Application Of Blockchain Technology For Agroindustrial Supply Chain Systems

The supply chain management system known since the 2000s is a centralized supply chain management system. This system has weaknesses. Trust issues such as corruption and inappropriate information prevent the supply chain system from working as planned. This system cannot present data in real-time. A new alternative that is now being used is blockchain technology. In its implementation, many parties cooperate with a blockchain marketing strategy for better implementation.

 

Blockchain technology provides an opportunity to transformable improve agricultural supply chain operations. The potential benefits abound for all supply chain actors, from small-scale producers to intermediaries (including processors, distributors, and others) to final consumers. In agriculture, blockchain can be applied to track and trace the origin of agricultural products. Blockchain can also be used to access various information that has been difficult to obtain for various reasons.

One of the studies in India resulted in a proposed blockchain scenario in the rice supply chain. The prepared scenario shows how a decentralized system based on blockchain technology ensures product security in supply chain management and helps in increasing the efficiency of the rice supply chain by providing a traceability system that records all events occurring in the rice supply chain and monitors the safety and quality of rice. Since food safety is the primary concern of every individual, blockchain technology is expected to be used by every food supply chain which ensures the delivery of quality products to the public.

Another study in Japan made use of the use of blockchain combined with information and communication technology (ICT). The model is structured to create e-agriculture. An e-agriculture ICT system with blockchain technology is proposed for use on a local and regional scale. This study uses both of these to track agricultural products. Not only about where the agricultural products come from, but also about on-farm information such as information on the availability of fertilizers, types of fertilizers used, harvesting times, and so on. Even when used for large agricultural areas, which use the same water source, this technology will be able to detect the source of water contamination in the event of water pollution causing crop failure.