Argentina Adopts Blockchain Technology for Traceability in the Citrus Industry
The citrus supply chain is one of the most fragmented and complex of all supply chains. The production is found all over the world, thus making several intermediaries and producers difficult to identify and trace.
This brings risk and uncertainty to all stakeholders in the production chain. Since the production is so fragmented and siloed, counterfeiting and fraud are some real challenges facing the industry.
This, in turn, makes the entire citrus supply chain unfair for some stakeholders.
Therefore, every supply chain needs blockchain, and several business enterprises are catching on. Leading players like Maersk, Anheuser-Busch InBev, CMA CGM, and others are already looking for ways to obtain value from blockchain technology.
The Argentine Citrus Federation (Federcitrus) incorporated blockchain into the agency’s informatics system to provide traceability of fruit export products.
How can blockchain help?
Argentina is one of the first nations to apply blockchain to trace fresh fruits. Federcitrus’ president Jose Carbonel mentioned that such a decision “adds value to the product.” He also said that the move to adopt blockchain adheres to the protocol established between Argentina and importing countries.
Furthermore, the SENASA law that dictates the regulations for the transport of fresh citrus fruits is following the new operative process.
According to Federcitrus, Argentina views blockchain as a way to position itself as a leader in the citrus industry.
Blockchain is applied to timecode interactions between encoded information. therefore, it provides an oversight system for fresh citrus product exports, and most of these products go to the United States.
Moreover, the system ensures that no modifications are made to tracing throughout the certification process. Also, it secures transactions throughout the exporting process.
By deploying blockchain technology in its operations, Argentina’s SENASA (National Service of Agri-Food Health and Quality) hopes to make the tracing process more secure. SENASA sees blockchain as a solution, which provides both transparency and efficiency.
Benefits of blockchain for citrus traceability
How can blockchain technology help the citrus supply chain with traceability?
Generally, a centralized database already helps with solving fragmentation and complexity issues in a supply chain. However, only a decentralized database that is immutable could help solve counterfeiting and fraud issues as its data cannot be manipulated.
The application of blockchain can accurately trace everything within the citrus supply chain while limiting the options to commit fraud. The technology also can easily regulate who gets access to information about the products and further expand the information on the network.
Blockchain technology has the potential to transform the citrus industry. However, it can only work efficiently if everyone participates. If food products are to be traceable from farm to fork, then all parties along the supply chain would need to adopt the technology. But this is not something that will happen overnight.
Image via Shutterstock