Blockchain technology is getting more applications for the global agricultural sector. The latest trend comes from India. This week, Indian new source The Hindu Business Line reported that the Sahyadri Farmers Producer Co., one of the country’s largest farm producer organizations (FPOs), has committed to using the technology to optimize its supply chain route.
Seamless Food Tracing for Improved Trust
FPOs function as member-based organizations that sell agricultural produce at better prices. They exist to improve the quality of products, while also sourcing for new opportunities that members can benefit from.
As the news medium explains, Sahyadri plans to integrate blockchain into its supply chain, thus improving transparency and efficiency in the food supply process. Vivek Shinde, the FPO’s founder, explained that the present situation only sees farmers get 25 percent of the price of goods sold. However, an optimized supply chain could see that revenue share double in less than a year.
The FPO will work to share data through a blockchain-based platform. As they explain, this will foster trust in the organization’s process and the sales information that it shares. The new system will see farmers attach unique digital maps or QR codes to their products, thus allowing their customers to trace products back to them.
Blockchain for the Global Supply Chain Space
Supply chain optimization has been one of the oldest and most significant applications of blockchain technology. By allowing companies to improve trust and optimize their product movements, the technology could break into the limelight and become the mainstay that it is today.
However, blockchain-based innovations in supply chain management are still as significant today. This month, NEM published a press release explaining that Symbol, one of its enterprise-friendly blockchain platforms, will help combat counterfeiting and tampering problems in the global wind industry.
It is believed that the global wind industry loses $6 billion annually due to counterfeiting and theft – a number that translates to 20 percent of sales. Symbol is hoping to improve this by allowing customers the ability to verify the products that they purchase.
The press release explained that Symbol developed a blockchain solution that can trace and verify several transactions per second. This will help winegrowers and developers to track developments with their raw materials and products across every stage of distribution and production.
The growth of blockchain-based supply chain optimization has been impressive so far. However, the future of the space also looks bright. Recently, Cointelegraph Consulting and blockchain firm VeChain published a report stating that the technology and the Internet of Things (IoT) will help trace about $300 billion worth of food annually in the next seven years.
Several firms already have tools that help improve supply chain tracking in the global food space. IMB leads the way as a service provider for now, but industry leaders like the California Giant Berry Farms, Carrefour, and Walmart are also hot on its heels. VeChain and Cointelegraph Consulting believe that with more solutions on the way, the industry could save $100 billion annually. At the same time, improved technology could avoid wastage and improve revenues or industry players.