Blockchain “the answer to global food supply chain waste”
Every year, a third of the food produced globally is lost or wasted. Losses occur at all stages of the supply chain, from production and harvesting to processing and distribution.
Furthermore, the production and transport of food generates greenhouse gases, with discarded food alone accounting for 8% of global greenhouse gas emissions.
Also, much of the food is “lost” thrown away due to aesthetics. Grocery stores in the US and Europe have strict cosmetic regulations, leading to the rejection of perfectly edible products. The answer to food waste is to better manage the supply chains that underlie it. This requires a solution that attacks complexity with simplicity.
Enter blockchain, which has the potential to significantly improve the agricultural supply chain, which lacks traceability and transparency.
Blockchain technology provides a decentralized and secure database that records every transaction along the supply chain. Imagine real-time tracking and traceability of products, with regulated updates at each specified stage of a journey.
Blockchain can verify the origin and safety of food
Using blockchain technology, consumers can easily verify the origin and safety of their food, while farmers can access important information about market demand and prices. A study by IBM found that 71% of consumers who feel traceability is important say they will pay a premium for brands that offer it.
Blockchain technology can streamline and automate supply chain processes, allowing bills of lading to become electronic, or smart contracts to ensure acceptance. More goods will end up on the tables being consumed, not rotting in the harbor while officials and companies squabble over specifications.
Smart contracts also eliminate paper waste. Over the past 20 years we have seen an actual net increase in paper use and filling. In an era of cloud and e-mail, the agri supply chain must respond to the information age.
Imagine sending documents, receiving cargo, clearing for export and settling for payment, all while incurring limited transaction costs and zero paperwork. This is a viable solution.
Then there is the world of digital marketplaces built on their own blockchains. This is where price updates sit together with several groups’ tender services. All this while connecting farmers to end buyers and using IoT trackers to sort out food fraud and food waste.
At AgriDex, we have spent the last four years working towards a global blockchain that provides digital marketplaces and supply chain information for all participants in the global food chain.
The end goal is efficient supply chain management, by tracking food from farm to consumer. This includes reducing food loss, through:
- Provide information about food needs and offers
- Helping farmers more accurately predict and meet consumer demand
- Reduce the amount of surplus or unsold food.
Henry Duckworth is COO of AgriDex, a a global blockchain that provides digital marketplaces and supply chain information for all participants in the global food chain. blockchain that provides digital marketplaces and supply chain information for all participants in the global food chain.
