How Blockchain Technology Benefits the Agriculture and Food Industry?
Today, every person wants to know where their food items are coming from. The willingness to eat healthy with the adoption of advanced technology across every field has made agribusiness search for supply chain software for improving the food quality, food safety, and monitoring the entire supply chain.
The sector of agriculture is immense, the reason why it is facing so many challenges. Blockchain technology can help the food and agricultural sector maintain affordability and manage the dangers in the entire ecosystem. Let’s understand blockchain technology in depth.
What is Blockchain Technology in Agriculture?
In simple words, blockchain agriculture refers to the usage of blockchain in the sector of agriculture with the prime motive of improving the process of the operations and getting profitable results out of it.
The usage of blockchain ranges from reducing the waste in the agriculture supply chain and having a bearable business to help customers in making better purchasing decisions by eliminating the frauds in between the transactions.
A new term is being surfaced in the agriculture marketplace, smart agriculture. It includes the use of the resources available naturally and results in decreasing the bad impact on the environment by adopting information and communication technologies (ICTs), blockchain, and several other advanced technologies for analyzing and gathering data.
Current Scenarios of Blockchain Technology in the Agriculture and Food Market
The agriculture and food market are more dependable on paperwork and documentation. With the adoption of blockchain technology, people are getting benefits by using the systematic digital register for recording and storing the data and keeping them safe in unseen times like natural calamities.
In 2020, the value of the global blockchain in the agriculture and food market was $139.6 million. Now, as per the BIS Research market report, it is projected to grow and touch $1,488.0 million by 2026, at a CAGR of 51.0%. The growth of the market is rising due to the increasing support by government initiatives and the requirement of transparency in the supply chain.
Though blockchain in the food and agriculture market is still getting developed, it can be a game-changer for the agriculture market. It offers detailed statistics of farming, credit scores, inventory and help in doing proper food tracking.
Use of Blockchain in Agriculture
To tackle the increasing problem of cyber security, entrepreneurs are adopting blockchain technology at a high level for the accurate management of data and transactions. Following are a few ways how blockchain is used in agriculture.
- Farming Inventory Management
Many organizations related to farming are yet not prepared to get the benefits of edge technologies for dealing with the present inventories. It is resulting in the wastage of resources and crop production. Also, these losses are paid by farmers. It has become a burden for these hard-working farmers because of the absence of specific tools for managing such emerging issues.
The adoption of blockchain technology by these farmers can help to change the situation in a better manner. Using blockchain in farming inventory management can provide support by monitoring the storage place and passing warnings before the expiry of the products. It can help farmers in taking legitimate measures.
- Enhancing the Efficiency of the Supply Chain in Agriculture
Another beneficial usage of blockchain technology in agriculture is for expanding the productivity of the crop throughout the sector. Due to the lack of innovations and automation, the productivity rate of the agriculture sector isn’t sufficient. Blockchain technology can be highly beneficial for small farmers who do not have enough money to invest in getting advanced technologies.
The use of blockchain technology in the agriculture supply chain will help the farmers in addressing the problems quickly, reducing the cost of the agriculture supply chains, and increasing the overall yield efficiency.
Benefits of Blockchain Technology in the Supply Chain of Agriculture
- Modernization of farm management software (FMS)
Using blockchain technology in agriculture can help to make farm management software (FMS) more efficient and advanced. FMS works by utilizing the data of the customer’s needs, but it could not offer the maximum output with this data only.
Hence, adopting blockchain technology for this situation helps in raising the standards of FMS to the next level. Also, blockchain can help to provide the security and protection FMS needs. It will reduce the stress of farmers over the presence of cyber hackers.
- Getting fair pricing
It is a fact that many organizations of farming do not get the fair pricing deserved by them; despite the truth that the crops are of high quality, still, wholesalers don’t provide the deserved value.
This situation can be made better with the adoption of a marketplace based on blockchain technology. Here, farmers can get potential customers with fair prices and can also reach more customers compared to previously. It will help them in getting reasonable value for their products.
Conclusion
The blockchain for the food supply and agriculture can transform the traditional process being used by the farmers. More so, the adoption of blockchain technology in agriculture can help small farmers to get fair prices and will help in the proper monitoring of the stored crops.
