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Blockchain may help producers save time and money

Blockchain may help producers save time and money

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    Strengthening Food Security: How Military-Civilian Collaboration Boosts Onion Farming in East Sumba

    Astrakhan’s First Harvest: Where Will the Onions and Lettuce Go?

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    Securing the Future of Onion Farming: Breeding for Resilience, Disease Resistance, and Global Food Security

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    Onion Price Crash: Farmers in Crisis as Bumper Harvest Floods Market – What’s Next?

    Onion Price Crash: Farmers in Crisis as Bumper Harvest Floods Market – What’s Next?

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    Strengthening Food Security: How Military-Civilian Collaboration Boosts Onion Farming in East Sumba

    Strengthening Food Security: How Military-Civilian Collaboration Boosts Onion Farming in East Sumba

    Astrakhan’s First Harvest: Where Will the Onions and Lettuce Go?

    Astrakhan’s First Harvest: Where Will the Onions and Lettuce Go?

    Sustainable Red Onion Farming: Key Practices for Higher Yields and Environmental Protection in Banten

    Sustainable Red Onion Farming: Key Practices for Higher Yields and Environmental Protection in Banten

    Unseasonal Rains Wreak Havoc on Gujarat’s Onion Crop: Price Surge and Farmer Distress Loom

    Unseasonal Rains Wreak Havoc on Gujarat’s Onion Crop: Price Surge and Farmer Distress Loom

    Securing the Future of Onion Farming: Breeding for Resilience, Disease Resistance, and Global Food Security

    Securing the Future of Onion Farming: Breeding for Resilience, Disease Resistance, and Global Food Security

    Onion Price Crash: Farmers in Crisis as Bumper Harvest Floods Market – What’s Next?

    Onion Price Crash: Farmers in Crisis as Bumper Harvest Floods Market – What’s Next?

    Conflict-Driven Early Onion Harvest in Myanmar Leads to Price Crash and Farmer Distress

    Conflict-Driven Early Onion Harvest in Myanmar Leads to Price Crash and Farmer Distress

    Noonday Onions Defy Early Challenges: Farmers Eye Bumper Crop with Optimism

    Noonday Onions Defy Early Challenges: Farmers Eye Bumper Crop with Optimism

    Why Are Onion Prices Soaring in Bangladesh Despite Peak Harvest? Farmers, Traders, and Market Dynamics Explained

    Why Are Onion Prices Soaring in Bangladesh Despite Peak Harvest? Farmers, Traders, and Market Dynamics Explained

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    Unseasonal Rains Wreak Havoc on Gujarat’s Onion Crop: Price Surge and Farmer Distress Loom

    Unseasonal Rains Wreak Havoc on Gujarat’s Onion Crop: Price Surge and Farmer Distress Loom

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    High-Residue Cover Cropping: A Viable Alternative to Plastic Mulch for Organic Vegetable Growers?

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    EU Pesticide Sales Hit 12-Year Low in 2023: What It Means for Modern Agriculture

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    Why Do Grocers Cover Potatoes at Night? The Science Behind This Curious Practice

    Record-Early Potato Planting in 2024: Will It Lead to Higher Yields?

    Record-Early Potato Planting in 2024: Will It Lead to Higher Yields?

    Boosting Farm Efficiency: How Lean Technologies Are Transforming Agriculture in Altai

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    Boosting Welsh Agriculture: How Organic School Meals Could Transform Farming by 2030

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    Farming in Small Spaces: How Bandanaira Prison Is Growing Food and Futures with Polybag Vegetable Cultivation

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Blockchain may help producers save time and money

by Tatyana Ivanovich
May 23, 2022
in AGROTECHNOLOGY
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Blockchain may help producers save time and money

It’s 2021, almost 2022, and the rate of technological innovation in our economy and society continues apace. What emerging tools could give Pennsylvania wholesale growers a competitive advantage and reduce barriers to financial success?

Technology has transformed many aspects of agriculture and the economy, yet many of the business and record-keeping systems used by growers lag behind the digital revolution. A relatively new technology called “blockchain” has potential applications for farms and food supply chains.

What is blockchain?

Blockchain is a foundational technology on which new economic and legal systems can be built. It first appeared with the launch of a digital currency called ‘Bitcoin’ about ten years ago. In a nutshell, blockchain is a tool that can record transactions and track information between businesses and assets across supply chains. Once created, transactions become part of a permanent record and cannot be manipulated by individual users.

One way to think of blockchain in the year 2021 is to compare it to the internet of the early 1990s. The use of the ‘World Wide Web’ was very limited at that time, relative to the many sophisticated uses of today. Individual organizations and small networks of people experimented with new tools like ‘Electronic Mail’ and informational websites built upon the early version of the ‘Internet.’ Similarly, uses for blockchain like the digital currency mentioned above, are being created now. Many more applications of blockchain technology will be developed in the coming years.

Why is blockchain worth thinking about now?

Why was the internet worth learning about in the early 1990’s? New foundational technologies like the internet in the 1990’s – and, potentially, like blockchain now – have the ability to redefine how we relate to each other, conduct business, and generate financial success. Early examples of blockchain use in the food supply chain include giving consumers access to information about product origins and growing practices; automating contracts and payment processes; improving product and ingredient traceability; and enabling efficient cooperation and aggregation among producers.

Consumers want more information. Grocery shoppers want to ‘know their farmer.’ Many surveys show that knowing how and where food is produced impacts consumer purchasing decisions.  Blockchain technology enables some producers to differentiate their brand and deepen engagement with consumers.  For example, IBM is developing a global network of olive oil suppliers and using blockchain to trace the supply chain of their products around the world.

Blockchain may help producers save time and money. Automatic or ‘smart’ contracts built upon blockchain technology could send payment to a producer as soon as delivery is confirmed, for example. GPS tracking, attached to loads of product or individual SKUs, could automatically log location updates and trigger additional contractual terms or provide clear chain-of-custody information for traceability.

Retailers might one day require participation in their blockchain systems. Traceability is a rising trend in wholesale produce supply chains.  Traceability systems track product from its point of origin to the final consumer purchase, usually with a focus on food safety and tracking potential outbreaks of foodborne illness. Blockchain technology could be used here to track the quality, safety, and flow of products. TraceHarvest Network uses blockchain technology to improve identification and remediation during food safety recalls and certify products’ origin and certification claims. Walmart is exploring blockchain applications in their cold chain, to trace E. coli outbreaks in lettuce for instance, to track down potentially contaminated product in a faster, more targeted, verifiable way.

Using blockchain, small producers could also better compete with large-scale or international producers through cooperation and aggregation. New systems for working together that include automatic contracts and improved traceability could satisfy the strict requirements of major market outlets and open new sales opportunities for grower networks.

Pennsylvania producers planning for their business’s future will do well to keep blockchain technology on their radar. Long-term success requires learning new tools and techniques as they benefit your business and justify the costs of adoption.  Blockchain will likely shape the digital economy of the future and impact PA producers’ financial success.

– Jay Eury and Becky Clawson, Penn State Extension educators

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