Report Says Blockchain Can Solve Food Industry’s Most Pressing Challenges And Save Over $100 Billion
A report claims that blockchain technology and the Internet of Things (IoT) can solve some of the food industry’s most pressing challenges and save it $100 billion a year.
However, the lack of transparency and accountability in the global food industry’s supply chain costs billions of dollars annually, as it is believed that (for example) as much as 20% of global wine sales are counterfeit, worth $6 billion, things get even strange when it comes to the seafood industry, “25 – 70% of red snapper, wild salmon, and Atlantic cod are disguised by species that are less desirable, cheaper or more readily available.”
Arseniy Dain, the CEO of Cointelegraph Consulting, stated:
“Food safety has been one of the billion dollar challenges that people struggled for decades to solve.”
Likewise, tracing items along the food supply chain by using blockchain is one of the better-explored use-cases for the technology, with IBM leading the way as a service provider, and many global industry leaders like Walmart, Carrefour, and California Giant Berry Farms, joining the party.
According to a new report from Cointelegraph Consulting and @vechainofficial, #blockchain will prove a boon for food supply chains https://t.co/ZmeRpvlZP8 — Cointelegraph (@Cointelegraph) July 3, 2020
As per the report, blockchain and IoT are often used in tandem as additional benefits may be achieved by connecting the two, as IoT sensors can send accurate information about food items to the blockchain network, providing stakeholders with a snapshot of the entire supply chain.
This data can be used to assure a food’s genuineness, freshness and overall quality.
The report claims that this combination of technologies can help the industry save billions of dollars.
Also, the report states:
“We estimate IoT+blockchain-based solutions can reduce annual costs by $70 billion for the food industry globally and create up to $47 billion in revenue enhancement. In addition, we expect solutions to reduce potential losses due to food safety risks by $12 billion to $14 billion.”
Sunny Lu, the CEO of VeChain, said:
“From our experience in international food trades and large-scale traceability platforms, the introduction of blockchain technology to the food value chain applies a long-term benefits scheme into the entire business model.”
Thus, the report explores several well-known use cases of blockchain technology in the food industry.