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AgTech Blockchain

Blockchain for Food and Agriculture

Blockchain is an emerging technology allowing universal transactions among distributed parties, without the need of intermediaries. Blockchain is not a single technology but uses a combination of technologies that have a considerable history in computer science and in commercial applications like public/private key cryptography, cryptographic hash functions, database technologies especially distributed databases, consensus algorithms, and decentralised processing. Blockchain could pave way for a transparent supply chain of food, by facilitating the sharing of data between disparate actors in a food value chain.

Despite huge positives of the technology and the great interest it has received from public and private parties in general, some critical questions like accessibility, governance, technical aspects, policies, data ownership and regulatory frameworks need to be addressesed for its mass adoption.

Some common ways in which blockchain is applied in food and agriculture value chains are

Supply Chain Traceability: It enables companies to quickly track unsafe products back to their source and see where else they have been distributed. This can prevent illness and save lives, as well as reducing the cost of product recalls.

Example: Aglive – An Australian livestock tracking platform, has completed a pilot that monitored shipments of beef to China using blockchain. The pilot saw cattle tracked from Macka’s cattle farm in regional New South Wales to an abattoir located in the same state. From there, frozen beef products were tracked across the supply chain as the meat was transported by land freight interstate to Queensland, and then shipped to Shanghai — ensuring that the products were stored under safe conditions throughout transit. The products were then distributed to grocery stores in Shanghai.

Agricultural Commodities Trade: Commodities management involves deal documents, contracts, letters of credit, supply chain finance, traceability and government certifications. Blockchain is enabling these data management challenges and payment time lags.

Example: AgriDigital – A blockchain-based and integrated commodity management solution for the global grains industry.

Digital Marketplace: Digital marketplaces allow buyers and growers to connect directly, increasing the amount of profits that go to the farmers, and investors to invest directly into farms producing commodities and then trade on that investment.

Example: Twiga Foods Ltd – The company, buys fresh produce from 17,000 farmers and processed food from manufacturers and then delivers it to 8,000 vendors, most of whom are women.