According to a recent report by cointegration consulting and vechain, blockchain technology and the Internet of things (IOT) can solve some of the most urgent challenges facing the food industry, saving us $100 billion a year.
The report predicts that $300 billion worth of food in the entire supply chain will be tracked every year for seven years.
The global food industry’s supply chain lacks transparency and accountability, resulting in billions of dollars in losses every year. For example, it is believed that 20% of the world’s wine sales are fake, worth $6 billion. When it comes to the seafood industry, the situation is even worse. “25% to 70% of red snapper, wild salmon and Atlantic cod are counterfeited by less ideal, cheaper or easier to obtain varieties.”
“Food safety has been one of the multi billion dollar challenges that people have been trying to solve for decades,” said arseniy Dain, CEO of cointegration consulting
Using blockchain to track items in the food supply chain is one of the better explored use cases in blockchain technology. As a service provider, IBM is in a leading position in this regard, and many global industry leaders, such as Wal Mart, Carrefour and California giant berry farms, have also joined this ranks.
Blockchain and Internet of things are usually used in series because they can bring more benefits by combining them. IOT sensors (such as temperature sensors for frozen items) can send accurate information about food to the blockchain network, so as to provide stakeholders with a snapshot of the whole supply chain.
These data can be used to ensure the authenticity, freshness and overall quality of food. The report believes that this combination of technologies can help the industry save billions of dollars.
The report states: “we estimate that the solution based on the Internet of things + blockchain can reduce the cost of the global food industry by US $70 billion a year and generate US $47 billion in revenue growth. In addition, we hope that the solution can reduce the potential loss caused by food safety risks by us $12 billion to US $14 billion.”
Lu Yang, CEO of vechain, said: “according to our experience in international food trade and large-scale traceability platform, the introduction of blockchain technology into the food value chain will bring long-term benefits to the whole business model.”
Editor in charge: PJ