Blockchain will save the food industry billions, claims Juniper Research
Blockchain will enable $31 billion in food fraud savings globally by 2024 by immutably tracking food across the supply chain, according to Juniper Research.
Compliance costs will be reduced by 30% by 2024, it reckons. The technology, used with IoT sensors and trackers, will reduce retailers’ costs by streamlining supply chains, offering simpler regulatory compliance and efficient food recall process.
IBM, SAP and Oracle lead the way
Leading players in the space are, meanwhile, making waves with their blockchain and IoT solutions. This includes IBM’s Food Trust and Watson platforms, SAP’s Track and Trace and Leonardo platforms, as well as Oracle’s Track and Trace, and IoT solutions.
Juniper Research’s Dr Morgane Kimmich comments: “Today, transparency and efficiency in the food supply chain are limited by opaque data forcing each company to rely on intermediaries and paper-based records. Blockchain and the IoT provide an immutable, shared platform for all actors in the supply chain to track and trace assets; saving time, resources and reducing fraud.”
Beg to differ
Not everyone is a fan, however. Blockchain systems are great in theory but there’s no guarantee that they will deliver for the likes of Walmart.
That’s the view of PwC Agribusiness Leader Craig Heraghty. In an interview with Tech Wire Asia, he said: “The weakest link in the chain is not blockchain or any technology, the weakest link is the piece of sticky tape that puts the label on the package. You have to think like a fraudster and see where you can copy a label or a QR code.”
While Heraghty didn’t specify any particular blockchain solution as a problem, he commented that “the illusion of traceability [provided by blockchain-powered systems] is a worrying trend”.
Ultimately, Tech Wire Asia said, it will be the responsibility of retailers to uphold and defend their blockchain system. “Nothing can prevent dishonest shopkeepers from tampering with labels and QR codes, but when supermarkets build and deploy such systems, it is their duty to make sure that the entire chain is foolproof,” it stated.
“Supermarkets — such as Walmart and Coles — who are already experimenting with the technology are sure to find a way to guarantee the trust that their blockchain system is intended to provide, gaining an edge on competitors in the market,” it concluded.