Blockchain Beyond Finance: A look at technology’s implementation in food industry
Mon, 26 Nov 2018, 03:39 am UTC
Global food giants and even governments have starting experimenting with distributed ledger technology, commonly known as blockchain, to provide end-to-end traceability of food products for the end user.
The key objective of most of these projects is to instill confidence in consumers that the food item that they are purchasing is safe by allowing them to look into the details of the products’ origin and its supply chain.
The global market for blockchain in agriculture & food is projected to grow from $41.9 million in the year 2018 to $1.4 billion by 2028, growing at a CAGR 42.45% from 2018 to 2028, according to a recent market intelligence report from BIS Research.
Some of the notable initiatives to implement blockchain technology in the food industry are:
UK’s Food Standards Agency trials blockchain technology
In July 2018, the Food Standards Agency (FSA), the UK government department responsible for protecting public health in relation to food, successfully completed a blockchain pilot, marking the first time the technology has been used as a regulatory tool to ensure compliance in the food sector.
South Korean government’s blockchain trial to track beef
South Korea’s Ministry of Agriculture, Food and Rural Affairs and the Ministry of Science and ICT are going to launch a pilot project to track beef throughout its supply chain using blockchain technology, Yonhap reported. The objective is to enhance visibility and transparency for consumers.
The pilot will be launched in cattle farms and slaughterhouses in North Jeolla Province by December. Following the trial period, the system is expected to be officially rolled out in January 2019.
HUI Māori Collective
The HUI Māori Collective is an initiative comprising of 11 companies that together will sell a range of premium products, including wine, Mānuka honey, fruit bars, and Kawakawa soft drink. Their Māori-branded product suite will be hosted on NZ Post’s flagship store on the e-commerce platform Tmall Global, which is part of the Alibaba Group.
The solution is underpinned by a verification process developed in collaboration between AsureQuality, New Zealand Post and New Zealand Trade and Enterprise. The ANZ bank will provide support to develop a future blockchain solution, and bespoke finance solutions to support the Collective manage its financial flows.
Indian state of Kerala seeks to streamline food supply chain using blockchain technology
In June 2018, the government of Indian state of Kerala started a project to implement blockchain technology to streamline purchase and distribution network of milk, vegetables and fish in the state, Business Standard reported.
In August 2017, food industry behemoths including the likes of Walmart, Nestlé, Unilever and others, together with tech giant IBM, announced an initiative to improve the supply chain management of food products.
In a report in June, the Wall Street Journal reported that the ‘Food Trust’ initiative aims to improve recalls, quick identification of the issue, and reducing the time consumers are at risk. This, in turn, will also benefit businesses that will be able to avoid losses arising from broad food recalls. The Food Trust group aims to establish new standards for the rest of the food industry.
In October, IBM announced the launch of the IBM Food Trust.
Blockchain Food Safety Alliance
In late 2017, IBM, in collaboration with Walmart, JD.com, and Tsinghua University National Engineering Laboratory for E-Commerce Technologies, announced a Blockchain Food Safety Alliance in China.
The consortium aims to use blockchain technology to develop a standards-based method of collecting data on the origin, safety, and authenticity of food products. This will help provide real-time traceability throughout the supply chain, encourage accountability, and give suppliers, regulators, and consumers greater insight and transparency into how food is handled, from the farm to consumers.
FoodLogiQ’s Food Industry Blockchain Consortium
FoodLogiQ, a SaaS provider of traceability, food safety and supply chain transparency solutions, in collaboration with a number of food industry leaders including Tyson Foods, AgBiome Innovations, Subway/Independent Purchasing Cooperative, Testo, and others, has launched the Food Industry Blockchain Consortium. In June 2018, FoodLogiQ launched a blockchain pilot with the consortium members to test the application of blockchain to raise transparency within their supply chains.
Dairy Farmers of America partners with ripe.io
In September 2018, Dairy Farmers of America (DFA), a national cooperative owned by dairy farm families across the U.S., has announced that it has partnered with blockchain startup Ripe.io to test the potential of blockchain technology in food and agriculture. Ripe.io recently raised $2.4 million in financing from investors like Maersk Growth and Relish Works, Forbes reported.
Blockchain projects by global food giants:
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