Trust in Every Bite: Blockchain's Promise for Food Traceability and Quality Assurance
In recent times, the question of where our food originates has garnered significant interest among individuals. This curiosity often arises from concerns surrounding food safety, sustainability, the support of local businesses, animal welfare, and workers' rights, among others. The ability to trace the origin of food products is crucial, especially during food recalls, as it enables swift identification and resolution of the source of contamination.
By Jung Hwang and Lourival Monaco
In recent times, the question of where our food originates has garnered significant interest among individuals. This curiosity often arises from concerns surrounding food safety, sustainability, the support of local businesses, animal welfare, and workers' rights, among others. The ability to trace the origin of food products is crucial, especially during food recalls, as it enables swift identification and resolution of the source of contamination. Blockchain technology emerges as a powerful tool in tracing the production history and origin of food, providing a remarkable capability for ensuring transparency in the food supply chain1.
Blockchain technology signifies a major shift in the manner in which data is recorded, shared, and verified. It boasts a unique combination of features that guarantee security, transparency, and efficiency. At its core, blockchain is a distributed ledger, which is essentially a database that is shared across a network of participants. This eliminates the need for a central authority and allows all transactions to be openly recorded and verified by all members. The ledger maintains chronological integrity through a consensus mechanism, requiring the majority's agreement to alter or delete recorded data, thus ensuring the blockchain's immutability. Smart contracts further augment the utility of blockchain by automating the execution of contracts when predefined conditions are met, streamlining business processes without intermediaries. Public key cryptography secures transactions and communications within the network, with each participant having a unique pair of keys for secure interactions2.
The benefits of blockchain technology in agriculture are potentially vast. The global market value of blockchain in the food and agriculture sector, which was approximately $32.2 million in 2017, is projected to surge to around $1.4 billion by 2028. The market is expected to grow from $128.87 million in 2020 to $189.48 million in 2021, marking an impressive compound annual growth rate of 47%3.
Blockchain technology can potentially address significant challenges in food supply chains, including traceability, safety, quality, trust, and inefficiency issues. It monitors various data points related to agriculture, from seed quality and crop growth to the distribution of produce. By enabling detailed traceability of information throughout the supply chain, blockchain can enhance food safety and play a crucial role in the development of smart farming technologies and index-based crop insurance, advancing modern agriculture4.
Furthermore, blockchain facilitates transparent, direct transactions by eliminating intermediaries such as banks or middlemen in the agricultural sector. This shift changes how trust is established, relying on cryptographic methods and a peer-to-peer network structure instead of central authorities. For producers, adopting blockchain fosters trust with consumers and enhances product reputation by transparently sharing detailed information on the blockchain. This transparency allows enterprises to better demonstrate their products' value, boosting market competitiveness and creating a challenging environment for suppliers of fraudulent and low-quality goods. For consumers, blockchain provides access to trustworthy and accurate information about food production and transaction processes, addressing concerns about food safety, quality, and environmental sustainability. For regulatory agencies, blockchain offers a reliable and precise information source, enabling the implementation of informed and efficient regulations5.
Secured data storage and management on the blockchain improve supply chain transparency, addressing concerns related to illegal and unethical practices, and aid in quickly tracing the origin of contamination or other issues during recalls. The overarching aim of these technologies is to foster sustainability and ensure food security, marking a notable progression in addressing the complex needs of modern agriculture6.
Numerous businesses are investigating how blockchain technology can be utilized in managing food safety, adopting a proactive approach towards its practical application. IBM Food Trust introduced one of its case studies, which leverages technology such as digital identity and blockchain to facilitate digital connectivity from the farm to the consumer within the coffee supply chain. Blockchain technology plays a pivotal role in assuring customers of the sustainability and reliability of farm products. This assurance not only boosts consumer confidence but also encourages contributions to farmers or their communities. The coffee industry, known for its complexity, involves a wide range of participants, including farmers, processors, exporters, importers, roasters, and ultimately, consumers. Farmer Connect aims to unify these diverse entities by providing accurate information at every stage of the value chain. Through the use of blockchain, farmers are empowered to connect with consumers in a more meaningful way, leveraging secured data to enhance engagement7.
Since 2018, Tyson Foods, the parent company of well-known brands such as Hillshire Farm and Jimmy Dean, has employed FoodLogiQ’s Connect blockchain platform for its supplier management requirements. Utilizing this blockchain technology, Tyson Foods is able to centralize supplier documentation, ensuring compliance with Tyson’s corporate quality standards and streamlining the evaluation of new products. This system also enables the company to monitor and report on quality issues throughout their supply chain, directly engage with suppliers to enhance product quality, and utilize data-driven reporting to make informed decisions regarding food quality issues, supplier performance, and the management of expiring documents8.
Mojix develops supply chain management software aimed at enhancing automation, minimizing waste, and guaranteeing product quality within the food and retail sectors. Leveraging blockchain technology, the software automates processes related to food safety compliance, expiration date monitoring, and inventory control. Presently, Mojix collaborates with notable food enterprises including McDonald’s and Wendy’s9.
The integration of blockchain technology into the food supply chain is still in its early stages and faces several limitations. One significant challenge is scalability, attributed to the high volume of transactions and the necessity for transaction fees to compensate miners for block creation. Given the extensive number of transactions in certain supply chains, it is imperative to address scalability issues meticulously when incorporating blockchain technology. Moreover, the adoption of this technology in the agricultural sector is not widespread and varies depending on the specific agricultural operations. A further obstacle is the digital infrastructure barrier. In many agricultural areas, there is a lack of access to high-speed internet and other necessary digital infrastructure. This limitation hampers the ability of farmers to utilize blockchain-based solutions effectively. Developing the infrastructure to support blockchain adoption is essential for surmounting this challenge. Lastly, the financial aspect of adopting blockchain technology poses a significant challenge, especially for small and mid-sized farms. Allocating budgets for the adoption of such technology can be particularly daunting, given their limited financial resources10. Although this technology has not been widely applied, it still garners significant attention and has the potential to play a major role in the food supply chain. As customers, you should try to look for products that provide detailed information on the entire journey of the food to ensure customers' rights to safe food.
Source: (Appinventiv, 2023):
[1] Global Blockchain in the Agriculture and Food Supply Chain Market. (n.d.). Www.insightaceanalytic.com. https://www.insightaceanalytic.com/report/global-blockchain-in-the-agriculture-and-food-supply-chain-market/1436
[2] Bradshaw, J. (2023). Council Post: Using Blockchain Technology To Increase Transparency In Agriculture. Forbes. Retrieved February 26, 2024, from https://www.forbes.com/sites/forbestechcouncil/2023/01/20/using-blockchain-technology-to-increase-transparency-in-agriculture/?sh=6de1a50860b1
[3] Blockchain Impact On Future Agriculture and Food Industry. (2021, June 15). Appinventiv. https://appinventiv.com/blog/blockchain-in-agriculture-and-food-sector/
[4] Blockchain Technology in Agriculture: Application Techniques. (n.d.). Www.knowledgehut.com. https://www.knowledgehut.com/blog/blockchain/blockchain-technology-in-agriculture#blockchain%C2%A0in%C2%A0agriculture:%C2%A0the-revolution%C2%A0
[5] Xiong, H., Dalhaus, T., Wang, P., & Huang, J. (2020). Blockchain Technology for Agriculture: Applications and Rationale. Frontiers in Blockchain, 3. https://doi.org/10.3389/fbloc.2020.00007
[6] Blockchain Agriculture: Revolutionizing Farming with Eden Green. (n.d.). Eden Green. https://www.edengreen.com/blog-collection/blockchain-technology-in-agriculture#:~:text=Blockchain%20serves%20as%20a%20digital
[7] IBM. (2022). IBM Supply Chain Intelligence Suite - Food Trust. Www.ibm.com. https://www.ibm.com/products/supply-chain-intelligence-suite/food-trust
[8] Tyson Foods Selects FoodLogiQ to Connect Supply Chain. (2018, August 23). Www.tysonfoods.com. https://www.tysonfoods.com/news/news-releases/2018/8/tyson-foods-selects-foodlogiq-connect-supply-chain
[9] Daley, S. (2023, March 22). Five Blockchain Companies Improving the Food Industry. Built In. https://builtin.com/blockchain/food-safety-supply-chain
[10] Mae, Z. (2023, May 18). Blockchain in Agriculture: How It Can Help the Industry. Changelly.com. https://changelly.com/blog/blockchain-in-agriculture/
By Jung Hwang and Lourival Monaco
In recent times, the question of where our food originates has garnered significant interest among individuals. This curiosity often arises from concerns surrounding food safety, sustainability, the support of local businesses, animal welfare, and workers' rights, among others. The ability to trace the origin of food products is crucial, especially during food recalls, as it enables swift identification and resolution of the source of contamination. Blockchain technology emerges as a powerful tool in tracing the production history and origin of food, providing a remarkable capability for ensuring transparency in the food supply chain1.
Blockchain technology signifies a major shift in the manner in which data is recorded, shared, and verified. It boasts a unique combination of features that guarantee security, transparency, and efficiency. At its core, blockchain is a distributed ledger, which is essentially a database that is shared across a network of participants. This eliminates the need for a central authority and allows all transactions to be openly recorded and verified by all members. The ledger maintains chronological integrity through a consensus mechanism, requiring the majority's agreement to alter or delete recorded data, thus ensuring the blockchain's immutability. Smart contracts further augment the utility of blockchain by automating the execution of contracts when predefined conditions are met, streamlining business processes without intermediaries. Public key cryptography secures transactions and communications within the network, with each participant having a unique pair of keys for secure interactions2.
The benefits of blockchain technology in agriculture are potentially vast. The global market value of blockchain in the food and agriculture sector, which was approximately $32.2 million in 2017, is projected to surge to around $1.4 billion by 2028. The market is expected to grow from $128.87 million in 2020 to $189.48 million in 2021, marking an impressive compound annual growth rate of 47%3.
Blockchain technology can potentially address significant challenges in food supply chains, including traceability, safety, quality, trust, and inefficiency issues. It monitors various data points related to agriculture, from seed quality and crop growth to the distribution of produce. By enabling detailed traceability of information throughout the supply chain, blockchain can enhance food safety and play a crucial role in the development of smart farming technologies and index-based crop insurance, advancing modern agriculture4.
Furthermore, blockchain facilitates transparent, direct transactions by eliminating intermediaries such as banks or middlemen in the agricultural sector. This shift changes how trust is established, relying on cryptographic methods and a peer-to-peer network structure instead of central authorities. For producers, adopting blockchain fosters trust with consumers and enhances product reputation by transparently sharing detailed information on the blockchain. This transparency allows enterprises to better demonstrate their products' value, boosting market competitiveness and creating a challenging environment for suppliers of fraudulent and low-quality goods. For consumers, blockchain provides access to trustworthy and accurate information about food production and transaction processes, addressing concerns about food safety, quality, and environmental sustainability. For regulatory agencies, blockchain offers a reliable and precise information source, enabling the implementation of informed and efficient regulations5.
Secured data storage and management on the blockchain improve supply chain transparency, addressing concerns related to illegal and unethical practices, and aid in quickly tracing the origin of contamination or other issues during recalls. The overarching aim of these technologies is to foster sustainability and ensure food security, marking a notable progression in addressing the complex needs of modern agriculture6.
Numerous businesses are investigating how blockchain technology can be utilized in managing food safety, adopting a proactive approach towards its practical application. IBM Food Trust introduced one of its case studies, which leverages technology such as digital identity and blockchain to facilitate digital connectivity from the farm to the consumer within the coffee supply chain. Blockchain technology plays a pivotal role in assuring customers of the sustainability and reliability of farm products. This assurance not only boosts consumer confidence but also encourages contributions to farmers or their communities. The coffee industry, known for its complexity, involves a wide range of participants, including farmers, processors, exporters, importers, roasters, and ultimately, consumers. Farmer Connect aims to unify these diverse entities by providing accurate information at every stage of the value chain. Through the use of blockchain, farmers are empowered to connect with consumers in a more meaningful way, leveraging secured data to enhance engagement7.
Since 2018, Tyson Foods, the parent company of well-known brands such as Hillshire Farm and Jimmy Dean, has employed FoodLogiQ’s Connect blockchain platform for its supplier management requirements. Utilizing this blockchain technology, Tyson Foods is able to centralize supplier documentation, ensuring compliance with Tyson’s corporate quality standards and streamlining the evaluation of new products. This system also enables the company to monitor and report on quality issues throughout their supply chain, directly engage with suppliers to enhance product quality, and utilize data-driven reporting to make informed decisions regarding food quality issues, supplier performance, and the management of expiring documents8.
Mojix develops supply chain management software aimed at enhancing automation, minimizing waste, and guaranteeing product quality within the food and retail sectors. Leveraging blockchain technology, the software automates processes related to food safety compliance, expiration date monitoring, and inventory control. Presently, Mojix collaborates with notable food enterprises including McDonald’s and Wendy’s9.
The integration of blockchain technology into the food supply chain is still in its early stages and faces several limitations. One significant challenge is scalability, attributed to the high volume of transactions and the necessity for transaction fees to compensate miners for block creation. Given the extensive number of transactions in certain supply chains, it is imperative to address scalability issues meticulously when incorporating blockchain technology. Moreover, the adoption of this technology in the agricultural sector is not widespread and varies depending on the specific agricultural operations. A further obstacle is the digital infrastructure barrier. In many agricultural areas, there is a lack of access to high-speed internet and other necessary digital infrastructure. This limitation hampers the ability of farmers to utilize blockchain-based solutions effectively. Developing the infrastructure to support blockchain adoption is essential for surmounting this challenge. Lastly, the financial aspect of adopting blockchain technology poses a significant challenge, especially for small and mid-sized farms. Allocating budgets for the adoption of such technology can be particularly daunting, given their limited financial resources10. Although this technology has not been widely applied, it still garners significant attention and has the potential to play a major role in the food supply chain. As customers, you should try to look for products that provide detailed information on the entire journey of the food to ensure customers' rights to safe food.
Source: (Appinventiv, 2023):
[1] Global Blockchain in the Agriculture and Food Supply Chain Market. (n.d.). Www.insightaceanalytic.com. https://www.insightaceanalytic.com/report/global-blockchain-in-the-agriculture-and-food-supply-chain-market/1436
[2] Bradshaw, J. (2023). Council Post: Using Blockchain Technology To Increase Transparency In Agriculture. Forbes. Retrieved February 26, 2024, from https://www.forbes.com/sites/forbestechcouncil/2023/01/20/using-blockchain-technology-to-increase-transparency-in-agriculture/?sh=6de1a50860b1
[3] Blockchain Impact On Future Agriculture and Food Industry. (2021, June 15). Appinventiv. https://appinventiv.com/blog/blockchain-in-agriculture-and-food-sector/
[4] Blockchain Technology in Agriculture: Application Techniques. (n.d.). Www.knowledgehut.com. https://www.knowledgehut.com/blog/blockchain/blockchain-technology-in-agriculture#blockchain%C2%A0in%C2%A0agriculture:%C2%A0the-revolution%C2%A0
[5] Xiong, H., Dalhaus, T., Wang, P., & Huang, J. (2020). Blockchain Technology for Agriculture: Applications and Rationale. Frontiers in Blockchain, 3. https://doi.org/10.3389/fbloc.2020.00007
[6] Blockchain Agriculture: Revolutionizing Farming with Eden Green. (n.d.). Eden Green. https://www.edengreen.com/blog-collection/blockchain-technology-in-agriculture#:~:text=Blockchain%20serves%20as%20a%20digital
[7] IBM. (2022). IBM Supply Chain Intelligence Suite - Food Trust. Www.ibm.com. https://www.ibm.com/products/supply-chain-intelligence-suite/food-trust
[8] Tyson Foods Selects FoodLogiQ to Connect Supply Chain. (2018, August 23). Www.tysonfoods.com. https://www.tysonfoods.com/news/news-releases/2018/8/tyson-foods-selects-foodlogiq-connect-supply-chain
[9] Daley, S. (2023, March 22). Five Blockchain Companies Improving the Food Industry. Built In. https://builtin.com/blockchain/food-safety-supply-chain
[10] Mae, Z. (2023, May 18). Blockchain in Agriculture: How It Can Help the Industry. Changelly.com. https://changelly.com/blog/blockchain-in-agriculture/