Blockchain in food supply chains
When you hear the word ‘blockchain,’ you probably think of cryptocurrencies like Bitcoin or Ethereum. However, blockchain in food supply chains offers many potential use cases outside the financial sector. Innovations are emerging at every step of the food supply chain. With the goal of revolutionizing the way we produce, transport, and consume food.
Put simply, Blockchain technology is a system of storing information that makes if near impossible to change or destroy data recorded in the system.
The Implications of Blockchain Technology on Food Supply Chains
Blockchain technology can significantly improve food supply chains by enhancing traceability, food safety, and promoting environmental and social sustainability. Modern supply chains face challenges of complexity and lack of transparency. Consumers often remain unaware of where their food comes from or the conditions under which it is produced. This lack of transparency has led to major food scandals, such as the 2013 Tesco horse meat scandal.
IBM Food Trust and Improved Traceability
To address these challenges; international tech giant IBM has introduced the IBM Food Trust. An innovative ecosystem that connects producers, manufacturers, and retailers. Participants in this network upload key data on food products, including their origin and the sustainability practices of the farms. By doing so, they create a secure ledger that ensures the provenance of their products. Blockchain technology supports this process by verifying the authenticity of the data.
Adoption by Major Brands
Several major global brands, including Carrefour, Walmart, and Nestle, have signed up to the IBM Food Trust network. Their participation helps enhance the traceability of their food supply chains, improving transparency and consumer trust. Despite the potential of this system, its success depends on the accurate input of data by individuals involved in the process.
At the production level, the technology improves working conditions and labor rights for farm workers. An estimated 24.9 million people are in forced labour, many of whom work in the agricultural sector.
Hong Kong tech company Diginex developed a platform called eMin to combat this crisis. eMin allows workers and employers to share employment contracts. Both parties must verify the contract, and the system securely stores the agreement on a blockchain. This process prevents exploitation by ensuring the contract cannot be altered. It also reduces the risk of debt bondage by safeguarding the conditions of the agreement.
This system has been integrated into the VerifiK8 mobile application to improve social sustainability on Thai sugarcane farms. While it is a powerful tool, it must overcome the challenge of widespread adoption by remote smallholder farmers to create impact.
” Blockchain technology is a powerful tool that can empower at-risk populations and create trust in digital data. “
– Juliette Alemany, CEO FairAgora
Blockchain technology can revolutionize food supply chains. It offers improved traceability for brands and consumers, as well as better working conditions for farm workers in developing countries. The technology impacts both upstream and downstream stakeholders. However, challenges remain, such as ensuring widespread adoption and relying on individuals to input authentic data.
