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Blockchain in Agriculture – How It Can Impact and Enhance Agricultural Industry

Blockchain in Agriculture – How It Can Impact and Enhance Agricultural Industry
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    May 3, 2024 Last Updated: May 6, 2024

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If we talk about the latest trend taking root in the market, it is the integration of blockchain technology into the agricultural industry. A digital revolution with the potential to reshape the way we cultivate, distribute, and consume food.

Just imagine a farmer in the heart of the countryside, leveraging the power of blockchain in order to trace every step of a tomato’s journey from seed to table. Meanwhile, across the globe, a consumer scans a QR code at the grocery store and instantly accesses a treasure trove of information about the very tomato in their hand - its origins, growth conditions, and even the hands that tended to it.

This is the power of Blockchain.

Even if we delve into the statistics, the numbers speak volumes. With a market size valued at $403.87 million in 2023 and projected to soar to a staggering $7,419.9 million by 2031, the trajectory of blockchain in agriculture is nothing short of meteoric.

Moreover, anticipated to grow at a remarkable compound annual growth rate (CAGR) of 44.11% during the forecast period of 2024-2031, it's evident that the agricultural industry is ripe for digital disruption.

So join us on an exploration of how blockchain technology is poised to cultivate transparency, efficiency, and sustainability in the agricultural ecosystem, revolutionizing the way we produce and consume food. It’s time to plow new ground and reap the bountiful harvests of tomorrow, all with the help of blockchain innovation.

Unlocking Agricultural Potential: Embracing the Future with Blockchain

In today’s rapidly evolving agricultural landscape, implementing blockchain technology holds immense promise for unlocking unprecedented potential.

So let’s now delve into the transformative applications of blockchain in agriculture. From enhancing supply chain transparency to revolutionizing payment systems, blockchain is reshaping how we approach farming. This article explores real-world blockchain use cases where this technology empowers farmers, improves food traceability, and ensures fair transactions, ushering in a new era of efficiency and trust in agriculture.

1Stable Food Supply Chain

The agricultural market’s food supply chain is now longer and more intensive than it has ever been due to globalization. Nonetheless, it is still true that there are a number of obstacles to the current openness of the food supply chain, including issues with food security, quality, traceability, trust, and supply chain inefficiencies. This is detrimental to society and the economy and endangers the health of the customers.

Many of these issues are resolved by blockchain technology, which builds trust between consumers and producers (or supply chains). Moreover, encouraging particular product information on the blockchain can greatly increase this process’s openness.

This has far-reaching effects on farmers and companies alike. It helps companies to increase the value of their products and, consequently, their competitiveness in the market. Additionally, if low-quality or fake product producers continued with their negative behaviors, it would be extremely difficult for them to remain in the system.

2Better Farm Inventory Management

A lot of farming businesses lack the necessary tools to manage their stocks using cutting-edge technology. This results in produce and resource waste. Not to mention, the losses that these farmers must incur as a result. Therefore, the lack of means to address the issue places a great load on the farmers.

However, blockchain technology in agriculture has the potential to permanently alter that situation. It is ideal for inventory control and can be quite beneficial to farmers in helping them keep their inventory correctly and problem-free. In reality, blockchain has the ability to monitor the storage environment and alert users when production is about to expire. As a result, one can take the appropriate action.

Blockchain in Agriculture

3Product Quality Control

According to studies, 34% of fruits and vegetables that are thrown out in wealthy nations are unfit for consumption before they leave the field because of poor storage and transportation conditions. This is mostly because none of the parties involved – the farmer, the freight carrier, or the supplier have any control over the variables that affect temperature, humidity, CO2, etc.

But agricultural items can be tracked during storage and transit with the use of specialized sensors that gather the required data and log it in real time in a blockchain-based decentralized distribution ledger. Farmers, wholesalers, and consumers will be able to prevent food spoilage in the future by knowing at what point it has occurred.

4Efficient Smart Farm Contracts

It is easy to introduce the concept of “smart farms” when blockchain-based applications for agriculture are integrated on a large scale. These environmentally friendly farming practices also increase farm operations’ profitability and enhance the condition of the surrounding ecosystem by combining technology and biological cycle management.

As a result, big data collection and exchange on agricultural practices, meteorology, and animal health are key components of smart farming. Smart farming makes extensive use of digital instruments and remote sensors to obtain the information it needs ahead of time, such as fertilizers, soil mapping, crop yields, and the gear employed. Sensors are also utilized to identify impending reproductive events and health problems in the animals in smart farming.

This kind of livestock data is obtained by monitoring the animals’ movements in addition to their body temperatures, heart rates, and tissue resistivities. GPS is also utilized to find their whereabouts. Some businesses are making significant investments to create an intelligent agriculture supply chain in the nation’s rural areas.

5Improved Financial Support for Developing Countries

Blockchain has great promise for expanding and enhancing financial access in underdeveloped nations. For many of the farmers in these countries, getting access to reasonable financing remains a significant challenge.

Microfinance and other innovative financing models are made possible by mobile banking; yet, the current paradigm is characterized by a large number of low-value transactions that carry a significant risk because of a lack of transparency. Banks and farmers are already reaping benefits from blockchain technology in tackling this issue.

6Modernizing Farm Management Software (FMS)

The process of modernizing farm management software is another advantage of blockchain in agriculture. Farm management software will soon find widespread use. Still, this program runs on the standard client-server architecture. As a result, they are unable to produce as much as they can if they use blockchain.

Thus, in this instance, utilizing blockchain can assist in elevating the FMS to a whole new level. Furthermore, this program will be protected by blockchain technology, giving it the necessary security. Thus, farmers won’t need to be concerned about cyberattacks going forward.

7Fair Pricing

The majority of agricultural product sales revenues end up in the coffers of middlemen and merchants due to a combination of factors including weather, inelastic demand and supply, and global market dynamics. Farmers who generate raw materials still make very little money.

But blockchain can be beneficial for more honest pricing in a number of ways:

  • Blockchain lowers the number of middlemen, allowing farmers to negotiate better terms directly with merchants.
  • Blockchain increases market transparency, which can be leveraged to put societal pressure on companies that over profit. The efficacy of this method has been demonstrated by eco-organizations.
  • To defend their rights, farmers can join worldwide trade unions of sorts using blockchain-based platforms.

Farmers’ incomes will rise as a result of all this. This will be a big benefit for developing nations where a large portion of the populace works in agriculture and will save a lot of people from going hungry.

As an illustration, consider Uganda, where nine out of ten people lived in the countryside in the 1990s. According to studies, the number of families living in poverty decreased by 6% (2 million people) with every 10% increase in the price of coffee beans.

8Blockchain-Based Environmental Sustainability

Monitoring and confirming sustainable agricultural methods is another major advantage for farmers using blockchain agriculture. Environmentally impacting practices are tracked when data is gathered. Crop rotations, energy and water usage, the use of hazardous pesticides, and other methods can be included in these activities.

All of this data is available to both customers and watchdog organizations since it is all stored on the blockchain. Smart contracts that provide incentives for compliance can also incorporate sustainable practices. The blockchain contains these contracts, which are programmed to run automatically when certain conditions are satisfied.

9Security for Agricultural IoT Optimization

IoT devices are necessary for the agriculture sector to monitor its output. Furthermore, these gadgets can provide protection and security for their equipment. They can use the equipment to record the weather and land conditions and make necessary adjustments.

Furthermore, certain gadgets have the ability to predict natural disasters in advance. However, these gadgets are now very susceptible. The cloud services they frequently utilize to store the data are vulnerable to cyberattacks. Thus, security differs widely.

But in this case, blockchain can be useful. Here, the advantages of blockchain for agriculture include better networking for these IoT devices and their protection.

10Reducing Human Error

Additionally, blockchain can lessen agricultural losses caused by human mistakes. Blockchain technology can reduce resource waste by automating a lot of operations. It can furnish farmers with information regarding tainted merchandise across their whole supply chain, encompassing the kind of crops impacted and the crop’s original place. By examining this data set more closely, the farmer can lower possible losses.

Also Read: Top 10+ Blockchain Trends To Watch Out For In 2024

Seeding Innovation: Exploring the Frontiers of Agriculture Blockchain Startups

Well, now it’s time to enter agriculture blockchain startups! These game-changers are using blockchain to revolutionize how we grow, distribute, and consume food. Let’s go through how these pioneers are reshaping the future of agriculture.

  • AgriDigital

AgriDigital is an Australian startup committed to speeding up processing by automating and growing grain supply networks. Large Australian farms including Inghams Enterprises, Fletcher, Lawson Grains, and several more are among its clientele.

  • AgriLedger

Making sure the harvest is accounted for is the aim of this British endeavor. According to the firm, up to 50% of produced products are not consumed since paper contracts are frequently created incorrectly. The feature-rich digital platform AgriLedger allows for safe transactions, agreements, and tracking of a product’s stage of development. Farmers are able to improve their revenue and cultivate connections with commercial partners as a result of the initiative.

  • Ripe.io

Ripe.io is situated in San Francisco and is focused only on the agriculture industry. Customers benefit from a high degree of openness, as the service tracks items as they move from the field to shop shelves. The Ripe.io system measures a product’s temperature, maturity, and humidity. A farmer can monitor the path taken by their goods and modify the harvesting and distribution system based on the information obtained. A farmer will also constantly be aware of the state of the goods upon arrival.

  • AgriChain

This software as a service (SaaS) from Australia helps to stabilize and enhance the grain supply chain. The application assists create smart contracts and monitors the shipping procedure to display every aspect. Moreover, producers can also enter all the information they get concerning fertilizers and compound feedstuff in order to determine the prospective yield.

  • PavoCoin

The big US corporation Pavo has subsidiaries spread throughout several nations. Additionally, the business developed the PavoCoin system, which aids farmers in tracking the cultivation, harvesting, processing, and distribution of crops. Blockchain technology is used to store all data, ensuring validity and security. Farmers are able to keep an eye on every sensor, collect data, and then adjust and filter that data. Blockchain technology makes it possible to quickly monitor the entire process.

The Future of Blockchain in Agriculture

Now you might ask what’s next for blockchain in agriculture?

Well, get ready for a game-changing transformation. With blockchain technology gaining traction, the future of farming looks brighter than ever. Imagine farms seamlessly connected to global markets, with every product traceable from field to fork.

Smart contracts could revolutionize agreements between farmers and buyers, while decentralized platforms empower smallholders worldwide. As we embrace this digital revolution, expect increased efficiency, transparency, and sustainability across the agricultural landscape. The future of agriculture is blockchain-driven, and the possibilities are endless. Here are a few examples of how.

  • Predictive Analysis

Advanced predictive analysis can be facilitated by merging blockchain with artificial intelligence (AI) and the Internet of Things (IoT). Large-scale data collection, verification, and analysis of agricultural yields, weather patterns, and market trends are made possible by this synergy. Farmers can use the insights obtained to enhance their agricultural operations by using them to predict future circumstances and make well-informed decisions.

  • Asset Tokenization

Real-world assets, including land, cattle, and crops, are represented as digital tokens on a blockchain through the process of tokenization. Farmers can raise money by selling portions of their assets by purchasing, selling, or trading these tokens. Farmers now have access to a creative financial solution that allows them to leverage their assets to raise money without giving up ownership.

  • Smart Contracts for Eco-Friendly Operations

Smart contracts can be configured on the blockchain, to run automatically upon verification of particular sustainable practices. These contracts have the ability to automate subsidies or rewards, encouraging farmers to follow sustainable and environmentally friendly farming methods and encouraging environmental preservation.

  • Integration with Different Technologies

The amalgamation of blockchain technology with automated machinery, sensors, and drones has the potential to transform agricultural ecosystems. Blockchain guarantees the confidentiality and integrity of data collected in real-time by drones, sensors, and agricultural machines about environmental parameters, crop health, and soil health. This data can be used by automated machines to carry out precise agricultural activities, thus increasing production and efficiency.

Blockchain in agriculture cost

How Blocktunix Can Help You Integrate Blockchain in Agriculture?

Blocktunix, as a leading blockchain development company, offers tailored solutions to seamlessly integrate blockchain technology into agriculture. With our expertise, we streamline supply chains, ensuring transparency and traceability from farm to table. Our innovative blockchain solutions optimize processes, enabling efficient transactions and smart contract management between farmers and stakeholders.

By harnessing the power of blockchain, we empower farmers with secure data management and fairer market access. Partnering with Blocktunix means unlocking the full potential of blockchain in agriculture, driving productivity, trust, and sustainability in every step of the farming journey.

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