The global supply chain is an ever more complex web of producers and suppliers. Goods move from country to country, shipped from one port to the next, from one factory to the next, and all along a long, tangled route that is, most of the time, a mystery.
Today’s constantly changing business environments place new demands on verifying the origin of products. A proper traceability system can improve a food company’s overall operation, improve the operation’s efficiency, and promote the company’s development.
Traceability of agriculture using blockchain technology is becoming more popular as a way to take prompt and accurate action in the event of a recall. Achieving this can help alleviate critical food safety concerns and win consumers’ trust. Here’s a closer look at the importance of traceability in food production and the food industry.
Rapid response in Case of an Emergency Recall
In the food industry, it is essential to trace individual packages of food back to the factory they originate from. In the case of an emergency, a traceability system will ease the stress of sorting and recalling faulty or contaminated products.
Quality Management and Traceability Solutions
Consumers now think more about the quality and safety of the food they buy than ever before. The Food Traceability Standards cover the production and supply chain areas starting from the ‘farm-to-fork’ concept.
Global traceability systems allow businesses to protect their reputations, reduce the risks of physical counterfeiting, and manage agriculture food products in accordance with food safety requirements.
Supply Chain Traceability
Digital transformation is changing the face of logistics as well. Supply chain professionals face various challenges and opportunities as shippers and consumers continue to embrace e-commerce and other digital options.
With the magnitude of recent recalls in the food and drug industries, the topic of supply chain traceability is top of mind for food industry executives, especially retailers and supply chain professionals.
Although supply chains are becoming more complex, a digital tracking and supply chain can provide a foundation to ensure continuity, gain visibility, transparency, and compliance in relationships.
Enabling Food Security and Consumer Safety
In today’s food industry, food safety and consumers’ demand for transparency are important issues. The food industry needs to take more responsibility and instill more consumer confidence in the food supply chain to guarantee consumer safety and meet growing consumer concerns.
Food manufacturers must identify ways to implement and maintain traceability and identity preservation even after the food has left their control. This is important to instill customers’ confidence in the product value.
Negotiate Higher Market Price
In every market, supply and demand are fundamental forces at play. In the futures markets, they take on an extra layer of complexity, as they are backed and driven by the needs of individuals to the industry of the physical commodity itself.
If consumers receive more information about the food product’s journey, they are more likely to pay more for it. A whole chain of events is involved in this case, which includes planting to harvest, post-harvest, and shipping. This traceability will enable agricultural producers to negotiate for and receive higher market prices.