A new report by Cointelegraph Consulting and Vechain reveals that $300 billion worth of food will be traced using blockchain and IoT technology by 2027. The recently released report highlights several factors that will contribute to the adoption of blockchain for global food supply chains in seven years.
The global food industry, like many other industries, is known for a significant lack of transparency which costs billions of dollars every year. Approximately 20% of global wine sales are considered to be counterfeit. This amounts to losses of $6 billion. Subsectors of the seafood industry reveal more shocking losses. For example, 25 – 70% of red snapper, wild salmon, and Atlantic cod are disguised by other species.
According to the report,
“Companies today are under pressure to manage performance and value chains in a sustainable and transparent way. With consumer trust shifting from brands to products, DNV GL Business Assurance recognized the importance of providing traceable product data on food and beverage items such as seafood and wine.”
Blockchain has gained great popularity among corporations, due in part to its potential to redefine how supply chain management processes are carried out. IBM is one of the main leaders trying to create blockchain solutions for global industry leaders such as Walmart and California Giant Berry Farms.
Major corporations in Nigeria have also taken significant steps to focus on blockchain solutions for their supply chains. Microsoft partnered with Interswitch in 2018 to create new ways that extend supply chain financing for Nigeria’s small entrepreneur community.
According to Michael Glaros, the Principal Programme Manager of Microsoft Azure Blockchain,
“ The blockchain technology is still in its infancy in Nigeria and we are happy to pioneer its deployment in partnership with Interswitch, an innovative and forward-thinking company which has evolved its business around financial technology”