Blockchain in the Seafood Industry - Increasing transparency and efficiency in global seafood supply chains
The new blockchain technology will be able to improve the consumer’s confidence in the fish farming industry, and the fish we eat. If applied correctly, the story behind the fish is traceable all the way back to the feed which the farmed fish ate in their very first weeks of living.
According to the report by DNV GL and Deloitte, Blockchain in the Seafood Industry - Increasing transparency and efficiency in global seafood supply chains, the data from all levels of the industry’s supply chain can be openly available. Blockchain technology can lead to greater openness, eliminating uncertainty and curbing sustainability and food safety concerns.
The report highlights issues where blockchain provides an opportunity:
- Demand and need for increased transparency to improve operating efficiency across the supply chain, equip the end consumers with trustworthy product information and to manage fish stocks and biological ecosystems in a more sustainable way
- Blockchain could provide a remedy, provided that the industry players are willing to engage in data sharing and interoperability amongst each other, from feed production and broodstock, or fishing vessel operators, and all the way down to the retailers.
- Incentivizing that stakeholders gather and share their data will be a crucial step towards more transparency while all ecosystem players, sector players and adjacent service providers alike, can contribute with incentive schemes for data sharing and, at the same time, benefit in a transaction heavy, global and disaggregated trading sector from gaining more data-based insights into stakeholder operations
Challenges within the industries that provide obstacles, but at the same time opportunities for those able to engage and make the transformation:
- Trust within supply chain partners is a major hurdle to overcome and must be ‘exercised’ in a real-life project to harvest overall benefits
- The data already being collected are ‘trapped’ in silos today and to connect with other partners’ (in the supply chain) information needs significant effort of sharing in daily operations;
- Identify the priority topics, which generate a surplus situation for all. The report’s insights point towards the following topics to concretize such benefits:
- Traceability: Finding the means and defining the necessary information to present to end consumers in their hunt for a true high-quality product
- Fish welfare and biology: use of analytics for better insights into biologics to boost productivity and quality
- Innovative finance and insurance products based on better data to make qualified decisions which render benefits for stakeholders
- Efficiency gains in the supply chain, e.g. through automated documentation and smart contracts.
Read the full report here.