In recent decades, the dairy industry has been shaken by several scandals. Customers have lost faith in the industry due to tainted milk in China or salmonella-infected milk in France. The current paradigm of milk production is also challenged by various ethical issues (producer remuneration, animal welfare, etc.).
As a result, blockchain technology has been widely used to address these challenges. Increasing traceability and transparency has become the top priority of dairy companies.
Blockchains are public, shared archives that register digital transactions.
Blockchain can facilitate immediate network transactions between individuals and institutions (without an intermediary) in a decentralized network. Blockchain technology enables transactions to be conducted securely and stored to record what has occurred.
The cryptographic algorithms ensure that no blockchain transaction document can be modified after it has occurred. Blocks comprising a collection of transactions are joined together by cryptographic hashes in a blockchain.
Blockchain technology can ensure the accurate tracking of every batch in the dairy products supply chain. Blockchain makes it extremely easy to identify a faulty link and invalidate all contaminated sets in the event of a food-borne illness.
In contrast to bulk recalls of entire product lines, blockchain’s granularity can allow for the minimization of food waste and related financial costs in the dairy products supply chain and the impact on brand image.