The Application Of Blockchain Technology To The Agriculture Supply Chain?

Blockchain farming and distributed ledger technology (DLT) have the potential to increase efficiency, transparency, and trust throughout agricultural supply chains.

Fremont, CA: The human population continues growing as consumers demand digital services targeted at their needs. Farmers and agribusinesses should consider adopting blockchain technology in agriculture and farm management software to enhance the financial performance of farmland and satisfy the demand for food of a growing population.

The agricultural sector is required to undergo technological transformation to:

- fulfill the demands of an increasing population for more high-quality food

- advance technological solutions to satisfy changing consumer needs

- promote sustainable agricultural practices and lower environmental footprints

- lessen agricultural supply chain costs

- initiate and follow firm sanitary and phytosanitary (SPS) standards

- sustain profitable operations of farmlands and agribusinesses

- enhance the incomes of small farms, private farmers, and food producers

Finally, blockchain farming and distributed ledger technology (DLT) have the potential to increase efficiency, transparency, and trust throughout agricultural supply chains. Blockchain for the agriculture supply chain can enable all market players by building relationships of trust.

The blockchain for supply chain can change the agricultural industry by:

- simplifying all phases of the agricultural supply chain

- tracking a product along its complete path from farmland to store shelf

- bettering food safety and eradicating counterfeit items

- decreasing financial risks and promoting inclusive trade

- providing farmers and businesses with ingress to agricultural financial services

- producing smarter market data for better decision-making with data science in agriculture

- legally proving certifications to appropriate authorities

Disputes of implementing blockchain technology in agriculture and steps to conquer them

Supply chain management in agriculture is more complicated than in other supply chains, as agricultural production depends on weather, pests, and diseases that are hard to predict and control.

The deficiency of traceability in the agricultural supply chain leads to slower financial transactions and intensive manual work. Moreover, counterfeits may appear at each stage of the supply chain and bring hazardous consequences to all business stakeholders, governments, and consumers.

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The negative impact of counterfeits on agriculture

Supply chain blockchain services and initiatives can reduce the risk of counterfeits and enhance the efficiency of blockchain-based agriculture by providing transparency and eradicating intermediate links in the agricultural value chain.

Also, by decreasing uncertainty and enabling trust among market players, distributed ledgers and smart contracts offer a real opportunity for more broad market participation among smallholders and micro, small, and medium enterprises (MSMEs).

The basic issue of agricultural supply chains lies in the transportation of products. While transaction data can be drawn by the cryptographic fingerprint attached to every transaction, the motion of a real product along a supply chain from farm to consumer needs a much more immutable product–process link. Numerous well-known technologies exist to establish this link.