How Blockchain Benefits The Agri-Food Industry

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Food is our common ground, bringing our world to an axis point! This is actually a very beautiful fact that food is something that crosses the borders and brings people together, and removes the barriers.

Apart from this philosophical side of the food, there is another side of the story as well, that simply states that no matter what, food security is the prime concern, and cannot be compromised through any means.

Considering the growing demands, and the pandemic impact, it is very necessary to keep a strong check on the food’s transparency, and nothing can fit the demand better than technology.

Here we are hinting at one of the most promising technologies that hold the worth in abundance, and that is none other than Blockchain!

Indeed, blockchain is a breakthrough technology for the future and is subject to a variety of fields including agrifood as well.

To help you remove the cloud of doubt, we have brought you this post today to give you a closer look at the forward-thinking approach with its benefits in this sector.

Blockchain and agrifood sector

On an honest note, it is hard to think about blockchain integration in any other sector apart from the banking system, but the incredible set of consistency offered in the databases of all kinds, without the inclusion of any third-party, and extreme transparency clear the road and make this very technology a much-in-demand aspect for the agrifood industry.

When we look at the agrifood sector, then there are several aspects that are involved in that can compromise food security.

Blockchain technology is the combination of a distributed database of records, which is saved in the form of encrypted blocks, which are further shared ahead with the parties involved. And this is where its robust and decentralized functionality can be used for the tracking of the global supply chain. 

To be précised, this blockchain infrastructure lets this sector grow effortlessly. Let’s look at some of the reasons why blockchain is the best technology used in the agri-food industry.

Commercial transaction is at ease

The Agrifood industry deals in international trade, as businesses from different parts of the world require the products. However, in this international trading concept, there are several aspects that come into the picture, which have to be fulfilled.

There are different documents and paperwork requirements to meet the demand, which are hard to be managed by an individual, as a minor mistake can cancel or halt the order, putting both the parties involved in unnecessary chaos.

To evade this issue, blockchain technology facilitates commercial transactions and helps farmers and businesses to take care of food safety and consider the phytosanitary certificates, without any involvement of a third party to manage the paperwork. 

This not just helps farmers to expedite the agricultural commodity delivery, but also simplifies the payment method.

Land registration

In the agri-food industry, another issue that comes into practice is the animal, plant, or land registries, where it is not an easy task to register.

But with the integration of Blockchain technology, this becomes a convenient factor, leading to improved identification and registration of land.

It removes the clustered issues of putting vague and inaccurate information that can discourage investment and production at large.

This very technology enables farmers to get the relevant information on the invisible aspects of products, such as environmental impact.

And help farmers to stay informed and well equipped with the information to control the execution of certain tasks, wherein planting trees can be done at the right time and avoid any possibility of facing the brunt of the environment on the crop fields.

Traceability at the fingertips

To know the origin of the farming product is not just for the knowledge database but has got a lot more to do with quality control as well. Here, Blockchain utilization offers traceability in agri-food supply chains.

This helps farmers to keep a record of the biological quality of farming products and guarantees the quality at large.

Improves tracking system

It is easy for smaller businesses to track their supply chain system, but when it comes to the larger grounds, the issue becomes more relevant. As they have to keep a strong check on the products’ processing, so the quality cannot be compromised due to any possible means.

In such a disturbing situation, Blockchain technology holds maximum potential, that helps private players and public bodies to come forward and take the help of this technology to make their business mechanism to be converted into a fluid system, letting different stages of operations work efficiently and reach the doorstep of consumers.

Stops fraud at a large

As we know that the agrifood industry keeps on making headlines for the wrong reasons, where you get to hear that tainted meat gets served or horsemeat burgers, or the virtual calves to avoid milk quotas, these scandals keep on roaring.

To give a full-stoppage on these harmful episodes, integration of Blockchain technology is a must, that offers a transparent system where such frauds need not grow.

And it covers the entire spectrum of the agri-food industry, ranging from crop quality to food safety, blockchain provides traceability, risk reduction, accountability, audibility, sustainability, performance improvements in one go.

Should we really invest in Blockchain?

Indeed, blockchain has created an ecosystem, which collects and provides information shared in real-time, and within the agriculture industry, this sort of information is highly valuable.

This creates a highly efficient value system for the farmers and the other animal and husbandry resources, such as unique animal identification, DNA, births, weight gain, feed conversion, stable performance, and veterinary details.

This is how it meets the increasing demand for products and provides the details from where products are coming and from and what is their safety level.

Final thoughts

On an honest note, it is clear to state that Agrifood is a globalized business having long supply chains, wherein it becomes hard for the workers and the people associated within to know each other.

Less involvement sometimes causes issues, but with the inclusion of Blockchain technology, everything becomes easy helping different parties to share information and stay connected across the world without any hurdle involved.

With the advancement in technology, it is expected that blockchain would offer more benefits to the agrifood industry making its functioning more seamless and transparent than ever before.

Ankit Singh
Ankit Singh

Ankit Singh is a seasoned entrepreneur, who has crafted a niche for himself at such a young age. He is a COO and Founder of Techugo. Apart from holding expertise in business operations, he has a keen interest in sharing knowledge about mobile app development through his writing skills. Apart from sailing his business to 4 different countries; India, USA, Canada & UAE, he has catered the app development services with his team to Fortune 200, Global 2000 companies, along with some of the most promising startups as well. Get hooked to his writings, and get a strong yet interesting dose of technology through his unique voice.

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