By 2024 it’s predicted that the global food industry could save $31 million if companies invest in blockchain technology to monitor their supply chains. The study, conducted by Juniper Research, argues that the adoption of blockchain will bring dramatic savings for retailers because it can provide a more accurate and efficient food recall process and streamline their overall supply chain. But what exactly is blockchain? And how can it help food retailers right now?

What is Blockchain Technology?

You’ve probably heard the word “blockchain” by now, possibly in reference to bitcoin and other crypto currencies, but you might not know what it really means. A blockchain is a digital ledger that is stored securely and records transactions simultaneously across all of the computers in a given network. Importantly, these records are extremely difficult to tamper with or change. So simply understand blockchain as a tamper-proof ledger, which can be used to verify the origin and authenticity of products. As the food industry continues to place an increased emphasis on supply chain transparency, the demand for the adoption of blockchain technology has increased, and will continue to increase.  

Reducing Compliance Costs

Juniper’s research claims that substantial cost savings could be achieved as early as 2021, and they predict that food industry compliance costs will be reduced by 30% by 2024, as blockchain technology becomes more commonplace.  

Dr Morgane Kimmich, the lead researcher, states: “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.”

Importantly, blockchain provides the food industry with the opportunity to trace the entire lifecycle of food products from origin, through every single point of contact, all the way to the consumer. This “farm to fork” knowledge bolsters a retailer’s safety and credibility. And as regulators make increasing demands on food safety, blockchain can provide all the answers.  

Worldwide Food Safety

Vast global supply chains define the world’s food industry, and safety remains the leading concern of all the major players. Sadly, the World Health Organization (WHO) estimates that 420,000 die annually from food contamination, with young children accounting for a quarter of all these deaths. Furthermore, the United Nations health agency estimates that 600 million people fall ill annually after consuming tainted food. Blockchain enhances our ability to instantaneously pinpoint potential sources of contamination so we can prevent, contain and rectify food outbreaks.

The large retailers are already implementing blockchain. For example, in September 2019, Walmart and its Sam's Club division began demanding that their fresh, leafy greens suppliers had to implement full traceability all the way from the farm.

As blockchain continues to evolve and develop and becomes a central focus to the food and beverage industry, leading companies such as Cashmere are spearheading the technology and its capabilities. Get in touch to learn more.