Dutch-based financial services firm Rabobank wants to implement blockchain initiatives in the food value chain to help improve transparency, food safety and changing business models, as well as initiatives in order to help them lower costs, increase efficiencies, offer sustainable products and explore opportunities for creating new value.Its latest RaboResearch report ‘Blockchain: The Trigger for Disruption in the Food Value Chain’ finds that implementing blockchain technology can reduce costs and/or increase the value of end products or raw materials by using the information that accompanies products.
Harry Smit, Senior Analyst of Farming and Farm Inputs at Rabobank, said: “One advantage would, for example, be when tackling food safety issues. Product recalls can be much easier when the entire chain is transparent.”
Key to reaping any of the benefits is a digitalisation of internal and external processes. “There are definitely benefits. But two prerequisites have to be met in order for blockchain to become successful. First, processes within companies, and between companies, have to become digitalised and standardised. Second, a broad participation of stakeholders along the value chain is required; otherwise the value of blockchain is lost”, Smit added.
Rabobank admits that transparency of the food chain will reduce the benefits of reputation that market leaders have as trust in a product will become less dependent on the trust in the supplier, but more dependent on the information available in the blockchain. Smaller companies will be able to establish premiums based on the intrinsic characteristics of the goods they supply, without necessarily having a longstanding reputation.
The available data also creates opportunities for developing products and services based on intelligence. For example, data can be used in predictive models to predict demand and/or success of a product by making use of new insights about correlations and causalities. As a result, business models can change from responsive to risk-based and predictive.
Blockchain has become one of the leading keywords of the moment. Vancouver-based blockchain connecting solutions provider BTL announced it has raised a gross total of approximately C$15.3 million to help distribute its enterprise-grade private blockchain development platform Interbit.
Ripple has appointed BitLicense architect Benjamin Lawsky to Board of Directors. Reality Shares and Nasdaq launched Blockchain Economy Index, a smart-beta index that tracks the growth and development of leading global companies creating and implementing blockchain solutions.
