How does Blockchain help digitize supply chains in floriculture?
As a Senior Scientist in Agri-Technology at Wageningen University, I recently attended a thought-provoking seminar exploring the potential of Blockchain technology in horticulture. For several years, Blockchain has been making headlines, often touted as the ultimate solution to data exchange challenges in the horticulture industry.
The seminar’s title captured the essence of this hype perfectly: “Blockchain: Haarlem Oil?!” For those unfamiliar, Haarlem oil was once marketed in the Netherlands as a cure-all remedy for various ailments. The term now implies a supposed “fix-all” solution. So, is Blockchain really the universal remedy for data exchange issues in horticulture?
By the end of the seminar, the answer was clear: Blockchain isn’t a magic wand. However, it is a powerful technology with significant potential to elevate supply chain digitalization in horticulture. Let’s break down what makes Blockchain unique and where it can create real value in the industry.
What Makes Blockchain Unique?
Blockchain offers a new way to share data and conduct transactions securely. These transactions aren’t limited to finance (think Bitcoin) but extend to transport orders, FairTrade certifications, phytosanitary inspections, quality control, and managing returnable containers.
The unique properties of Blockchain include:
- Traceability: Transactions are always linked to previous records, making them easy to trace.
- Decentralization: Business interactions rely on consensus among network participants rather than a central authority.
- Shared Data: All participants hold a copy of the data, eliminating the need for a centralized database.
- Security and Immutability: Data is encrypted and, once approved, can’t be altered.
These features make Blockchain a reliable way to share data securely. It helps eliminate unauthorized use of information and builds confidence among customers, governments, and partners. This trust is essential for improving transparency across the supply chain.
What Makes Blockchain Unique for Supply Chains?
Blockchain is already delivering impressive results. For example, Walmart reduced the time to trace the origin of mangoes from almost seven days to just 2.2 seconds using Blockchain technology.
For example, Walmart reduced the time to trace the origin of mangoes from almost seven days to just 2.2 seconds using Blockchain technology.
The technology also cuts through red tape. With decentralized approvals, transaction processes speed up. The we.trade platform is a great example of using Blockchain for international payments, making transactions faster and smoother.
Given these successes, it’s no surprise that expectations are high for Blockchain’s potential in other industries, including horticulture.
Blockchain Opportunities in Horticulture
That said, Blockchain isn’t without its challenges. The consensus-based validation process requires significant computing power, which can slow things down, especially in large-scale Blockchains. Scalability remains limited, and ensuring different systems work together seamlessly (interoperability) is still a hurdle. Plus, organizing and maintaining a Blockchain network can be complex.
So, where can Blockchain deliver the most value in horticulture? The key is to focus on areas where trust, fraud prevention, and efficient approvals are critical. Here are some promising applications:
- Sustainability Certificates: Verifying the authenticity of eco-friendly claims.
- Payment Guarantees: Secure international transactions and reduce risks.
- Carrier and Container Management: Track shipments and containers efficiently.
- Quality Control: Ensure consistent product quality across the supply chain.
- Export Permits and Plant Passports: Simplify compliance with regulations.
Think Big, Start Small
You might be thinking, “This sounds great, but shouldn’t we wait until Blockchain proves itself?” It’s a fair question. While Blockchain is still evolving, it’s no longer just a buzzword. According to the Gartner Hype Cycle, we’ve moved past the “peak of inflated expectations.” More professional, practical applications are emerging every day.
Now is the time to prepare for Blockchain’s impact on horticulture. The best way to get ready? Start small with practical pilot projects that offer real-world insights.
A Practical Example: Plant Protection
In the Netherlands, a group of forward-thinking companies, including Mprise Agriware, is exploring Blockchain for the floriculture sector. It focuses on sharing plant protection information throughout the supply chain. The goal is to provide instant visibility into what was sprayed, when it was applied, and whether it meets the necessary certifications.
To make this work, growers need to accurately record plant protection data in their business management systems. The result? Greater trust in the market through transparent and accurate use of plant protection products. This approach helps growers meet legal requirements and the standards set by retailers and sustainability certifications.
Prove compliance and transparency
Building trust is essential, especially given recent incidents. For example, Greenpeace revealed that some Valentine’s bouquets contained banned pesticides, shaking consumer confidence. Blockchain offers a way to prove compliance and transparency — earning back trust by showing, not just telling, that your products meet high standards.
The Bottom Line for Horticulture
Blockchain isn’t a cure-all solution, but it offers tremendous potential for transforming data transparency and efficiency in horticulture.
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Written by Cor Verdouw, Senior Scientist in Agribusiness Information Systems at Wageningen Univerisity