The World Health Organisation believes strengthening food safety systems is fundamental to international health and trade. Consumption is changing in the Association of Southeast Asian Nations (ASEAN) due to rapid population growth, alteration in dietary patterns, urbanisation, and increased disposable income. These changes mean the region will come under pressure to deliver enough safe and healthy crop products to feed everyone.
Despite revenues in the food market being worth USD 722.20 billion in 2024, it is vital to track meals to protect the region’s citizenry. The Food and Agriculture Organisation of the United Nations (FAO) defines food traceability as the ability to track food through its stages: production, processing, and distribution. It is a control system for ensuring quality and preventing contamination in meals.
Realising Southeast Asia’s potential via blockchain-powered trade finance
If there is a health risk at any point, there has to be a mechanism to identify and trace back through the supply chain to find what dish did not meet industry, regulatory, and public safety standards. Blockchain technology—a decentralised innovative tech—can help with this process.
Blockchain is a distributed digital ledger linked in blocks, which store information in a secure, tamper-proof chain. For companies in the sector, improving traceability improves their brand image and helps them comply with industry rules. Moreover, it enables them to manage inventory better since they can locate the source of contamination and avoid constant food recalls.
How can blockchain be applied to improve food traceability?
In 2020, 18.8% of Southeast Asians suffered from moderate or severe food insecurity. Tracking food through blockchain can help keep a ledger of records of the raw materials used to produce the food, the seed quality, and the fertilisers used, among other things. The tech tracks each transaction in the chain and stores secure records. Furthermore, users enjoy a tamper-proof system where they can have the transparency of following a meal’s life cycle each step of the way.
Thus, experts can determine where contaminated food came from and immediately remove it from the market. They can also reduce costs by making processes more efficient. Climate change and extreme weather patterns have also run amok, and using technology can show where the quality of the food products was affected.
The technology also securely maintains information and prevents data privacy invasions from cybercriminals. No one can go back and alter the records, meaning that food quality reviewers can detect where there was a contamination issue.
Leveraging blockchain for food quality and good health
Adopting a new system for food safety and traceability is more complex. There are high maintenance costs, users must do extensive data analysis, and their outcomes must comply with industry regulations. Additionally, each country in ASEAN has its own rules. That means each country must try to align itself with the policies of regional countries.
To ensure the food’s quality, they must look for proper documentation from suppliers, origin, and raw materials, among other things. More investment is needed to enhance traceability. Infrastructure should be at the top of the list of things to fix, as meal products are distributed and moved about on the roads for hours, and there is a risk that they may spoil while in transit.
Companies should train employees on using novel technologies and have food recall policies in place to ensure the health hazard does not hurt anyone else.
For example, Thai-based CP Foods integrates blockchain technology into its product range. It has a digital traceability system for monitoring pork and chicken products to ensure their quality and safety. It uses QR codes on the packages to provide information on the food’s origin, sustainability, and safety certifications.
As CP Foods adds new product categories, including shrimp and ready-to-eat foods, it believes its blockchain-based traceability can give customers confidence that its products are safe and hygienic.
Benefits of blockchain-based traceability to consumers and businesses
With the population in Southeast Asia expected to swell by 12% by 2035 to reach 750 million people, the demand to put meals on the table in every household will increase exponentially. Using blockchain technology to guarantee food safety will be vital to combating regional food insecurity. Much waste occurs during the production and distribution stages for crop products, and tech can help minimise those losses and enhance efficiencies in the market.
Food traceability will benefit the public by protecting their health, such as by thwarting foodborne illnesses from spreading. It prevents people from incurring high treatment costs and builds consumer trust. For the system to be successful, stakeholders must ensure it is user-friendly, scalable, and protects user data.
Blockchain-based solutions will help document, track, and reveal contaminated meal batches. However, Southeast Asians must ensure that the technology is obtained in eco-friendly ways so that it does not contribute to carbon emissions.