Practical uses cases of blockchain in the food industry
Blockchain technology is revolutionizing all industries, and the food industry is no exception. Blockchain technology could be used to tackle a few of the most challenging problems of the food industry, including counterfeit products, slow product innovation cycles, and poor food safety. Moreover, blockchain can further elevate the working of the food industry, making it more efficient and beneficial for the people involved. This article underscores various means and ways to revolutionize the food industry through blockchain technology.
Improved Food Traceability
without a doubt, blockchain is fully equipped to resolve one of the biggest issues in the food industry, which is food traceability. Currently, the end consumer is not aware of how and where their food was processed, and hence it puts a question mark on the authenticity and reliability of the product. Blockchain food traceability resolves this problem by improved traceability. The innovative solution can help trace the product from the manufacturer to the end consumer. Consumers could easily check out the processing date and time through blockchain food traceability. This increased visibility in the production line would eventually lead to higher efficiency and better food quality in the market.
Enhanced Food Safety
Blockchain food traceability ensures enhanced food safety, and this is perhaps the biggest application of blockchain in the food industry. As, of date, a vast majority of food manufacturers are unable to track the true source of contamination. Hence, without identifying the source, the problem cannot be resolved. However, blockchain resolves this issue as food could be tracked from harvest to a finished product. Not only this, but even the byproducts can also be tracked, and this would eventually track the source of contamination which on identification could be dealt with accordingly.
Improved Inventory Management
A blockchain food supply chain could potentially improve inventory management by many folds. More often than not, the usage window is small in the case of food items, specifically dairy items. If the product remains unused or unsold during that window, it is expired. There is a special term known as ‘lead time’ in the food industry, which measures the time from the start of the process to its completion. Hence, the shorter the lead time, the better it is. However, given the delicate dynamics of the food industry, it becomes difficult for businesses to cut short lead time. However, a blockchain food supply chain could resolve this problem as all inventory is managed efficiently at each step. Hence, when the lead time of each process is minimized, the result would be improved inventory management, which seems no less than a far-fetched dream.
Prevention of Price Coercion
The food industry is generally considered one of the most volatile industries as each brand and business has a different price for the product. However, this negatively impacts consumers as they have a limited amount to spend on food items. This can be done by cutting out all middlemen, and as the blockchain has successfully cut out all middlemen from the finance, it can replicate that model in the food industry. Although this would potentially require some research, if the food industry adopts a blockchain food supply chain, the manufacturers or producers can sell their products and produce directly to the end consumer without commissioning any middle man. Once implemented, this would drastically bring the prices of food items down.
Reducing Food Wastage
Food wastage is a concerning issue for the food industry and an environmental concern, and blockchain tends to reduce it considerably before eliminating it. Once implemented, both blockchain food traceability and the food supply chain could help streamline food inventories and aid businesses in efficiently managing their products. This would further ensure that all food safety protocols are followed during food processing, and hence food wastage would be reduced to a great extent.
Eliminating Counterfeit Products
Perhaps one of the biggest challenges the food industry faces is that of counterfeit products. Millions of people lose their precious lives each year because of such products. Since blockchain food traceability can trace the products from the time of harvest and even before, to the table of the consumer, hence it is predicted that after the integration of blockchain technology in the food industry, the counterfeit products would die their own death as everyone would be able to tell that a product is not authentic from its id. Moreover, the increased competition among good products would bring down the prices.
Blockchain technology has far-reaching applications for the food industry and once integrated, it would revolutionize the industry in ways that were previously impossible. If you want to build a blockchain food delivery app or integrate blockchain into your business, please drop a message. We’ll happily assist you in taking your business to a new level and heights through this remarkable new technology.