesalers, retailers, and consumers, as well as governmental organisations, are involved in the food supply chain. Moreover, it comprises institutions that oversee and control the quality and safety of the food supply.

Besides improving the traceability, sustainability, and transparency of the supply chain operations, blockchain in the food supply chain can improve food safety. In the food supply chain, blockchain technology has the potential to be a potent instrument. Blockchain can minimise food waste by allowing stakeholders to track and control supply chain spoilage. It serves as a safeguard against fraud, as well as ensuring the authenticity and quality of the food.

• Food traceability

This is one of the most significant benefits of using blockchain technology in the food supply chain industry. With traditional supply chain management systems, it can be challenging to track the movement of food products from one point to another. However, with blockchain technology, each step in the supply chain is recorded and stored on a decentralised ledger. This makes it easier to track the movement of food products from the source to the final destination.

The data stored on the blockchain is immutable, which means that once it has been added, it cannot be changed or removed guaranteeing the accuracy of the data and deterring fraud and counterfeiting. This ensures transparency and accountability throughout the food supply chain. Blockchain technology enables consumers to make informed decisions about the food they consume, which is essential for their health and well-being.

• Transparency

Trust and transparency are essential in the food supply chain industry. Blockchain technology can help to increase trust and transparency in the food supply chain industry by enabling stakeholders to track the movement of food products in real time.

With traditional supply chain management systems, it can be challenging to identify the source of contamination, which can lead to delays in the recall of contaminated food products. This can have serious consequences for public health. The knowledge of where and how the food was produced, transported and stored can help address the issues related to food safety, quality, and sustainability.

• Efficiency

Blockchain decreases the time and expense involved with manual record-keeping and data exchange by simplifying numerous procedures in the food supply chain. It reduces the need for intermediaries like brokers and wholesalers. This can help to reduce costs and increase efficiency, as transactions can be executed faster and more securely. It increases the security and reliability of the food supply chain and reduces food wastage by enabling stakeholders to track the movement of food products in real-time.

• Smart Contracts

Blockchain can enable the use of smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This can automate several supply chain procedures, including payment, quality assurance, and checking for regulatory compliance.

• Improved Inventory Management

Blockchain can improve inventory management by enabling participants to more precisely forecast demand and minimise waste. Blockchain enables real-time inventory visibility for all stakeholders engaged in the supply chain. Ensuring that food is delivered on schedule, helps avoid stockouts. By verifying data is accurate and current, blockchain technology makes it simpler to control inventory levels. Consequently, human data entry and paperwork would be reduced, lessening the chance of mistakes such as double counting.

• Better Compliance with Regulations

Blockchain technology can aid in ensuring adherence to laws governing food safety and other issues. An unchangeable record of each transaction along the food supply chain makes it feasible. This makes it easier for stakeholders to demonstrate compliance quickly and easily without incurring any penalties. Many procedures in the food supply chain, including record-keeping, paperwork, and compliance monitoring, may be automated with blockchain technology. Information cannot easily be manipulated or changed by any party. This promotes accuracy reduction, fraud prevention, and legal compliance. Blockchain technology in the food supply chain can enhance regulatory compliance and guarantee consumer food items are safe and of high quality.

Various food sectors are utilising blockchain to track and manage their supply chain, including meat, seafood, dairy, and beverages. Blockchain strategy enables real-time access to information by all participants, assigns a unique digital identity for each product that helps to trace the product from the point of origin to the end consumer, records quality control checks at various points in the supply chain, and enables quick identification of affected products in the event of a recall.

In general, blockchain technology has the potential to increase efficiency and foster trust throughout the food supply chain, resulting in safer and more sustainable food systems.