Over the last decade, blockchain technology has developed into one of today’s leading technologies. For the fresh produce industry, the concept of blockchain technology holds vast possibilities and benefits to improve efficiency and traceability, optimise supply chain operations, enhance quality management, increase market and business intelligence, reduce costs and foster brand protection.
Mr Ed Treacy, blockchain expert and Vice President, Supply Chain and Sustainability for the Produce Marketing Association (PMA) says blockchain can help digitally trace and authenticate food products from an ecosystem of suppliers to store shelves and ultimately to consumers. For the retailer, it means fresher food, reduced food waste, faster targeted recalls, and supply chain visibility and traceability. On the customer side, it builds trust and confidence, encourages brand loyalty and provides necessary information and transparency. What is blockchain?
Treacy explained the sometimes complex and overwhelming concept of blockchain technology as a continuously growing list of records that are apart (blocks) and then they are linked – that’s the chain (blockchain). The data in the chain is secure. It uses very sophisticated encryption protocols – it creates a unique serial number that incorporates the data and the time etc. and it uses distributed ledger data storage, so it is impossible to modify data without people being aware of it.
“In the produce world, blockchain is a protocol for sharing information. It is not a database in the sky, nor a software or a hardware. It is a set of rules that has your name on it and is shared. It is a protocol. A blockchain is just a ledger of transactions… It is a unique type of ledger where you can’t change or delete data. It is essentially a secure database, or ledger, with copies spread across multiple computers and everybody has the same record of all transactions”. Depending on the configuration, it can be tailored to control which parties have access to what data.
It takes place in a decentralised environment and enables information to move securely. A powerful attribute of the blockchain methodology is the ability to move through the supply chain at the same speed as the product.
Pilot projects
According to Treacy, blockchain technology is mainly in a pilot phase, but it is moving fast, and people are figuring it out and finding more efficient solutions.
In his presentation, he pointed towards various blockchain pilot projects.
In the USA a pilot project by Walmart US provided proof of the blockchain concept. In the pilot case, a packet of pre-sliced mangoes was traced through the supply chain back to the farm in six days, 18 hours and 26 minutes. During the pilot case, assembling the data went from almost a week down to 2,2 seconds.
The multinational technology company, IMB, as part of a consortium with ten major food suppliers in the USA, embarked on collaborative pilot projects with the grocery industry to apply blockchain-based technologies to the food supply chain to improve food safety and ingredient transparency for a more transparent, authentic and trustworthy global food supply chain. Treacy is also representing the PMA volunteer Blockchain Task Force on the collaborative project team.
Results from the pilot studies are very encouraging and provide proof of the value and benefits of blockchain. Blockchain pilot projects are using existing business practices and standards. “You cannot invent a whole new way of doing business to support blockchain. Blockchain must work on top of how we are doing business today. In terms of cost, the benefits to each trading partner should be greater than the cost,” Treacy said.
Other blockchain pilots
Data-driven efficiencies and benefits
Data-sharing and privacy
This article comes from a presentation given by Mr Ed Treacy, blockchain expert and vice-president of supply chain efficiencies for the Produce Marketing Association (PMA) at PMA’s Fresh Connections: Southern Africa Conference and Trade Show on 15 August 2018 in Pretoria, South Africa.
