Blockchain in Agriculture and the Global Food Supply Chain

Blockchain in Agriculture and the Global Food Supply Chain

New York, March 22, 2022 (GLOBE NEWSWIRE) — announces the release of the “Blockchain In Agriculture And Food Supply Chain Global Market Report 2022” –
$48 million in 2021 to $278.60 million in 2022 at a compound annual growth rate (CAGR) of 47.0%. The change in growth trend is mainly due to companies stabilizing their production after meeting the demand which increased exponentially during the COVID-19 pandemic in 2021. The market is expected to reach 1,295.93 million dollars in 2026 with a CAGR of 46.9%.

The blockchain in agriculture and food supply chain market consists of the sale of blockchain services in the agriculture and food supply chain by entities (organizations, sole proprietorships, and partnerships) that provide blockchain services to the agricultural and food supply chain. Blockchain technology enables the traceability of information in the food supply chain and thus helps to improve food safety.

It also provides a secure way to store and manage data, making it easier to develop and use data-driven innovations for smart farming and smart index-based agricultural insurance.

The main types of blockchain in agriculture and the food supply chain are public blockchain, private blockchain, consortium/hybrid blockchain. A public blockchain is open to the public and can be joined by anyone without special permission.

The services are used by producers, food manufacturers/processors and retailers for traceability, product tracking and visibility, payment and settlement, smart contracts, governance, risk and risk management. compliance.

North America was the largest region for Blockchain in Agriculture and Food Supply Chain Market in 2021. Regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, East, North America, South America, Middle East and Africa.

Blockchain in agriculture and food supply chain market has been supported by the increased demand from small and medium enterprises for blockchain in agriculture and food supply chain market. This is mainly due to the fact that large companies are investing heavily in the development of their existing solutions, while new companies are producing proprietary solutions in line with the needs of their national and regional markets.

According to the 2019 NASSCOM report, there are over 450 startups in the agritech sector with an annual growth rate of 25%. For example, Agridigital is an Australian startup that uses blockchain to support the Australian grain industry.

It helps to track and manage grains throughout the value chain. Thus, the rise of small and medium enterprises is expected to drive blockchain in the agriculture and food supply chain market during the forecast period.

Blockchain in the food and agriculture market can be costly, which can hamper market growth. Getting the data uploaded to a blockchain can be expensive, which can create a barrier to the adoption of blockchain technology in the agricultural sector.

For example, farm animal DNA could be expensive. The average cost of data collection is lower for large farms than for smaller ones, which raises the question of the increasing income gap.

Therefore, obtaining data in a blockchain is expensive and hinders market growth.

The use of blockchain with IoT is an emerging trend followed by blockchain companies in the agriculture and food supply chain market. Companies use blockchain to secure data in IoT devices.

IoT involves a system of devices that can collect, transfer, and store data over a wireless network. Using blockchain with IoT devices enables smart devices to exchange data and other financial transactions in a scalable, private, and reliable manner.

Blockchain technology with IoT further helps businesses to share and access data without the need for centralized control and management. For example, according to an article published in Thales in 2019, the use of blockchain in IoT devices has doubled and a majority of the organization plans to consider blockchain technology soon.

In April 2020, Nestlé, a Swiss food and beverage processing company, partnered with party certifier, The Rainforest Alliance, to independently provide data beyond what is usually disclosed by the business. Nestlé has expanded the use of the IBM Food Trust blockchain technology platform in the launch of Zoégas whole beans and roast and ground coffee in Sweden.

The Rainforest Alliance provides information regarding coffee traceability and the information is available to everyone with the IBM Food Trust blockchain platform.

The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and United States.
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