Chapter 8 - Application of Blockchain Technology in agri-food supply chains: Opportunities and challenges

Abstract

Blockchain is an emerging technology and has huge potential for application in the Agri food supply chain. The Agri food supply chain is very challenging because of complexities involved in it. This chapter is focused on exploring opportunities and challenges in applications of blockchain in the Agri food supply chain. Blockchain technology requires less storage capacity and helps in promoting sustainability in operations. Blockchain technology is a tampered proof digital ledger made up of blocks which are connected via a series of hash pointers. This technology is considered as a safe technology because it is difficult to alter, reverse, or make any change in the blocks containing the information. This chapter also discusses the application of blockchain technology by explaining the Walmart case study. The technology provides transparency, traceability, and better visibility in the Agri food supply chain. It helps in eliminating the middlemen and reducing the transaction costs in the fast-changing business environment. This chapter reviews the recent studies on the blockchain technology applications. It identifies the benefits such as reduction in economic losses; improvement in the supply chain trust and collaboration; sustainability; traceability and transparency; improvement of food quality, safety and security; simplifying the Agri food supply chain and streamline operations; better decision-making; minimizes the financial risks; and helps the producers to access financial services. This chapter further identifies challenges in implementing the blockchain technology. The identified challenges are lack of infrastructure, lack of government guidelines and regulations, interoperability and standardization, technical challenges, and high investments. Insights from this chapter will help professionals in implementing blockchain technology in Agri food supply chains in an effective manner to improve visibility across all operations.