The blockchain is one of those terms you have likely heard hundreds of times, and yet the exact applications for and benefits of the technology feel slightly less clear.
In short, blockchain is one of the most transformational technologies to come out of recent times — it’s set to revolutionize everything, from banking to buying groceries.
The blockchain is a decentralized, ultra-secure system that can be used to record and share data. Data is logged in a digital ledger which is duplicated and distributed across the blockchain network. And despite the data being shared throughout the network, data on the blockchain is highly secure and cannot be tampered with.
There are a number of blockchain networks available, including the Helium blockchain. Helium is designed to offer secure, low-cost, and energy-efficient connectivity for IoT devices using a novel consensus algorithm called Proof of Coverage (PoC).
Be sure to check out our previous blog for more on how the Helium blockchain is being used within the food and beverage world. But, for now, let’s take a look at the specific uses of blockchain technology in food traceability.
Food traceability 101
Food traceability is a system created to help keep track of food in the supply chain. The more information that gets recorded, the easier and quicker it can be to identify food that is affected by safety recalls.
Food that needs to be traced include:
- Fruits and vegetables
- Herbs
- Dairy products (milk, cheese, etc)
- Meat
- Seafood
There are two main tasks involved in food traceability: tracking and tracing.
Tracking refers to the ability to locate an individual product unit (or batch) at any point in the production process.
Tracing refers to the records kept during the product’s time in the supply and production chain. You should be able to trace back produce from the supermarket right back to whichever farm grew the product. As such, tracing records should include sourcing, manufacturing, packing, and shipping to ensure complete transparency.
Both of these tasks can be improved and produce more reliable results through the blockchain.
Alongside sustainability and ethical practices, food traceability has become an important factor in the food and beverage sector, especially in countries where there are specific legal requirements. Food traceability is also a key concern for consumers who are increasingly looking for local produce.
The growing focus on traceability can be linked to the ever-growing supply chains. Food products are transported across the globe, dramatically increasing the risk of contamination. The World Health Organization (WHO) estimates that 420,000 people die annually from food contamination, which affects one in 10 people worldwide. Children under age five are at the highest risk with 125,000 children dying every year from foodborne illness, according to WHO.
Current traceability processes leave a lot to be desired and are open to manipulation throughout the supply chain. Records often fail to provide enough data to rapidly link food shipments through each point in the supply chain. There are also many areas of the supply chain where businesses aren’t required to keep records of food production further back to the source. The lack of synergy throughout the supply chain can cause serious issues, especially when it comes to public health.
The blockchain offers food and beverage companies a solution to traceability woes. Let’s look at how the blockchain can fix the issues we currently have.
What is blockchain in food traceability?
Blockchain is quickly being adopted by the agriculture sector to improve traceability efforts. The technology allows us to instantly trace the entire lifecycle of a food product from its origin right up to the moment the customer picks it off the shelf.
The technology has been trialed by food and beverage retailers across the world, including Walmart, Carrefour, Nestle, and Unilever. One of the most eye-catching headlines has come from the Walmart trials, where the business was able to trace sliced mangos from a farm in Mexico, to a treatment plant, to an importer, to a processing plant in the US, to a cold storage facility, and finally to Walmart. All of this was done in just two seconds, whereas tracing using traditional processes took almost a week.
Food traceability powered by blockchain technology helps to combat the current concerns we have about food safety in a global supply chain. Any potential contamination events can be dealt with quickly and effectively. The source of contamination can be quickly identified and taken out of the supply chain until it is safe. We can also track other shipments that are potentially affected by passing through that point in the supply chain.
Introducing blockchain in food traceability practices isn’t just about food safety. Customers are increasingly becoming concerned with where their food is coming from. Authenticity is incredibly important for consumers, and businesses are keen to offer authentic products to avoid upsetting their loyal customers.
Being able to trace food back to its origin isn’t just to keep customers happy. Country of Origin Labeling (COOL) is a consumer labeling law that requires retailers (most grocery stores and supermarkets) to identify the country of origin on certain foods referred to as “covered commodities”. Retailers are required to keep records that verify the country of origin for one year for auditing purposes. Inaccuracies or tampering could prove costly, with fines reaching 10 million US dollars and severe damage to the retailer’s reputation.
Thanks to its decentralized nature, it’s incredibly difficult to tamper with anything recorded on the blockchain. Any attempts to tamper with the ledger are immediately flagged to other users on the network, immediately identifying who is responsible. That’s what makes it so attractive to businesses operating within the food and beverage sector. It’s a way to protect their brand reputation, ensure authenticity, boost customer satisfaction, protect public health, and evade food fraud.
Buffalo Market is proud to be part of the blockchain revolution
Choosing a food distributor is a difficult task for any company. Those operating in the food and beverage space need to be certain their distributor can offer true, real-time traceability. At Buffalo Market, we can offer that and more as we continue on our mission for a sustainable, environmentally-friendly food supply chain.
Contact us today to see how America's leading food distributor can blockchain to work for your business!
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