Is Blockchain the Solution for Agribusiness?
Photo by Morthy Jameson on Unsplash
Is Blockchain the Solution for Agribusiness? In recent years, concerns about food security and ESG practices have increased, leading to a greater appreciation of product origin. Blockchain emerges as a solution for tracking agricultural supply chains. Studies indicate that global investments in blockchain in agriculture could reach $948 million by 2025, with a compound annual growth rate of 48.1% since 2020.
“The data points to growth in the agribusiness sector, mainly due to the security that blockchain technology brings and for creating certification and traceability systems that guarantee the sustainable origin of products, benefiting both consumers and producers. So, I can affirm that exploring and adopting this technology strategically ensures significant benefits that can further boost growth, competitiveness, and trust in the market,” says Diego Guareschi, CMO of Hathor.
Blockchain offers advantages to the market, promoting transparency, efficiency, and sustainability in production. It functions as a decentralized, fraud-proof database, recording operations in chained and immutable blocks, allowing for subsequent analysis of stored information through verifiers.
“A good example of this is the use of QR Codes on product packaging, which when scanned provide data such as water, fertilizer, and energy use in cultivation, as well as the amount of carbon emitted in the process. At the same time, the tool also helps the producer to have better control of their operations, optimizing time and resources by unifying everything in one platform,” he indicates.
He concludes by saying that “by spreading transparency and traceability, blockchain is able to substantially contribute to ensuring a greater commitment to the ESG agenda of one of the important sectors of the Brazilian economy, promoting security and trust among all involved. In the coming years, we can expect its use to continue to grow in the country, driving innovation in agribusiness and increasing competitiveness in the market at the national and international levels.”
