Blockchain is a collection of immutable pieces of information that are distributed across a network of computers called nodes. The information stored on the blockchain is immutable because before any data is added to the blocks that form the blockchain, they are verified and distributed for all participants to see.
Blockchain technology has found application in many sectors of the economy including finance, supply chain, agriculture, education, and logistics. The adoption of this technology by many industries relies on its basic properties — decentralization, speed, transparency, and immutability.
Blockchain is the latest technology to find its way into the food industry, especially in the area of the food supply chain. The ultimate aim of using blockchain in the food supply chain is to promote food safety and quality.
Besides the promotion of food safety and quality, blockchain can also streamline the supply chain and reduce the amount of money spent by retailers, improve and make regulatory compliance simple, enhance expenditure of food recall process and aid the tracking of food products from seeding or production to the final consumer.
This article will focus on the benefits of this technology and use cases in the food safety industry.
How Blockchain Enhances Food Safety in the Supply Chain
When it comes to the food supply chain, a number of factors exist that if overlooked, may cause harm to consumers who reside at the bottom of the supply chain. Some of these factors include food traceability, conflicting labeling, and food safety.
In the absence of product tracking systems, the way a product is processed will remain a mystery to the consumer. Food traceability involves tracking the food product from the top of the supply chain till it reaches the consumer. The process requires additional expenditure and this explains why many companies tend to overlook it.
Another issue that affects consumers is the inaccurate labeling of food products. In some cases, ingredients outlined on the label of food products may be different from what is in the content. This simply means a lack of transparency.
According to an example cited by Blockchain 101, a large number of individuals are drawn to vegan foods. However, many of the vegetable-based products use ingredients whose sources are meat-based products and then classify them as chemical elements.
This poses a great concern because people who do not have knowledge about chemical compounds wouldn’t be able to differentiate what they are using. This, surely, is a fraudulent way of doing business.
Food safety is a pressing issue in the supply chain. Mishandling and exposure to food products can lead to contamination, which poses a serious health risk to consumers.
What is more troubling is that major industries lack the ability to trace sources of food contamination. Many times, we get to hear of food poisoning because contamination of products goes undetected. Poor food safety comes with serious implications. For example, if a company’s product is found to be contaminated(it may be too late in some cases), the organization will have to deal with regulatory authorities, losing their reputation and lawsuits, including payment of fines in huge sums.
The role of blockchain in promoting food safety
While it seems that the food industry and supply chain is at the infant stages of tracking products, from processing to the customer, the blockchain has the capability of doing this effortlessly.
Integrating blockchain technology into the food supply chain will help consumers buy products without panicking or having fears of buying contaminated foods. As stated earlier, most cases of food contamination go unnoticed until the harm has been done.
But with blockchain technology, companies can effectively monitor the handling of food products, from raw materials to processing, finishing, supply, and distribution.
In the case of agricultural products, including fruits and vegetables, the exact quantity of fertilizers, herbicides, and preservatives used during storage can be recorded on the blockchain. This will help customers make valid choices before purchasing them.
Also, with blockchain, fake products which may pose health concerns can be eliminated. This is because the blockchain data will be able to trace and tell which products belong to a particular group and which doesn’t.
Furthermore, even in cases where products with defects still find their way to the market, blockchain data will give more information about batch production, making recall processes faster.
Use cases of Blockchain in the Food Supply Chain
Blockchain technology is gradually penetrating the food industry, with a number of companies using it to take charge of their supply chains. Below is a list of some companies that have embraced this technology;
Walmart
Before now, it took Walmart about six days to track the whole processing stage of their sliced mango product. However, the company now uses blockchain technology to track this process which takes split seconds. The tracking of the sliced mango began from Mexico to the Walmart store.
Though the product passed through different stages, the blockchain made the tracking process seamless, thus helping Walmart save a lot of time.
Anheuser-Busch InBev
Anheuser-Busch InBev is one of the largest breweries in the world that uses blockchain technology to improve its supply chain traceability. Because this company gets most of its raw materials from Africa, there are suggestions that the major aim of using the blockchain is to better the lives of people in the region.
Nestlé
Nestlé is known for the production of beverages and cereals. To promote food safety, the company uses blockchain technology to trace their milk from farms to the production house and then to the factories.
The company is currently working with OpenSc to roll out this project which will give them a competitive edge over other companies producing similar products. Knowing that this technology enhances transparency and builds a good reputation, they also plan to do the same for other products, besides milk.
Kraft Heinz
Kraft Heinz is another company embracing blockchain technology mainly to enhance safety during the production and handling of its range of children’s food. Because infants have immune systems that are still developing, it is important that good hygiene is maintained while handling kiddies products, especially food.
Also, in order to ensure that baby foods are always of the highest quality, Kraft Heinz plans to integrate the traceability feature with blockchain.
Tyson Foods
Tyson Foods now uses blockchain technology to trace its supply chain from production houses and farms to the factories. Working with FoodLogiQ on the project, they also plan to use blockchain on all of their products.
Other companies using blockchain technology in their food supply chains include Unilever, JBS, Albert Heijn, Bumble Bee Foods, and more.
Benefits of using blockchain in food supply chain
There are several benefits of using blockchain in the food supply chain. They include:
- Creating a robust means of managing food safety concerns in the supply chain- This will enhance transparency and build trust among even the smallest of consumers just like Walmart and Nestle are doing with their sliced mango and milk products, respectively.
- Minimizing fraud through the collection of error-free data– Any data recorded on the blockchain is immutable, hence making it difficult for any manipulation to take place. Also, for any significant breach of security to occur, a hacker must have access to over 51% of the nodes controlling the network, which is almost impossible.
- Speeding up the process of transaction– The blockchain creates alternative methods of payments such as the use of cryptocurrencies which are fast and easy to process. It also makes the transborder payment for food products seamless.
- Eliminating the need for middlemen who most of the time contribute to the high prices of goods and services, especially food.
- Eliminating counterfeit food products– Imitation is a major problem of processed food. Using blockchain to record every data about food products gives more insight into which product is original and which is counterfeit.
- Closing gaps for mislabelling– As stated earlier, mislabelling is a major problem in the food supply chain. With blockchain, data is bound to be error-free, hence, preventing mislabelling of food products.
In Conclusion…
- We have seen some of the major issues confronting the food industry, especially in the aspect of safety and how blockchain technology is proving to be a solution.
- The blockchain is a promising technology with several properties that are of great benefit to the food industry. When used, it can enhance transparency in the food supply chain, enhance safety, increase consumer trust and minimize food fraud.
- Many companies are currently experimenting with this technology which has proved not to only promote safety but also shown economic viability.
