Exploring the Challenges and Adoption Hurdles of Blockchain Technology in Agri-Food Supply Chain

Introduction

The agricultural sector has been the backbone of India's economy, with India being one of the major producers of agri-produce. The agri-food supply chain is a crucial aspect that connects the players involved in the procurement, collection, sourcing, distribution, manufacturing, production, wholesale, retailing, and finally reaching the consumers. The supply chain has become more organized globally and is well interconnected, resulting in a vast amount of documentation of data being carried out in physical paper format or digital storage (Bhat et al., 2021). However, the food industry faces a growing concern of food fraud, where there is a purposeful replacement, addition, tinkering, or falsification of food products, ingredients, or packaging for commercial advantage. Studies show that food fraud costs the world economy at least $65 billion (Johnson, 2018). With a significant rise in the volume and types of food fraud seen in 2018, food experts have dubbed 2018 the year of food fraud and fraud preventive actions, as fake cherries, honey, rice, wine, fish, and other items were discovered (Johnson, 2018).

Counterfeit labeling, the act of falsely proclaiming certificates on product packaging, has become a growing issue in developing countries despite various certification initiatives being introduced to combat counterfeiting. This new problem has highlighted the need for a food safety verification system that allows consumers to easily and quickly authenticate the genuineness of food products. Blockchain technology has shown promise in several fields, including agriculture, due to its distributed nature, encryption, transparency, and timestamped measurements (Feleen & David, 2021; Srivastava et al., 2022). As a result, it is thought to be one of the most secure data structures for large data and a further effective method for determining food authenticity. Integrating serialization with blockchain could provide a reliable solution to counterfeit labeling challenges in the global food industry, but its adoption rate will be a crucial factor. Several attempts have been made to use blockchain for competitive landscape traceability, farmer positioning, logistic support, penetrating new markets, and trading costs in the food sector, as found in a review of existing literature on food sector periodicals (Harshitha et al., 2021).

The management of information in the agri-food distribution chain can be achieved through either a private or government database. However, the ownership and accessibility of such databases may pose a risk to the confidentiality of business data, as third parties or members of the public could potentially gain access to crucial information. In industries where data security is of utmost concern, the protection of digital assets is a priority, even in the era of digital transformation (Xiong et al., 2021). The industrialization of agri-food frameworks has led to significant advancements in technology, resulting in increased food safety and quality. However, it has also brought about new challenges, including an elevated risk of foodborne illnesses, food fraud, and food insecurity (Vagsholm et al., 2020). These challenges have affected the confidence of end-consumers in the agri-food industry. To address these challenges, it is necessary to implement a robust data management system that ensures the protection of confidential information while enabling stakeholders to share data with one another (Arokiaraj et al., 2020; Nihmathullah et al., 2022). Proper safeguards and regulations should be put in place to secure the data and reduce the risk of unauthorized access. Additionally, stakeholders should collaborate to develop industry-wide standards for data management that promote transparency and trust among all parties involved.