Blockchain use cases

Food Industry

Food Industry

The Global Blockchain in Agriculture & Food Supply Chain Market size was estimated at USD 118.31 million in 2021 and expected to reach USD 142.06 million in 2022, and is projected to grow at a CAGR 20.32% to reach USD 359.08 million by 2027. The food industry denotes a complex global industry made up of numerous small- to large-scale enterprises or industries that are involved in the production, processing, supply, and distribution of food products.

UseCases

Traceability

Failure of the global food supply chain has evolved to represent any issue with the supply systems. You only need to look back two years to see how poorly supply chains have affected the food business. One tool that could enhance future food system rules, traceability, and the efficiency and success of these supply chains is blockchain technology (BT).

The food business could employ BT to increase consumer trust, manufacturing speed, and product efficiency right now. By enabling quicker and more cost-effective product deliveries, increased supply chain transparency and traceability, upgrading real-time trade partner coordination, and significantly improving record-keeping by all parties involved, BT may significantly improve global food supply chains.

Since the food industry is currently ill-equipped to locate the true source of contamination, it frequently goes undetected until it is too late.

For frequently substituted fish like grouper, cod, and snapper, seafood may be mislabeled anywhere between 26 and 87 percent of the time, masking less attractive, more affordable, or more accessible fish. Where in the supply chain seafood fraud truly occurs is a mystery. It can be challenging to determine whether fraud is taking place on the boat, during processing, at the retail counter, or somewhere else along the way because the seafood supply chain is becoming more complicated and ambiguous

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Problem

Failure of the global food supply chain has evolved to represent any issue with the supply systems. You only need to look back two years to see how poorly supply chains have affected the food business. One tool that could enhance future food system rules, traceability, and the efficiency and success of these supply chains is blockchain technology (BT).

The food business could employ BT to increase consumer trust, manufacturing speed, and product efficiency right now. By enabling quicker and more cost-effective product deliveries, increased supply chain transparency and traceability, upgrading real-time trade partner coordination, and significantly improving record-keeping by all parties involved, BT may significantly improve global food supply chains.

Since the food industry is currently ill-equipped to locate the true source of contamination, it frequently goes undetected until it is too late.

For frequently substituted fish like grouper, cod, and snapper, seafood may be mislabeled anywhere between 26 and 87 percent of the time, masking less attractive, more affordable, or more accessible fish. Where in the supply chain seafood fraud truly occurs is a mystery. It can be challenging to determine whether fraud is taking place on the boat, during processing, at the retail counter, or somewhere else along the way because the seafood supply chain is becoming more complicated and ambiguous.

Solution

Blockchain can help us solve these issues by making traceability easy. Customers can now scan a QR code to see where a food product comes from as well as be informed about every meaningful step of its production chain, increasing their trust in any brand.

With increased security, blockchain technology can be used to track a finished or marketable product from the farm to the fork. If Blockchain Technology is utilized with IoT (Internet of Things), the entire food supply chain can be tracked almost instantaneously. The IoT/QR code can be scanned and tracked for complete transparency in seconds.

The FDA has working toward complete product traceability since since the Food Safety Modernization Act (FSMA) was passed. The FSMA’s section 204(d), “Enhancing Tracking and Tracing of Food and Recordkeeping,” includes record keeping as a requirement for foods that have been recognized as high risks.“FSMA section 204, Enhancing Tracking and Tracing of Food and Recordkeeping, instructs the FDA to develop additional recordkeeping requirements for certain foods to help establish clear tracing of a food product’s source when needed to address food safety risks.” Using technology-enhanced tracebacks, harmful foods and supplies can be removed with pinpoint accuracy at specified sources (recalls). Additionally, 9 CFR Part 86 Animal Disease Traceability requires traceback.

Using blockchain as a supporting technology for food traceability equally at the first and last mile provides a number of benefits. These include:

  • Discovering sources of wastage in the food supply chain
  • Ensuring that organic certifications on food are legitimate
  • Reducing the risk of out of date food spoiling before reaching the end consumer
  • Reducing attempts to tamper with food or advertise falsely
  • Cutting down on food recalls due to contamination
  • Ensuring end consumers are buying original and not fake products
  • Smart contracts between trading partners
  • enhanced protection of product data
  • Food supply chain disintermediation
  • increased product traceability and visibility
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