The world's food industry is growing and developing rapidly. In such a situation, it is necessary to modernize and update knowledge, technology, and products through continuous monitoring and research in this industry. R&D sector plays an effective role in this field; in other words, the research and design of many technological projects is in charge of this sector. So, companies' approach to technology can determine their position. As a leading unit in the country's food industry, SCHWAN Holding has implemented various projects in cooperation with domestic prestigious scientific centers, especially universities, in the field of new food industry-related technologies, so that this item has become an inseparable part of activities of this group. Due to the importance and position of Blockchain in the modern world, Blockchain department of SCHWAN Holding started working in July 2020, focusing on solving the problems in the food industry through Blockchain.
At SCHWAN Holding, we believe that food industry is very sensitive and important due to its direct relationship with human health, and Blockchain technology can transform the food industry and increase the productivity in this industry.
Blockchain is a solution that has a positive impact on indices such as fraud traceability and prevention, supply chain coordination, and cost reduction, helping to increase integration and productivity in the food industry. In addition, the supply chain gains a competitive advantage by leveraging Blockchain features for its stakeholders. An important thing to note is that today we are witnessing the connection between Blockchain and food industry. This issue has caused the communication among industries to increase significantly. Currently, Blockchain is used for supply chain management, and large companies, such as Walmart, are also using this technology in the supply chain. However, recently we have witnessed that Blockchain and food industry are also forming new partnerships, and this technology is also used in the food industry.
This issue has led us to witness the implementation of a Blockchain-based project by the Blockchain unit of SCHWAN Holding to eliminate some challenges faced in the food industry and supply chain. Establishing a connection between Blockchain industry and food industry makes it possible to use tracking, security, and decentralization of Blockchain technology in relation to food industry data. In fact, the important thing to note is that Blockchain technology is immutable. This feature makes transactions unalterable if this technology is used in the food industry. Also, the use of Blockchain makes it impossible to hide data, because every change is tracked, recorded, and displayed to the whole network of people who have access to information. This very important feature increases transparency in the food industry, so that its supply chain can be monitored and checked in the most transparent way.
Another thing to note about Blockchain and food industry is that data is stored in a decentralized manner once it is on Blockchain. This means that there is no single server where information is stored. The use of Blockchain allows information to be stored in different computer nodes instead of a single server in the form of multiple copies of data, and all members can access and view it.
The use of Blockchain technology creates such a transparent environment in various industries that builds complete trust among members. This makes it clear that there is no need for a central authority to mediate among the parties. There are many players in the supply chain, from raw food suppliers to wholesalers and retailers who sell food products to consumers. By reducing the number of intermediaries in the supply chain network, smart contract performance will provide a more effective supply chain with less effort, improved margins, and efficiency. In short, Blockchain technology helps simplify the supply chain and reduce processing costs.
Fixing fraud by Blockchain
Food fraud has become a pervasive problem in the global food industry. It is true that there is no universal common definition for food fraud, but in general, we can say "any action in the direction of manipulating food, presenting false advertisements through labels, and adding harmful food supplements with the aim of obtaining financial gain", are included in the scope of food fraud. Blockchain helps improve the transparency of food supply chain. When a food item is transported, its data is added to Blockchain. This process is repeated for the process of changing or adding new ingredients to that food item. Thus, when the final product is on the store shelves or available to the consumer, all the points in the related supply chain are updated and completed. Data will be available to both regulators and consumers alike, providing a high level of transparency.
