At the beginning of time, humans sourced food locally first as\nhunter-gatherers then as agriculturalists. Fast forward to the 21st century,\nour food comes from different parts of the globe. Cranberries from the US, meat\nfrom Canada, rice from India, apples from Australia. With a pro-global supply\nchain comprising of multiple stakeholders like the producer, regulatory\nagencies, banks, food manufacturing companies, and importers spanning different\ncountries and continents there are quite a few challenges.<\/p>\n\n\n\n\n\n\n\n
Currently, the agriculture industry is plagued by many\ninefficiencies that have stressed the global supply chains, especially during\nthe COVID-19 pandemic. The sector struggles to bring down food waste, improve\ntraceability across the supply chain, introduce faster payments across\norganizations and borders. <\/p>\n\n\n\n
A major challenge faced by the sector is provenance or knowing\nthe origin of ingredients that go into food processing. Consumers want to know\nwhere their food comes from, while retailers want to be sure of what they are\nselling. But with a complicated global supply chain, the components that go\ninto the final product can be incredibly complex. Hence it is crucial for\ncompanies to have this information easily to act quickly and take remedial\nactions when it needs to and also to build trust in the consumer. <\/p>\n\n\n\n
According to the UN, roughly around 1.4 billion tons of all food\nproduces is wasted due to the inefficiencies of the food supply chain, with 75%\nof waste occurring before it reaches the consumer. Hence putting in place a\nsystem that tracks product loss, waste, and expiration dates could cut back $150\nbillion annually in food waste.<\/p>\n\n\n\n
According to a PricewaterCooper\u2019s estimate, global food fraud\naccounts for $52 billion annually and adversely affects up to 10% of all food.\nAt the same time, most companies are unaware of as and when they are\nsusceptible to food fraud. Vulnerabilities can occur across raw materials,\ningredients, products, and packaging. <\/p>\n\n\n\n
Although Blockchain is still in its infancy many believe that it\ncould alter the way business and government function building new foundations\nfor our economic and social systems. It has the capability to become the system\nof recording all internet transactions thereby creating a new technological\ninfrastructure.<\/p>\n\n\n\n
Blockchain can address a whole lot of issues that are faced by\nthe food sector, delivering suitable solutions to persisting challenges as well\nas offering scope for newer improvements in efficiency across supply chains. It\nallows the whole ecosystem to collaborate closely on issues at the industry\nlevel rather than individual enterprise level. <\/p>\n\n\n\n
Also Read: Blockchain in Financial Services<\/a> <\/strong><\/p>\n\n\n\n We shall examine how blockchain can be implemented to build\ntrust and securitized while improving the efficiency of global supply chains.<\/p>\n\n\n\n Starting at the farm level, the farmer links their harvest to the\nweb using Internet of Things (IoT) devices and records all information using\nBlockchain technology. These sensors monitor weather patterns and chemical\nchanges in the soil and can also allow customers to watch in real-time how\ntheir produce is grown. This brings in a level of transparency because the\nintention is to truly reveal everything that happens on the field from the\nwater and temperature to the organic fertilizer that has been used on the field\nand the data is recorded on the blockchain. Another major advantage of\nrecording these data is that it helps to define the microclimate of the place\nto give farmers a basis to decide whether to plant earlier or later. So, they\ncan avoid risk to their harvest. Once that is achieved the fluctuations in the\nagri-commodity prices created by natural disasters can be checked.<\/p>\n\n\n\n Once the produce is received by the food processing company a\nsmart contract can be triggered to automatically initiate payment. A\ntransformative application of blockchain to date, smart contracts could make\nsupply chain management simpler and more transparent. The idea is to create a\nsingle source of information about products in a supply chain that can be\nupdated only with the consensus among all participating stakeholders. <\/p>\n\n\n\n Authorised companies can track down and update the status of the\nproduct thus monitoring risk within the supply chain while ensuring quality.<\/p>\n\n\n\n Once the product is ready for export, a smart contract can be\ninitiated for the approval of various regulatory agencies, and the status is\nupdated for all to see. The information of inspection is communicated to the\nport of destination allowing them to prepare to receive the produce. As the\nproduce is perishable items any delay in the shipping could cost a huge loss.\nBlockchain provides for a robust and secure data exchange and a tamper-proof\nrepository for the storage and sharing of these documents thus reduce delays\nand fraud saving billions of dollars annually. <\/p>\n\n\n\n <\/p>\n\n\n\n Smarter Supply Chain Monitoring<\/strong><\/p>\n\n\n\n With blockchain, supply chains can revive their management and\nhandling, as they will have complete information on the members, which can\noffer a higher level of certainty over food safety. <\/p>\n\n\n\n The evidence is offered to the customer using QR codes and\nproduct labeling. This can block the entry of contaminated food into the supply\nchain, easy spotting in case it has entered the shelves, and remove it. This\nearly alert to both retailers and manufacturers to unsafe food reassures the\nconsumers. <\/p>\n\n\n\n Blockchain can also be of use in the inventory tracking and\nshipping processes, which helps to bring down the associated costs that would\nhave gone to a third-party verifier.<\/p>\n\n\n\n Real-Time Traceability<\/strong><\/p>\n\n\n\n With Blockchain all the participants in the food chain can now\nknow the provenance or knowing the origin of ingredients that go into food\nprocessing. Also, the consumer can have information regarding the real-time\nlocation and status of their food products. Armed with better data, companies\ncan develop more accurate supply and demand forecasting models, localize the\nsourcing of ingredients and restructure contracts. Also, the consumers can\neasily know about the labeling and product information through their\nsmartphones. <\/p>\n\n\n\n We believe Blockchain could be a disruptive technology that could make the food sector a safer, more sustainable, and more efficient system. Verbal Technologies has deep and extensive experience in developing solutions specifically for agricultural clients. Our team can help you identify the opportunities in deploying blockchain and its associated technologies to benefit your business. For more information contact us<\/strong><\/a>. <\/p>\n\n\n\n SEO Consultant Dubai <\/a>| Web Hosting Dubai<\/a> | mobile application development companies in uae<\/a> | it companies in uae<\/a> | custom software development dubai<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" At the beginning of time, humans sourced food locally first as hunter-gatherers then as agriculturalists. Fast forward to the 21st century, our food comes from different parts of the globe. Cranberries from the US, meat from Canada, rice from India, apples from Australia. With a pro-global supply chain comprising of multiple stakeholders like the producer, […]<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5037","post","type-post","status-publish","format-standard","hentry","category-others"],"yoast_head":"\nBenefits of Using Blockchain <\/strong><\/h4>\n\n\n\n
Conclusion<\/strong><\/h4>\n\n\n\n