In recent decades, the dairy industry has been shaken by several scandals. Customers have lost faith in the industry due to tainted milk in China or salmonella-infected milk in France. The current paradigm of milk production is also challenged by various ethical issues (producer remuneration, animal welfare, etc.).
As a result, blockchain technology has been widely used to address these challenges. Increasing traceability and transparency has become the top priority of dairy companies.
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What is Blockchain Supply Chain Technology?
Blockchains are public, shared archives that register digital transactions.
Blockchain can facilitate immediate network transactions between individuals and institutions (without an intermediary) in a decentralized network. Blockchain technology enables transactions to be conducted securely and stored to record what has occurred.
The cryptographic algorithms ensure that no blockchain transaction document can be modified after it has occurred. Blocks comprising a collection of transactions are joined together by cryptographic hashes in a blockchain.
Blockchain technology can ensure the accurate tracking of every batch in the dairy products supply chain. Blockchain makes it extremely easy to identify a faulty link and invalidate all contaminated sets in the event of a food-borne illness.
In contrast to bulk recalls of entire product lines, blockchain’s granularity can allow for the minimization of food waste and related financial costs in the dairy products supply chain and the impact on brand image.
- Partnership: As a decentralized and distributed ledger, blockchain is a trusted third party that allows trade between all players in the food chain (feed mills, farmers, cooperatives, manufacturers, and retailers) to be tracked securely.
- Transparency: Offering complete transparency regarding a product’s journey is an excellent way to differentiate oneself from competitors. In addition to providing proof of quality to consumers, the blockchain also provides a complete history of a product. Research has shown that consumers are more likely to buy a product that offers more specific information and that they are more likely to spend more on a product that reflects their values.
- Reassurance: Furthermore, tangible evidence of product claims (tags, audits, etc.) will increase consumers’ confidence. Using blockchain, these independent certification bodies can verify certificates by providing necessary information (proof of origin, environmental footprint, animal welfare, etc.). Certification becomes easier. Therefore, consumers find it more appealing.
As a result of blockchain implementation in the dairy business, consumers trust the products, which increases demand for the package. Security measures include secure processing and storage of official records and digital verification to protect intellectual property rights and patent systems, reduce food fraud, and improve food safety blockchain in the dairy industry.
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Using Blockchain Technology to Tackle Supply-Chain Pain Points
Blockchain can provide greater supply chain transparency and lower costs and risks throughout the supply chain. In particular, blockchain supply chain innovations can deliver the following benefits of blockchain in the dairy industry:
Primary Potential Benefits
- Ensure corporate standards are met by increasing the traceability of the material supply chain.
- Reduced losses from counterfeit/gray market trading.
- Outsourced contract manufacturing becomes more transparent and compliant.
- Reduce administrative costs and paperwork.
Secondary Potential Benefits
- Enhance corporate reputation by providing transparency about the materials used in products.
- Enhance the credibility and trustworthiness of data sharing.
- We are reducing public relations risks associated with supply chain malpractice.
- Stakeholder engagement.
Blockchain in the Dairy Industry:
Supply chains can be tracked more transparently and accurately using blockchain: Organizations can digitize physical assets and create a decentralized record of all transactions, enabling end-to-end tracking from production to delivery to use. Both businesses and consumers benefit from this increased supply chain transparency.
With blockchain, supply chains can be made more transparent. Thus fraud for high-value goods such as diamonds and pharmaceutical drugs companies could use blockchain to understand how ingredients and finished goods are passed through subcontractors. Each reduces or eliminates the impact of counterfeit products on end-user confidence by reducing or removing profit losses from counterfeit and gray market trading.
Supply-chain of the Milk Industry:
Outsourced contract manufacturing also allows businesses to maintain more control. Blockchain supply-chain case study tells that blockchain enables all parties in a supply chain to share information, potentially reducing communication errors or data transfer errors. We can spend less time validating data and more time delivering goods and services-either to improve quality, reduce cost, or do both.
Last but not least, the blockchain supply-chain case study says blockchain can streamline administrative processes and reduce costs through effective auditing of supply chain data. Processes involving manual compliance or credit checks can be sped up through a distributed ledger of all relevant information.
Blockchain Supply-Chain Technology in The Dairy Industry
In layman’s terms, the blockchain records all transactions digitally.
What are the Benefits for the Dairy Industry?
Dairy products’ supply chain traceability involves tracing the journey of milk and milk products, from their production to their consumption. Years ago, connections between dairy producers, processors/manufacturers, merchants, and buyers had weakened. Information reaches consumers very little or not at all.
Although the dairy supply chain members retain different data, they usually do not communicate or coordinate. Due to this lack of interaction between farmers and consumers, along with the globalization of the dairy industry, a better traceability system for India’s milk is required.
Blockchain technology and the IoT are being considered a solution to enhance traceability in agri-food supply chains in modern scientific literature.
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Stages of Blockchain Supply Chain Technology in The Milk Industry
Even though most of us have at least one milk product at home every day, we rarely think about the complicated path the staple product takes to reach our doorstep.
As the products become increasingly diverse in the dairy industry, the supply chain becomes more complex and extensive, requiring trustworthiness. It appears that a dairy supply chain blockchain is the only way to solve the trust and quality dilemma.
In contrast to the West, milk producers in India are highly unorganized, resulting in incompatible milk composition and quality. There is no granular, actionable information to help them improve their operations. Lets us discuss blockchain in the milk industry:-
- Productivity:- With 22 percent of global milk production, India is the world’s largest milk producer and has an urgent need to improve not just productivity but also quality, connectivity, and transparency. With blockchain in the dairy industry, consumers will feel more confident in the products, which increases demand for the package. It involves the secure handling of official records and digital authentication to protect intellectual property rights and patent systems, promote transparency in the supply chain, decrease food fraud, and enhance food safety.
- Transparency:- Transparency has never been more critical. However, it has never been fully demonstrable, so whether brands fulfill one or more evolving drivers is only the first step on the route to brand consciousness. Brands will need to implement traceability to demonstrate they meet many evolving drivers, especially if they consider and it’s possible with blockchain in the milk industry.
- Consumer satisfaction:- According to research, consumers who value the evolving drivers of their purchase decisions are more likely to use social media, mobile applications, and digital sources to gather information about products and brands on the path to purchase. The food industry is also more distrusted by them in general”.
Brands That are Adopting Blockchain Supply Chain Technology
- Health & Wellness at Milk Mantra: As a producer of dairy products, Milk Mantra sought a bulletproof supply chain to ensure the best quality, pure and healthy products while increasing sustainability for its network of farmers.
- Olam Agro For Social Impact: This leading agribusiness is committed to making a positive social impact. The sustainable rice project involves implementing blockchain technology in agriculture for food traceability, promoting sustainable rice cultivation in Basmati growing areas, improving farmers’ livelihoods through the production of residue-free (quality) Basmati rice.
- Supply Chain Traceability By Slay’s Coffee: Food traceability is an integral part of Slay’s entire food supply chain, which not only allows Slay to claim that it is transparent, ethical, and sustainable but can prove it. With this approach, this leading dairy brand is building an unbreakable bond of trust with its consumers while brewing the story of the milk as if it were their baristas.
As information is exchanged at various points in the food supply chain, Blockchain in agriculture generates a digital identity representing of milk industry journey. As the milk move from the shelter to the dairy’s, and at last to consumers, the different stakeholders track and trace the bean’s life cycle using a combination of Android-based mobile and web applications. So for any type of development related to blockchain feel free to connect with BR Softech. We ease you and provide the best quality of services at reasonable costs.
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