Estimating the Impact of Blockchain Adoption in the Food Processing Industry and Supply Chain

Abstract

AbstractFood supply chains are benefiting from blockchain technology, as it establishes a shared, secure record of information flows, thus reducing food safety risks, increasing consumers’ trust in products’ provenance and enhancing supply chain efficiency. However, despite some embryonic applications, systematic literature review reports very few investigation studies. This article proposes a potential design and update frequency of relevant data to be stored in the Ethereum blockchain for monitoring and traceability purposes and explores the cost connected to every transaction in the case of a fresh milk processing industry and supply chain, from dairy farms to the end consumers. Results show that (i) investments are limited for the supply chain actors; (ii) the benefits of a blockchain-enabled supply chain can be achieved with a minimal impact on the product’s consumer price, and (iii) the costs of operating the blockchain increases as we move down along the tiers of the supply chain.