A blockchain/IoT combo could reduce food fraud by $131B in five years

Using blockchain and IoT tracking technology to trace the journey food takes from farms to grocery store shelves will “revolutionize” the food industry, reducing retailers’ costs by streamlining supply chains and simplifying regulatory compliance, according to a new study by UK-based Juniper Research.

The report said blockchain’s immutable ledger, combined with IoT sensors and trackers, is key to creating a more efficient food recall process.

Food fraud relates to mislabelled, diluted or substituted food and ingredients.

“For example, extra virgin olive oil labelled as originating from Greece when in fact it comes from somewhere else,” said Juniper analyst Morgane Kimmich. “Much of the interest in the technology also comes from the fact that blockchain has the potential to give more control to all actors involved in the process, from farmers to retailers, by providing them with a transparent and immutable platform offering full visibility of the supply chain.”

[ Read the Download: Beginner’s guide to blockchain special report ]

With adoption increasing in the supply chain industry, blockchain and IoT will create $31 billion in food fraud savings globally by 2024 by immutably tracking food across the supply chain. Substantial savings in food fraud will be realized as early as 2021 and compliance costs will be reduced by 30% by 2024.

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