Benefits of Blockchain - Adoption In Agri-Food Industry
We know that blockchain is gradually being introduced in other industries, owing to the kind of potential it has. IoT is already being implemented in many ways to help farmers produce higher yields of crops, using smart farming tools that are proving to be faster, cost-effective, better for resource management and is less labour intensive. Experts feel that those same benefits can be applied to the field of agri-foods as well, that’s centered on the processing, preparing, packaging and distribution of foods.
Therefore it’s much bigger in that respect, and as we already know today – data technology is the easiest way to manage an industry of this scale and the reason why there is a growing demand for Blockchain - Adoption In Agri-Food Industry. Organizations and individuals involved in this industry feel that there are a host of other major advantages too.
With wider adoption of Blockchain, the agri-foods industry could manage the supply of foods, pricing and products tracking in an efficient way. Given out here is the kind of potential that they and blockchain enthusiasts have in mind.
Blockchain can be used to trace the food items being moved from the field to wholesalers, packaging factories or units, retailers and eventually the consumers. This makes the supply chain more transparent, and in a lot of ways, easier to manage and safer as well.
When the flow of goods is defined in this way, food safety is improved immensely. This leads to the reduction of adulteration of raw materials, pests and offers better control over those factors that are known to be particularly damaging to foods.
The industry can gain from other business advantages as well. It would be easier to decentralize companies involved in agri-foods; decentralization would help improve food production at a local level through community-sponsored production or farming and smaller enterprises, but this is only possible if the industry, at large, uses IoT for better control of the same.
The traditional supply chain is controlled by MNCs, who are the largest buyers; as a result, they get to determine what kind of crops to grow or how much of it, and even set the prices for the same. When a data centric system is introduced into this picture, transactions are verified by all users and take place faster. As opposed to the traditional network, where each level introduces its own price tags on each food item.
Blockchain is the digital equivalent of a ledger, and all data stored on it can be accessed by multiple parties and can’t be manipulated easily. With this level of security, the supply chain is fully transparent and helps to build a clear line of communication between consumers, and farmers. With the absence of multiple intermediaries, farmers could gain from higher profits and protection against fraud.
A third advantage is that farmers can also gain from a distribution based on smart contracts and be a part of tokenized shareholding. When this data network is integrated with IoT, it can help the farmer with everything from monitoring crops yield, livestock and fields across many locations at an affordable cost.