blockchain could improve global food safety

The blockchain technology is rapidly gaining interest from different industries, since the more it is explored, the more the promise of disruption of traditional business models is considered unavoidable. For example, during the Food Valley Expo in October, the potential and possibilities for solutions based on the blockchain for agricultural foods were presented, using this technology as a tool to create trust, transparency and empower digital compliance.


There are so many steps that need to be made in order to provide people with the food they need and want. Millions of pounds of food are distributed daily through many people, organizations, and of course, governments that cultivate, control and analyze, ensuring the food reaches the end consumers. The efficient collaboration based on trust among people, organizations and institutions is necessary so that the global food supply chain can be preserved.


The need for change is essential, and this could be seen in the data shared by the World Health Organization (WHO). According to WHO an estimated 600 million, or almost one in every 10 people in the world, fall ill after eating contaminated food every year. And 420,000 of them die, resulting in the loss of 33 million healthy life years from global societies and economies.

While being the most negative and strong reason to tackle the problem, it is not the only one. The agricultural food business is a very complex environment, with many different stakeholders, perishable goods that need to be transported across the world, and low margins. Not only is the demand for food growing, but also the desire to have ‘any’ food, ’any’ time, ’any’-where. This means that it has been necessary for food supply chains to go global. While the income for farmers remain marginal, they are under pressure to produce high quality food as consumers become more demanding.


Through the last years, we have witnessed many unusual and unsettling food scandals, like exploding watermelons, fake eggs in China and glowing meat in Australia. In a recent survey by Trace One, 68 percent of consumers in the U.S. said they don’t have enough information about what is in their food and its origins. More than 90 percent of consumers reported it is somewhat to very important to know where their food is coming from. Trust and lack of transparency are issues that are common in many industries in the face of increasing demand by consumers for better and more trustworthy information, especially in food.


As pointed out by Chris Morrison, CMO of Trace One: “The good news is that consumers worldwide have embraced the value of private brands, but the bad news is that they still do not trust the quality, safety and ingredient documentation of any food brand – be it private or national… Consumers are demanding more information and want reassurances that the foods they’re eating are safe – and originating from reliable sources. Brands that go above and beyond to share accurate and reliable product information with consumers will ultimately be rewarded with increased consumer trust.”


As written by Bridget van Kralingen on the IBM Think Blog: “The focus on safety throughout the global food supply chain is at an all-time high, for all the wrong reasons. The numbers of people sickened by contaminated food products continues to escalate and recalls are issued with increasing frequency… Like virtually every other complex issue in a world dominated by data and how it’s used, the complex “system of systems” that is our global network of food production, inspection and distribution is primed for improvement via more open, transparent and fluid handling of information at every point in the journey from field to fork.”

And here is where the blockchain can make a positive impact and offer a solution for the challenges the industry is facing. If accurately implemented, the blockchain technology could create an unchangeable digital record of data, listing the transactions. Because of its specifics, the technology provides trust between peers/stakeholders and the necessary transparency. Therefore it is believed to be the best solution for tracing the safety and authenticity of goods as they move from one food supplier to another and further across the supply chain – all the way to store shelves and the end consumer. Also – by transferring all transaction records and listing them on the blockchain could generate time and cost savings.

A collaboration between IBM, Tsinghua University and Walmart is set to offer a similar solution to these issues. Top talents in transaction security and authentication technology, experts in supply chain, logistics and food safety gather to create a new model for food traceability, supply chain transparency and auditability, using an IBM Blockchain. This is going to help retailers better service and manage the shelf life of products and limit the risk of non-compliance in stores, guaranteeing that consumers are getting safe products and goods.

No comments:

Post a Comment