Using Blockchain for Supply Chains

Blockchain & The Food Industry

Is your salmon really salmon? How organic is that salad really? The food industry is probably the least trusted industry and there’s a good reason for it. There is no way of knowing if the claims are true. Blockchain is bringing speed and transparency to all industries. The food industry is extremely inefficient and non-transparent. In fact, only 17% of Americans claim that they trust the food industry. That leaves the majority of Americans wondering where and what is in their food. Previously the supply chain for our food had too many different variables.

Soil, pesticides used, region, date of harvest, and so many other variables creates a tangled web to track. Each step in the supply chain may have a different software provider or not use the software at all to keep track of our food. On top of these different variables, there’s a lot of room for someone to change things or lie.Blockchain is unable to be edited or changed once a block is created. This means that throughout the supply chain nothing can be fudged. It also means that all blocks are connected and easily viewed. So if you would like to trace a pepper back to the exact field it was picked from, you’ll be able to.

None of this is hypothetical anymore.

A new company called Ripe.io is applying blockchain to the food supply chain. They are on a mission to create transparency in the food industry. Their solution is for supply chain tracking/visibility, secure data aggregation/sharing, brand quality/trust verification, and sensor/IoT integration.

They aren’t the only ones either. IBM quickly invested in blockchain and has opened a separate sector focused on food safety. On their main page, they state that “blockchain makes it possible to quickly trace food products to their source for enhanced food authenticity and safety.” They have already partnered with large corporations like Walmart. They are currently running a test with Walmart to track pork from China. Their goal is to create a blockchain system that will make things more efficient and more transparent for the end consumer.

We need to think in terms of efficiency and sustainability.

Another factor that is to be taken into consideration is efficiency and sustainability. As the world population grows, we must focus on sustainability. By 2030, the global food demand is expected to rise by 35% and the global population is expected to reach 8.5 billion. Experts predict that by 2030 our water supply will only fulfill 60% of the world’s water demands. This creates a lot of pressure to utilize our resources correctly. Blockchain gives us the transparency that we need and will allow us to see what needs to change. Blockchain is decentralized and has almost instantaneous transaction time. Although it might not be the solution, it certainly could help us find one.

Energy management = savings for everybody.

Something that affects all of us and is a key player in our food industry is energy. Our food industry consumes incredible amounts of energy. Our crops alone consume around 500 trillion BTUs and our livestock industry uses around 300 trillion BTUs.The majority of this energy is produced using distillate fuel. That’s not so great for our environment.

Blockchain is already being tested in the energy industry. It is helping in the management of power and lowering the amount of wasted energy. Companies like LO3 Energy, Power Ledger, and Grid+ are creating microgrids that allow a customer to buy and sell energy. This is cutting out the middleman and creating lower prices.

This could overall lower food prices, allow farms to produce more, and help lessen the impact that our food industry has on our environment. It will also create a new kind of transparency that will keep energy companies in check.

Good for business.

Having family in the food industry and a background in marketing, I understand how important storytelling is. Blockchain in the food industry will allow companies to tell stories. The consumer will gain trust and be able to know exactly where their food is coming from. This will put pressure on the entire industry to adapt transparency policies and correct deceitful practices. It will also create a new kind of branding opportunity for companies. The doors that blockchain is opening seems to be endless.

Blockchain investment is projected to reach $2.4 billion this year and $9.2 billion by 2021 across all industries. The majority of this investment is expected to come from the banking industry as banks have the most pressure on them. Manufacturing is expected to come in second, in investing in blockchain technologies. The third is the incredibly messy healthcare system.

Supply chain management has many new players.

VeChain aims to create a business ecosystem that is autonomous and self-circulating. They have already partnered with China’s National Research Consulting Center (NRCC) to stop theft and fraud in markets like liquor and tobacco.

ShipChain is another leader that is focused on the shipping and logistics part of the supply chain by a providing track and trace solutions. They believe that their software will allow smaller carriers to pull away from larger carriers. They also are using incentives by rewarding for efficiency.

Top software companies like GoIoT are already seeing high demands for blockchain development. Business professionals see this as an innovation that will make companies and break those who fail to adapt. Would you rather buy a pepper that you can trace or a pepper that just says “trust us”? Blockchain is needed and wanted. It is coming. It is opening the door of opportunity for those who are watching. For once in our life technology may be leading us to a better world.

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