The organic products industry is gaining popularity, and it is undeniably one of the most significant sectors globally. The organic food industry has realized massive growth in the past but getting quality food has remained a big problem with the bulk of the problem lies in the quality of the food available for consumption but not on the shortage of food supply. In this article, we discuss the potential of blockchain technology in the organic products value chain.
Recently, we have witnessed more organic foods such as fruits, vegetables, and other grocery items being availed in the market. We might ask ourselves why the organic food has gained such popularity, but the answer lies on the fact that the organic foods are grown in controlled farming systems that don’t use chemicals, inorganic fertilizers, artificial additives, and GMOs. They are produced in farms that rely on crop rotations, animal and plant manure and biological control of pests.
Many people prefer these organic products because they are thought to be healthy and nutritionally beneficial to human beings. They also contribute to conserving our biodiversity. But there is an increasing problem due to the many organic products that have flooded the market making it difficult for many consumers to differentiate the genuine organic products from the fake ones that are only cashing in on the trend.
This necessitates a clear cut strategy of leveraging on the blockchain technology which can help solve this problem. Blockchain technology is a smart contract system that can help farmers. The breach of trust that affects customers and farmers can be resolved through using the contract model where farmers can produce without delays and payments from customers made immediately after entering into a friendly agreement with the customers of organic products knowing that their payments are guaranteed as managed by blockchain smart contracts system.
Blockchain technology offers the farmers with a means to contract with sellers to grow the organic products that are needed. Full payment is then made immediately to the farmer without breach of contract or coercion from marketers and blockchain helps alleviate part of the farming world through these smart contracts.
Farmers can invest in ICO of various blockchain to get good returns from their farm yields. Several certifying bodies ensure authentic organic products are in the market whose input can also be integrated. To ensure that there are no miscreants who trick consumers through fraudulently selling non-organic products under the label of organic products through a private financial arrangement, a right technology solution such as blockchain can be the answer.
Blockchain can assist in resolving such issues and ensure a regulated and consumer-driven system is achieved. Blockchain involves a distributed ledger technology that offers traceability and transparency in complex food supply chain and prevents fraudulence through providing authentic products reach to consumers.
Blockchain helps in capturing data at every point of the supply chain ecosystem preventing the farmers, suppliers, distributors, and consumers from fraudulent activities thus enable organic products value chain yield better rewards for farmers engaging in ethical farming practices. It also helps eliminate those engaging in illegal and unethical practices.