In a world where 870 million people suffer from undernourishment and our environment is under threat from food waste, blockchain technology emerges as a powerful solution. It promises to transform how we handle perishable foods, making supply chains more transparent, efficient, and automated to combat these pressing issues.
The Challenge of Food Waste:
- Every year, we lose or waste a colossal 1.6 billion tons of food, worth around $1.2 trillion globally.
- To put it simply, the weight of this wasted food is equivalent to over 320 million elephants, and its economic impact is comparable to the GDP of Mexico or Indonesia.
The Impact:
- Social: Food waste jeopardizes food security and access to nourishing meals for millions around the world.
- Environmental: It contributes to climate change, depletes precious resources like water and energy, and is responsible for 8% of global greenhouse gas emissions.
- Economic: Food waste threatens the profitability of businesses across the food industry, with projected annual losses of $1.5 trillion by 2030.
Root Causes:
- Lack of awareness along the entire supply chain.
- Food spoils or gets damaged before reaching markets and consumers due to incomplete supply chain infrastructure.
- The industry lags in adopting digital supply chain tools, causing inefficiencies.
- Inadequate tools for traceability and collaboration among different supply chain stakeholders.
- Existing regulations often allow for easy disposal of food waste.
The Solution:
- Widespread adoption of digital supply chain solutions could save $120 billion each year.
- Implementation of advanced technologies can save $150 billion in supply chain infrastructure improvements and $60 billion in enhanced collaboration.
- Blockchain technology, valued at $17.15 billion, plays a central role in these initiatives. It offers secure, tamper-proof, and real-time data sharing capabilities.
Blockchain’s Role:
- Identifies inefficiencies instantly, such as inadequate storage conditions, in the supply chain.
- Enhances cost-effectiveness and trust through automation.
- Provides complete control and management throughout production stages.
