The global population is expected to reach 9.7 billion by 2050. To efficiently serve this increasing demand it is high time for the food sector to adopt new-age technologies for a better future.
As food businesses around the world are searching for new ways to revolutionize and streamline business processes to reduce food wastage, enhance transparency, and improve food safety.
Blockchain technology is the solution they are looking for. Transparency, security, and safety are the three major benefits of the use of blockchain technology in the food industry.
Technologies like artificial intelligence are in huge demand to develop innovative software solutions that are helping the food industry effectively tackle these challenges.
With a reliable blockchain development company like RisingMax, you can build next-gen solutions for your food business. Whether you are looking to streamline your business operations, increase your online presence, or bring more transparency to your food supply chain.
We at RisingMax have the right expertise and tech tools to turn your app idea into reality. Leverage our expertise in blockchain technologies and build a software solution that helps you become future-ready and have a competitive edge over others.
In this post, we will discuss:
Before diving deep into the topic and discussing the use of blockchain technology in the food industry, let us start from the basics and understand what blockchain is.
Blockchain technology is a data storage method where information is stored and shared via a distributed ledger. This distributed ledger records information and uses an additional security layer to make it impossible for anyone to hack the information or alter it.
With an inbuilt consensus layer, the blockchain ensures that it validates only the true version of the information. The information is stored on a decentralized network allowing anyone within the network to access the information and access the same version of the information.
That’s just the basic information about what blockchain technology is. Now let’s move to the next section and understand the role of blockchain in the food industry.
Blockchain technology is being used in the food industry to streamline the operating processes and get better results. From reducing waste, consumer purchasing decisions, maintaining a food supply chain, and secure transactions. This futuristic technology is revolutionizing the food industry for a better tomorrow.
The addition of blockchain technology resulted in the coining of a new term in the food sector, i.e., Smart Agriculture. It means utilizing modern technologies for gathering information for better decision-making to enhance productivity and improve overall efficiency.
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The traditional food industry faces various challenges that are affecting its overall capabilities and hampering its efficiency. In this next section, we will cover some of the major challenges that the industry is facing.
This is without a doubt that the regulatory rules in the food industry are stringent of all. And companies involved in importing and exporting food items need to ensure that their product meets the set regulatory norms. There are constant changes in rules and regulations related to waste disposal, surplus production, raw material, and documentation process. Thus businesses engaged in the food sector need to stay updated with the changing regulatory rules and adapt to deal with such challenges.
This surge in demand and the COVID-19 pandemic resulted in people looking to fill their shelves and tables with food items as cheaply as possible. This chaotic situation opened doors for some dishonest people to operate and sell their low-quality products to customers. Even post-pandemic, the news is coming worldwide about adulterated food items like Honey, Milk, and other food items.
Users are becoming tech-savvy and thus raises their expectation of the food sector. Regarding technology, the food sector is lagging and needs to improve its online visibility. Technology will help them build a better connection with the customers and help meet their expectations.
Thus, it is high time for companies in the food sector to improve their online presence and market products online. They can serve their customers even better and stay ahead of the competition with this.
In a recent survey, it is found that there is a 40 percent increase in the number of vegans worldwide. This posts an additional challenge to the food industry to cater to this increasing demand and keep the retail and supply chains demand running. To cater to this increasing demand and maintain the supply chain, the food industry needs a technology that can help them streamline and efficiently manage their operations.
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The traditional food industry data is vulnerable to data corruption and manipulation. With wrong data added to an important decision, making can disrupt the entire supply chain. This is one of the important decisions, among others that are mentioned before, why the food industry is opting for blockchain technology. Businesses worldwide are investing and shifting towards blockchain technology mainly for security, transparency, and ease of transaction.
Indeed, farming organizations worldwide aren’t prepared to utilize technology to manage inventories. And probably one of the biggest reasons that lead to the wastage of resources and produce. In addition to this, all these losses are born by farmers alone.
However, all of this can be managed efficiently using blockchain technology. With efficient management of farm inventory, farmers can monitor the storage and know when their products or resources will expire. In this way, they have ample amount of time to take legitimate measures.
Blockchain technology is helping food businesses to boost their productivity throughout the industry. This wasn’t possible in the industry without software solutions and automation tools. Earlier, the use of technology is only limited to big farming organizations, and small to mid-sized businesses don’t have the right expertise and expenses to manage them efficiently.
However, with blockchain technology, food businesses now can expand and increase their overall yield efficiency. Blockchain brings transparency, security, secured data access, data analysis, improved online presence, and business operations stream.
Businesses need IoT devices for monitoring farm produce to manage the food supply chain. However, one major drawback of these devices is that they are frail to cyber attacks. And even a minor manipulation or change in the data stored can lead to huge losses as the data is used for making important business decisions. Blockchain technology addresses these issues quite well and ensures that the data is stored safely, securely, and decentralized.
Getting a reasonable price for your product is often a major challenge for the organization in the food sector. There are even instances when good produce is sold at a cheaper price, and farmers won’t get the value they are looking for in the market.
However, with blockchain technology, things are not the same nowadays. Farmers can now get a better price for their products and even negotiate pricing on a blockchain-based marketplace.
For this very reason, there is a huge demand in the market to build a blockchain-based platform where farmers can sell and negotiate the price of the produce. If you are looking to launch a marketplace for farmers, it’s high time that you connect with our experts and discuss your app idea.
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Blockchain technology is playing a major role in modernizing the food sector with software solutions like FMS. Farm management software (FMS) has multiple advantages, from managing inventory to streamlining business processes and others.
These online software solutions are well capable of getting maximum yield with blockchain solutions. These innovative solutions based on blockchain helps in streamlining business operation and eliminating the stress of any cyber attack.
With the rise of technology in the food and agriculture sector, the role of blockchain technology is growing too. Food businesses worldwide are actively using blockchain technology to streamline the food chain supply and business process for better efficiency. Let’s look at how blockchain technology is revolutionizing blockchain technology.
Food businesses have to keep updated with the changing regulatory rules and regulations. Even a minor non-compliance with the regulatory compliance result in strict action and can hamper the business’s reputation in the long run.
However, with blockchain technology, you don’t have to worry about the changing regulatory laws, industry standards, international laws, etc. With smart contracts in the food sector, things are now less complicated and more smooth overall.
These contracts are updated with the changing regulatory laws, which give assurance to both buyer and seller about compliance with legal and regulatory norms.
The food industry is not immune to financial fraud and long time for settlement. However, all of this can be managed with blockchain-based smart contracts that assure both buyer and seller.
As you know, smart contracts are self-executing, thus ensuring both parties involved that when the predetermined conditions are met transfer of funds will take place. Thus establishing an unbiased settlement system for both parties involved.
Every business wants to make its customer onboarding process fast and transparent. Know your customer, also known as KYC, is an important customer onboarding process with which businesses get to know their customers and better serve them.
With blockchain technology, businesses can smoothen the entire customer onboarding process and make it less time-consuming than the traditional system. With a faster customer onboarding process, the Food sector can now focus on improving their product and services.
Without a doubt, blockchain technology has the potential to revolutionize the food and agriculture sector. Food businesses and farmers worldwide are using this technology to modernize their entire production methodologies and get the right value for their produce. With a comprehensive database, businesses now can use this valuable information stored on the distributed ledger to improve overall business processes and serve customers better and more efficiently.
As the use cases of blockchain technology are growing day by day. There is excitement in the business worldwide to swiftly adopt this technology and get a competitive edge over others. If you, too, are looking to fully adopt blockchain technology, then partnering with a reputed blockchain development company like RisingMax is best for you.
Have a blockchain-based app idea? Get in touch with our blockchain experts over a FREE demo call and discuss your blockchain-related queries in detail.