Blockchain Applications in Agriculture

4 December 2018, Washington, DC - Blockchains and other Distributed Ledger Technologies (DLTs) hold enormous potential to transform agriculture and food systems by improving traceability, enabling rights enforcement, optimizing food chains, and improving transactions. To examine the potential application of blockchain in food and agriculture, FAO North America and the CSIS Global Food Security Project convened a roundtable discussion featuring Ramesh Gopinath, Vice President for Blockchain Solutions at IBM; and Mischa Tripoli, Economist in the Trade and Markets Division of FAO, who joined virtually from Rome.

Vimlendra Sharan, Director of FAO North America, underlined the potential of blockchain technologies to transform multiple key areas in food systems, especially for improving smallholder farmers’ efficiency in his welcoming remarks. Kimberly Flowers, Director of the CSIS Global Food Security Project, moderated the discussion.

Gopinath provided an overview of IBM Food Trust™, a data -sharing platform that uses blockchain technology to create visibility and accountability in the food supply chain. The tool connects growers, processors, distributors, and retailers through a permission based, permanent and shared record of food system data. Data sharing in the food ecosystem has been a challenge for decades, and is crucial for ensuring food safety, freshness, reducing food waste, and avoiding food fraud. Gopinath noted that blockchains provide a new type of database, where chances of collusion are low and trust is higher. While conventional methods need several days to track a package of mangoes from the retail shelf to the exact farm, an IBM and Walmart pilot showed the same package traced within seconds. By providing a common platform among competitors, the tool can be useful for business integration in areas where data is lacking. Ramesh emphasized that ensuring a business model that enables everyone to benefit, and data governance to safeguard accurate reporting, are key factors for consideration for the increased adoption of blockchain technologies.   

Mischa Tripoli highlighted that FAO is exploring blockchain applications in land administration, trade and market information, financial services and improved rural statistics. He underscored that it is key to first understand the underlying problems, and then explore the potential of blockchain applications.

The session highlighted the many opportunities that blockchain can provide, such as efficiency gains along value chains, as well as improving trust, transparency and traceability within the food system. It also noted the importance of capacity development and good date governance to ensure smallholder farmers’ inclusion and engagement.

Read more about FAO’s work on blockchains: Emerging Opportunities for the Application for Blockchain in the Agri-Food Industry.