Save 31 billion US dollars in compliance costs in 5 years, large-scale adoption of blockchain in food and beverage industry

According to Cointelegraph reported on December 1, the food industry can trace the source through the blockchain, saving up to $ 31 billion in global food fraud costs.

1600px-Tasty_Food_Abundance_in_Healthy_Europe (Image source: wikimedia )

A study released by Juniper Research on November 25 shows that the combination of blockchain technology and Internet of Things (IoT) sensors will greatly reduce retailers' costs because it simplifies the supply chain and regulatory compliance process, and further Improve the efficiency of food recalls and effectively address fraud.

Research indicates that the application of blockchain and the Internet of Things in the supply chain industry will have important value to the supply chain of food companies. By using these innovative technologies, the food industry can save up to $ 31 billion in food fraud costs in just five years.

Research author Dr. Morgane Kimmich said:

Today, food companies have to rely on middlemen and paper records because of opaque data and low transparency and efficiency in the food supply chain. Blockchain and the Internet of Things provide an immutable shared platform for all participants in the supply chain to track assets, save time and resources, and reduce fraud.

Juniper's research further shows that food fraud can be significantly reduced in 2021, and compliance costs will be reduced by 30% by 2024.

Use of blockchain technology in the food and beverage industry

The food and beverage industry is adopting blockchain and IoT technologies on a large scale. Over the past few months, many companies, including giants such as Nestle and Carrefour, have reported on their blockchain technology in this area.

The most widely used blockchain source tracing solution in the food industry is IBM's Food Trust, which is based on the Hyperledger Fabric blockchain protocol. The platform went live in October 2018, and it is reported that retailers and suppliers can trace the source of "millions of foods" by using the Food Trust blockchain.

Recently, it has been reported that salmon farming company Cermaq and smoked salmon producer Labeyrie are using IBM's cloud blockchain technology to trace their product supply chain.