Consumers are Growing Increasingly Suspicious of the Food They Consume
Consumers have grown increasingly suspicious of the origin, quality, and safety of the foods they are consuming. Food-related illnesses and allergies are extremely common and consumers are beginning to demand more information about the food they consume. As this trend continues to rise, food suppliers will be pressured to provide high-quality information regarding the quality and traceability of the food they sell to consumers.
Blockchain Technology Ensures Better Food Safety & Quality Assurance
Blockchains have the potential to provide agriculture businesses a solution to this problem by helping them record data through each stage of their products life-cycle (e.g. from planting and harvesting to the point of sale). Recording this information on a blockchain would provide consumers with a rich repository of data about the food they are consuming, thereby augmenting the brand’s image in comparison to competitors who lack the data. And food suppliers would be able to track the quality and safety of the food they produce while collecting valuable insights from doing so. Food suppliers, for example, could leverage their data to do the following:
Eliminate food borne illnesses quicker
Better predict the demand of their food products thus reducing waste
Apply simple machine learning algorithms to their data to grow crops faster and more efficiently in the future
Keeping this in mind, all of these benefits would ensure better food safety for consumers while offering your agricultural business many cost-saving routes.
Blockchain Technology Authenticates Inputs for Farmers
Additionally, farmers are often unaware of whether or not the inputs (e.g. seeds, soil, or fertilizer) they are purchasing are truly authentic. There have been many cases of local level input retailers knowingly selling fake inputs to farmers to increase their own profit margins. In some extreme cases, even the local retailers are surprised to find out that the products they are selling to farmers are inauthentic. Moreover, blockchain has the potential to solve this problem by providing traceable data for all of the inputs that are produced and purchased. In other words, farms can generate cost-savings by requesting and/or requiring rich data on the inputs they purchase from local retailers. More specifically, farmers can reduce waste by ensuring that the inputs they use are authentic before they make the investment to grow their crops. In the event that farmers proceeding with growing their crops and later discovered that their inputs were indeed inauthentic, they would have to discard their crops and incur huge losses. For this reason, blockchain technology can provide significant cost-savings for food suppliers who purchase agricultural inputs.
Many of today’s agriculture businesses currently deploy different combinations of modern and antiquated technologies in an attempt to augment food safety standards and to authenticate their input purchases. Furthermore, it is estimated that poor food quality costs the agriculture industry $55.5 billion per year and counterfeit input purchases are increasingly becoming more of an issue in developing nations. Moreover, the implementation of blockchain technology has the ability to solve these two issues, and, in effect, generate significant cost-savings for agriculture businesses alike. Below we discuss some of the most critical cost-savings benefits blockchain technology can provide your agriculture business.