Grocery shopping has become a global affair. Consumers care about where their food comes from and how it’s made, the quality, freshness, ethical sourcing — there’s no hiding it. According to a 2022 survey by The Food Marketing Institute, 56% of consumers said they want to know where their food comes from before making a purchase. Blockchain’s ability to provide a tamper-proof, end-to-end history of products helps meet this growing demand for transparency.
Food safety is more important than ever.
Gartner predicts that by this year, 20% of the top global grocers will be using a blockchain solution for food safety, food safety, and tracking products throughout the supply chain. Some grocery stores are already testing blockchain and developing best practices. For example, Walmart now requires leafy greens suppliers to use a blockchain-based tracking system from farm to store. Other grocers, like Unilever and Nestlé, are also adopting blockchain to trace food contamination.
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What is traceability?
According to the FDA, traceability is “the ability to follow the movement of a food product and its ingredients through all steps in the supply chain, both backward and forward.” This involves documenting and linking food products and ingredients’ production, processing, and distribution chains. Accurate traceability helps quickly identify a product’s source and any contamination during a foodborne illness outbreak so the affected products can be immediately removed from the marketplace.
Perks of blockchain traceability
Now that the FSMA 204 rule has changed the approach to traceability, more and more businesses are using blockchain for food safety. The FSMA Final Rule on Requirements for Additional Traceability Records for Certain Foods mandates that manufacturers maintain records containing Key Data Elements (KDEs) associated with specific Critical Tracking Events (CTEs). The incentives are:
- Faster and more efficient recalls
- Stronger consumer trust
- Less food waste
- More supply chain visibility
- More market access
- Better sustainability
- Less fraud
Where did blockchain come from?
Blockchain technology was initially developed for cryptocurrencies in 1991 by Stuart Haber and W. Scott Stornetta. They wanted to create a system for time-stamping digital documents to prevent tampering. The first practical application of blockchain technology came with the release of Bitcoin in 2009 by the pseudonymous Satoshi Nakamoto. Blockchain creates a decentralized and immutable ledger of transactions.
Blockchain started to really affect the food chain in the 2010s, and IT support for manufacturers shined. In 2016, Walmart partnered with IBM to create a food traceability system based on Hyperledger Fabric. The system allowed Walmart to trace a package of mangoes within 2.2 seconds, compared to the 6 days, 18 hours, and 26 minutes it took to trace the same package without blockchain.
How blockchain works
Blockchain technology stores data in a sequence of “blocks” that are distributed across a network of computer nodes. This decentralization makes it virtually impossible to alter data once it is recorded. This protects the integrity of the information.
The three rules of a blockchain
- It is transparent. Every transaction is logged, creating a verifiable trail from farm to consumer.
- It is immutable. Data cannot be altered, so the records are accurate.
- It is efficient. Everything is tracked and traced easily.
Blockchain is the future of food safety
Blockchain can create a digital and transparent food system, storing data through smartphone photos and countering fraud and delivery mistakes. The technology’s ledger updates instantly, providing all parties with the latest information.
Advocates believe blockchain can quickly address food safety issues like salmonella outbreaks by rapidly identifying contamination sources. Traditional paper-based systems can take weeks to trace contamination, while blockchain cuts this to seconds. The added transparency also helps consumers trace the origins of their food, addressing concerns about genetically modified crops.
All supply chain participants must adopt blockchain for it to function well. Companies should expect large savings by reducing fraud and incorrect deliveries, but transitioning means substantial investment and cooperation.
Work with a lean manufacturing consultant
A lean manufacturing consultant can help food manufacturers seamlessly integrate blockchain technology by finding inefficiencies in current processes and designing streamlined workflows. They make sure blockchain traceability aligns with lean principles, which means doing everything they can to help you minimize waste while maximize transparency and accuracy in your processes.
