A new study shows that blockchain technology will push into the agriculture and food supply chain markets.
Blockchain technology is revolutionizing the agriculture and food sectors by boosting the decision-making competence of organizations, according to a study by Research and Markets.
The study, called Blockchain in Agriculture Market (and Food Supply Chain), Application (Product Traceability, Payment and Settlement, Smart Contracts, and Governance, Risk and Compliance Management), Provider, Organization Size, and Region – Global Forecast to 2023, said that distributed ledger technology (DLT) has potential applications in the food and agriculture sectors, especially in the areas of tracking and traceability, settlement and payment, governance, smart contract, risk, and compliance management.
“The global blockchain in agriculture and food supply chain market is estimated to be valued at $60.8 million in 2018 and is projected to reach $429.7 million by 2023, at a CAGR of 47.8% during the forecast period,” part of the study reads. “According to the FAO, every year about one-third of the food produced globally is wasted, which calls for a need to estimate and manage the actual supply and demand of food products so that these products reach the needy.”
Researchers said that through the blockchain network, issues of food wastage could be quickly and efficiently solved. The expected increase in the demand for transparency in the supply chain is seen to boost the growth of the blockchain market further.
At the same time, the study forecasted North America to emerge as the blockchain leader in the food and agriculture supply chain market between 2018 and 2023 in terms of value. The North American region represents the economies of the US and Canada, which hold the largest share of the world’s blockchain in food and agriculture supply chain.
It noted the largest investments in research and development (R&D) of the latest technology used in the food and agriculture commodities trading comes from North America. This fact will further push the adoption of blockchain technology in the region, the study said.
In addition, the presence of global technology providers, including Microsoft and IBM, in the region, coupled with some of the largest retailers and food processors, like McCormick & Co., Dole Food, and Walmart, could contribute to the quick expansion of blockchain in the food and agriculture supply chain market in North America.
In August, SOZO CEO Jansen Chok announced the launch of the first-of-its-kind decentralized solution for the agriculture and food industries that were developed by professionals and farmers with broad experience in food production, agriculture, retail sales, and logistics.