Keywords

1 Introduction

Related to the complexity of the food traceability system, many countries issued legal standards and regulations to protect the customers from contamination and foodborne diseases that affect the customers’ health and even their lives, as mentioned by Research Blog (2020). At the same time, the high demand for an effective food traceability system that offers an integrated view of the system opened a wide door for the priority to implement the revolutionary blockchain food tracing technology that offers practical, decentralized immutability, pure transparency system.

The chapter intends to demeanor a literature review on using blockchain technology in food supply chain traceability systems. More specifically, we aim to (1) catch a birds-eye view of the food supply chain traceability complexity and emerge a high priority to apply the revolutionary blockchain technology related to the food traceability system; (2) illustrate the core advantages and boundaries of implementing a blockchain food traceability system. And (3) draw a crystal clear plan in launching blockchain technology in small and medium food supply firms.

There are three segments in this research: the complexity of food traceability system, system design and implementation techniques, the driving benefits and challenges of using the blockchain in food traceability, and finally, draw precise, realistic plan requirements to embark on the blockchain food traceability system.

2 Literature Review

Food safety considers the core milestone in the traceability system because of the contamination of toxins that can spread so fast (Gisela & Blazekovic-Dimovska, 2017). Many types of research have focused on the role of blockchain technology in food traceability in giant food firms. While Alissa (2018) addressed using the effectiveness of using blockchain in one of the most sensitive foods—the Garber Baby Food produced by Nestlé, Agricultural Informatics (2020) declared the process and the steps of overcoming challenges concerning the mango tracing supply chain in Walmart using blockchain technology. Moreover, Wilson and Auchard (2018) emphasized food safety management and time-saving in applying blockchain traceability in the chicken and eggs lines in Carrefour. The Bumble Bee Seafood Company (2021) mentioned that a crystal clear transparency seafood traceability vision had been created by blockchain technology, and Shamla Tech (2020) emphasized on the secured, free contaminated and foodborne fresh food blockchain traceability system.

On the other hand, the role of blockchain technology in food traceability for SMEs has not been elucidated. More research has to be addressed related to this area. The medium and small food enterprise requires detailed information concerning the benefits, including cost-saving, challenges, and boundaries, and an exclusive implementing plan of adopting a blockchain food traceability system.

Food traceability considers the core value of the food supply chain. It has to be secured and transparent from the production stage until it reaches the end customers. This will allow the operation management to adjust and correct any problems immediately. At the same time, an ineffective traceability system may mainly cause contamination and foodborne to the exclusive products that lead to death or illness. Furthermore, it will increase the cost consumption and decrease profits related to the waste of the contaminated, spoiled products and the disappointed customers’ experience. While the blockchain revolutionary technology worked to eliminate the above challenges and develop safety management in the large firms, the traceability of the food supply chain still confronts middle and small firms.

The dark effect of foodborne caused 76,000,000 illnesses and 325,000 hospitalizations. Moreover, it killed more than 400,000 adults and 18,000,000 children in 1998. Furthermore, The Government of Canada (2020) reported the leading causes of food contaminations. Food traceability is a complex critical process that has to follow varieties of rules and regulations, manage big data and entirely avoid or eliminate the risks of food contaminations, foodborne, and food waste while satisfying the customers’ awareness, as illustrated in Table 7.1 and Fig. 7.1 depicts the high risks of foodborne and contaminations.

Table 7.1 Complexity in Food Traceability
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Fig. 7.1
An illustration of four graphs labeled 1 to 4. 1. A vertical bar graph of the food darkness effect in 1998. 2. A stacked bar graph of the effects of food contaminants in Canada in 2020 3. A vertical bar graph of food that cause poisoning in 2010. 4. A pie chart of the causes of food contamination.

The high risk of food contaminations and foodborne. Source: Composed by the authors

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In Fig. 7.1, Graph 1 depicts the foodborne darkness effect in 1998. Adopted from “Food-borne diseases are caused by many agents such as bacteria, viruses, parasites, and fungus that enter the body and cause illness. Food Safety in the 21st Century,” by Gisela & Blazekovic-Dimovska, 2017; Graph 2. Effects of food contamination in Canada in 2020. Adopted from “Fact sheet: Traceability Safe Food for Canadians Regulations Requirements for the Safe Food for Canadians Regulations,” by Government of Canada, 2019; Graph 3. Main food types that cause poisonous. Adopted from Gisela & Blazekovic-Dimovska, 2017; and Graph 4. Causes of food contaminants. Adopted from “Why Our Food Keeps Making Us Sick America’s food industry has a $55.5 billion safety problem,” by Kowitt, 2016, Fortune.

3 The Advantages and Challenges of Implementing Blockchain in Food Traceability System

Many motivations can drive food firms to implement the revolutionary blockchain technology in tracing their food supply chain regardless of their size. Table 7.2 illustrates the main advantages of implementing the blockchain: transparency, decentralization, cost- and time-saving, effective food safety management, and high customer satisfaction. At the same time, Fig. 7.2 declares the effects of implementing blockchain technology in the food traceability system using a fishbone diagram.

Table 7.2 The driving advantages of applying blockchain in the food traceability system
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Fig. 7.2
A diagram of a fishbone illustrates the advantages of a blockchain food traceability system. It includes efficiency, secured, lower expenditure, sustainability and transparency, management, and time saving.

Fishbone diagram: The advantages of blockchain food traceability system. Source: Composed by the authors

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The fishbone diagram in Fig. 7.2 below depicts the blockchain food traceability system in terms of managerial, cost and time efficiency, security and sustainability of operations.

On the other hand, the challenges that may restrict applying the blockchain in food traceability are high initial cost, limited knowledge, and regulatory issues, as illustrated by Nestor (2021) in Table 7.3.

Table 7.3 The boundaries of implementing blockchain food traceability system
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4 Implementing Blockchain Food Traceability Systems in Small and Medium Enterprises (SME)

The execution of the blockchain food traceability system plan begins to settle the food firm’s goal and determine the required data by answering the 4 W’s questions as illustrated by TE Food (2020). What is the vital data that must be stored?

When can this data be collected? Where is the information that must be gathered? And why is this valuable data to all supply chain participants?

Once the above questions have been answered, the operation team has to identify the proper tools to pile up the required data as written by João & Pedro. These tools can be a variety of types of sensors, smart cameras, pallet-level tagging, barcodes, radio frequency identification (RFID), and even food-sensing technologies that deduct any contaminations as written by IGPS (2020) and Arrow (2020).

The technical tools that will support the system have to be identified, too, as illustrated by Microsoft (2020), followed by installing the Modum.io AG that will combine gathered data and implement it in the blockchain technology as written by Bocek et al. (2017). At this time, the hashed-related blocks will be created, and data stored there securely. Finally, output mobile devices will be required with all participants to integrate the system and reflect a crystal clear vision of the supply chain in all its stages, as written by Tapscott (2017). Table 7.4 briefly illustrates the putting into practice steps of the blockchain food traceability system. At the same time, Fig. 7.3 depicts the stages of launching a blockchain food traceability plan.

Table 7.4 How to implement a blockchain food traceability system
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Fig. 7.3
An illustration of 5 steps to implementing a blockchain food traceability plan. It includes settle the food firm goal and determine the required data, define the effective data gathering tools, assign the technical supportive tools, install Modum dot I o A G, and share the integrated database.

The steps of launching blockchain food traceability plan. Source: By author. Note. Modum.io AG = Modum offers digital supply chain monitoring and analytics by Start-Up, 2016

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5 Conclusion

A literature review on implementing blockchain revolutionary technology in food traceability systems that consider the effective strategy for medium and small firms’ development and expansion was conducted in this paper. The complexity of the food traceability system and the high risk of food management created an urgent demand for transparency integrated and secured traceability techniques. Blockchain technology has fully offered this, driving fruitful rewards and a brief implementation plan. Furthermore, this paper mentioned the boundaries of implementing blockchain technology and illustrated how to reduce or eliminate it.

The limitations of this research are represented mainly by the scarcity of adopting blockchain technology in the food traceability supply chain in medium and small firms. Moreover, there is a significant gap in the research on how blockchain food traceability technology works as a vital key growth concept for medium and small food firms.

In addition, more consideration and research should be focused on plans, benefits, and challenges in implementing blockchain food traceability technology in medium and small firms. Future research can focus on how to integrate and enforce blockchain food traceability and logistics procedures to medium and small firms’ growth and development.