‘Food’ is one of the vital sources binding mankind and nature. One of the largest production and distribution sectors that has no proper track of records. New technologies and transparent systems like Blockchian integrations, can help every individual, producer to consumer to
track and trace their production and consumption respectively. Blockchain food traceability is an untitled dream of the sector. With the abilities of blockchain and a well-executed traceability system, the
possibilities of tracking each of your ingredients are almost possible.
Statistics on Food Production and Distribution
- China, the United States, India, Brazil, and Indonesia are the top 5 food-producing countries with a global population of 8.1 billion people.
- Agriculture uses around 70% of all freshwater withdrawals and is responsible for around 26% of global greenhouse gas emissions.
- The global population is expected to reach 9.7 billion by 2050, which will put additional strain on the food system.
- Food scarcity is abundant, and so is food waste due to improper calculations and forecasting.
- World Food Production estimates that more than 345 million people will face high levels of food insecurity in 2023.
The numbers in the sector seem scary and huge, but to manage the scene, it's important to understand that the better we trace and track records of each and every inch of food production and distribution, The better it could be anticipated and tackle the inflation that can be
any time soon.
Importance Of Blockchain in Food Supply Chain
The very simplified idea that is running behind the scenes and the necessity to induce the advantages of blockchain and its distributed ledger systems is to ensure there is transparency in the production and distribution lane. The food is produced and the owners get their right
pay, while the market also functions smoothly without inflation. Manage supply over demand and ensure production meets the maximum demand.
Bringing blockchain into the food supply chain eliminates the need for third-party intervention, ensuring the seller and buyer meet directly. Reducing time and overwork. Unnecessary stagnation, warehouse costs, and delays in reaching the market are all eradicated. With
empowered AI and ML in blockchain technology, food traceability, better risk analysis, and data driven Production and distribution waste can be cut down over time.
The most complicated part of raw material tracing and tracking a product’s lifetime and circulation period is made simple and accurate with blockchain for food traceability.
Different Attributes To Look Up on Blockchain In Food Supply Chain
Food Safety Regulations
The Food and Drug Administration (FDA) is consistently improving food safety measures. The FDA, along with the Department of Agriculture in the USDA, are collaboratively acting to implement the Food Safety and Modernization Act (FSMA) by increasing control and introducing
preventive measures with respect to production.
Transparency Paradox
Food traceability is an actual boon for the system and sector. Meanwhile, the coin can flip to the other side, where strategies exploit market pricing and dynamics, which can be deterrents. Dynamic pricing is meant to keep the market highly competitive and consistently
participate in the market by buying, selling, hedging, etc. When the participants and counterparties are very cautious about being transparent, expose pricing and hedging strategies.
The Blockchain Migration
From finance to manufacturing to food, blockchain has been deeply ingested in most sectors, optimizing operation processes, improving efficiency, and contributing in a lot more ways. The agricultural and food markets are very adaptive to blockchain in food chain influences, yet
the need to be highly competitive ultimately drives the sector into it. This ensures the market is competitive and relevant, and everyone is able to survive.
Blockchain Food Traceability Companies
- Amachains offers smallholder traceability.
- The crystal chain provides end-to-end traceability.
- Elevate Farms develops traceable vertical farms.
- Peer Ledger Advances Internet of Things (IoT)-Based Traceability.
- VOTTUN enables traceable supply chains.
Limitations of Blockchain In Food Traceability
Adaptation is one of the biggest limitations concerning blockchain. Like every sector, it is advancing itself in the market. The lack of participation in versatile mediums stands upright here. Tampering is common when data is not handled correctly by the data collectors. The
trickiest barrier to solving a unified system is adopting definitive standards and regulations, which everyone concerning blockchain in food traceability has to do.
The Future Of Blockchain Technology In Food Traceability
With the potential to revolutionize food traceability with its immutable and transparent nature, every tiny bit of supply is covered. Blockchain technology in food traceability prevents food fraud and contamination, improves food producers, distributors, and retailers clarity,
increases customer trust, and helps them make effective purchases.
Food producers, distributors, and retailers benefit from blockchain involvement in the sector. The created digital ledger tracks and traces every transaction and movement in a definite manner. The stored ledger is virtually impossible to tamper with or alter. Also, this benefit
in identifying the reason for food contamination concerns food safety. Making it easy to recall and prevent future problems.
Reduces food waste and coordinates better distributions; blockchain in the food supply chain provides real-time information on the quality of perishable goods. Contributing to optimizing supply chain logistics and reducing food spoilage, the future of blockchain technology in
food traceability looks promising.
If you’re in the business of filling bellies, TransGenie is the perfect solution to elevate your business through blockchain-based food traceability.
Take to our expert today to get started.
Yokesh Sankar