Food fraud, recalls and health issues are prevalent in the food industry. When dealing with food, these issues largely can’t be avoided. However, they can be dealt with in an organised, more efficient manner.
Many companies lack the ability to efficiently track their food to the consumer and to the farmer, especially in the case of a recall. According to a recent Juniper Research paper, blockchain could allow for $31 billion dollars in food fraud savings by 2024. But how is it any different to what we have now?
The potential of blockchain in food
Research author, Dr Morgane Kimmich, says: “Today, transparency and efficiency in the food supply chain are limited by opaque data forcing each company to rely on intermediaries and paper-based records. Blockchain and the IoT provide an immutable, shared platform for all actors in the supply chain to track and trace assets; saving time, resources and reducing fraud.”
The potential of blockchain is in its ultimate transparency, its permanence and traceability. Blockchain provides an opportunity for better data management in the food supply chain, which in turn means that companies can have better visibility when things go wrong.
More than just blockchain
As the Juniper Research paper points out, blockchain and the Internet of Things will be a powerful partnership in securing food supply chains. IoT provides physical and digital assurance through “location tracking sensors and humidity monitoring” whereas blockchain provides “an immutable platform where this data can be accessed by every player in the process.”
It’s no surprise that blockchain technology, while powerful, will need to work with other technologies to reach its full potential. Blockchain and IoT will work together to save costs, mitigate risk and ensure that supply chains are more transparent as a whole. This value will extend from farmers, further down to retailers and then to consumers.
Consumers can know that the food they’re eating is safe, and has been sustainably and ethically sourced. Retailers, on the other hand, have added security when things go wrong, such as when recalls occur, and can confidently know where their food is coming from and where it is going.
Blockhead has its own supply chain solution, STAMP Supply: an easy-to-use platform that integrates with your data and identifies anomalies, as well as tracks it throughout the supply chain. You can find out more here or contact us for a demo here.