Blockchain in the Food Industry

Blockchain is regarded as the next disruption in the technology world and is being studied in several applications, business sectors and processes. This includes the secure handling and storing of administrative records and digital authentication to strengthen intellectual property rights and patent systems, as well as bring transparency throughout the supply chain, reduce food frauds and enhance food safety.

Blockchain, when integrated with the latest technologies for data capturing, has huge potential in the food industry. A smart contract can reduce the number of intermediaries in the supply chain network. These smart contracts can reduce transaction costs, improve margins and increase efficiency, and as a result, transfer a large chunk of profits to the farmer/producer.

There are several IT giants who have made different blockchain platforms or solutions to the food industry. A few examples include Food Trust and Watson platforms by IBM, Track and Trace, and Leonardo platforms by SAP, Track and Trace, and Internet of Things solutions by Oracle.

Below, I have compiled several examples from different food industries where blockchain has been or is planning to be used in pilot-scale to bring transparency in the supply chain network and gain consumer trust.

1. The Sustainable Shrimp Partnership (SSP) has collaborated with IBM to use its Food Trust ecosystem to provide complete traceability of SSP shrimp for their consumers. Food Trust provides a safe and secure platform where data can be uploaded and shared. This will help to verify the authenticity of product claims. In this case, data related to the shrimp production will be uploaded onto the blockchain which can be accessed by the retailers and consumers at every stage of the process. This platform will also ensure verification of the shrimp’s SSP qualification, eg, it is adhering to the Aquaculture Stewardship Council (ASC) Standard and is antibiotic-free.

2. Nestlé collaborated with OpenSc, a blockchain platform, to trace milk from farms and producers in New Zealand to Nestlé factories and warehouses in the Middle East. This is the pilot project, but a big step that demonstrates the company’s commitment towards transparency. Nestlé wants its consumers to make informed decisions, so they want to utilise blockchain technology to share reliable information with consumers. OpenSc platform is founded by WWF-Australia and The Boston Consulting Group Digital Ventures. Interestingly, in 2017, Nestlé introduced blockchain technology in the IBM Food Trust platform and gave access to its consumers the data related to Mousline purée in France.

3. Cermaq salmon and Labeyrie came together to utilise the IBM Food Trust platform to ensure traceability and transparency in their supply chain. They are aiming at providing information about the fish; its origin, its hatching time and date, breeding conditions, its length, time of its transfer to seawater, the kind of vaccination it was given, etc. Labeyrie, a leading brand of smoked salmon in France, is using blockchain technology for two of its Norwegian smoked salmon products. They are building transparency in the system by giving the consumers the opportunity to access all important information. By scanning the QR code present on the package, the consumers can get access to the entire information of the product.

4. El Ordeño, one of the milk processors from Ecuador, adopted IBM Food Trust to bring transparency and reduce food waste. Through the QR code present in its TRU milk products, El Ordeño wants its consumers to get access to the information about the path that its TRU milk has travelled before it reaches them, from producer to quality centres, cold chains and distribution centers. The plan is to scale the solution to all its dairy products.

5. The Malaysian Palm Oil Council (MPOC) has collaborated with BloomBloc to implement blockchain technology to enhance accountability and traceability. It has developed a blockchain mobile app and web interface to trace palm oil throughout its supply chain. Using a smartphone, each tree and related information, as well as other information of additional checkpoints, are uploaded into the system. This automatically creates an end-to-end digital database, enhancing transparency, accuracy and credibility for stakeholders and end customers.

In conclusion, Blockchain is a promising technology with multidimensional benefits. If used along with the IoT, we can establish a transparent supply chain of food, reduce food fraud and build consumer trust. There are already many companies experimenting with this new technology and these trials will further build the capabilities of the blockchain technology and make it economically viable also to be accepted by the majority of food processors in coming years. In order to bring this technology to the mainstream of the processed food world, food processors, supply chain participants, government authorities, and IT experts have to come together to build a comprehensive plan to implement Blockchain Technology.