How to Blockchain Technology Optimizing Supply Chain Systems in the Food and Agriculture Industry?

How to Blockchain Technology Optimizing Supply Chain Systems in the Food and Agriculture Industry

As important as a crop production system is efficient logistics and supply chain systems in the agricultural sector, so is efficient logistics. This efficiency can be achieved with blockchain technology.

It is difficult to meet the growing food demand. It requires a complex supply chain that includes resource providers (transporters), crop farmers (farmers), retailers, end-users, and crop producers (farmers). This complex system requires a lot of paperwork and manageable challenges.

These logistical tasks were traditionally managed using paper-based documentation But, with the advent of technology, documentation moved to computers, making the task easier and faster.

Blockchain Technology Optimizes Food Supply Chain Systems

The next step in Blockchain technology will be to make the supply chain management in food and agriculture more efficient and manageable.

Blockchain technology provides precise, tamper-proof statistics on farms, credit scores, and food tracking.

Industry experts believe that blockchain technology is still in its infancy for the food and agriculture markets. Blockchain technology is being developed through increased research and development. Blockchain adoption is also growing among food processors, retailers, and distributors.

BIS Research’s market analysis revealed that the global blockchain market in agriculture and food was valued at $139.6 Million in 2020. Global Blockchain is expected to grow at a rate of 51.0%, reaching $1.48 Billion by 2026.

Future growth will be driven by factors such as increased transparency in the supply chain of food and government support.

Also read: How Blockchain is Transforming Seafood industry

Supply Chain Management in Agriculture and Food Industry

The agricultural supply chain is the process of getting agricultural products from producers to consumers. Many stakeholders are involved in this process, including farmers, distributors, and wholesalers. For the smooth operation of the food and agricultural industry, it is crucial to have efficient interactions between all stakeholders.

Multiple people can interact with each other for different purposes and there are many informational and material flows. This makes supply-chain activities more complicated.

The process can be complicated and hampered by a slow or insufficient flow of information.

According to Authorentium, the three phases of an agricultural supply chain are:

  • Farmers to move into intermediate silos
  • Silos can be transformed into transformation facilities
  • Transformation plants for clients.

It is vital to have a good working relationship with all stakeholders involved in supply chain management. The miscommunication or conflict of interest between two parties can sometimes lead to large losses for everyone involved in the exchange of products.

To maintain a smooth flow of materials, money, and information, a transparent, decentralized medium like blockchain is the best way to solve the problems that are currenAgriculturetly arising from the supply chain management system.

How does Blockchain help with supply chain management in the Agriculture & Food Industry?

Blockchain technology has revolutionized the way information is exchanged between parties in the supply chain for agriculture. Blockchain technology distributed databases share among nodes in a computer network that stores information electronically in digital format. Blockchains enable safe, transparent data storage.

Blockchain has many applications in the food and agricultural industry. Blockchain, when combined with data analytics and the internet of things (IoT), can create a common standard for all stakeholders in the supply chain to log data and exchange information at every stage of the commodity’s life cycle.

This will allow all stakeholders to have access to the correct and most important data. It will also help them gain greater efficiency and higher revenues. Furthermore, it will ensure sustainability and transparency between the government and consumers.

Today’s conscious consumers care about the origin and quality of the food that they eat. This has led to a greater need to ensure a safe supply system that is high in food quality.

On the other side, Consumers expect digital services that are tailored to their needs. Blockchain technology in agriculture and farm administration software can improve financial performance and meet the growing demand for food.

High-yielding food production is possible with advanced agricultural technologies such as precision agriculture, farmland mapping, and IoT sensors.

Location intelligence, crop management software, and transportation technologies are just a few examples of how technology can be used to help agricultural businesses produce better food and manage their supply chains.

Increasing food consumption can create additional challenges such as substitute foods on the market.

It is threatening agricultural food supply chains at different levels. Due to inefficiency and lack of transparency in the system, both farmers and consumers are currently at disadvantage. Blockchain for agriculture supply chains can help empower all market participants by creating trusting partnerships.

The Best Supply Chain Management Practices for Agriculture and Food Industry

The integration of advanced technology like blockchain increases the efficiency and productivity of supply chain management systems. It is not easy to transition from the old method to the new one.

Regardless of how the system is exchanged, there are some fundamental practices that can ensure smooth functioning and regularity. Here are some examples of these best practices:

Blockchain technology can be used to improve the safety and quality of food.

Maintaining trust with end consumers is crucial for maintaining their confidence in food safety and quality. Fraud and food contamination are two of the most serious issues facing the industry at the moment.

Every stakeholder in the supply chain will be able to identify who is transporting the food items as consumers become more conscious and cautious about what they eat. Information about transportation and storage locations is readily available.

Establish policies to ensure regular audits

To ensure that regular audits are conducted at all facilities and in the supplier’s/carrier’s warehouses, establish policies. This will eliminate inefficiencies and prevent problems from preventing a smooth supply chain.

Audits are also a great way to improve brand reputation and ensure compliance.

Also read: 13 Types of Supply Chain Management Tools

A comprehensive tracking system

To track food through the entire supply chain, it is important to have a comprehensive tracking system. The FDA requires that importers provide a list of information before they can import any item.

This includes code numbers, identifiers, and other data. Proper labeling will help ensure FDA compliance. It will also help producers stop foodborne diseases from spreading.

Use of automatic identification systems

Stakeholders need to be able to monitor the entire process, from farm to sale to the consumer. RFID transponders, for example, can track livestock, deliveries, purchases, as well as other aspects of the supply chain.

These tracking solutions also provide information to all participants in the supply chain, allowing them to identify spoilt food sources and deliver real-time data about food safety audits.

Blockchain Technology can prevent food waste and food sabotage

The use of technology allows workers to conduct temperature and environmental checks on food data collected from the farm. Workers ensure safety throughout the supply chain.

Food safety monitoring is essential to ensure food safety and improve the company’s reputation among consumers.


Blockchain technology has created a transparent and safe platform for the agriculture and food industries. Transparency is now an integral part of consumer satisfaction.

Stakeholders are beginning to recognize the potential of blockchain technology, as a result of its increasing use in the agricultural supply chain.

Due to the growing demand for transparency and traceability in supply chains, blockchain’s arrival is timely. The increasing incidence of food-borne diseases and outbreaks is another reason why blockchain is essential.

Written by
Delbert David

Delbert David is the editor in chief of The Tech Trend. He accepts all the challenges in the content reading and editing. Delbert is deeply interested in the moral ramifications of new technologies and believes in leveraging content marketing.

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