Blockchain technology to ‘trigger’ disruption

By Oscar Rousseau contact

- Last updated on GMT

Blockchain technology could help to build transparency in the meat supply chain
Blockchain technology could help to build transparency in the meat supply chain

Related tags: Risk, Food

Supply chain disrupter blockchain technology could improve efficiency, food safety and traceability of meat, but business will need to ditch the paper trail first, a report has claimed.

Dutch financial services outfit Rabobank claimed food producers, including meat firms, needed to explore blockchain technology​ to cut costs and meet rising demand for sustainable produce.

Rabobank said the major disrupter of the industry could bring three benefits to the supply chain in its report on blockchain.

It could cut operating costs due to efficiency gains made from lower transaction fees and automated payments, resulting in faster processes.

The second benefit is increased transparency. Shared information on blockchain technology means that once data is added at one end of the chain, it can be viewed by all participating links, which should be a massive help in the event of food safety issues, making risky produce easier to track, trace and recall.

New business creation is the third benefit. Rabobank pointed to asset-based financing, risk management services, predictive modelling and new trading platforms for small businesses as key areas for new business growth.

Help for food safety-hit meat firms

Over 26,000 tonnes of meat was recalled in America last year, according to the US government. Harry Smit, senior analyst at Rabobank, explained why “tackling food safety issues” would be simplified by blockchain technology.

Product recalls can be much easier when the entire chain is transparent,​” he said.

Transparency of the food chain also means that the benefits of reputation that market leaders have will decline. Trust in a product will become less dependent on the trust in the supplier, but more dependent on the information available in the blockchain. This enables smaller companies to establish premiums based on the intrinsic characteristics of the goods they supply, without necessarily having a longstanding reputation.​”

While Rabobank outlined these three potential supply chain benefits of blockchain technology, the company said the key to maximising their potential lay in the “digitalisation of internal and external processes​”.

This means everyone in the blockchain, from suppliers to supermarkets, needed to participate fully and get all records online, it said. Failure to do this meant the chain, which could improve traceability and food safety, would be compromised.

Rabobank_blockchain_

Related news

Show more

Related products

show more

Traditional flavours, the new trend in burgers!

Traditional flavours, the new trend in burgers!

Kancor Ingredients Limited | 30-Aug-2019 | Application Note

Consumer's demand for ethnic or themed burgers with unique flavours led chefs and restaurateurs to offer gourmet spiced burgers. Recreating these...

The unique natural anti-oxidant for meat applications

The unique natural anti-oxidant for meat applications

Kancor Ingredients Limited | 28-Feb-2019 | Technical / White Paper

Fresh meat is preferred in bright red colour but is highly prone to oxidation and is colour sensitive to extracts. Kancor’s OxiKan R, a highly refined...

Related suppliers

1 comment

blockchain

Posted by blockchain training in hyderabad,

thank you for the valuable information giving on blockchain it is very helpful.
<a href="https://aditidigitalsolutions.com/blockchain-training-hyderabad/">blockchain training in hyderabad</a>

Report abuse

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.