Blockchain and allied technologies for food supply chain risk mitigation in global value chains

Abstract

Over the past decades, there has been a megatrend regarding the international diffusion of value chain activities, such as sourcing, design, production, distribution and marketing. This leads to a notion of global value chains (GVCs), in which all the value chain activities are distributed globally. GVCs have altered the nature of specialisation and production in many sectors regarding the selection of best practices and producers; reduction of costs; availability of raw materials; and improvement in quality, of both input and output, across the global chain. Although such huge benefits and opportunities can be achieved, the associated risks are also increased due to the complexity and involvement of too many entities in the GVC network. This, especially, matters in food and agricultural value chains, which are facing a number of challenges, such as high trade barriers, strict government regulations, changing climate conditions, and fluctuations in supply and demand, as well as high risks associated with food security and safety. Underpinning this megatrend and its associated risks, managing global food value chain risks using advanced technologies is becoming important for GVC transformation. Considered as one of the most disruptive technologies of recent times, the impact of blockchain ought to be crucial to managing risks in the global food value chain. In order to make full use of blockchain, the technology is usually integrated with other innovative and emerging technologies, such as the internet of things (IoT) and big data analytics. This combination is driving a revolution in which firms are strengthening their GVCs through mitigating risks, consequently creating the safety and complete integrity of the value chains. This study is, therefore, among the few to identify the potential risks associated with GVCs and explore the significant roles of blockchain and its allied technologies in mitigating the identified global food value chain risks.