Impact of Blockchain Technology on UK Food Supply Chain Safety

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This research report investigates the application of blockchain technology to enhance food safety and improve the efficiency and transparency of the UK food supply chain. The study begins with an introduction outlining the background, significance, aims, and objectives of the research, followed by an extensive literature review covering blockchain technology, its importance in the food industry, the UK food supply chain, consumption patterns, and associated risks. The methodology section details the primary data collection methods employed. The analysis section presents findings from the collected data, and the conclusion summarizes the study's insights and implications. The report explores how blockchain can be used to increase traceability, build consumer trust, and address vulnerabilities within the food supply chain, offering a comprehensive analysis of its potential benefits and challenges in the UK context.
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Running head: BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY
CHAIN
Blockchain Technology and Food Safety in UK Supply Chain
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1BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
Abstract
The present research study focuses on the importance of blockchain technology and
food safety in supply chain within UK food industry. The first section of study focuses on the
background of the study, research aims and objectives, research questions. The literature
review section highlights on the blockchain technology, importance of this technology within
food industry, about the UK food supply chain, food consumption patterns of UK population,
risk and vulnerability associated with this technology within this sector and blockchain
technology increasing transparency and traceability of UK food sector. The third section
elucidates on the research methodology of this study. The tools adopted for this study is
focused in this section. The whole research is carried out through primary data collection
method. The fourth section focuses on the analysis of data obtained from different sources.
The last section draws conclusion of this study from the data collected from survey processes.
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2BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
Table of Contents
Chapter 1: Introduction..............................................................................................................3
1.1 Introduction......................................................................................................................3
1.2 Background of the study..................................................................................................3
1.3 Significance of the Research............................................................................................5
1.4 Research Aim...................................................................................................................6
1.5 Research Objectives.........................................................................................................6
Research Questions................................................................................................................7
Chapter 2: Literature Review.....................................................................................................8
2.1 Introduction......................................................................................................................8
2.2 Conceptual Framework....................................................................................................8
2.3About the Blockchain technology.....................................................................................9
2.4 Importance and use of blockchain technology in food industry for ensuring efficient
supply chain and food safety................................................................................................11
2.5 Food consumption patterns of the UK population.........................................................15
2.6 Food supply chain in UK...............................................................................................16
2.7 Risk and Vulnerability in UK food supply chain...........................................................19
2.8 Blockchain technology enabling transparency and traceability in UK food supply
chains....................................................................................................................................20
2.9 Research Gap.................................................................................................................21
2.10 Summary......................................................................................................................22
References and Bibliography...................................................................................................23
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3BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
Chapter 1: Introduction
1.1 Introduction
Over the last few decades, the global living standards, way of living, basic sustenance
activities, professional domains and consumption patterns of the population across the globe
have experienced considerable dynamics and modifications, much of which can be attributed
to factors like Globalisation, industrial and agricultural revolution as well as that of
technological and infrastructural innovations in the global scenario. Of these consumption
patterns, one of the primary one of immense importance is that of the patterns of consumption
of food, as much of the health, sustenance and well being of people, in general, depend on
their food consumption patterns and the quality, nature and types of food they usually
consume. In this context, the maintenance of proper safety and quality of food is one of the
most crucial aspects, especially in the contemporary period, where the instances of unsafe
food consumption and its negative aftermath are many, across the globe. Keeping this into
consideration, the concerned research tries to analyse the roles which the technological
developments, especially block chain technology can play in the aspects of food safety and
supply chain, specifically concentrating on the scenario of the food consumption patterns,
food safety, supply chain infrastructure and technological innovations of the United
Kingdom.
1.2 Background of the study
As discussed above, much of the health, safety, life years and level of morbidity as
well as activeness of the individuals, across the globe, depend on the pattern of food
consumption, the nature and types of food consumed and their quality. In the present
scenario, however, a striking shift of preference of the global population, in general, towards
processed and canned foods can be seen, the primary reason behind the same being the fact
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4BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
that these types of foods stay edible for long, can be stored conveniently, are money and time
saving and also are easy to prepare, which in turn, suits the new age population who mostly
live a dynamic life with time crunches. Also, in the contemporary period, due to innovations
in the technological and infrastructural aspects, food produced and processed in a region, is
transported to considerably distant places, both domestic as well as international.
These aspects indicate towards the presence or creation of supply chain framework in
the food industry, in the global scenario, inclusive of many processes, methods and
participants, like that of farmers, producers, suppliers, manufacturers, wholesalers,
transporters and retailers. The maintenance of proper quality of food and preserving the
safety of the same for consumption are extremely crucial aspects in all the sectors of the
supply chain of food industry and usually, food produced for consumption by population
across the globe, goes through various processes in order to assure that the same reaches to
the final consumers in a healthy and safe consumption. The quality of food not only depends
on the various processes and standards adopted by the manufacturers, but also the quality of
ingredients for preparation and preservation of the foods, quality of transport, storage
facilities and ways of handling the same by different intermediaries till the food reached to
the customers. The responsibility of provision of safe, secured and healthy food of desirable
standard, has to be taken by all the participants in the supply chain, including the farmers or
producers to the transporters and retailers.
In this context, it can be asserted that over the years, the awareness regarding the need
and importance of consumption of safe and healthy food, has increased considerably among
the population across the globe, in general. However, the increase in demand for food and
intensification of competition in the concerned industry, have also led to increase in the
number of instances of food fraud, illegal production, tampering of food and other negative
activities substantially, which in turn, have led to rise in instances of unsafe food
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5BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
consumption, foodborne illness and immense dissatisfaction and unrest among the
consumers. This in turn, indicates towards the need for creation of frameworks higher safety
and quality of the food processed and delivered to the population. Different technological
developments, in this context, can be seen to be gaining increasing popularity and relevance,
of which the most notable one is that of the blockchain technology, which is a traceable,
shared and transparent ledger used for record keeping and capturing information of each
transaction in the supply chain framework. This ensures higher efficiency, transparency and
quality in the process as a whole (Aung & Chang, 2014). Keeping this into consideration, the
concerned study, tries to analyse the aspects of food security, safety and supply chain and the
roles which can be played by the blockchain technology, in these aspects, especially in the
food production, delivery and consumption scenarios of the United Kingdom.
1.3 Significance of the Research
In the contemporary period, with the substantial increase in the population, across the
globe in general and in the UK in specific, the demand for food products have been
skyrocketing and with the changing lifestyle and standard of living of population, as a whole,
the consumption patterns of foods have also been changing visibly (as can be seen from the
increasing demand for processed foods. The increasing awareness regarding the food
scandals as well as regarding the need for healthy and safe foods, have also been indicating
towards the importance of development of a robust framework with the help of technologies
and innovations, to ensure safety at each stage of the supply chain of food industry, from the
farmers till the final consumers (Ahram, 2017). In this context, the blockchain technology,
gaining immense positive responses and popularity in different industrial sectors, appears to
be one of the most relevant and required one for ensuring safety in the food supply chain.
This, in turn, makes the concerned research relevant and significant as the findings of the
concerned research are expected to shed light on crucial aspects of supply chain development,
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6BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
incorporation of higher food safety and quality and advantages as well as loopholes of usage
of blockchain technologies in these aspects, for UK as well as for the entire world, in the
long-run.
1.4 Research Aim
With the instances of compromising of food safety, food frauds, tampering, illegal
production, food recall and impacts of these on the health of the population across the globe
in general and of that of the UK in particular, becoming issues of immense concern. The
concerned research primary aims to study the operational frameworks of food supply chain in
the concerned country, the aspects of food security in the different stages of the supply chain
framework and also tries to analyse the impacts which proper usage and incorporation of
blockchain technology can have in these aspects, for the concerned country (ROMARE,
2017). Based on the findings the research also aims to explore the bottlenecks in these aspects
and suggest relevant and appropriate solutions to mitigate those bottlenecks so as to ensure
higher food security and a more efficient food supply chain framework.
1.5 Research Objectives
The primary objectives of the concerned study are as follows:
To examine the operational framework of supply chain in food industry in the United
Kingdom, in the contemporary period
To study the food consumption patterns of the population of the concerned country
To analyse the need and importance of security and quality of food for the population
of the country
To examine the impacts of unsafe food consumption and perceptions of the
population regarding the same
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To analyse the factors causing negative impacts in the aspects of ensuring food safety
in different steps of the supply chain framework
To explore the relevance, significance and usage of blockchain technology for
ensuring a more efficient supply chain and higher safety in different steps of food
production, storage, delivery, transport and consumption
To examine the loopholes existing in these aspects and to suggest appropriate
solutions for mitigation of the same
Research Questions
Does investment in Block chain technology improve traceability of food supply
industry?
Does Block chain technology contribute to improvement in public confidence in the
food supply industry?
Does Block chain technology makes business transactions possible without the need
of the current verification?
Does Block chain technology contribute to an increase in speed of transaction?
Does Block chain technology enable multiple users to make secure transactions
haven’t been authenticating?
Does the use of Block chain technology enhance the tracking of food product?
Does the use of Block chain technology aid in tracking from point of source to the
point of delivery of food products?
Does Block chain technology provides open and accessible information of food
supply chain?
Does Block chain technology improve transparency in food supply chain?
Does Block chain technology lead to increase efficiency in transport within food
supply chain?
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8BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
Chapter 2: Literature Review
2.1 Introduction
Over the last few years, the world food supply chain network has awakened to huge
possibilities of the blockchain technology as the transformational force. Since globalization
has made food supply chain more complex, this enhances the operating costs of networks
across the economies especially in UK (Yu & Nagurney, 2013). Due to this reason, the food
manufacturers in UK has been integrating blockchain technology for reducing costs of supply
chain and maintaining high quality food standards. This section of the research study reviews
on the literature of blockchain technology and food safety in the supply chain. This segment
of the study focuses on how blockchain technology helps to improve transparency, safety and
quality of food in UK food industry. The operational framework of supply chain in UK food
industry and the food consumption patterns of UK population is also highlighted in this
section. Furthermore, the importance of quality and security of food for the people residing in
this country is also discussed in this segment. This section also focuses on the various factors
that causes adverse impact in UK food supply chain. The last section of this chapter also
highlights on how blockchain technology has been enabling transparency in food supply
chain and increases food traceability and control in UK.
2.2 Conceptual Framework
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9BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
Blockchain
technology within
UK food supply
chain
Trust
Transparency
Traceability
Trade
Track
Transaction
Figure 1: Conceptual Framework
Source: (As created by author)
2.3About the Blockchain technology
Blockchain was first utilized as primary technology for digital cryptocurrency that is
Bitcoin. Bitcoin has brought light to this blockchain technology that offers huge potential for
verification as well as food safety in agrifood industry. This technology can potentially aid to
solve several issues for food control and transparency. Saberi et al. (2018) opines that,
blockchain technology is the way of storing as well as sharing information across the network
of varied users in virtual space (Tieman & Darun, 2017). This technology permits for users to
observe every transactions simultaneously in real- time. Blockchain technology is mainly
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10BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
based on the distributer ledger system and has been considered as verification system for the
digital transaction in which data relating to transaction among the network members can be
stored. This technology permits varied levels of access and is outlined in varied forms of
distribution structures such as- decentralized, centralized and distributed. One of the vital
aspect of blockchain technology is that it stores information in the way that make impossible
for change in and add information without being detected by other users. In addition to this,
this blockchain technology assures the authenticity of transaction and also enhance overall
trust as well as transparency when linked to food products. As per Saberi et al. (2018),
blockchain network is one of the characteristics of blockchain. This technology enables
processing of data, which is not centrally located but stored on network of computers across
distributed ledger. Moreover, these computers generally processes transaction as well as store
copy of blockchain. Blockchain usually makes supply chain highly transparent to every level
and empowers whole chain to be highly responsive for any kind of food safety disasters.
Apart from this. This technology has great potential to reorganise business procedure by
framing powerful systems that is trustworthy. Investment in blockchain technology enables
the enterprises to set its food standards that shapes supply chain in future.
In food supply chain, information is connected digitally to the food commodity
through the blockchain technology. This mainly involve – farm orientation details, processing
of data, batch numbers, factory information, storage temperatures, expiration dates and
shipping details. According to Tieman & Darun (2017), blockchain technology has huge
potential to serve as beneficial device for the food sector. The food products change hand
several times across supply chain from raw materials, producers to processing to the
packaging operations. In fact, rising e- commerce market also adds additional layer when
commodities are shipped from retailer to customer. By integrating blockchain technology,
each transaction is recorded in decentralized repository, added costs, human error and
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11BLOCKCHAIN TECHNOLOGY AND FOOD SAFETY IN UK SUPPLY CHAIN
potential delays. This technology has the potential to disparate different parts of food supply
chain to the input data into shared ledger which reaches two ends of market that is from
manufacturer to consumer. The enterprises also can input information by keeping vital
business competitive data hidden. As the food industry has complex and multi- tiered supply
chains, it is seen as prime industry where the blockchain technology can be used for
authenticating as well as validating products and considerable increase in efficiency of
production as well as supply of goods. Francisco & Swanson (2018) states as food supply
chain management is important for the food industry, the businesses across the globe
including UK has been incorporating this technology for reducing costs as well as improve
compliance.
2.4 Importance and use of blockchain technology in food industry for ensuring efficient
supply chain and food safety
Abeyratne & Monfared (2016) opines that in the food sector, the blockchain
technology serve as a vital foundational technology in digitisation of the food supply chain
information. Abeyratne & Monfared (2016) suggests that the systems that are based on the
blockchain technology could be used for maintaining records on provenance of various food
ingredients, manufacturer specific information involving location of the factory, information
of food production such as production batch codes, inspection of food and its testing and
anticipated shelf- life. The information on these transactions as well as activities along the
food supply chain is maintained on decentralised, online- ledger and tamper –proof. By using
barcoding, QR codes and other form of labelling identifiers, the information is easily attained
at less costs by retailers, food distributors, auditors and other stakeholders with authorized
accessibility to blockchain ledger. Zheng et al. (2016) has found out that, application of the
blockchain technology to food supply chain provides numerous benefits to the food
manufacturers and consumers. For instance, higher transparency relating to source as well as
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