Daniel Beckmann, the CEO of Foodshed Blockchain is affirming that Blockchain technology is improving the global food industry. He was speaking to Dan Patterson of TechRepublic in an interview. The Foodshed CEO is singling out supply chain monitoring as areas being disrupted by DLT. Additionally, the interviewee reveals that there is much improvement on the pipeline as Blockchain takes root in this critical industry.
The Present Food Supply Chain Is Inefficient
Food distribution is an integral component that makes or breaks the availability of food in a given region. The CEO of Foodshed reveals that the current supply model was built for the 60s. In this strategy, the ultimate goal was to provide the cheapest food by sourcing products by exploiting economies of scale. For instance, a distribution channel could buy products and supply stores that target a large number of people. This system is ideal for foods with a long shelf life.
However, Blockchain technology is solving the inefficiencies in the old model by connecting small-scale farmers to consumers and retail stores. The basic aim is to eliminate middlemen and give the food producers the monopoly of determining prices. Hence, DLT is a win-win channel to producers, retailers, and consumers.
Therefore, Blockchain-based food supply solutions eventually grow the local economy by encouraging production by providing an online marketplace.
Blockchain Is Also Addressing Logistical Challenges
Previously, food supply chain records have always been kept on clipboards, hard copy files, or even software documents such as Microsoft Excel. Entering such details and retrieving information from such records leads to inefficiencies and lack of transparency.
On the other hand, Blockchain networks are offering a system where data is updated on distributed and transparent ledgers for transparency, openness, and ease of access. The benefits of the system then become more pronounced. For instance, Daniel refers to the romaine lettuce scare on the US West Coast that was difficult to trace. He says that a transparent network could be appropriate for troubleshooting the origin of food contamination to enable swift mitigation.
The Technique Of Logging And Imprinting Food On Blockchain Platform Is Simple
When the host asked Daniel to expound on how users enter food details on a Blockchain platform, he explained that each product is packaged and tagged with a QR code. A scanning detail, therefore, picks the code and attaches it to a given provider with other details such as location, time of production, weight, etc. All platform users will then trace the supply chain movement to determine schedule consumption, further distribution, or any other arrangement.
However, Blockchain Technology Is Yet To Make Inroads In Food Supply Chain
The CEO of Foodshed decried the slow pace at which participants in the food supply chain adapt new ideas. According to him, this is a challenge that is slowing down progress unlike in other industries such as fintech or data management. However, in 12 to 18 months’ time, the world may have a predominantly Blockchain-based food supply chain as per Daniel’s prediction.
José Graziano da Silva, the Director-General of UN FAO has repeatedly been calling for better management of food supply. This is because a third of all food production is lost. Hence, a Blockchain platform could connect producers to consumers to end hunger.