Blockchain could save the global food industry $31 billion in food fraud savings by 2024, according to new data from Juniper Research.
The company found that “substantial” savings in food fraud will be realised from 2021 and compliance costs will be reduced by 30% by 2024.
The research – ‘Blockchain: Key Vertical Opportunities, Trends & Challenges 2019-2030’ – revealed that blockchain used with IoT sensors and trackers will reduce retailers’ costs by streamlining supply chains; offering simpler regulatory compliance and efficient food recall process.
While IoT solutions link the physical and digital worlds primarily via location tracking sensors and temperature and humidity monitoring, blockchain provides an immutable platform where this data can be stored and accessed by every player in the process.
The research found that the IoT and blockchain will add significant value to players involved in the supply chain, from farmers to retailers and consumers.
By replacing lengthy procedures with automated smart contracts, blockchain and the IoT bring cost reductions, risk mitigation and transparency to supply chains.
Juniper Research recommends that blockchain vendors seek IoT partnerships to appeal to stakeholders across the food production market.
The research also found that leading players in the food provenance space are leveraging their robust 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 Internet of Things solutions.
Research author Dr Morgane Kimmich said: “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.”