IndustryMar 8, 2023
Ensuring Your Foods Integrity With Blockchain-Based Supply Chains
Food retailers are discovering that providing transparency in their supply chains can enhance sales and brand loyalty.
Despite living in a world where information is readily available at our fingertips, many people are still in the dark about the origins, agricultural practices, and ethical sourcing of the food and beverages they consume. Whether it's produce, dairy, meat, seafood, or water, consumers often lack complete transparency in the supply chain.
Can we really be sure about what we're putting into our bodies? The food supply chain is a complex and obscure system, with numerous intermediaries and hidden variables attached. Can you be certain that your clementines were grown in Florida? Were your eggs really laid by free-range chickens, or were your beef patties genuinely made from grass-fed cows? Is our bottled water truly sourced from the cold springs of Maine? There is a reason why many health-conscious customers will pay premium prices at farmers markets, it’s because they value knowing the source of their food.
This knowledge gap is why initiatives like ethical sourcing and traceability are gaining traction, and becoming increasingly important for consumers who care about the quality and impact of their purchases on the environment and society.
Fortunately, emerging technologies such as blockchain can be used to track the origin and journey of our food and water. By recording every transaction on a shared, tamper-proof ledger, blockchain allows for greater transparency and traceability in supply chains.
With public blockchain networks, every time a product changes hands or moves from one location to another, a new block is added to the chain with information about the transaction, such as the date, time, location, and parties involved. This creates an unalterable and transparent record of the product's journey from farm to table, or from source to tap.
The Advantages of a Transparent Food Supply Chain
Food products can pass through many hands before reaching the consumer, and it can be difficult to know where a particular product came from or how it was produced. This lack of transparency can be concerning for many reasons. For example, consumers may want to avoid products that have been produced with harmful chemicals or in a way that is harmful to the environment. Similarly, consumers may want to support local farmers or producers and may be willing to pay a premium for products that are sourced locally.
The food and beverage industry is becoming increasingly aware of the importance of transparency and traceability in the supply chain. With 52% of consumers considering it important to know the origin of their food, and 63% willing to pay more for responsibly made and transparently sourced products, it is clear that consumers are demanding greater transparency in the food supply chain.
Blockchain technology can provide an effective solution to these demands, by providing a secure and transparent ledger for tracking the movement of food from its source to the supermarket. In a case study conducted by IBM’s Food Trust program, 94% of consumers said that they would be more loyal to food brands that offer complete transparency. The implementation of blockchain technology in the food industry can not only improve supply chain efficiency, but also increase customer loyalty, satisfaction and trust.
Some companies are already using blockchain to track the origin and journey of their food and water products. Most notably, IBM's Food Trust initiative utilizes blockchain technology to provide a shared record of food supply chain data, including information about the source of ingredients, processing, packaging, and shipping. Major retailers such as Walmart, are utilizing IBM Food Trust’s blockchain platform to track their food products through the supply chain.
Similarly, the Web3 based WaterChain project is exploring the use of blockchain to track the origin and quality of water, with the goal of providing a more transparent and secure way to manage water resources.
How IBM is Revolutionizing the Supply Chain Ecosystem
In today's globalized food market, ensuring the safety and integrity of our food supply chain has become a crucial priority. With the increasing incidence of foodborne illnesses and the growing demand for sustainable and ethically sourced food, consumers are more conscious than ever about the origins and quality of their food.
To address these concerns, the US Food and Drug Administration (FDA) has turned to the blockchain based IBM Food Trust program, to provide end-to-end supply chain transparency and traceability. Taking it a step further, IBM partnered with Atea’s Seafood Provenance Network and the Norwegian Seafood Association to track the integrity of seafood, providing unprecedented insights into the entire journey of seafood products from the ocean to the consumer's plate.
By using the blockchain network, seafood producers can create a “single version of the truth" about their supply chain events, allowing consumers to trace their seafood products directly back to the source. To provide even greater proficiency, customs agencies can easily access data about the volume and location of shipments, which expedites customs clearance.
This blockchain-based tracing system will enable customers in-store to know the fjord where the fish is from, when it was fished, the feed it has eaten, and whether the facility uses sustainable methods. This collaboration is a major step towards building a more secure, sustainable, and trustworthy food system that benefits everyone involved.
Norwegian Fjords offer rich fishing waters with an abundance of cod, coalfish, and pollack.
Establish Consumer Trust by Integrating Blockchain Infrastructure
In a world where trust is paramount, businesses must ensure their clients have confidence in their products. Blockchain infrastructure integration offers a solution to the lack of transparency in the supply chain, thus providing a secure and immutable record of every transaction.
While the IBM Food Trust initiative is paving the way, other large-scale manufacturers can follow suit by adopting blockchain technology to enhance transparency and promote the quality of their products.
Chain's suite of leading blockchain infrastructure services, provides tailored solutions for various industries ranging from finance to fashion. By implementing decentralized technology, Chain empowers businesses to establish consumer trust and deliver products with integrity. By leveraging these solutions, businesses can provide consumers with peace of mind, knowing that they are getting what they paid for.
With Chain's enterprise solutions, mass manufacturers can drive a more sustainable and efficient industry that benefits all stakeholders. To learn how your business can implement blockchain technology into your supply chain operations, get in touch with a team member today, or visit www.chain.com/contact-us.
Chain is a blockchain infrastructure solution company that has been on a mission to enable a smarter and more connected economy since 2014. Chain offers builders in the Web3 industry services that help streamline the process of developing, and maintaining their blockchain infrastructures. Chain implements a SaaS model for its products that addresses the complexities of overall blockchain management. Chain offers a variety of products such as Ledger, Cloud, and NFTs as a service. Companies who choose to utilize Chain’s services will be able to free up resources for developers and cut costs so that clients can focus on their own products and customer experience. Learn more: https://chain.com.
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