PSV-24 Implementation of Blockchain Technologies in the U.S. Sheep Industry: Producer and Industry Perceptions

Abstract

Abstract Agricultural product traceability has become increasingly important. Emerging digital technologies, like blockchain technology, can facilitate supply-chain data capture and exchange across all segments of the industry. To better understand stakeholder perceptions and willingness to share digital production records using blockchain technology, a digital survey was conducted across sheep industry stakeholders. During January of 2021-2022, a 25-question, online survey was conducted to capture U.S. sheep industry producer and processor perceptions. Survey data included 66 responses, where 84.8%, (n = 56) were sheep and lamb producers and 15.2%, (n = 10) were involved in wool warehousing and processing. A continuous line scale anchored at 0 (not familiar) and 100 (very familiar) was used to assess familiarity with blockchain technology (Table 1). Lamb and wool producers were somewhat familiar with blockchain technology (mean = 43.00, n = 40 completed responses), while wool warehousers and processors answered similarly (mean = 40.40, n = 9 completed responses). Stakeholders were also asked to determine their desired monetary premium (% over base price) to submit records into a blockchain system. Wool and lamb producers were asked what level of premium they would need to receive in order to submit records into the blockchain system, 89% (n = 75) of wool and lamb producers indicated they would need at least a 4.1% premium over base price, while 60% (n = 6) of wool processing respondents were willing to pay producers a 4.1% or higher premium for access to records on the blockchain system. Producers and wool processors are somewhat familiar with blockchain technology as a traceability mechanism, and they are willing to implement this technology if there is incentive available in the market. A greater understanding of the economic value, opportunity, and implications that blockchain technology brings to the market is important in determining if the right incentives are available to integrate this technology into the U.S. sheep industry.