7 benefits of blockchain for the food industry

7 benefits of blockchain for the food industry
7 benefits of blockchain for the food industry

Numerous business sectors have adopted blockchain technology. Blockchain technology is already making a big difference in the financial sector, healthcare & hospital automation services to government sectors, and the global supply chain. Thankfully, innovators  are experimenting with new ideas so that technology can be utilised much better in the food sector and other fields.

While others are working to embrace such cutting-edge and secure digital systems, some of the biggest IT giants have already begun leveraging technology in the food system. As a result, there is a growing market need for blockchain development and blockchain developers.

It is now possible to successfully generate, manage, and exchange data because of the widespread use of internet connectivity, cloud computing, and the Internet of Things (IoT). The Internet of Things and blockchain have the potential to revolutionise the supply chains for food and beverages and produce instant advantages.

In this section, we’ll talk about blockchain technology and its advantages for the food business.

Blockchain and the Food Industry

A decentralised distributed ledger that keeps track of all transactions in the network is what blockchain technology is generally understood to be. As opposed to a centralised system where either the government or a brand has full access to the transactional data, distributed technology is not owned or managed by a single entity.

Each network participant has a copy of the records on hand, and if given permission, they can access the supply chain. In conclusion, blockchain technology is an open network that enables all of its users—actors, suppliers, and customers—to access data records.

Blockchain technology is cloud-based and uses secure blocks to retain records of every network transaction. As a result, it makes it possible for items in the food and beverage industry to be transparently tracked throughout every stage of their life cycle, from the farm to the kitchen. Four key areas increase the utility of blockchain technology for managing the food supply chain:

  • Smart contracts between business partners
  • Enhanced protection of product data
  • Disintermediation in the food supply chain
  • Increased product traceability and visibility

With the aid of blockchain technology, systems can be instantly checked for food fraud and product tampering, waste products can be identified and categorised within supply chains, food contamination problems can be quickly identified, assisting in quick product recalls, and transit security can be improved, thereby reducing food spoilage.

Food Industries Already Employing Blockchain Technology:

  • Blockchain technology is used by Bumble Bee Foods to track its tuna operations, enhance product traceability, and stop food fraud. From catch to sale, products are tracked via the supply chain.
  • Blockchain technology is being used by Kraft Heinz’s children’s food sector as well. Through the use of blockchain technology, a traceability system is being developed.
  • To improve product traceability for its Rainforest Alliance-certified coffee brand, Zoégas, Nestlé uses a blockchain strategy.
  • Tyson Foods is tracking its supply chain from farms to production sites using blockchain technology management. Tyson is also working with the platform FoodLogiQ on a trial project for food safety.
  • In order to improve tech-enabled traceability and shorten the time it takes to find the source of food contamination, Walmart has been using blockchain technology to digitise its food product supply chain. All trading providers of leafy green veggies must submit data records into a system blockchain platform that can track their produce in order to do business with Walmart. They can now quickly identify the source of infected produce.

The benefits of blockchain technology in the food industry are as follows:


Global supply chains are growing more complex, food safety requirements are rising, and more trust difficulties are forming as a result of shifting consumer demands, tighter regulatory constraints, and increased global competition.

Businesses can deliver the product diversity that consumers want while simultaneously providing the security necessary to foster confidence by utilising blockchain technology to assure comprehensive traceability and quality assurance from the source of resources to their customers.


Blockchain is a decentralised database that promotes authenticity and openness. Each partner is in charge of uploading the data and information related to their products. Accurate digital data collecting fosters greater confidence and partner accountability. With the use of blockchain technology, product updates can be done quickly and you can view a product’s location, manufacturing process, and delivery date all on one platform.

Consumers can learn through blockchain technology about the preservation methods employed as well as the morals of any raw materials acquired. Blockchain solutions may become more widespread as customers become more concerned about moral sourcing and production.


The use of blockchain technology has the potential to greatly transform current business practices and transactions. Since blockchains are so difficult to hack, it eliminates the possibility of fraud and the intermediaries or mediators extorting more money from the farmers. Cryptographic security mechanisms built into the technology make it simple to exchange contracts and agreements and track payments.

The security that the blockchain offers boosts the legitimacy and reputation of organisations. There is significantly less supply chain misconduct, which lowers the possibility of expensive and damaging public relations risks. Blockchain is a great way to protect your supply chain data from cyberattacks, which are happening more frequently these days.

Food Quality and Safety

According to experts, fake food makes up about 15% of all food sold today. Given the immense financial possibilities in this industry, illegal activity is rampant. Incorrect weight claims, relabeling expired items, or labelling ordinary foods as organic are just a few examples. especially considering the little likelihood of becoming a victim of this scam so far.

Blockchain technology has already been utilised by some IT companies in the food sector. since it ensures supply chain management and food safety. Additionally, the industry for alcohol and beverages is using it more and more frequently. Blockchain-powered track-and-trace systems give supply chains the transparency they need to be successfully managed. They successfully help in the fulfilment of a dependable brand’s promise and provide comprehensive traceability of all food and beverage ingredients.

Increased Effectiveness

The automatic tracking of product activities along the supply chain is possible using blockchain technology. Due to the fact that every stage of a product’s path through the supply chain is automated via blockchain, the likelihood of human mistake is significantly minimised.

Logging digitization leads to less administrative labour and more reliable data tracking since all data is sent to the cloud. To rapidly download the information you need, sign on to the blockchain instead of attempting to connect with your partners. The product’s central location makes communication and operations simpler.

Blockchain is also scalable and accessible worldwide. This indicates that the technology can quickly support communication and worldwide collaboration. It is therefore the best option for a globalising economy.

Increased Client Satisfaction

A product’s history is usually unknown in today’s fragmented food supply chain. As a result, many consumers doubt the claims made on food packaging. Blockchain, on the other hand, enables companies to tell customers when, where, and how their food was prepared while also enabling customers to trace the product’s origin and journey and access in-depth and batch-specific information. This openness might boost consumer confidence and brand adherence.

Amplified  Payment Process

The blockchain allows the agri-food sector to become more like Uber by lowering transaction costs and middlemen. Price coercion is not seen in the food system due to the blockchain technology’s absence of intermediaries, and food producers reap significant financial gains.

Its use in the food business makes the payment procedure more robust. The technology helps farmers since it connects them directly with consumers without the involvement of middlemen, providing greater value and better sales opportunities.


The use of blockchain technology in the food business has a promising future. In order to sustain the food system’s supply chain, a number of well-known brands and economics have begun to be used in the food sector. Other people are empowered to use blockchain technology in their food system thanks to its benefits like transparency, traceability, speedy payment processing, food safety, and security.

Because blockchain has so many advantages for the food sector, it is a very promising instrument for ensuring food security and safety. When combined with auxiliary technologies like IoT sensors, they can create a food supply chain that is quickly engaged, transparent, and improves customer safety.

Learn more about blockchain technology here.