Globalisation has significantly transformed the way agri-food chains are conceived, bringing about major changes in both production systems and raw material supply chains.
With the introduction and increasing use of digital records, disintermediation in transactions and data storage, the Blockchain has started to generate a number of benefits for all actors in the agri-food supply chains.
Traceability is one of the fundamental aspects on which every company has started to pay more attention, and the possibility of using Blockchain/DLT technology makes it possible to prove and make verifiable all the declarations that are made, creating a secure backbone for the exchange of information, where each actor has the responsibility (and authorship) of what they share.
What is traceability
Traceability is the ability to trace all processes from the field to the table with the ultimate aim of answering the following questions:
- When the various steps and transformations of raw materials and products took place;
- What happened during the various steps;
- Where they took place;
- Which actors intervened;
Traceability in a nutshell means enabling two important aspects:
- Knowing where a product comes from (including raw materials and semi-finished products);
- Knowing who the actors are along the supply chain
This offers producers the advantage of being able to know the history of their products and respond quickly to market demands, on the other hand it offers consumers the opportunity to know what they are buying.
The benefits of traceability in the agri-food sector
In the agri-food sector, traceability provides several benefits, such as:
Increased efficiency in supply chains
Through real-time traceability events, companies can easily identify process inefficiencies, eliminate bottlenecks and optimise the supply chain.
Sustainability
With end-to-end transparency, users can ensure provenance and have a clearer view of where and how grey areas can be stemmed throughout the supply chain
Increased credibility and trust in the brand
When consumers and supply chain partners know that brands are transparent about the quality and origin of their food, trust in the brand is increased, creating differentiation.
Increased food safety
Traceability allows every actor to have access to tools and data to improve food safety. A transparent food system is a responsible food system.
Product freshness
Keeping track of how fresh the food really is and how long it has travelled in real time can help you to better understand the remaining shelf life.
Food waste
With a digital food system, network participants can better monitor the amount of food that is about to expire or is unsold in order to act accordingly and avoid waste.
What the Blockchain has to do with traceability
Blockchain and traceability are not two inseparable concepts, as we have seen above, it is possible to do/speak at length about traceability without bothering with blockchain technology. However, there are features of the blockchain that can increase trust in traceability systems, speeding up the process of verifying and controlling information. Before delving into the importance of blockchain for traceability, it is necessary to introduce the paradigms that blockchain enables:
- Notarisation (Proof of Timestamp): Possibility of independently verifying the integrity of data recorded at a certain date and time;
- Identity (Proof of Identity): Ability to independently verify who has declared information (public key that must be associated with the identity).
These two features (discussed in detail in this article) allow traceability systems to be more transparent and verifiable. Traceability, in fact, foresees a digital system through which to acquire information along the supply chain and share it with consumers. However, in the absence of the two features described above (Proof of Timestamp and Identity), it is clear that the actors who enter the information in the backbone have no protection with respect to the data, the consumers (or auditors) who receive the information must take it for granted without having any way to verify it.
At this point, it is clear that the Blockchain is an important ally for traceability, enabling:
- A secure system that protects the entire supply chain. Each actor knows that by entering information, he or she assumes responsibility, as anyone can verify when and by whom information was declared;
- A transparent system for the consumer. Consumers or auditors can verify each claim by transparently accessing the information, seeing who made the claim and when.
Some advantages of a traceability system built through integration with the Blockchain are highlighted below.
Transaction checks
Each actor certifies its supplied quantity, the price paid etc. in an immutable way. Anyone can therefore verify transactions and approve them.
End-to-end traceability solutions
With a digital food system, network participants can share data allowing full transparency and protection of all actors.
Personal transaction history
Each actor has a history of its transactions and can demonstrate what it has done within the food chain.
Collaborative platform
Secure data sharing between actors in the food chain eliminates the possibility of participants unknowingly moving fraudulent food.
Final considerations
We have described what we mean when we talk about traceability by demonstrating how traceability can be done without bothering with Blockchain technology. We believe that there are many secure and industry-tested traceability systems on the market today. However, the current systems, although impeccable in terms of traceability within the company, bring with them several problems when we start talking about agri-food chains and the connection between them. Blockchain and the use of standards (e.g. GS1 EPCIS) can open the door to global traceability that not only ensures the consumer, but also opens up new opportunities for all players in the supply chain.
To implement 🖐 Trusty in your company. contact us here.
