
Business
A global blockchain-based agro-food value chain to facilitate trade and sustainable blocks of healthy lives and food for all
K. Tyagi
Discover a groundbreaking framework for blockchain deployment in global agro-food value chains, focusing on accountability and sustainability. This research, conducted by Kalpana Tyagi, connects urgent issues of food security, health, and sustainable consumption to offer actionable insights for managers and policymakers.
~3 min • Beginner • English
Introduction
Food is one of the most basic human necessities. Despite all the progress made by mankind, even in a pre-Covid pandemic and the pre-Ukraine war world, over 135 million people worldwide suffered from acute hunger. This food shortage could be directly attributed to unsustainable human activities, such as excessive deforestation, pollution and the economic downturn (United Nations, 2022). With the recent global pandemic and the ongoing war, it is feared, that by 2030, over 840 million people will not be able to meet their basic food requirements on a daily basis (Nature Editorial, 2022). The problem gets compounded by the fact that food value chains are often very long, and span across countries and therefore, it is very difficult to track and trace the food products in a reliable manner from the 'farm-to-the-fork'. In addition, over one-third of the food produced worldwide is wasted each year due to inefficiencies along the food supply chain (Yadav et al., 2021).
In 2015, global leaders took an important stride towards global cooperation and multilateralism as they joined hands to achieve, for the benefit of all, the 2030 Agenda for Sustainable Development Goals (SDGs). Amongst them, SDG 2 aims to ensure 'food for all' by 2030. Healthy and nutritious food can also positively contribute to better health. Thus, the interlinkage between SDG 2 (food for all) and SDG 3 (health for all) must not be overlooked. The two goals are not only spatially closely situated, but they interestingly, also enjoy a very close evidence-based linkage. A healthy and nutritious diet can prevent many lifestyle diseases. Scientific evidence establishes that obesity is the root cause of many life-threatening diseases, such as hypertension, diabetes, and heart-related diseases (Ali, 2021).
As our resources remain limited; the world population continues to grow at a geometric rate, and is expected to cross the 8 billion mark in 2022, the big question is how can we, despite all the limitations and challenges, ensure the timely attainment of SDGs 2 and 3? The question is pertinent as over 3 billion people worldwide are unable to enjoy and afford a regular and healthy diet (World Bank, 2020). In other words, while over 840 million are unable to have daily and regular access to food (namely, SDG 2); the number gets still bigger and impacts a population of over 3 billion people globally, as the discussion transitions from 'access to food' towards 'access to "healthy" food' (namely, SDGs 2 and 3 collectively).
Interestingly, SDG 12, namely 'sustainable consumption and production patterns' with its focus on the supply chain can be a key enabler to achieve SDGs 2 and 3. This can be explained by the fact that even though we cannot infinitely increase the resources deployed to augment the food produced, we can certainly enhance efficiencies along the food chain to augment the total output produced (Coelli et al., 2005). Increased efficiency, both dynamic as well as static, contributes to higher productivity. More efficient resource utilization and better allocation of resources, through improved production and allocative efficiency, respectively, can help get more output from the same limited factors of production. Greater innovation, also referred to as dynamic innovation in industrial policy, can enhance both the quality as well as the quantity of the output produced. This, in turn, leads to an upward shift in the production possibility frontier (PPF) (Kokkinou, 2013). This article, accordingly, delves deeper into an emerging and one of the most discussed recent technological innovations, namely blockchain technology (SDG 12), and looks at its potential deployment in global value chains to enhance trust in global trade and achieve health and food for all (SDGs 2 and 3).
To facilitate this, this article looks at the issue from the perspective of Agro-food global value chains (GVCs). Agro-food GVCs are long and complex, and may oftentimes span across many a country. Industrialization of food means that the food GVC is more globally dispersed than ever. Tracing and tracking food along the global value chain is a challenging and expensive task. The research question that this article seeks to answer is thus: How can blockchain technology be sustainably deployed across the entire Agro-food global value chain, and whether this can help track and effectively trace the food product from farm-to-fork, and thereby enhance consumer trust in global trade?
To systematically address this research question, the article is organized as follows. Section "Introduction" looks at the inter-linkages between SDGs 2, 3 and 12. Section "Literature review" offers a literature review and identifies the gap in the current literature, that this study seeks to address. It also highlights the methodology pursued in this research. Section "Global Food supply chain: From supply chain to a value chain-driven approach" discusses the need for a movement from a 'supply chain' to a 'value chain'-based approach. The section "Blockchain technology and its relevance for the Agro-food value chain" discusses the key principles of blockchain technology. Section "International trade, food value chains, and the blockchain technology" brings together sections "Sustainable development goals" and "Global Food supply chain: from supply chain to a value chain-driven approach" to offer insights on how blockchain may add value to the global Agro-food GVCs. Considering the hype surrounding blockchain technology, the section "Case studies" illustrates six successful case studies, wherein blockchain was/has been effectively deployed to add value at different levels of the value chain. So far, scientific literature evaluates how blockchain has been deployed at certain levels in the value chain. This section offers insights into how this piecemeal approach of blockchain deployment may be integrated to facilitate a truly global farm-to-fork blockchain-based value chain. Section "Conclusion and road ahead" concludes the discussion, identifies the management and policy implications of this research and offers a road map for further research.
Literature Review
Many scholarly contributions have assessed the potential of the blockchain technology to meet the various targets of the UN SDG goals. Parmentola et al review over 195 peer-reviewed articles published in top-tier journals, that deal with blockchain technology, and find that its potential has not been evenly explored across the SDGs (Parmentola et al., 2021). While the benefits of the technology are over-explored in some of the SDGs, they remain under-explored in the context of the other SDGs. Most notably, Engineering (17%), Computer Science (15%), Social Science (13%), and Environmental Science (11%) literature have intensively explored the potential of the blockchain technology (Parmentola et al., 2021). Villiers et al study how the two emerging technologies, namely, the internet of things and the blockchain technology, can be successfully married to offer reliable data and information and thereby, contribute to the UN SDGs (de Villiers et al., 2021). The authors find that enhanced accountability can contribute to greater efficiency and more effective management along the value chain and thereby, facilitate the attainment of the SDGs. Using a multiple case study approach, Tsolakis et al. assess the potential of the blockchain technology to augment tracking and tracing in fish supply chains from the lens of Operations Management (Tsolakis et al., 2021). The authors look at the blockchain implementation in both the small scale, such as local fishing operations and medium- to large-scale operations, such as commercial fishing operations and canned tuna manufacturing in Thailand. They apply the 'Principal-Agent Theory' and 'Transaction Cost Analysis' to assess the value of digital supply chains to achieve the SDGs. Yadav et al identify the key barriers that limit the uptake of blockchain technology in the Indian Agricultural Supply Chain (Yadav et al. 2020). To identify the barriers to adoption, Yadav et al. use an integrated ISM-DEMATEL-Fuzzy MICMAC methodology. This methodology is used to explain how the ten identified factors impact the level of re-adoption of the technology, as well as how these different factors re-enforce one another. The authors further undertake a rigorous sensitivity analysis to evaluate the robustness of their model. To illustrate with an example, they identify that interoperability limit the blockchain adoption in the context of the Indian agriculture, they in fact, also mutually re-enforce and amplify the impact of one other. Yadav et al. (2021) further advance the model developed by (Yadav et al. 2020) and integrate these foregoing barriers into clusters to develop an effective framework to assess how blockchain may be adopted and integrated smoothly into the food value chain (Yadav et al., 2021). The authors select a very diverse set of stakeholders from across the value chain—ranging from blockchain developers to top (C-level) executives and from farmers to professors. This helps them effectively identify the key factors that limit the adoption of the technology. The authors offer insightful recommendations for the Agro-food industry practitioners as well as for the policymakers. They identify how blockchain technology by offering real-time information can facilitate effective monitoring and augment trust in the Indian food security system. This enhanced trust, in turn, can solve the issue of investments in the Agri-food sector. Finding easier to undertake a cost-benefit analysis and agree to invest their money and even with small and medium-sized producers (Yadav et al., 2021).
The literature referred to above, and also as discussed in this paper, makes a valuable contribution to highlight the potential and the limitations of blockchain technology in achieving one or more SDGs. These discussions are either field-specific or limited to a particular geography. The present paper contributes to this rigorous debate by making the following three notable contributions to the literature. First, the paper looks at the entire global Agro-food GVC, and assesses how blockchain technology may help clear the bottleneck at each step in the value chain—from documentation to financing, from the farm to the fork—and thereby, offers a blueprint for a truly global blockchain-driven farm-to-fork Agro-food value chain. Second, to achieve this, the paper pursues a case study-based methodology and summarizes its findings in the form of a flowchart, that clearly maps value chain. Third, employing an inter-disciplinary methodology, which case study may have suggestions for which level of the food value chain. Third, employing suggestions for which level of the food value chain, trade and customs law, and management literature, the research insights from the scientific literature, operations management, trade and customs law, and management literature, the study is a constructive endeavour to develop a workable framework for management, and policy makers alike. The paper complements the case studies discussed in the form of a flow chart. To do so, the paper employs qualitative desktop-based secondary research and analyses the peer-reviewed literature from different disciplines.
Methodology
The study employs an interdisciplinary, qualitative, desktop-based secondary research approach. It analyzes peer-reviewed literature across operations management, trade and customs law, and management to establish linkages between SDGs 2, 3, and 12 and the deployment of blockchain in global Agro-food value chains. A case study-based methodology is central: six pilot use cases (Walmart traceability pilots; Axiom Zen NFT for awareness; Barclays trade finance; Maersk/IBM TradeLens; Dutch–Kenyan flowers customs pipeline; and NAFTA/CAFTA CBP proof-of-concept) are examined to assess blockchain’s value at different value chain stages (farm-to-fork, trade finance, customs compliance, consumer trust, and support functions). Findings are organized into a flowchart mapping stakeholders (A1–A5, B) and indicating where blockchain can alleviate bottlenecks (documentation, financing, customs, tracking/traceability). The paper further evaluates legal and regulatory contexts (SPS, TBT, TFA, rules of origin, TRIPS) to assess trade-law compatibility of blockchain-enabled traceability. Limitations (data integrity at input, 51%/collusion risks, scalability, interoperability, standardization) are identified to bound generalizability and inform policy recommendations, including the potential role of public–private partnerships to scale permissioned/consortium blockchains.
Key Findings
- Documentation costs in Agro-food GVCs can be up to 7% of traded goods’ value; limited transparency and traceability remain core issues (Tripoli & Schmidhuber, 2019).
- Walmart’s Hyperledger Fabric pilots achieved near-instant traceability: simulated recalls took 2.2 seconds versus 6 days, 18 hours, 26 minutes via standard procedures; data captured included farm origination, batch, processing, soil/fertilizers, storage temperature, shipping details (Kamath, 2018; McDaniel & Norberg, 2019).
- Maersk observed >200 communications with >30 authorities per container for customs, tax, and health; documentation sometimes exceeded physical shipping costs; farm-to-retailer cycle up to 34 days, including 10 days waiting for paperwork (Ganne, 2018; McDaniel & Norberg, 2019). TradeLens aimed to streamline visibility and customs interactions and was used by Highland Foods across 16+ sourcing countries for real-time shipment updates, with plans for customs point-to-point acceleration (Maersk, 2021).
- Barclays’ 2017 blockchain-enabled trade finance deal ($100,000; Ornua to Seychelles Trading Co.) reduced processing time from ~10 days to ~4 hours, though SWIFT issuance and traditional fund release remained; it was a partial blockchain run of select financial touchpoints (Ganne, 2018; McDaniel & Norberg, 2019).
- Dutch–Kenyan flowers project (CORE/EDP principles) enabled pre-arrival digital phytosanitary certificates and customs document access; resulted in >95% consignments moving to importers immediately after arrival, shifting admin work pre-landing and reducing delays (Grainger et al., 2018).
- NAFTA/CAFTA CBP POC (Sept–Oct 2018) digitized CBP Forms 28/29 via blockchain with 100% participant satisfaction, standardization of filer processes, digital certificates of origin, and elimination of duplicate paperwork; however, scalability investment needs were highlighted, and novelty of blockchain posed onboarding challenges (US CBP, 2020).
- Blockchain can support SPS/TBT-compliant eco-labelling and process/production method (PPM) verification, rules of origin, and IP/Geographical Indications enforcement by providing auditable provenance and automated rule execution (Tripoli & Schmidhuber, 2019).
- Finance access remains a barrier: >80% of world trade depends on trade finance; SME credit rejection >50% vs MNC 7% (McDaniel & Norberg, 2019). Blockchain can reduce information asymmetries to improve SME finance prospects.
- WEF estimates suggest reducing supply chain barriers could raise global GDP by ~5% and trade by >15%, effects far exceeding tariff elimination; blockchain-enabled digitization can contribute to these gains by reducing non-tariff frictions (McDaniel & Norberg, 2019).
Discussion
The research question asks how blockchain can be sustainably deployed across the entire Agro-food GVC to enable farm-to-fork traceability and enhance trust in global trade. The case studies demonstrate that permissioned/consortium blockchains can: (1) drastically reduce traceability latency (Walmart), (2) streamline customs compliance and pre-arrival risk assessment (TradeLens; Dutch–Kenyan flowers), (3) accelerate trade finance cycles and reduce paperwork duplication (Barclays; NAFTA/CAFTA POC), and (4) increase transparency for consumers and regulators, thereby supporting SDGs 2 (zero hunger), 3 (health), and 12 (sustainable consumption/production). By providing immutable, time-stamped ledgers and smart contract automation, blockchain mitigates OUOD information silos, enabling end-to-end visibility of product attributes (nature, quality, quantity, location, ownership) and process/production methods relevant for SPS/TBT compliance, rules of origin, and eco-labelling. These improvements can reduce non-tariff barriers, discourage corruption and forgery by minimizing manual document handling, and support inclusive trade by lowering documentation and compliance costs that disproportionately burden SMEs and developing-country exporters. Legal analysis indicates compatibility with WTO frameworks when implemented proportionately and inclusively. However, deployment at scale requires addressing technical and governance constraints (interoperability, standardization, scalability, data-input integrity) and investing in digitized customs and logistics infrastructure. Public–private partnerships, training/awareness programs, and integration with IoT/AI oracles are essential to convert successful pilots into vertically integrated, global farm-to-fork blockchains.
Conclusion
The paper proposes a holistic framework for deploying blockchain across Agro-food GVCs to transition from fragmented supply chains to accountable, sustainable value chains that enhance trust in trade and support SDGs 2, 3, and 12. Synthesizing interdisciplinary insights and six case studies, it shows blockchain’s capacity to: (i) enable rapid, accurate traceability and provenance; (ii) reduce paperwork and customs delays; (iii) accelerate and broaden access to trade finance; and (iv) facilitate regulatory compliance (SPS/TBT, rules of origin, GIs). It highlights that reducing supply chain barriers could increase global GDP (~5%) and trade (>15%). The road ahead calls for: (1) addressing interoperability, standardization, and scalability through coordinated public–private action and regulatory/technical frameworks; (2) investing in digitization of customs/logistics and fostering PPPs to seed and scale permissioned/consortium blockchains; (3) building awareness and capacity (e.g., training for SMEs, regulators); and (4) piloting a comprehensive, end-to-end farm-to-fork blockchain integrating tracking/traceability, finance, and customs. Future research should operationalize AI/IoT data oracles to improve data-input integrity and smart contract automation while navigating privacy, data protection, and governance concerns, thereby maturing a resilient Industry 4.0 ecosystem for sustainable Agro-food value chains.
Limitations
- Data-input integrity ("garbage in, garbage out"): blockchain preserves but cannot validate correctness of initial entries; human data entry and manual verification remain necessary; IoT/AI oracles are needed to improve input reliability.
- Security/governance risks: potential for 51% attacks in public chains; collusion risks among validators in private/consortium settings; user interface and validator governance are critical control points; past incidents (e.g., DAO hack) required hard forks.
- Scalability/performance: public chains process limited transactions per second; permissioned solutions (e.g., Hyperledger Fabric) can improve throughput for standardized tasks, but scaling government-led or multi-jurisdiction systems demands further investment.
- Interoperability and standardization: current blockchain solutions evolve as isolated "digital islands" with limited cross-chain compatibility; absence of common standards can impede network effects and broad adoption.
- Infrastructure and adoption: significant digitization of customs and logistics processes is required; post-POC feedback (NAFTA/CAFTA) flagged scalability needs and the novelty of blockchain as an adoption hurdle.
- Ecosystem concentration and incentives: consortium governance must avoid power asymmetries that could reintroduce gatekeeping; incentives for SME participation need careful design.
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