Abstract
Purpose: This article evaluates the application of blockchain technology to improve organic or fair-trade food traceability from “Farm to Fork” in light of European regulations. This study aims to shed light on the challenges in the organic food chain to overcome, the drivers for blockchain technology, and the challenges in current projects. Design/Methodology/Approach: For this research, a case study approach was taken in which four blockchain projects were evaluated on their success. Findings: Organic food supply chain companies aiming to improve food traceability with blockchain face two key decisions, depending on the characteristics of the organic value chain, regarding (1) optimizing chain partner collaboration and (2) the selection of which data to capture in the blockchain. Other challenges were data confidentiality, validation of data inputs, and interoperability. Easy verification of certification data, accountability, improved risk management, insight into trade transactions, simplified data collection and exchange, and improved communication account for the benefits. Regardless of what drives companies toward whole-chain traceability, for example, customer satisfaction, it does not necessarily require blockchain technology. Blockchain does enable faster food traceability, which is expected to be more applicable to a complex food supply chain. Research limitations/Implications: The limitations of this study are represented mainly by the scarcity of organic blockchain projects aiming to minimize pesticide inputs and limited availability of information of commercial projects. Practical Implications: This study shows that blockchain is currently successfully being implemented on a small scale to create whole-chain traceability of organic and fair-trade food. Originality/Value: This research addresses the intersection of food supply chain and organic food quality and certification. The focus on origin information and importance of organic data elements may underpin other research on European Union regulations in relation to food traceability, adding value to the body of knowledge on the current status of blockchain technology.
Highlights
Consumers, who buy organic food, have expectations about its quality and rely on certifying organizations to verify this quality as well as to provide information about the origin of organic products
Information about the origin of food is especially important in the organic food supply chain, because it can indicate the use of pesticides, genetically modified organisms (GMOs), fair payment, and the environmental or carbon footprint
The blockchain cases were analyzed individually in detail resulting in an overview of results, main drivers, and considerations and an overview of the case results in light of the organic traceability issues from Organic Food Traceability: Types and Issues
Summary
Consumers, who buy organic food, have expectations about its quality and rely on certifying organizations to verify this quality as well as to provide information about the origin of organic products. Pesticides could be toxic to humans and can have acute and chronic health effects These health effects and the effects on the environment by the exposure to pesticides are a continuing concern, according to the World Health Organization (WHO, 2018). EFSA concluded that “acute and chronic dietary exposure to pesticide residues is unlikely to pose concerns for consumer health” (EFSA, 2017), it can well be that certified organic food could contain pesticides. Perhaps propelled by these scandals, consumers are increasingly becoming concerned about the source of their food and beverages (Bitcoin Magazine, 2017). The above examples illustrate the accrued need for traceability in the food supply chain
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