Blockchain technology has been providing solutions to so many industries that now, according to Juniper Research, it will help the food industry by an estimated $31 billion in “food fraud savings” by 2024. Blockchain Could Save Food Industry $31 Billion from Food Fraud.
The savings will be achieved, as per Juniper’s latest research, by immutably tracking food throughout the supply chain.
With the latest blockchain technology, significant savings will be made in food theft by 2021 and the price of enforcement will be reduced by 30% by 2024.
Based on the study, when blockchain is used with IoT sensors and trackers, by streamlining supply chains, it will minimize retailers’ costs; deliver easier regulatory compliance and efficient food recall processes.
Building on their respective strengths, blockchain and IoT is believed to be able to revolutionize the food industry. The research revealed that IoT and blockchain can add considerable value to supply chain players, from farmers to retailers to consumers.
Food companies could substitute long-term processes with digital smart contracts, blockchain and IoT to provide cost reductions, risk mitigation and transparency for supply chains.
Juniper Research advise blockchain vendors to try IoT alliances throughout the food production industry to cater to stakeholders.
According to research author Dr. Morgane Kimmich:
“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.”
The research also found that leading players in food space are leveraging their integrated blockchain and IoT technologies. Applications from IBM’s Food Trust and Watson, Track and Trace and Leonardo systems from SAP are included, as well as Track and Trace from Oracle and the Internet of Things.