Changing consumption patterns and increasing global population is increasing at a rapid pace which results in price trends moving upwards. Disrupted supply chains, chronic and acute hunger were increasing at a rapid pace even before the pandemic of COVID-19 due to numerous factors such as natural hazards, climate changes, pests, conflicts, socio-economic conditions. Unfortunately, the pandemic year lefts its mark on global food insecurity and vulnerable households in almost every region of the globe.
According to the U.N World Food Programme, 137 million faced drastic food insecurity during the second half of 2020, and 82% increased as compared to the pre-pandemic estimate of exceedingly food insecure. By utilizing blockchain in the food supply chain can potentially enhance traceability, inventory management, risk analysis, efficient operations, and transparency. The blend of artificial intelligence, blockchain, and big data enhances data quality by removing errors and inconsistent data.
Digital Ecosystem For The Global Village
New pockets of value likely to unlock as agriculture is prone to digitization. Entrepreneurs that are working in farming are incorporating more advanced digital tools such as the Internet of Things (IoT), Artificial Intelligence (AI), Cloud Computing, big data, and blockchain. It is impossible until rural areas are highly equipped with an efficient broadband network. There exist 3 billion people in rural areas that do not have access to basic internet connectivity. Farmers have been decelerating to deploy digital tools even in areas that have access to internet connectivity.
The Digital agriculture flagship report which was released by UN FAO shared the current development status of rural-e-commerce in china for global emerging market reference.
In remote areas, future internet penetration will involve considerable investments in the network infrastructure, for which initiatives of “digital village” will provide organizational and financial support. There would be no wrong in saying that digital villages are the future of agriculture in the world, especially in China. Governments across the continents are trying it’s best to fill the digital cavity in rural areas. Farmers are busy with the generation of the new product that is mandatory by the COVID 19-stricken global economy.
Blockchain Projects In The Food Sector
There exist numerous agencies in various regions of the globe for ensuring food’s hygiene and safety. Food standards agency(FSA) in the North Island, England, and Wales is developed to enforce food safety regulations, and to analyze emerging risks for the future. Moreover, the agencies utilize artificial intelligence, blockchain, big data, and shreds of evidence to tackle the risks of today in the global food industry.
Julie Pierce, the food standards agency’s director of openness, data, and digital also stated that blockchain plays a very crucial role in the global food industry and it proves to be beneficial for both businesses and customers.
Moreover, Chinese online insurer ZhongAn developed a poultry monitoring technology GoGo chicken to maintain the record of chicken’s provenance and to ensure that whether they are organic or not. Humidity, sensors for the monitoring of temperature, and various other aspects of a chicken’s environment are evaluated with the incorporation of advanced technology algorithms by utilizing video analysis.
The FSA has completed two pilots of technology that answers the following mandatory questions:
- Can blockchain ensure customer due diligence?
- What should regulators enforce for the safety and hygiene of food?
- Can blockchain provide better data management in the food supply chain?
- Can blockchain provide great confidence to deter good wastage, in addition to accurate and efficient data management?
The purpose of the deployment of the first pilot was cattle traceability in the area known as Collection and Communication of inspection results (CCIR). Both pilots proved to be beneficial by providing the opportunity for the enhancement of current operations, minimizing unnecessary operations, enhanced traceability, to stakeholders
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Transparency In Agriculture
Companies are acquiring blockchain technologies in the most efficient way in recent years for the development of a concept that especially appeals to the business-to-customer organic agriculture sector. Keeping in view these technological advancements and an increase in the number of risks and challenges in the global food sector, agricultural industries are integrating themselves with emerging blockchain, artificial intelligence, and big data technologies.
The technology provides in-depth traceability, maximizing transparency rate considering customer demands of sustainability and high quality. Information gathering plays a crucial role in the security of food security and safety. Food authorities are integrating themselves with the blend of AI-based Document Verification, big data, and blockchain to prove their accountability and responsibility, and mainly to develop a transparent relationship with their customers.
The blockchain housed platforms containing all operators, producers, and product information for the assurance of traceability that takes place through the supply chain. Products in stores possess QR codes to provide comprehensive information to the customer, which proved to be influential for their shopping process.
Future of Blockchain In The Food And Drink industry
Undoubtedly, technology is advancing at a rapid pace and leads us towards an unpredictable future. Numerous initiatives are coming into being that bring the blend of FinTech, Blockchain, artificial intelligence, and big data into service in the food supply chain. Researchers and data analysts are working on developing advanced algorithms that focus on adopting data governance and data quality. This technology adoption also answers a wide range of questions that revolve around the governance model and ensures the development of a transparent relationship between customer and business.
The potential of blockchain in the food and drink industry is unexpected, but still, there exist numerous problems to solve for it to truly deliver what it claims. The global food sector is considering acquiring mandatory standards, enhanced traceability, and principles for interoperability in the future.