Blockchain Technology Advances Florida Agriculture and Improves Supply Chain

In partnership with: Florida Department of Agriculture and Consumer Services

Though still in its innovative infancy, blockchain technology is connecting every aspect of the agricultural supply chain like never before.

“Simply put, blockchain technology is a set of rules about how data will be shared,” says Ed Treacy, vice president of supply chain and sustainability at the Produce Marketing Association. “The cool thing is, blockchain secures the data and makes sure no one can change it.”

First presented in 2017, blockchain technology is most commonly associated with cryptocurrency, but Treacy says you don’t have to use cryptocurrency to use blockchain.

“With blockchain, you can completely trust the data to be exactly as it was entered,” he says.

For the agriculture industry, this means total visibility and transparency in the supply chain, which can help everyone from the grower all the way to the supplier. For example, blockchain technology allows users to view data input by the grower, harvester, shipper, processor, supplier and anyone else involved in its life cycle. Using internal identifiers allows for improved tracking and data gathering capabilities, ideal for supply chain disruptions, such as a delay in shipping or a product recall.

Treacy says that Walmart was the first major produce supplier to pilot blockchain technology, using IBM’s Food Trust program, though there are others using it as well. Walmart saw such tremendous value that it invited other competitors and partners to help the industry as a whole to understand the value and develop the application, including Kroger, Driscoll’s, Wegmans and Dole.

See more: Why Florida’s Produce Stands Offer Consumers More Than Fresh Food

“The produce industry is unique in its supply chain because produce is bought and sold as a commodity,” Treacy says. “You might have one item, like strawberries, with 40 to 50 suppliers. Consumers don’t care about brand with produce, so it’s not like other products where stores are buying them all from one supplier.”

Because of that difference, produce in particular can have many challenges with aligning data – and that’s where blockchain technology can help.

“Blockchain is connecting the dots across the entire industry,” Treacy says. “It’s all about developing trust around data.”

While there’s still a ways to go, this technology has a huge potential upside for Florida’s produce industry.