The global blockchain in the agriculture and food market was valued at $139.6 million in 2020, which is expected to grow with a CAGR of 51.0% and reach $1,488.0 million by 2026.

Blockchain can assist the agricultural and food sector in dealing with predictable challenges and maintain affordability throughout the ecosystem.

Blockchain in Agricultural Ecosystem

Blockchain technology in the agricultural industry is used to improve supply chain traceability and make more profits. Blockchain technology can help improve operations and provide profitable results. It enables businesses to make informed consumer purchase decisions, have a sustainable business, and reduce food waste. It also helps simplify and secure transactions.

"Smart Agriculture" is a term that has recently surfaced in the market. Smart agriculture focuses on using natural resources and innovations to lessen or at least plan for tackling the future impacts of climate change and population growth. It uses emerging technologies like blockchain and related platforms to gather data and analyze that data, allowing farmers to better respond to the needs of their communities and implement sustainable agricultural practices.

Farm Inventory Management

Many farmers have not embraced the best technological advancements available to deal with inventory-related issues properly. This causes a lot of wastefulness regarding produce, resources, and even money. Farmers usually bear losses, and their financial stability is greatly affected.

One of the main concerns that farmers face is how to keep tabs on their produce freshness, which can sometimes be a big challenge, especially when trying to get precise information about the storage climate and the quality of your crops. In the past, owing to the absence of such technologies, farmers were often forced to make guesses about their product's ripening schedules, which led to a loss of revenue as such predictions often resulted in crop failure.

However, with the integration of blockchain in inventory management, farmers can better understand how their produce is being stored and when they will need to take the necessary steps to prevent the expiration of their products by staying already informed of the storage timeline. One way this could be achieved is by setting up a smart tracking system that transmits information about climate control in storage units so farmers are able to decide what actions should be taken for optimal results.

Blockchain to Enhance Supply Chain Efficiency

Blockchain’s underlying ledger technology essentially works like a huge database. It enables more transparent, efficient, decentralized, and secure systems. In the case of farming, blockchain could be implemented throughout the process with sensors on farmlands, storage systems, and transportation systems.

Utilizing a blockchain ledger system allows it to rapidly address all components while diminishing the growth cycles and increasing overall efficiency.

Following are the Benefits of Blockchain:

1. Streamlined operations
2. Security
3. Analytics
4. Transparency
5. Customer engagement

Internet of Things (IoT) Optimization

The advantage here is that blockchain is super secure, and therefore, the ideal solution for IoT devices, which are constantly at risk of being attacked by hackers and producing faulty results.

Blockchain can offer assistance with its strong security protocol that is better than most IoT devices currently available on the market today. With its advantage over other network systems, blockchain will enable IoT devices to function at more optimal levels.

Provide Fair Pricing

Farmers oftentimes get a raw deal when it comes to selling the produce they harvest. The fact is, farmer-run organizations are often undervalued by wholesalers and retailers who choose not to pay for farming produce at its true value.

A blockchain marketplace can empower farmers to sell their crops and fruits more effectively. They are expected to receive more value as fair purchasers will be able to negotiate effectively and buy from these vetted entities directly rather than getting scammed into buying poor-quality products.

Final Words

North America generated the highest revenue of $81.2 million in 2020 in the global blockchain in the agriculture and food market. The region is expected to witness high growth of CAGR of 48.5% during the forecast period 2021-2026.

Blockchain technology in the agriculture and food industry is still in its nascent stages. Adoption by retailers, government support, and the interest of other stakeholders are expected to drive the market. R&D activities are also underway for developing more efficient blockchain technologies.

The introduction of blockchain into the agricultural supply chain is foreseen as a new way to give farmers increased control over what's happening in their product's lifecycle. This means that growers will now have more power to retain ownership over their harvest and find buyers as per their produce.