From Source to Stomach: Tracking Food Through Blockchain Food Traceability

In an era where food safety testing, transparency, and sustainability are increasing, blockchain technology is emerging as a solution that has the potential to revolutionize the tracking and tracing of our food supply. The challenge of food traceability—monitoring the path of food products from their origin to consumption—has persisted for years. Nevertheless, the application of blockchain in this field is presenting a groundbreaking approach to enhance food quality, minimize waste, build consumer confidence, and ultimately guarantee that the food we consume is both safe and sustainable.

How Blockchain helps in Food Traceability?

Blockchain represents a decentralized and distributed ledger technology that effectively records transactions across numerous computers, ensuring that the documented information remains unchangeable over time. Initially developed as the foundational technology for cryptocurrencies such as Bitcoin, blockchain's characteristics of security, transparency, and resistance to tampering render it an excellent choice for monitoring and tracing food products throughout the entire supply chain.

In terms of food traceability, blockchain enables the documentation of each transaction or movement of food—from agricultural producers, processing plants, and distributors to retailers and consumers—by creating a "block" within a continuous chain. Once the data is recorded, it becomes permanent, establishing a transparent and easily auditable record of every phase in the food's journey.

Case Study: Walmart’s Blockchain Food Traceability

Problem Faced: The process of tracing the origin of contaminated food within Walmart's supply chain was labour-intensive prior to the implementation of blockchain technology. Identifying the source of contamination could require several days or even weeks, which not only delayed product recalls but also posed a significant risk to public health.

Solution: To solve this problem Walmart collaborated with IBM to establish a blockchain-based system called the Food Trust Network, designed to monitor food products from their origin on the farm to their arrival in stores. This blockchain technology ensures that each phase of the food supply chain is documented, encompassing the processes of cultivation, harvesting, processing, and packaging, ultimately leading to the consumer's shopping cart.

Results:

• Traceability Speed: Walmart has successfully decreased the duration needed to trace food products from seven days to a mere 2.2 seconds. This swift traceability significantly mitigates the extent and expenses associated with food recalls in cases of contamination.
• Transparency: All stakeholders, encompassing suppliers, distributors, and consumers, now have access to real-time information regarding the origin and journey of products. This advancement has bolstered consumer trust in food safety and sustainability.
• Operational Efficiency: The implementation of the new system has led to a reduction in errors and paperwork, thereby enhancing operational efficiency and lowering the overall costs related to food safety management.

Recent Developments and Industry Adoption

In Jun 2024, Bunge and CP Food’s Pilot collaborated, under this collaboration these agri-giants, a blockchain evaluated for 185,000 tonnes of soybean meal, establishing a connection between agricultural data and end consumers through unalterable records.

In October 2023, Silal, an Agri-Tech Food Company based in Abu Dhabi, introduced a blockchain-enabled traceability system. This innovative system empowers consumers to monitor the journey of food from the farm to their plates, thereby improving transparency and fostering consumer confidence.

FDA Food Traceability Rule: The Food and Drug Administration (FDA) has established a compliance deadline of January 2026 for the Food Safety Modernization Act (FSMA) Food Traceability Rule. This regulation mandates that organizations keep records of essential data elements related to significant tracking events, thereby highlighting the crucial role of blockchain technology in enhancing food traceability.

Start-Ups Working in this Domain

Challenges and Limitations

Technical Complexity: Integrating blockchain technology with existing legacy systems, such as ERP and IoT, necessitates considerable financial investment. Solutions like IBM Food Trust and Hyperledger require that various stakeholders achieve interoperability while adhering to diverse standards.

Data Privacy Concerns: The challenge of reconciling transparency with the management of sensitive information, such as supplier pricing, continues to be a topic of debate. Startups such as VOTTUN are tackling this issue by providing permissioned blockchains that implement tiered access controls.

Cultural Resistance: Small-scale farmers and conventional suppliers frequently exhibit skepticism towards digital systems. Initiatives such as Elevate Farms integrate blockchain technology with vertical farming methods to encourage involvement by offering increased yields and premium pricing.

Expected Transition from Experimental Applications to Standard Practices

Blockchain transcends mere trendiness; it represents a fundamental transformation in the ways we produce, distribute, and consume food. Initiatives such as Walmart's revamping of its supply chain, alongside innovative startups supporting small-scale farmers, illustrate how this technology fosters trust while addressing issues of food fraud, waste, and lack of transparency. Despite ongoing challenges related to interoperability and the adoption by farmers, the progress is undeniable. As consumer expectations for accountability rise and regulatory frameworks become more stringent, blockchain is poised to serve as the foundation for a safer and more sustainable food system. Over the next ten years, we can anticipate the transition of blockchain from experimental applications to standard practices, ensuring that every meal we enjoy is accompanied by a trustworthy narrative.