Blockchain Growth in Agriculture: Key Stats
In 2020, the global blockchain market in food and agriculture was worth $140 million and is now projected to reach $1.5 billion by 2026.
By 2031, it is expected to grow to $7.42 billion with a CAGR of 44.11%.
Currently, 40% of global soils are "moderately or severely degraded," a figure which could rise to 90% by 2050 due to urbanisation and deforestation. Sustainable agricultural practices could quickly turn this around.
Blockchain’s Impact on Sustainable Agriculture
In recent years, governments, private industries, and consumers worldwide have recognised the urgent need for sustainable agricultural practices. It’s clear that without proper traceability, it's impossible for downstream supply chain members and consumers to verify if foods are grown using eco-friendly methods. This is where blockchain technology comes in.
The innovative marketplace, Tru Market, is pioneering the use of blockchain on ICP to transform the agricultural sector. As an ICP Hub Portugal member, Tru Market promotes sustainable farming practices and significantly reduces food waste, setting a new standard for the industry.
Blockchain's Role in Promoting Sustainable Farming Practices
The global market value of blockchain in the food and agriculture sector was $140 million in 2020 and is forecast to reach $1.5 billion by 2026. By 2031, it is expected to grow to $7.42 billion with a CAGR of 44.11%.
Although modern food production has increased yields, it has also created environmental problems. Research shows that up to 40% of global soils are "moderately or severely degraded," which could rise to 90% by 2050 due to urbanisation and deforestation.
Sustainable agriculture offers long-term environmental benefits by conserving resources. It also supports farming communities by ensuring fair prices. However, verifying and maintaining sustainable agricultural practices can be challenging; Tru Market is stepping up to implement blockchain technology to overcome these challenges.
Fully Transparent Farming Practices
By recording every transaction on a blockchain, Tru Market ensures that all farming practices are transparent. Farmers document their methods, such as organic farming techniques, fair labour practices, and sustainable land use.
This information is then accessible to all stakeholders, including consumers, who can verify the authenticity of these practices. This transparency goes a long way in building trust and encourages more farmers to adopt sustainable methods.
Financial Benefits for Farmers
Tru Market uses blockchain to create a system of incentives for farmers who engage in sustainable practices. For instance, smart contracts on the Internet Computer Protocol (ICP) can reward farmers based on predefined criteria. This means farmers practising crop rotation or implementing water conservation techniques may receive bonuses or better market access.
Certification and Compliance
Certification processes for organic or fair-trade products are often cumbersome and prone to fraud. Blockchain's immutable ledger ensures that it cannot be altered once data is entered. Tru Market's blockchain system verifies and records all necessary certification data, making it easily accessible and trustworthy. This simplifies compliance for farmers and assures consumers of the product's authenticity.
Reducing Food Waste
Food waste is a significant issue in the global food supply chain, with about one-third of all food produced for human consumption being wasted. Tru Market addresses this problem through several blockchain-enabled strategies, including:
Efficient Supply Chain Management
Blockchain technology allows for real-time tracking of food products throughout the supply chain. Tru Market uses this capability to monitor the condition and location of produce, ensuring that it moves efficiently from farms to consumers. By reducing delays and optimising routes, the freshness of the produce is maintained, and spoilage is minimised. This efficiency is crucial in reducing food waste.
Improved Inventory Management
Blockchain provides accurate and real-time data on inventory levels, helping retailers and distributors manage their stock effectively. With Tru Market's blockchain system, farmers and suppliers can update their inventory data instantly, allowing for better demand forecasting and reducing the chances of overproduction or stockouts. This precise management reduces waste due to excess inventory.
Investment opportunities
Traditional recall processes can be slow and imprecise in the event of a food safety issue, leading to significant waste. Blockchain allows for rapid and precise tracking of affected products. Tru Market’s system can quickly identify the specific batches involved, enabling targeted recalls. This swift action protects consumers and reduces the amount of food that must be discarded during a recall.
Financing Opportunities
Lenders can fund these operations, knowing that the smart contracts and milestone-based payments offer a secure way to manage their investments. This creates a reliable financing option for local producers and exporters who need capital to fulfill large export orders.
Learn More About Tru Market
Thanks to the Internet Computer Protocol (ICP) blockchain, Tru Market has developed a secure and transparent platform for trading and investing. By promoting sustainable farming practices and reducing food waste, Tru Market sets a new bar for the industry and offers a blueprint for how blockchain technology can drive positive change in agriculture. As more stakeholders lean into these advancements, the vision of a sustainable and waste-free food system becomes increasingly attainable. If you want to learn more, visit Tru Market's official website.
