BLOCKCHAIN
HERE FOR THE LONG HAUL
www.foodtechnology.co.nz 53
Blockchain is taking off, with
a growing number of food
companies and retailers
experimenting with this new
technology. We see blockchain bringing
many sustainability benefits to the
food industry.
A few weeks ago, Carrefour became
the first European retailer to introduce
blockchain for food products. Initially
launched for free-range Carrefour
Quality line Auvergne chickens, the
technology is being expanded to
eggs, cheese, milk, ground beef steak,
salmon, oranges and tomatoes. A key
part of its 2022 transformation plan,
Carrefour believes blockchain technology
will revolutionise its supply
chains. Its new strategy focuses on
food quality and transparency, with it
setting an ambitious target to generate
EUR 5 billion sales from organic
foods by 2022.
As will be presented at the Sustainable
Foods Summit in Amsterdam
next month, blockchain has many
advantages. It provides transparency
and openness to food companies,
retailers and consumers. Described
as an ‘open ledger’ for transactions,
blockchain gives a secure way to track
and transfer assets through supply
chains. It has the potential to transform
the often opaque and diffuse
supply networks for food products.
Blockchain helps mitigate risks of
food fraud and safety. It is estimated
that one-in-ten food products are
adulterated or mislabelled. Tampered
products can be easily identified
and isolated, preventing expensive
product recalls. By pinpointing contaminated
batches, safe products can
be kept on store shelves and not sent
to landfill. The amount of food waste
can therefore be reduced.
Walmart is working with Nestle, Dole
Food, Unilever and Tyson Foods on
blockchain pilot projects. The retailer
says a 1% reduction in food-borne
illnesses in the US could generate
an additional US $700 million in
increased productivity. Walmart believes
blockchain will do for transparency
what the internet has done for
communication. Apart from transparency
and traceability, blockchain
also brings economic benefits. The
technology speeds up transactions,
enabling farmers to get paid quicker.
It also prevents price coercion and
retroactive payments, common to the
food industry. For instance, the Louis
Dreyfus Company recently conducted
the first blockchain agriculture
commodity trade. It sold 60,000 tons
of American soybeans to the Chinese
government. The entire transaction
took a week, reducing total logistics
time by 80%.
Blockchain could change the dynamics
of the food industry. Like Uber and
Airbnb, it can eliminate middle-men
and reduce product prices. The
technology could shift power away
from the multinationals and trading
houses, which currently set pricing
terms, dictate product varieties, and
quality specifications. By removing
intermediaries, growers can connect
directly with retailers, foodservice
operators, and even consumers.
Small producers are likely to benefit
most from fairer prices and a wider
customer base.
The biggest revolution however is
likely at the consumer level. Consumers
are becoming increasingly
discerning when buying food products,
seeking information on environmental,
ethical and health attributes.
Blockchain is a platform that provides
all these informational needs. Using
the example of Carrefour chicken,
consumers can scan the QR code to
get product origins: where and how
the chicken was raised, the name
of the farmer, what feed was used
(domestically grown cereals and soya
beans, GMO-free soya beans, etc),
what treatments were given (such as
antibiotics), quality labels (organic,
free-range), where slaughtered, and
so on.
Blockchain has the ability to empower
consumers to make more informed
decisions about the products they
buy. It also has the potential to detangle
convoluted and opaque
supply chains for food products. It
remains to be seen not if, but how
quickly, it can build a more sustainable
food industry.
www.sustainablefoodssummit.com
In one of Walmart’s
blockchain projects, it
took 2.2 seconds to trace
mangoes to the farm
where they came from
but, without blockchain,
it took six days, 18 hours
and 26 minutes to identify
the original farm. Apart
from transparency and
traceability, blockchain
also brings economic
benefits, says Ecovia
Intelligence
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/www.sustainablefoodssummit.com
