Blockchain Use Cases in the Agriculture Sector
Blockchain Use Cases in the Agriculture Sector
As an example of blockchain use, we will introduce KPMG Origins, a platform enabling consumers to keep track of supply chains including the origins, producers, and processors of food products.
In the Essence and Approach of Blockchain, we explained the current status of blockchain, common pitfalls, and various approaches. We also defined the essence of blockchain as “constructing credibility as a system” that is based on information sharing and mutual surveillance. Tapping into the said essence, KPMG develops use cases that have already been put into practice, one of which is KPMG Origins.
Blockchain is becoming one of the newest buzz words in Australian agribusiness. Amid the forth industrial revolution, the world undergoes constant transformation, and the food industry is no exception. Consumers now have access to much more information on the products they use, while food safety regulations and compliance become more and more complicated. Authenticity and certificates of growing （and processing） areas add value to products of each country, on which a premium is placed.
Under these circumstances, data becomes increasingly important for the following stakeholders, including “1. Consumers” in particular, across supply chains in various industries.
- Partners in supply chains
- Supervisory authorities
- Firm managers
When data is retained in a secure platform like blockchain, effective data collection in all phases of supply chains can become a powerful tool. Collecting and providing supply chain data for consumers will gain their trust in business, products, and supply chains. With capabilities to share information on the origins of products with consumers, we will be able to provide them with information such as records, quality control, authenticity, and certificates of origins.
Data collection and sharing among supply chain partners allow us to access detailed information, including the locus of responsibility and biosecurity risks. This will also enable us to improve operational efficiency and establish more effective end-to-end supply chains.
By digitally collecting and storing single-formatted data, we can effectively and consistently respond to regulatory authorities with respect to export certificates, environmental compliance, and food safety regulations.
If data is measured at the minimum （crop） level in certificates of origins, the accuracy in firm managers’ decision making will be specifically enhanced. Data collection and accumulation will help with the analysis of the growth and harvest of crops, which lead to fine-tuned and real-time application of irrigation, agrichemicals, and fertilizers.
Blockchain will expand opportunities for using data in agriculture. It also serves as public account ledgers that are available for all stakeholders in supply chains, including producers, retailers, forwarders, and consumers. This technology offers useful information on their assets, as well as records and current owners of all transactions. Blockchain provides a food authenticity platform, the data storage system that shows where, how, and when food products were produced, processed, and delivered. And this ensures the traceability and transparency of agricultural products.
KPMG developed a blockchain-based integrated solution, “KPMG Origins,” by leveraging SmartLabel and AR/VR technologies. This platform securely saves various sets of data ranging from wine sellers, buyers, and forwarders to regulations, while also offering real-time data sharing and ensuring trust among stakeholders in multiple supply chains.
SmartLabel offers brand validity management and enables all stakeholders to track and trace data readily. AR/VR provides visually-appealing differentiated information and collects feedback to increase customer satisfaction. By scanning product labels on apps, customers have access to all data in respective supply chain phases.
KPMG Origins provides a secure platform to guarantee food products across supply chains, and increases benefits of multiple user groups to eventually improve agricultural technologies.
KPMG Ignition Tokyo
© 2023 KPMG AZSA LLC, a limited liability audit corporation incorporated under the Japanese Certified Public Accountants Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2023 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.