Blockchain could save food industry $31 billion, according to research
Substantial savings in food fraud will reportedly be realised from 2021 and compliance costs will be reduced by 30 percent by 2024, according to data from Juniper Research.
New data from Juniper Research, a business specialising in identifying and appraising new high growth market sectors within the digital ecosystem, has suggested that blockchain will enable $31 billion in food fraud savings globally by 2024.
The research has allegedly revealed that blockchain, used with Internet of Things (IoT) sensors and trackers, will reduce retailers’ costs by streamlining supply chains and offering simpler regulatory compliance and efficient food recall process.
Blockchain and the IoT are considered to have the ability revolutionise the food industry. While IoT solutions link the physical and digital worlds primarily via location tracking sensors and temperature and humidity monitoring, blockchain is thought to provide an immutable platform where this data can be stored and accessed by every player in the process.
The research suggested that the IoT and blockchain will add significant value to players involved in the supply chain, from farmers to retailers to consumers. By replacing lengthy procedures with automated smart contracts, blockchain and the IoT bring cost reductions, risk mitigation and transparency to supply chains, the research predicts. The researchers have also recommended that blockchain vendors seek IoT partnerships to appeal to stakeholders across the food production market.
“Today, transparency and efficiency in the food supply chain are limited by opaque data forcing each company to rely on intermediaries and paper-based records. Blockchain and the IoT provide an immutable, shared platform for all actors in the supply chain to track and trace assets; saving time, resources and reducing fraud,” said research author, Dr Morgane Kimmich.