Blockchain is expected to enable USD31bn in food fraud savings globally by 2024, by immutably tracking food across the supply chain, new data from Juniper Research has shown.
The information revealed that blockchain, used with loT sensors and trackers, would reduce retailers’ costs, by streamlining supply chains, offering simpler regulatory compliance and efficient food recall processes.
Building on their respective strengths, blockchain and the loT can revolutionize the food industry. While loT solutions link the physical and digital worlds primarily via location tracking, sensors, temperature, and humidity monitoring, blockchain provides an immutable platform where this data can be stored and accessed by every player in the process.
The research found that the loT and blockchain would add significant value to players involved in the supply chain, from farmers to retailers and consumers. By replacing lengthily producers with automated smart contracts, blockchain and the loT bring cost reduction, risk mitigation and transparency to supply chains. Juniper Research recommends that blockchain vendors seek loT partnerships to appeal to stakeholders across the food production market.
The research also found that leading players in the food provenance space are leveraging their blockchain and loT solutions. This includes IBM’s Food Trust and Watson platforms, SAP’s Track and Trace and Leonardo platforms, as well as Oracle’s Track and Trace and Internet of Things solutions.
“Today, transparency and efficiency in the food supply chain and limited by opaque data forcing each company to rely on intermediaries and paper-based records. Blockchain and the loT provide an immutable, shared platform for all actors in the supply chain to track and trace assets, saving time, resources and reducing fraud,” said to research author Dr. Morgane Kimmich.