Blockchain & Its Ability to Overcome Challenges in Food Industry
The food industry is an ever-evolving and massive field. Over the decades, businesses in this industry have adopted several alterations and upgrades. However, there are still many challenges that still persist. Whether it is product labeling errors or food safety and compliance certificate frauds, the food industry suffers from challenges.
Blockchain is one such technology that has been adopted in many industries because of its incredible security solutions that can be utilized for preventing documents identity theft and various other purposes. The food industry is no exception and is currently exploring this advancing tech to overcome the challenges.
In this blog, we focus on some of the major challenges of the food industry and see if the blockchain has the potential to overcome them.
Keep reading till the end to find out.
Challenges that the Food Industry Deals With
There are several parties involved when it comes to the manufacturing of food products – the suppliers, retailers and aggregators, vendors that sell the products, etc. The chances of making errors and the threats to the supply chain process increases by a lot. These problems can cause distrust among consumers as they begin to question the food products’ integrity.
One of the major issues in the food industry is the lack of communication between the partners.
Another challenge that a lot of businesses and corporations deal with is the security of food related documentations. The importance of document security is imminent in the food industry, however, the technology used still isn’t advanced enough to prevent frauds and counterfeits.
Aside from documentation frauds, food frauds are another concerning issue that is present in the food industry.
This can involve misrepresenting the products, making additions or substitutions, tampering with the food packaging or food ingredients without approval. The repercussions of food frauds result in loss of credibility, serious consumer health risks, financial issues, damaged reputation and more importance of document security.
Blockchain Can Transform and Help in Overcoming the Challenges
The blockchain’s immutable nature can be utilized in combating the food frauds and even the documentation security issues and importance of document security.
The supply chain errors and other challenges can also be resolved with the use of blockchain.
A healthy and efficient relationship between the companies and consumers can be established with blockchain technology.
Challenges of Adopting Blockchain in the Food Industry
Blockchain is still in its nascent stage and there is a lot of space left for its improvement and growth. This is why the food industry cannot fully incorporate this tech into its systems and operations. Some of the challenges that blockchain can face in the food industry are –
Regulations are another concern as they are always evolving and make it more difficult for producing return on investment especially in the early stages. Some of these regulations include – blockchain and cryptocurrency comprises unique tax considerations that can be subjected to increased costs.
Therefore, while blockchain has the potential to overcome the challenges of the food industry. It is still a stage where the tech needs to go through many developments to tackle the issues.