value chain

Blockchain technology for traceability

Blockchain technology in the value chain can help track food as it moves along the supply chain, drive food supply transparency, and increase responsiveness to food safety issues. The technology would enable specific products to be traced at any time, allowing contaminated products to be traced easily and quickly. This ability would ease product recall while reducing food waste because safe foods can remain on the shelf. AgriDigital is one of the global pioneers in the use of blockchain for managing agriculture value chains (box 5.9). Others include Covantis, GrainChain, and Agriota E-Marketplace. In late 2020, Swiss-based blockchain commodities marketplace Cerealia went into production, initially targeting the grain trade in the Black Sea area (ledger Insights 2020). For challenges, see the subsection titled “Blockchain technology for productivity” earlier in this chapter.

Food sensing technology

Other innovations improving traceability, quality, and food safety include a wide range of sensing technologies. These innovations include antifraud solutions, diagnostic technology, antibacterial proteins, mobile-based tracking systems, and sensors for the nondestructive analysis of food (box 5.10) (ADB 2018; Ecosperity 2018a; WEF 2018). The technologies are often applied at the processing and retail levels.

AgriDigital: A pioneer in the use of blockchain in the agricultural value chain

AgriDigital has a cloud-based commodity management solution for the global grains industry, connecting grain farmers, buyers, site operators, and financiers through a single platform, and allowing them to contract, deliver, and make payments securely and in real time. The AgriDigital platform is also blockchain enabled. With the launch of a commercial blockchain protocol for agriculture, the AgriDigital platform operates as the primary application layer for users to interact with the blockchain. The company has developed a library of smart contracts operating on the blockchain protocol, allowing users to trade, finance, and trace agri-commodities. At the core of AgriDigital’s solution is the creation of digital assets. using digital assets, AgriDigital brings together the trade, finance, and data flows that are often disparate in traditional, paper-based agri-supply chains. This provides users with a more informed and robust view of their assets and the supply chain, and improves liquidity, transparency, and security for all supply chain participants, including farmers, traders, producers, financiers, and consumers.

AgriDigital’s SaaS34 platform has a network of 1,300 active grain supply chain users with a broader network of more than 4,500 total users. To date, more than 1.6 million metric tons of grain have been transacted by these participants on the AgriDigital platform (since november 2016). It is expanding rapidly into the global grains industry and across commodities with initial trials underway in the rice and cotton industries.

Although based in Australia, AgriDigital has expanded overseas, including to north America.

Source: ADB 2018.