A new study from Juniper Research shows that blockchain technology could be used to reduce food fraud to the tune of $31 billion in the next 5 years. The study was published on November 25.
Targeting food waste
If blockchain could be used to track food from the farm to consumers, combining it with other revolutionary technologies like the Internet of Things (IoT), the world would save billions in food frauds. It will also help in reducing costs for retailers and help in streamlining operations and supply chains. It could also be a useful tool in simplifying compliance and making food recalls easier.
Dr. Morgane Kimmich, the author of the research, said,
“Today, transparency and efficiency in the food supply chain are limited by opaque data forcing each company to rely on intermediaries and paper-based records. Blockchain and the IoT provide an immutable, shared platform for all actors in the supply chain to track and trace assets; saving time, resources and reducing fraud.”
The study further notes that the food supply chain could gain significant value by adopting blockchains. By 2021, food fraud can be reduced to a substantial degree. By 2024, it could be reduced by 30% by stacking up and coming technologies with blockchain.
Blockchains in food
The food and beverage industry have already started adopting blockchains. Carrefour and Nestle are two of the most prominent companies to have reported a blockchain-led initiative to drive their businesses. However, the most innovative of these solutions is the IBM Food Trust. Created atop the Hyperledger Fabric blockchain protocol, the Food Trust has been working since October 2018 and has tracked millions of products for suppliers and retailers since then.
Cermaq, a Salmon farming company, also adopted the IBM Food Trust blockchain. Labeyrie, a smoked salmon producer also joined the initiative to provide more authentic data to retailers and customers about the food’s journey from farm to the table.
