Accenture Tracing Supply Chain Blockchain Study PoV PDF

Commissioned and funded by the
Gordon and Betty Moore Foundation
TRACING THE
SUPPLY CHAIN
How blockchain can enable
traceability in the food industry
The Gordon and Betty Moore Foundation is a private American foundation
established by Intel co-founder Gordon Moore and his wife Betty Moore
to create positive outcomes for future generations. The foundation fosters
path-breaking scientific discovery, environmental conservation, patient
care improvements, and preservation of the special character of the
San Francisco Bay Area.
The Moore Foundation commissioned Accenture, a leading global professional

services and consulting firm, to conduct a study exploring the feasibility
of blockchain to enable end-to-end supply chain traceability in the food sector.
The study looks at the opportunities and challenges of implementing this
emerging technology, including business and environmental benefits and
wider ecosystem and governance considerations.
The four commodities examined in the study—beef, soy, wild-caught tuna,

and farmed shrimp—were selected because of their significant market size
and environmental impact. The study seeks to demonstrate the art of the
possible while bringing to light key trade-offs and considerations around
implementing a blockchain solution.
Accenture and the Moore Foundation recognize the valuable insights of

the members of the study’s Advisory Committee, including representatives
from the World Wildlife Fund, IBM, SAP, Microsoft, Republic Systems, and
Synapse Nexus.
2 BLOCKCHAIN FEASIBILITY STUDY

PROBLEM
STATEMENT
Fjord Trends recently predicted that “making a difference
will soon become a key point of differentiation” in the ethics
economy. In fact, “the potential for ethics as a business
metric is already the topic of some industry debate.” 1
In general, companies do not know transparency, and accountability among

enough about the products that they participating actors. Better and more
buy and sell to navigate the many complex reliable data can help optimize business
challenges facing today’s global supply decisions and reach higher standards for
chains (e.g., safe, sustainable, and ethical). production, efficiency, and sustainability.
Some companies are realizing the business
value of traceability for efficiency, cost The market for blockchain technology
savings, and achieving product premiums in is rapidly growing. In 2017, it was valued
the market. However, they must first overcome at around $754 million; by 2022, it is
the mistrust associated with validating forecasted to be worth over $11.7 billion,
claims of product identity and traceability. growing exponentially at a compound
Companies should prepare for every action annual growth rate (CAGR) of 73.2%.2
or inaction to be closely scrutinized. In the provenance space, blockchain is
expected to grow at a compound annual
More can be done to equip companies growth rate (CAGR) of 76.2%.3
with real-time traceability of products
within global food supply chains.
Blockchain, a type of distributed ledger Current and future
technology (DLT), has been increasingly state of food supply
gaining market traction in supply chain management
chains—for example, in proofing product
provenance and implementing As indicated by a growing number of
track-and-trace of products through the successful pilot projects, blockchain
supply chain. While blockchain alone does technology can improve the management
not solve traceability, it can be a game- of supply chain transactions by providing
changer. When implemented effectively, visibility and reliability of transaction
it can connect and enable efficiency,

information among participating parties. • Coordinating process and digital
The certainty, transparency, tamper- transformation across multiple, disbursed,
evidence, and trust that blockchain provides and often disconnected supply chain actors.
can help to make transactional data easier
to share and may provide a platform to • Lack of connectivity, particularly
promote more responsible practices across with upstream suppliers.
the supply chain participants through
• Onerous and costly data
greater transparency, thus making it easier
reconciliation processes.
to hold parties accountable.
• Ineffective solutions for handling large
For example, BeefLedger has combined
amounts of disparate and potentially
blockchain with Internet of Things (IoT),
inconsistent data.
analytics, smart contracts, and digital
tokens to track provenance, streamline • Making relevant parts of the SCM
payments, mitigate fraud risk, and provide system and the data it captures available
transparency in sustainability in cattle to be shared between different actors to
ranching in Australia.4 foster cooperation and collaboration across
the entire value chain in a secure and
trusted way.
Supply Chain Management
Due to rapid advancements in technology Why blockchain now?
and the dynamic international business
While other technology options exist to help
environment, supply chains are evolving
manage supply chains, blockchain provides
into “supply chain networks,” a more
another arrow in the quiver, one that can bring
integrated form of supply chain that has
together different parties that have not directly
arisen due to widespread technologies,
established trusted relationships with one
such as the Internet.5 Companies recognize
another through the transparency it provides
that to succeed in the digital economy,
and its tamper-evident nature. Blockchain
they must manage the integration of
stores every transaction or exchange
business, technology, people, and
of data that occurs in the network, potentially
processes not only within the enterprise
reducing the need for third parties and/or
but also across extended enterprises.6
intermediaries by providing a means by which
Companies are increasingly looking toward all parties in the network may share access to
adopting Supply Chain Management the same data, including what is added to the
(SCM) systems that enable inter-enterprise data, by whom, chronologically. Data cannot
cooperation and collaboration with suppliers, be removed. By enabling each party to see the
customers, and business partners.7 same data, in near real time, and assure that
Although there are potential benefits for ‘you see what I see’ from a data perspective,
achieving competitive advantage, companies blockchain can help eliminate complex and
also face significant challenges in digitizing costly data reconciliation required by most
their supply chains such as: systems in the world today.

Blockchain alone does not solve the human When considering whether blockchain
challenges at hand or the need for digital is feasible and appropriate for a specified
transformation, but it can be a powerful use case, various costs and trade-offs
prompt for new ways of working, enabling should be considered. Blockchain is not
greater accountability and trust when a silver bullet and some supply chains may
implemented effectively. Additional value be better served through other existing
drivers for blockchain may include: technologies and solutions. Further,
different stages of the supply chain might
• Efficiency gains – Substantial efficiency be more suitable and feasible for leveraging
gains expected in reducing manual blockchain than others. A few key trade-off
processes for cross- party data validation considerations include:
and reconciliation and reducing repetition.
• Value for each actor
• Brand enhancement – Improved trust
in product provenance and secure • Availability of supporting infrastructure,
consumer confidence for quality, i.e., tools, and enabling technology
societal, and environmental impacts.
• Level of digital maturity of various actors
• Revenue growth – Market penetration
• Level of connectivity
and new product/markets development.
• Level of data quality and standardization
• Risk reduction – Reduced risk of
counterfeit products and mitigated risk • Incentive(s) for different actors
from lower-quality components.
• Level of collaboration/mistrust
• Cost savings – Improved financing and between partners
credit rates due to greater transparency and
certainty of movements of products and • Investment required (cost to set up, digital
savings through streamlined operations. transformation, and technology operations)
• Innovation drive – Leverage innovation Further detail is provided throughout the

to increase efficiency and change the report on the benefits and trade-offs for
ways of working. the four selected commodities.

VALUE LEVERS
SPECIFIC TO COMMERCIAL FOOD
SUPPLY CHAIN COMPANIES
While many industries, organizations, and companies are

experimenting with blockchain and its applicability to their
businesses, many are also beginning to explore the collaborative
potential for enhancing the workflows in their supply chains.
They recognize that existing and new ways of operating enabled by blockchain could one
day become commonplace in supply chain ecosystems, allowing for increased transparency
of products, transactional efficiency, reduced costs, and fewer redundancies. Below is a list
of three main supply chain management challenges that businesses seek to address:
CHALLENGE 1 CHALLENGE 2
Coordinating across Onerous and costly data
multiple, disbursed reconciliation processes
and often disconnected As businesses expand into multiple
supply chain actors facilities and countries, it can be difficult
to keep track of inventory and manage
Complex, global supply chains, such
the numerous data and regulatory
as the ones in this report, involve many
requirements. Supply chain management,
independent actors—producers, brokers,
in general, can result in a large amount of
transporters, processors, wholesalers,
duplicative data and huge efforts in the
retailers, and consumers—who may not
tracking and reconciliation of data for a
trust each other. This can greatly limit
single transaction, from start to finish,
the level of collaboration. For example,
including capturing any exceptions.
these actors may be hesitant to share data
Accenture refers to this as a “hall of
and/or invest in a direct relationship or
mirrors”8 effect, where many parties end
intermediaries that would allow for sending,
up with copies of the same documentation
validating, and reconciling data between
(e.g., certifications, transport orders, bills
different parties. Business models that
of lading, pallets, loads, etc.), and there is
provide flexibility in coordinating across
risk of the data becoming out of sync.
these many actors are required.

It then becomes difficult to identify original material is used to create a semi-finished or
versions or decipher the accuracy of the finished food product. Traceability problems
information held. In many cases, these can also arise when products change
reconciliation processes are still manual identifiers or possession, are repackaged
and paper-based, and errors and data or cross borders when both naming and
duplication lead to high reconciliation costs. labeling methods vary. In the case of the
In the case of the four commodities in this four commodities in this study, we have
study, there are multiple actors who use observed several bottlenecks that make
various facilities (for example, pre- and post- end-to-end traceability more challenging.
processing), adding to the complexity of the For example, the limited use of digital
supply chains and tracking. For example, records, lack of standardization, and costly
beef is a highly processed commodity reconciliation appear in all four commodities.
that changes product identity through
the process and chain of custody. This Although relatively new, blockchain is
complexity raises the demands for reliable already generating excitement among some
data that can be trusted between parties. companies in these industries. That’s because
it offers many benefits that are valuable to
diverse actors in a supply chain:
CHALLENGE 3
Lack of product traceability VALUE 1
According to a 2011 Grocery Manufacturers Transparency and auditability
Association report, most companies that
go through a Class One recall, when the The lack of consistent data and digital
public health impact has the potential capabilities makes sharing information
to be most severe, can expect a financial across the supply chain difficult.
impact of $10 million or more. Nearly one Blockchain can help promote transparency
in four companies report a financial impact and help streamline the process of sharing
in excess of $30 million for a single recall.9 information. Because each actor can
A major challenge in traceability is product upload information and data about their
information ambiguity, resulting from products, this transparency also improves
logging vague and uncertain product accountability and trust. Blockchain can
characteristics that are hard to trace. also show near real-time updates about the
This may be due to poor and predominantly product. Depending upon the governance
manual record keeping, supply chain and policies of the network, trading partners
complexity, and identification lag time. can see where the product is, who made it,
Particularly challenging is when products how it is made, and when it is expected
are blended or comingled or when a raw to be delivered, using a single platform.

The enhanced communication through solution for all entities on the supply chain.
a visibly streamlined process has shorter This is highly valuable when there are
lead times, reduced redundancy, and multiple entities on a supply chain that do
fewer delays. A blockchain-based solution not need or want to directly integrate with
for information sharing can provide more each other or be impacted by another entity’s
direct visibility on whether contracts and technology and/or business decisions.
agreements are adhered to and properly Blockchain enables data sharing without the
documented. Since each transaction need to change the systems that each entity
is recorded in sequence, blockchain has and thus enabling greater traceability of
provides a permanent audit trail that can products across multiple partners, locations,
verify a product’s authenticity and trace and facilities. Each stakeholder can view
it through its chain of custody. Much of the same data on a product’s lifecycle.
the complexity, costs, and inefficiencies
of current processes could be reduced
through blockchain-enabled systems, VALUE 3
effectively “closing the hall of mirrors.”10 Streamlined operations and
purchase process automation
VALUE 2
Product traceability Because of predominantly paper-based
records and manual processes, tracing
At the time of this study, there was products—particularly during a recall
limited widespread adoption of traceability —and reconciling accounts and transactions
software within the four commodity supply can be costly and time-consuming.
chains covered. That said, companies are With blockchain, key information is stored
increasingly investing in automated food and available in near real-time to the users
safety software that allows them to see that need it. Applications that sit on top
where products are and where they of a blockchain platform move data to the
came from within the supply chain. blockchain, either through human entry
Automated food safety software also helps or an automated process or technology
with U.S. Food and Drug Administration (for example, through an automatic sensor
(FDA) compliance requirements in the event measuring temperature in a transportation
of a recall, allowing them to more quickly truck). Multiple entities can then view
access data and detect a problem, including the information they need in one location
lot codes, production and expiration dates, instead of having to communicate with
and product order numbers. their suppliers or purchasers.
Blockchain can be a significant game- A smart contract is a component of

changer here by enabling interoperability a blockchain-based system that can
between these various traceability automatically enforce participant-agreed rules
solutions without the need to replace and process steps that can facilitate, verify, and
the applications or moving onto a single execute the terms of an agreement between
counterparties without the need for a human

intermediary. In traditional database terms, supply chains by reducing the need for
smart contracts are like “stored procedures,” intermediaries and allowing organizations
but in this case represent an agreement to connect with each other directly. It also
among multiple entities, such as with service unlocks the potential to more efficiently
payment or shipment authorization. Since share data, such as inventories, which
blockchain is distributed and scalable, it can could enhance a company’s ability to
reach and support global partnerships and manage multiple suppliers and unique
streamline communications. contracts, reducing their dependency
on single entities and lowering overall
risk. Additionally, blockchain’s potential
VALUE 4 for shared inventories and automated
Security and trust purchase orders could accelerate
product movements through the supply
In tuna, shrimp, and beef supply chains, there chain, reducing risks of perishability and
have been significant issues with product improving the ability to more efficiently
fraud and inaccurate labeling, and it can match consumer demand. And finally,
be difficult to detect fraudulent actors and/ performance data collected on a
or transactions and hold them accountable. blockchain can help reduce risk and
Though the initial data accuracy is still allow suppliers to demonstrate their
dependent on the person or the device performance to potential clients.
entering the data correctly into system,
leveraging blockchain means that it is easier
to identify an issue after the initial data VALUE 6
entry. Blockchain operates by recording and Trade finance, insurance
storing every transaction chronologically
across the network in a cryptographically
premiums and liquidity
linked block structure that is replicated Despite their importance in the world
across network participants. Through its economy, small and medium-sized
inherent structure, blockchain can enable enterprises (SMEs) in food production, such
trust in the source of data coming from as beef, soy, wild-caught tuna, and farmed
multiple data streams, providing confidence shrimp are underserved by the banking
and visibility that the data has not been sector and often face problems accessing
tampered with or altered inappropriately. credit when and where they need it due to
lack of trust and availability of information.
There is not much scope for negotiations
VALUE 5 when securing finance because the rate
Contract management and of borrowing for the SME (supplier) or their
supplier due diligence cost of working capital is dependent on
the corporate partner’s (buyer’s) bank.11
By automating certain types of contracts, Typically, the lack of transparency inherent
blockchain can simplify and expedite in these transactions results in uncertainty,
contract management for modern or a lack of trust between parties, and thus

buyers are unable to improve cash flows for under/overproduction), or potentially direct
their upstream supply chain, making it very income. Suppliers can use this information
difficult to finance the buyer’s tier 2 and tier to view items in the production process
3 suppliers (i.e., the supplier’s suppliers). to build a better delivery time for their store.
This gain can improve communication and
To address these issues in a cost-effective boost customer satisfaction and retailers
way, organizations are investigating the use may choose to engage customers by
of blockchain technology for supply chain providing access to some information on
financing.12 Blockchain enables a much the blockchain. For the consumer, this can
higher level of certainty in where the data provide increased visibility into product
comes from. This improved confidence and origin, producer, quality, and the like, which
assurance in information can in turn help the in turn can build loyalty and contributes to
farmers and other actors in the supply chain a stronger business relationship. This could
to provide great liquidity, better terms, and be facilitated, for example, by a mobile
improved access to insurance, financing, application that allows a consumer to scan a
and other capabilities. For example, product or QR code to view such information.
insurance can be critical to smallholder
farmers, yet without strong proof of
ownership, or volumes, insurance premiums VALUE 8
could be higher (or payouts lower), which New business models
can impact the farmer’s bottom line.
and sustainable product
Additionally, blockchain improves efficiency differentiation
and can reduce processing times, eliminate
the use of paper, and save money while Some of the most significant technological
also ensuring transparency, security, and advances have led to a complete reinvention
trust. It opens an online marketplace for the of an industry and creation of new ones.
buyer, supplier, and financiers, facilitates The disruptive effect on current business
trade directly between these parties and and operating models that blockchain can
eliminates the need for intermediaries.13 have should not be ignored.
If products could be more easily identified and

VALUE 7 tracked more effectively, providing greater
transparency in how they are produced, then
New channel of customer
actors are more incentivized to improve their
engagement processes. Blockchain could also potentially
automate buying, changing the functions
By enabling access to the same set
of intermediaries handling transactions in
of data, blockchain can provide greater
much of our global trade. Just as the Internet
transparency to multiple stakeholders in
and e-commerce allowed customers to
the supply chain. For the smallholder farmer
bypass physical brick and mortar stores,
or producer, it can provide greater visibility
blockchain could potentially allow producers
into demand upstream for access to better
to be connected directly to consumers and
prices, better production control (to avoid
create different marketplaces.

Blockchain solutions could also change For instance, producers, who often have a
the terms of insurance policies currently limited view of global markets and demand,
required in transactions and global shipping can benefit from trusted data insights into
as well as how liability and indemnification customer demand; they can leverage the
are identified in supply chain management. data to reduce risk of overproduction and
waste and improve profitability.
Transparent, real-time insights into
product movements could create a more There has been significant research and
responsible and collaborative approach evidence pointing to a large market for
to global trade, reducing costs and time, sustainable goods and a strong opportunity
and increasing efficiencies. for companies to demonstrate the
sustainability of their products. Indeed, in
a recent study, Unilever determined that
the opportunity is worth over $1 trillion
for brands that can effectively market and
communicate their sustainability to the
market.14 As Unilever’s chief marketing
and communications officer states,
“This research confirms that sustainability
isn’t a nice-to-have for businesses. In fact,
it has become an imperative.”15 Blockchain
can allow, for instance, consumers to more
directly drive the demand for ethically and
sustainably sourced products by linking the
consumer with the producer.

INTRODUCTION
TO BLOCKCHAIN
At its core, blockchain is a new type of data system that
maintains and records data in a way that allows multiple
stakeholders to confidently share access to the same
data and information.
A blockchain is a type of distributed ledger Public blockchains use complex algorithms

technology (DLT), meaning it is a data to reach consensus among network
ledger that is shared by multiple entities participants but may not be suitable for
operating on a distributed network. companies in many cases, as they have
limited privacy protection compared with
This technology operates by recording and private blockchains. Private blockchains
storing every transaction across the network use access control layers to specify the
in a cryptographically linked block structure network participants and commonly use
that is replicated across network participants. high-throughput consensus mechanisms.
Each block has a hash, which is the output
of an algorithm that turns the contents of Depending on the type of blockchain
the block into a random mix of letters and platform being used, blockchains can
numbers. By mathematically validating that be designed to provide different levels
the hashes match the expected values, users of access to the data on the blockchain
can trust that the data has not been tampered (“on-chain” data). This means it can provide
with. Relevant actors or organizations increased transparency to the data, while
participating in the distributed network can upholding privacy where needed.
serve as “nodes” to participate in consensus, For instance, a blockchain could enable
a process that keeps each blockchain node in patients to control their own health data and
sync and handles the addition of new blocks. choose who can access their health data.
There are different mechanisms that could
be used to establish consensus that To protect sensitive information, it is
have trade-offs between confidentiality, recommended to store this information
throughput, and security, and vary depending “off-chain”: rather than being stored
on the implementation and use case. and replicated across nodes within the
blockchain structure (“on-chain”), data
would be stored elsewhere, separate
from the blockchain.

Additionally, most blockchain platforms In doing so, it offers the potential to disrupt
cannot efficiently store large volumes of and transform existing business models:
data on-chain. Only the minimum data instead of the various processes associated
elements needed to enable a transaction with sending, validating, and reconciling
should be stored on-chain to comply with data among different parties, blockchain can
storage limitations and privacy needs. be used to reliably share information among
Information that could be stored on the multiple selected parties while still allowing
blockchain might include: parties the ability to control who gets to see
what data. Blockchain introduces a means
• Transaction metadata (such as time to share data across multiple, possibly
stamps, actor/user IDs, transaction mistrustful, parties without the necessity
types, etc.). for an intermediary, reducing the need to
• Pointers to the actual data that is stored revalidate and reconciliate data.
off-chain (e.g., confidential compliant
The decentralization that blockchain
database), which would only be
provides reduces the risk of data loss or
accessible by authorized users.
corruption from single-points-of-failure and
• Access Control List, listing actors who data-fragmentation disparities. The tamper-
have been provided access to read or evident nature of blockchain means that,
update data that resides at the pointer. should an actor attempt to change data on
the blockchain, network participants would
Using blockchain in this way establishes be immediately aware of the change upon
trust in the validity of the data and improves inspection of the chain—thereby making it
the ability to share the data across silos very difficult to introduce non-accepted or
while keeping sensitive data protected. malicious data.
But in terms of its potential, blockchain is Blockchain technology can offer many
more than just a technology. It is a critical benefits to disparate organizations that
enabler of innovation as it acts as a catalyst have an inherent lack of trust between
for changing the way that existing trading one another, but that would benefit from
partners in a supply chain work together. sharing a common set of data to facilitate
Blockchain makes it possible for a system business objectives. The distributed nature
of independent actors—producers, brokers, of blockchain solutions enables businesses
transporters, processors, wholesalers, to see and trust the data they are sharing,
retailers, and consumers—to share the same with confidence that it has not been
data between the different actors without tampered with or altered inappropriately.
the actors having to directly interact and All of this is made possible by the
build a direct relationship with one another. combination of cryptographic concepts
that form the backbone for blockchain
and provide immutability and auditability
to the data records.

Figure 1: Four key features
Provenance Tamper Evidence Control Security

We know where We know if We can control We can encrypt and
data came from someone has tried what someone can segregate data at a
and can trace its to change it see and do at a data element level
complete history data element level

BLOCKCHAIN
ADOPTION
The successful application and adoption of blockchain
agriculture supply chain traceability must provide value
and benefits to each actor in the supply chain.
The value that such traceability brings to each of the actors will be different
and needs to align to each actor’s specific part of the supply chain to increase
incentives, promoting greater traceability. A blockchain traceability solution
requires robust governance, strong coordination, and a comprehensive technical
and functional strategy that works for a broad set of actors in the supply chain
and a strong supporting ecosystem.
This section identifies the key components of implementing a blockchain

traceability solution:
Figure 2: Blockchain project implementation process
PROJECT INITIALIZATION PROJECT PLANNING PROJECT EXECUTION
Purpose Operation
A A Design,
and A Feasible Enabling Rules and and
Leadership Consortium Governance Build and Roll-out
Business Use Case Technology Procedures Maintenance
of Partners Structure Test
Model
ITERATIVE LOOP BY ITERATIVE LOOP THROUGH

SELECTED USE CASE PROOF OF CONCEPT (POF),
LIMITED PRODUCTION PILOT,
AND PRODUCTION
Source: Accenture

1. Leadership • To enable a new business model
or differentiated product.
Every project has a certain culture that
• To meet customer demand or market
is created by its members and cultivated
trends, such as provenance, ethical
by the project’s leader(s). The human or
consumerism, or greater collaboration.
social problems are the most significant
obstacles to success16 and cannot be • To address a significant gap or problem
resolved by technology. They require in the supply chain due to lack of
human leadership striving for innovation transparency or data-sharing issues.
and improvements of existing processes
through the following activities:
3. A Feasible and Valuable
• Identify the business or societal
need(s) and focus on the value that
Use Case
needs to be delivered. Blockchain presents a tremendous
• Assess and determine if blockchain would opportunity to transform the food sector
add value to addressing the concerns. and enable environmental protection.
However, it may not be appropriate for all
• If blockchain could add value, commodities, supply chains, and use cases.
identify the right consortium partners. It is important to assess the feasibility
Provide early-stage leadership and vision of each use case to determine suitable
for innovation and collaboration. candidates. The minimum criteria for
a valuable and achievable blockchain
• Allocate initial human and financial
system should include:
resources to catalyze the project.
• Convene relevant supply chain Market feasibility and value:

actors and technology partners. The appropriate demand and market
conditions are in place to enable
• Facilitate collaboration, consortium- participants in the market to be interested
building activities, and committees and beneficial to participate. The solution
or working groups. must provide demonstrable business
value and incentives for each participant
2. Purpose and Business in the blockchain ecosystem.
Model Technical feasibility and value:

The technology is a good fit for the
A blockchain solution typically serves
industry and its actors’ needs; these needs
the following purposes:
should be addressed directly through the
• To better address a business’s supply key benefits that blockchain technology
chain management objectives, specifically brings, including its ability
including cost, efficiency, transparency, to allow multiple parties access to the
accountability, traceability, trackability, same data.
quality, speed, dependability, risk
reduction, sustainability, and flexibility.

Operational feasibility and value: 5. A Governance Structure
There is sufficient capacity and coordination
to enable adoption. This would include To build a successful consortium
a practical and manageable governance commitment from relevant parties,
model for effective collaboration, as well the development and operations of an
as capabilities, processes, training, and the appropriate governance structure to drive the
like, to put the solution into practice, intended values and desired behavior from
and sustain and scale the solution. all participants is required. Strong leadership,
commitment, and change management
Financial feasibility and value: Introducing are necessary. Participating organizations
blockchain is financially feasible because will have to adopt new ways of working in
the required capital is available to the an ecosystem to realize the full benefits
actors who need it, and they can reasonably of the ability to share data and processes.
expect a return on investment either Rather than the traditional way of each entity
through revenue increase or cost savings. owning their own system and relying on data
within their own perimeter, organizations
would need to change how they approach
4. A Consortium of Partners ownership of data, systems, and their supply
Blockchain allows for the sharing of chain management operations.
data across value chain actors who may
currently lack trust. In order to enable
parties to collaborate and work together,
6. Enabling Technology
including potentially direct competitors, It is at the base of the pyramid where the lack
to achieve business value across actors, of transparency produces several issues—
technology partners, and a consortium from availability and reliability of information
of industry, regulatory, and nonprofit on the product and farming practices, to labor
stakeholders should be brought together management, to payments, and each has
to agree on ways of working, governance, significant impact further along the supply
ownership of Intellectual Property (IP), chain. While blockchain alone cannot solve
and liability. Value needs to be front and the existing manual processes, the digital
center of the consortium as members divide, the lack of access to connectivity,
determine their operating structure, nor the quality of the initial set of data input,
solution capabilities, technology solution, it can help with transparency and ability
and operations to meet the needs of all to share data across different parties in a
involved. Connecting these partners consistent and integral manner. To reap the
in a consortium requires significant benefits of blockchain in agriculture and
coordination, effort, and investment. aquaculture, a key dependency is digital
transformation of the industry, especially
for base-of-the-pyramid producers.
As such, other enabling technologies and
capabilities, which together make up the
larger ecosystem, must be considered.

Several existing technologies are expected the blockchain. Examples include data
to interface with blockchain solutions: validation tools and reentry of data
to check for a match.
• Enterprise resource management
(ERP) systems As the industry demands greater automation
and accuracy of data, the industry is trending
• Electronic ordering and payment systems
toward greater adoption with IoT and
• Invoicing systems automated data collection, with, for example:
• Logistics systems • Product tagging (RFID, NFC-embedded

ID chips)
• Order management systems
• Digital quality assurance checklists
• Traceability systems
• A GPS-enabled smart logbook
Additional capabilities will be needed
specifically for base-of-the-pyramid • IoT devices—scanners, sensors,
producers in emerging countries, including cameras, etc.
access to digital technology and devices to
• Smart packaging and digitized labeling
help close the digital divide, better access
to connectivity, increased availability of • Tamper-evident seals or security stickers
mobile devices, better basic infrastructure,
IoT sensors (temperature, grading, safety, • Identity management of devices,
etc.), RFID systems, barcodes and scanners, commodities, and users
and better access and link to connect
farmers to consumers.
8. Rules and Procedures
Rules and procedures need to be
7. Data Accuracy, established between stakeholders to
Collection, and Entry determine what data should be on-chain,
what types of data should be added,
While blockchain enables greater who gets to see what data, and especially
transparency, it cannot ensure correct data how data additions will be accepted
entry. Traditional methods of data collection, (consensus). When a transaction is added
from paper to simple spreadsheets, can still to the blockchain, a consensus mechanism
be used and data can be manually entered among the stakeholders determines
into applications that interface with a given whether that data is valid.
blockchain supply chain network for tracking
information. There are additional commonly Buying and selling transactions follow rules
used controls and methods that reduce the that parties agree on beforehand through
risk of incorrect data entry for applications a legally binding contract. Blockchain can
that can be deployed to increase the level solve certain problems inherent in the
of assurance for accurate data added to traditional value exchange process by

using cryptography and distributed A critical challenge to addressing
computing and storage technologies to unsustainable practices is one of incentives
provide trading parties with a means to and disincentives for good and bad
share a trusted representation of their behaviors within the supply chain.
transactions and assets.17
Additionally, required data should be

Investing for the future
standardized across supply chain actors. Investments in traceability, including
Data standardization may mean adopting traceability technology, have been limited
an existing, well-known standard or creating to larger operations, particularly those
one for the consortium. It is not necessary that are either vertically integrated or
to agree on every piece of data. A good have less complex supply chain systems.
starting point would be to determine a small Aside from adoption, value delivery and
set of data attributes that are required by all utility, like any digital transformation or
parties in the ecosystem and focus on the adoption of traceability technology, the
definition of a small set of common data. long-term success of blockchain solutions
Not all data will need to be shared. and ecosystems across geographies is also
subject to socio-economic and regulatory
factors, especially in regions experiencing
9. A Strong Supporting instability and/or lacking sophisticated
Ecosystem and Incentives systems and frameworks.
for Change It is important to address the key drivers

for investment in a blockchain-based
Blockchain has the potential to unlock
traceability system:
significant value for the different entities
in the supply chain if it is designed, built, • A clear and compelling value proposition
and operated with the right incentives for traceability and sustainable production.
and ecosystem in mind. For users and
organizations to adopt the technology • Practical and comprehensive standards for
and form new ways of working, such as traceability and sustainable production.
a consortium, there must be sufficient • Cost-effective enabling processes
incentives for change; these incentives and technologies.
could include financial, reputational, and
operational gains. The blockchain supply • Appropriate levels of communication
chain capability and operating model needs and coordination across the supply chain.
to deliver value to each entity in the network
• Appropriate incentives for participants
for it to be sustainable. Additionally, user
to join the network.
experience and utility for the user need to be
improvements on how things operate today.

INTRODUCTION
TO USE CASES
This report assesses the feasibility of blockchain to enable
end-to-end supply chain traceability in the food sector,
specifically across four commodities: beef, soy, wild-caught
tuna, and farmed shrimp. These commodities were selected
because of their significant market size, health, and safety
as well as their social and environmental impact.
Use cases were also designed to meet the objectives shown in Figure 3:
Figure 3: Use case objectives
A clear, consistent objective of the blockchain
A clear start and end point
A consistent definition of essential data and why it is required
Sufficient information available about the supply chain and the specific use case
Sufficient integration and consistency within the supply chain

Following a detailed supply chain mapping feasibility of the four food commodities in
for each food commodity, obtained through terms of blockchain feasibility. This report
secondary research and primary interviews, finds that, in this order, Indonesian wild-
the team completed an analysis and caught fresh/frozen tuna, Thai farmed
evaluation of each use case against four shrimp, Brazilian soy, and processed
feasibility criteria (technical, operational, Brazilian beef rank most to least feasible
market, and financial). The findings of this for a blockchain traceability solution.
report point to an indicative ranking of the Additional context is provided in Figure 4.
Figure 4: High-level feasibility findings
FINDINGS
AREAS OF COMPLEXITY
Most Feasible
Technical
Technical complexity of establishing
and maintaining product identity and Indonesian wild caught,
traceability data. fresh/frozen tuna
Operational
Operational and organizational complexity
Thai farmed shrimp
of building core capabilities among actors
and processes to enable traceability.
Market
Brazilian Soy
Complexity of introducing a traceability
technology within the market and
regulatory context.
Brazilian Beef (Processed)
Financial
Complexity of financing traceability
technology and infrastructure.
Least Feasible
Source: Accenture Analysis

Profile of the four use cases
INDONESIAN TUNA
Indonesia’s tuna landings are the largest This could allow for regulatory actors such
in the world, contributing 17% of the as the MMAF to better meet sustainability
world’s tuna supply and 27% of U.S. fresh objectives in the prevention of IUU fishing
and frozen tuna; however, unauthorized at the point of origin and enable greater
tuna fishing in Indonesia is leading to the visibility of the tuna product as it moves
overexploitation of seafood resources in through the supply chain. The application
surrounding waters. Indonesia is the top of blockchain technology can help enable
exporter of fresh/frozen tuna to the United these outcomes.
States, valued at $112 million.18 Since the
inauguration of the new Ministry of Maritime By adopting a blockchain traceability
Affairs and Fisheries (MMAF) Minister in solution, tuna supply chain actors can
2014, Indonesia has been embarking on a increase their supply chain velocity by
strategy to defend, promote, and expand overcoming operational and market gaps
fishing while tackling illegal fishing and deliver sustainably caught fresh/
activities at the point of capture. frozen tuna to consumers with fewer
health and safety risks and less product
There is some evidence that Indonesian spoilage. Such a solution has the potential
regulatory actors and major suppliers to significantly reduce unauthorized fishing
are prioritizing traceability in Indonesia. and drive business value. Current risks in
Traceability is an integral component of the supply chain that are associated with
market commitments to authorized fishing. a lack of accountability and transparency,
It is essential in seafood supply chains and mislabeling of products, and poor cold
offers the opportunity for governments chain management could be mitigated
to strengthen fishing management and by the implementation of a blockchain
for buyers to prioritize the purchase of traceability solution.
responsibly caught fish. The estimated
annual cost of Indonesia’s illegal, unreported, In today’s global tuna supply chain,
and unregulated (IUU) fishing is between business risks are heavily weighted toward
$3 billion and $5 billion a year, not including the downstream phases in the supply chain.
the additional costs of unattained tax Risks accumulate as tuna is harvested,
income and damage to the ecosystem.19 produced, traded, and exported, which
impacts what is distributed in bulk to the
Within the tuna supply chain, there appears consumer. Across a web of supply chain
to be an opportunity for tracking tuna from actors, the time it takes for tuna to reach
the fishing vessel in Indonesia to the point the end consumer after being initially
of sale in the United States. caught is neither transparent nor optimized.

Due to the complexity of tuna supply and receive a greater portion of the
chains in Indonesia and the transfer of final price from the consumer. Due to
tuna across multiple hands, poor cold chain high margins, the opportunity exists for
management is common and post-harvest producers to increase their prices without
tuna product losses are high. Post-harvest much impact to the final retail price.20
losses can include tuna that does not reach
the market for consumption and the reduced Indonesian regulators, such as the MMAF,
value of tuna due to poorly handled fish. are also working toward regulations around
responsible fishing practices, such as
In Indonesia, harvesters, producers, and preventing IUU fishing and strengthening
traders range in size, operations, and fishing data. In 2014, MMAF banned foreign
sophistication. Currently, there is a lack fishing boats from Indonesian waters and took
of uniform requirements and standards additional measures to prevent unauthorized
for traceability data and supply chain fishing.21 The benefits of authorized fishing
transactions comprise of a series of unique, compliance could be realized through
short-term transactions across a web of increases in catch volume and prices for tuna
supply chain actors. This drives up the cost products. Research conducted on the effects
of data management for each business in of Indonesia’s anti-IUU fishing efforts suggest
the seafood supply chain and increases the that Indonesian skipjack tuna fishermen
risk for errors, disputes, and inability to trace “would lose 59% in catch and 64% in profit
tuna products. Moreover, the complexity by 2035,” “if an open-access fishing regime
of transactions and documentation was maintained and no anti-IUU policies were
increases with fish brokers, middlemen, implemented in the country (Indonesia).”22
and transporters in the current supply chain. The same study finds that, “fishermen
could enjoy a 14% increase in fish catch by
To increase supply chain velocity, 2035, and 12% rise in profit compared to
blockchain traceability can enable current level,” if “the government continued
businesses to collaborate in monitoring the to curtail IUU fishing and cap harvests at
performance of supply chain actors, identify maximum sustainable levels.”23
inefficiencies, and reduce operational gaps.
With the improved velocity, businesses can Key traceability challenges exist in the
benefit from reduced costs associated with current Indonesian wild-caught, fresh/
storing tuna for extended periods of time frozen tuna supply chain. Indonesian wild-
and discounting a tuna product due caught, fresh/frozen tuna moves through
to longer times in the supply chain. diverse actors in the supply chain from the
point of capture to the point of sale to the
In addition, data transparency and the consumer. Key technical and operational
opportunity to leverage more advanced challenges to the rollout of blockchain-
analytics can provide seafood businesses enabled traceability currently exist in this
with the information they need to make supply chain, including a lack of product
better business decisions. Price data, for segregation; unavailable, unreliable,
example, could allow upstream supply and/or unstandardized data; and limited
chain actors to better negotiate price technology capacity for Indonesian actors.

Figure 5: Current Indonesian wild-caught, fresh / frozen tuna supply chain process map
Limited tracing Incomplete and/

and validating or unreliable Often not regulated
of vessel catch data; to global standards
location paper-based data
Mixing of Must compile Audits are
batches paper documents conducted
Industrial Port Broker
vessel/ to confirm chain to ensure
longliner of custody compliance
USA
Mini- Primary Exporter US Importer, Buyer
Processing Processing Wholesaler,
Plant Plant Processor,
Retailer,
Foodservice
Village
Collector Retailer,
Artisinal/ Landing Broker
smaller Center Wholesaler,
vessels Fish Processor
Aggregator
Limited data Brokers may Aggregation

on artisinal not have from multiple
fishing connectivity villages/sites
Ministry of Marine Affairs and Fisheries (Indonesia) MOT
KEY CHALLENGES
Low tech, Limited and/ Mid- to small-size Multiple instances Non-segregated Lack of
predominately or unreliable fishing vessels with of brokering and supply chains standardized
paper-based catch data at limited tracking amalgamating, with instances approach to data,
documentation landing sites technology especially for catches of re-batching, labelling and units
from smaller/ specifically at of measurement
distant ports processing facilities
Source: Accenture Stakeholder Analysis

Of the four commodities in this report, actors appear to be largely using enterprise
tuna was found to be the most feasible. resource management (ERP) or other
With some level of technical and operational accounting and demand management
effort that can be incentivized through technology that, with some effort, could
market and financial opportunities in the be integrated with a traceability solution.
Indonesian wild-caught, fresh/frozen tuna
supply chain, an end-to-end blockchain- One known blockchain pilot for tuna was
enabled traceability solution can be developed by WWF-Australia, Fiji and New
feasible. Detailed analysis of key challenges Zealand, ConsenSys, TraSeable, and Sea
along the supply chain demonstrates low Quest Fiji Ltd. This pilot combined mobile,
to medium complexity, with minimum to blockchain, and smart tagging to track
moderate effort required to enable end-to- responsibly caught tuna from catch to
end traceability in the supply chain. consumer, aiding proof of compliance
to standards along the chain.24
The most significant challenges in digitizing
product traceability exist at the beginning Required investments in these technical
of the supply chain, where fishing vessels, and operational efforts can be incentivized
ports and landing centers, and brokers through market and financial opportunities.
operate with little to no current enabling As demand for wild-caught, fresh/frozen
technology. The volume of actors and tuna in the United States continues to rise25,
limited coordination of relationships at this there is an opportunity for actors across the
early point in the supply chain mean that supply chain to receive the financial benefits
investment and introduction of a blockchain of compliant tuna products that are already
traceability solution requires significant of high value in the global fish market.
effort to vertically integrate to create The seven most commercially important tuna
more consistent supplier relationships species, for example, are among the most
and to digitally transform the transaction economically valuable fishes on the planet.26
processes of these actors.
Benefits and value drivers of a
Along the supply chain, moderate technical
blockchain traceability solution
effort is required to digitize existing paper-
could include more streamlined data
based documentation, introduce RFID
sharing and improved confidence in
tagging technology, adopt segregated
catch data (e.g., to know if tuna was
supply chain processes, build mobile
caught in legal waters), company
applications for low-tech actors, and
brand enhancement for IUU-
integrate existing enterprise platforms
compliant products, and a clearer
with a blockchain solution. The production
business case for investing in such
and transport processes for fresh/frozen
enabling technologies as RFID tagging
tuna are relatively simple, and thus, the
that could improve automation and
associated operational efforts around
streamline operations (and that could
shifting processes and training users are
be justified for higher-value catch
moderate as well. From processing facilities
such as tuna).
until the product reaches the consumer,

THAI FARMED SHRIMP
Aquaculture is the fastest-growing There is evidence of a supporting

form of protein production globally,27 ecosystem in Thailand for promoting
averaging an annual growth rate of traceable product. Because of repeated
7% over the past two decades.28 disease outbreak, increasing ecological
problems, evidence of forced labor in the
Shrimp is a key global aquaculture product; shrimp supply chain, and criticism from
it is the most traded global seafood both nongovernmental organizations
product by value. As of 2013, production (NGOs) and consumer countries, progress
from shrimp farms accounts for 56% of is being made to strengthen regulations
global shrimp production.29 In the United by domestic, exporting, and importing
States, the world’s single-biggest seafood country governments.
importer, shrimp is the most consumed
seafood per capita. Thailand is a top For example, the U.S. National Oceanic
5 contributor to global farmed shrimp and Atmospheric Administration (NOAA)
production, accounting for approximately requires that all imports for seafood
17‒20% of total U.S. seafood imports.30 It is products covered by the Seafood Import
estimated that there are over approximately Monitoring Program (SIMP), including
20,000 actors in the farmed shrimp supply farmed shrimp, must comply with
chain in Thailand, with shrimp farms making established reporting and recordkeeping
up the greatest order of magnitude.31 requirements to prevent illegal, unreported,
and unregulated and/or misrepresented
While the Thai shrimp aquaculture seafood from entering U.S. commerce.
industry has the potential to reduce
unauthorized fishing and increase shrimp Although the legal and regulatory
production, it relies on wild capture to mechanisms required to enforce responsible
produce feed. In recognition of diminishing fisheries are not yet in place, the Royal Thai
marine-capture fisheries, many countries Government is preparing to declare Thailand
have turned to aquaculture to reduce free from IUU-aquatic animals and fisheries
overfishing and depletion of wild fish stocks products; the IUU-free Thailand initiative
while increasing fish supply. However, was adopted at the meeting of National
as small-scale extensive aquaculture is Fisheries Committee on 25 January 2018
being increasingly replaced by large-scale and is currently pending Cabinet approval,32
intensive aquaculture, the industry’s share indicating a potential positive commitment
of global fishmeal and fish oil consumption to reform the country’s fisheries system with
has expanded significantly. This heavy a view to promote responsible fisheries.
reliance on wild capture could reduce
wild populations significantly, despite the
measures being taken to reduce overfishing.

In addition to being high on the As global demand for shrimp began to
government’s radar, companies based skyrocket in the 1980s and ‘90s, Thailand’s
and operating in Thailand have been shrimp aquaculture sector developed
collaborating through the Seafood Task “intensive” farming methods, which stocked
Force, an industry-led, multi-stakeholder shrimp at high densities to boost yield.33
alliance set up to help ensure that However, some of the intensification process
Thailand’s seafood supply chain effectively made farms more susceptible to diseases
addresses risks in the farmed shrimp supply like White Spot and Early Mortality Syndrome
chain, including the issues of forced labor, (EMS), which have decimated shrimp
human trafficking, and IUU fishing through populations on several occasions since 2011.
traceability, transparency, and verification. Some farmers lost their entire crop within a
matter of days, causing the price of shrimp
A blockchain traceability solution has the to surge and Thailand to lose over $1.5
potential to reduce health and safety risks billion dollars in exports in 2013 alone.34
in the shrimp supply chain by digitally
recording chain of custody and capturing Contamination and product damage during
product and handling information. shipping, handling, and processing pose
additional significant risks to consumers.
Increasingly, companies are turning to Ensuring that products do not encounter
traceability technology as a tool to reduce harmful bacteria and are kept at an
health and safety risks, limit costs, and appropriate temperature to avoid spoiling
enhance their brand. Current risks in the is critical. Post-harvest losses from spoilage
supply chain associated with a lack of happens when food is degraded such that
accountability and transparency, such it becomes unfit for human consumption.
as mislabeling of products and poor cold Mitigating risk of disease requires appropriate
chain management, can be mitigated pond management, sourcing of healthy
with the implementation of a blockchain brood stock, and appropriate handling and
traceability solution that can digitally transport. A blockchain traceability solution
record the chain of custody and other can provide additional visibility so that liability
key product and process information. risks can be better managed, particularly in
the cases of post-harvest losses and product
As risks to product integrity and safety
recalls. In addition, issues with shipments,
become compounded as farmed shrimp
product damages, delays, health concerns,
is harvested, produced, traded, and
and other points of failure can also be
exported, end-to-end traceability can
improved with greater accountability and
provide some benefits to large wholesalers
transparency, thus reducing the time and
and retailers at the end of the supply
cost of issue resolution.
chain. These companies also often exert
significant influence on the supply chain
and have the technology capacity to
invest in and adopt such solutions.

Currently, supply chain transactions compliance and currently, many
comprise of a series of unique, short-term businesses have their own internal tracking
transactions across a web of supply chain mechanisms in place to ensure food safety
actors. This drives up the cost of data during their handling of shrimp products.
management for each business in the By complying with food safety regulations,
seafood supply chain and increases the risk businesses have access to global markets
for errors, disputes, and inability to trace where their products can be distributed.
shrimp products. A blockchain traceability
solution can allow data on shrimp products Key traceability challenges exist in the
to be shared across actors, providing current Thai farmed shrimp supply chain.
businesses the opportunity to reduce data As Thai farmed shrimp moves from point
and document management costs, including of capture to point of sale, there are key
contracts, bills of lading, way bills, and technical and operational challenges to
transaction ledgers, and lower the potential enabling a blockchain-based traceability
costs associated with fixing errors and solution across diverse supply chain actors.
managing reconciliation and other disputes. These challenges include a lack of product
segregation with instances of mixing
Furthermore, such solutions can enable batches and re-batching shrimp products,
businesses to collaborate to monitor low technology capacity for Thai actors,
the performance of supply chain actors, and a lack of a standardized approach to
identify inefficiencies, and reduce tracking data, units of measurement, and
operational gaps to increase supply chain labeling products.
velocity. With improved velocity, businesses
can benefit from a more demand-focused In the short term, an end-to-end
approach and reduce the cost of storing blockchain-enabled traceability solution
shrimp for extended periods of time and may not be feasible in the full Thai farmed
discounting a product that reaches the shrimp supply chain. However, a solution
retailer too close to an expiration date. from shrimp farm to consumer is feasible
with the appropriate incentives in place
Uniform product data can also help to maintain separation and segregation
businesses to better collaborate across of shrimp. Significant effort is required to
the supply chain and show evidence of rollout a blockchain-enabled traceability
their sustainability commitments, so they solution in the Thai farmed shrimp supply
can satisfy demands and better position chain at the fish processing plant and
themselves in the market. byproduct broker. The main product for
these actors is fish, but they also sell the
Finally, a significant driver for businesses fish byproduct to animal feed producers.
to adopt traceability is compliance with Technical and operational feasibility is
regulatory requirements, including highly complex at this stage, as net new
domestic fishery laws and export and processes, including segregation, and
import regulations. Global regulations enabling technologies would have to be put
are the primary drivers for food safety in place to enable traceability of byproduct.

Further, considering the relatively low to integrate existing shrimp processor
value of byproduct relative to the whole or enterprise platforms with a blockchain
portioned fish, financial and market feasibility solution or to build mobile applications
of introducing byproduct tracking and to connect to the blockchain.
segregation is low. Thus, there is little market
incentive for fish processors to invest in the From an operational perspective, moderate
corresponding effort required to adopt new effort is also required to establish new
processes, technologies, user capabilities, processes, efforts, and capacities to close
and behaviors for byproduct tracing. and segregate production processes.
There is already some vertical integration
Further, a major challenge to ensuring between brokers who are contracted
traceable Thai farmed shrimp product by processing plants and wholesalers
in the supply chain is aquaculture feed to harvest shrimp and amalgamate the
production. There does not appear to be a product for processing, therefore requiring
widely accepted understanding of traceable less operational effort to coordinate
aquaculture feed, and the supply chain is not the adoption of new technology and
fully connected to wild capture fish products, production methods. From processing
specifically fishmeal and fish oil, which are facilities until the product reaches the
used for feed. Significant technical and consumer, most actors are using enterprise
operational effort would be required to link resource management (ERP) or other
these supply chains and ensure traceable accounting and demand management
shrimp product; there are currently limited technology that, with some effort, can
market or financial incentives for these be integrated with a traceability solution.
low-value byproducts.
Moderate market and financial
While tracing shrimp feed to its point incentives for producing ethical and
of origin is very difficult, a blockchain sustainable shrimp are required to
traceability solution could be used to incentivize these investments.
trace shrimp from farm to consumer.
Starting at the shrimp farm, technical and
operational feasibility is medium, requiring Benefits and value drivers of a
moderate effort to maintain separation and blockchain traceability solution
segregation of shrimp in batches from the include improved data sharing and
various points of origin during farming, visibility on whether products were
harvest, and through the processing phase. appropriately segregated, company
Moderate technical effort is required to brand enhancement for IUU-compliant
introduce basic traceability technology products, and streamlined auditing.
at the level of the shrimp farm as well as

Figure 6: Current shrimp supply chain process map
Tracing and Brokers may A sub-set Non-segregated

validating vessel not have of product fishmeal
location and logbook connectivity go to processing
system
Artisinal Landing Pier/Pae Pla Fish Market/
vessel Center Fish Broker Bycatch Broker
Commercial Transhipment Port Processing Fishmeal Feed Mill Feed

vessel Plant Plant Wholesaler
Multiple fish Mixing of Potential new

species and batches from untraceable product
sized caught various vessels introduced
Feed shop
Brood Stock Hatchery
Brokers trusted Farmers,

to label shrimp hatcheries, feed
amalgamated from Shrimp Shrimp brokers may not be
multiple sources Broker Grow Out equipped to report
Farm
Exporter US Importer, Buyer

Wholesaler, Retailer,
Foodservice
Must compile paper Audits are Consumer demand

documents to confirm conducted to standards, without
DoL DoF chain of custody ensure compliance paying a premium
KEY CHALLENGES
Low tech, Ships >20K tons Multiple instances Non-segregated Brokers and Lack of
predominately require Vessel of brokering and supply chains with farmers may standardized
paper-based Monitoring amalgamating many instances not be equipped approach to data,
documentation Systems, <20k throughout the of mixing batches to complete labelling and units
tons are on an supply chain and re-batching required reporting of measurement
honor system

BRAZILIAN SOY
Brazil is one of the world’s largest producers There has been much interest in soy
of soy and the single-largest supplier of soy traceability, owing largely to international
products to China. Soy is often referred to environmental concerns and pressure,
as the “King of Beans.” It is the fourth-largest and the subsequent government and
crop produced globally by volume and is corporate interest in compliance. The
pervasive in our food products as well as in Brazilian government has collaborated with
the diets of our livestock.35 Soy production industry associations and stakeholders
and consumption has been increasing to remove non-compliant products from
for decades and is expected to continue the supply chain. Brazil’s Soy Moratorium
accelerating as growing populations and was the first voluntary zero-deforestation
economic development demand more agreement implemented in the tropics and
meat, dairy, vegetables, fruit, and fats. set the stage for supply-chain governance of
other commodities, such as beef and palm
The United States, Brazil, Argentina, and oil.42 In response to pressure from retailers
China are the world’s largest producers of and nongovernmental organizations (NGOs),
soy. Brazil now exports 60% of its harvested major soybean traders signed the Soy
soybean crop36 with 75% of it going to Moratorium, agreeing not to purchase soy
China.37 Furthermore, 70% of soybeans grown on lands deforested after July 2006
exported from Brazil are sent as whole in the Brazilian Amazon.43 Large international
beans38 and then further processed into meal processors have also been independently
and oil once it reaches facilities in China. experimenting with traceability systems.
Soy production is a large contributor In addition to managing risk and

to deforestation, and in Brazil, it is the regulatory compliance with Brazil’s Forest
second-largest cause of deforestation Code and Soy Moratorium, a blockchain
after cattle ranching.39 Due largely to traceability solution can help soy supply
international interest in forest conservation, chain actors realize business value
Brazil has strict environmental land-use through greater visibility across suppliers
regulations that were passed through for managing production volume and
a series of Forest Codes. For example, economies of scale needed to meet global
landowners in the Amazon region can only demand more efficiently. The profitability
farm on 20% of their land and must maintain of soy-producing companies is linked to
the other 80% as forested land.40 The 2012 their production volume, which requires
Brazil Forest Code mandated the use of a economies of scale to keep grain elevators,
land mapping registry system, known as rail cars, barges, and cargo ships busy
Cadastro Ambiental Rural, or CAR, but only and generating revenue.44 Volume itself is
1.4 million out of 5.5 million properties had dependent on retail, which is increasingly
been registered by the 2015 deadline.41 influenced by factors such as food safety

and consumer confidence. As a result, an With a dense network of third-party actors
increasing number of firms are exploring and relationships to manage, producing
innovations in traceability, and capital firms and processors often end up with lower
investments are frequently necessary to margins than expected. Disputes are time-
maintain a competitive edge in a constantly consuming and complicated to handle, and
changing technological landscape. traders or brokers are often used to assist
in relationship management, bringing their
Furthermore, actors across the global soy own costs. These costs are exacerbated by
industry face challenges common to all the perishability of soy, which has time limits
supply chains, including cost inefficiencies, and conditional requirements on storage
accountability and transparency, market and transport. This can result in delays,
competitiveness, and risk management. lower prices, or actual waste, as delays in the
In Brazil, there are a wide variety of logistics supply chain bring products closer to their
agencies handling the transport and expiration dates. Blockchain technology
storage of soybeans, all of which require can offer a possible solution to capture and
separate transaction documentation and share data on the movement of goods, as
contracts. Every day, approximately 10,000 well as contract management. It can also
trucks leave Mato Grosso, the largest potentially enable shared inventories to
soy-producing state in Brazil.45 Grain sellers better align buyers and sellers and reduce
and traders will contract either transport dependency on brokers.
services directly or transport agencies
who then subcontract. An estimated 50% Key traceability challenges exist in the
of all transport services are provided by current Brazilian soy supply chain. In
self-employed drivers.46 Moreover, while the current soy supply chain, the buyer
storage bags are increasing in popularity, is responsible at the first point of sale for
on-site storage is still not very common determining whether they are introducing
in Brazil, with only 14% of rural producers sustainable soy into the product chain,
with warehouses located on their farms.47 which they determine by checking whether
This necessitates frequent contracting the farm they are buying from has its CAR
with storage and transport providers, plus registration. As soy moves from the first
significant numbers of contracts, bills of point of sale to the final point of sale to the
lading, way bills, and transaction ledgers consumer, there are additional technical and
also need to be maintained. Such data operational challenges. These challenges
reconciliation can expose companies to risk include a lack of standardization around
and additional costs, if documents become data, labeling and packaging, and units of
out of sync, leading to potential disputes measurement, low technology capacity for
or difficulty in tracking information about select actors, and the mixing of batches and
business performance. re-batching of soy products. In addition, soy
is used for a wide variety of end products
across industries (meal, oil, etc.), but
tracking soy through to its end product
is particularly challenging.

Figure 7: Current Brazilian soy supply chain process map
Tracing and Traders and companies Import permit, customs Meal is sold to feedlots,
validating location – have a large network of declaration, sales and oil is sold to food
geospacial maps storage facilities and contract, bill of lading, processors and care
and coordinates contracted transporters invoice and packing list product companies
Soybean Storage and Exporter Import to Storage Processing Wholesaler

Farm Transport in China and Transport Plant
Brazil
Meal
Registration, land title and Pro-Forma Invoice, Whole beans are Processing
CAR (gov mapping location Nota Fiscal Invoice, crushed and processed
cert). RTRS cert for Shipping Cert, Packing into meal and oil, for
sustainability. PRA cert for List, Origin Cert domestic wholesale Oil
Processing
environmental compliance
MAPA MOFCOM MOT ANVISA RTRS MOA MDT MDIC GAC CIQ AQSIQ
KEY CHALLENGES
90% of the farmers own 20% of the land – large farms Batches inevitably mixed unless segregated. Very wide
are constantly expanding and purchasing new land. variety of end products across many industries.
Many different handlers in Brazil and China, could be Brokers and farmers may not be equipped to
thousands of trucks on the road in a given day. complete required reporting.
Large processing firms lack incentive to share data. Lack of standardized approach to data, labelling
Sustainable soy is still a niche product. and units of measurement.
A blockchain-enabled traceability solution the brokers may be a more appropriate

can be feasible in the soy supply chain but target to accelerate the introduction of
would require significant up-front effort traceability technology and avoid having
and coordination. Analysis of the soy to introduce the technology at the farmer
supply chain demonstrates primarily level. Brokers also play an important role
low to medium complexity, with minimum in gatekeeping sustainably sourced soy
to moderate effort required to enable that is compliant with the Soy Moratorium.
end-to-end traceability. A farm’s CAR registration, for example,
could be validated by the broker at the first
At the farm level, actors are low tech and point of sale to confirm farm compliance.
moderate effort would be required to reach If brokers can ensure that their contracted
a significant number of soy producers storage units do not mix compliant and
and introduce traceability technology. non-compliant product, it would be possible
Since there are established and consistent to differentiate between compliant and not
relationships between soy farmers and soy fully compliant soy product.
brokers that amalgamate harvested beans,

In tracing the product through multiple Market and financial incentives would
transactions between supply chain actors, need to be put in place to incentivize
moderate technical effort is required to these technical and operational efforts.
digitize existing paper-based documentation, Sustainable soy is still a niche product, and
build mobile applications for low-tech actors, the financial benefits may not be reaped as
and integrate existing enterprise platforms easily as they would be for a higher-value
with a blockchain solution. product, such as tuna. A small premium
for sustainable, traceable soy products or
One of the most significant obstacles to having a preferred vendor relationship could
tracing soy to the originating farm is that it be sufficient to enable some investment
is amalgamated and mixed at the storage in technologies and training required, but
and shipping stages. Soy is amalgamated further exploration is required. For greater
by brokers and stored in grain silos before segregation and new processes to track
being further amalgamated into a large hull the identity of soy at the processing plant,
of a transport ship. Therefore, to ensure supporting regulations and incentives
compliant soy reaches the processing from U.S. importers (such as wholesalers)
actors in China, brokers must ensure that can support the investment required if
only compliant soy reaches their storage sustainable end products that leverage
silos and that there is a high enough volume soy are valued highly in the market
of compliant soy (and that only the content
of purely compliant storage silos) to be
mixed together and transferred into the Benefits and value drivers of a
hulls of transport vessels. blockchain traceability solution
include improved data sharing and
At the processing stage, there is a
visibility on whether batches of soy
medium level of complexity required to
were mixed, brand enhancement
adopt separate or segregated production
for companies whose soy products
and maintain unique identity of soy
do not lead to deforestation, and
products in lots or batches identified
streamlined reporting for compliance
by source. For processors crushing
among actors.
soybeans and blending it into soy meal
and oil, maintaining unique identity can
be challenging, and require standardized
tracking, labeling and packaging, and
barcoding, as well as new processes,
efforts, and capacities to close and
segregate production processes and
track identity by supplier.

BRAZILIAN PROCESSED BEEF
Brazil is the largest exporter of beef.48 In response to growing international

Brazil is the largest exporter of beef in the concern around deforestation and climate
world, with roughly 1.44 million metric tons change, many actors involved in the
exported in 2017.49 Brazil currently supplies cattle trade have begun to investigate the
about a quarter of the global beef market.50 potential for beef traceability to promote
sustainability goals. In 2002, the European
Due to inefficient land usage in cattle Union began to demand traceability for its
ranching, the industry in the Brazilian fresh beef market, which resulted in Brazil’s
Amazon is responsible for one in every national identification system and the
eight hectares of forest destroyed Certification of Bovine and Bubaline Origin
globally.51 Over 60% of all Brazilian cows are (SISBOV) program.55 While this system was
currently grazing on deforested land.52 With entirely voluntary, it was the first attempt
the economies of the world’s largest beef within the country to create unique animal
importers, particularly Russia and China, IDs and digital certifications of farms that
growing every year, the need for additional could be stored and traced electronically.
land to raise cattle is expected to increase. However, it was not widely used. By 2015,
only 628 (0.05%) of the farms with more
Over the last two decades, there have
than 50 cattle had agreed to comply with
been a wide variety of efforts to improve
the program.56
environmental conditions in the Amazon,
decreasing the annual deforestation rate Since most farms in Brazil still do not track
by almost 59% from 2004 to 2016.53 individual cattle with any form of unique
Built upon previous Brazilian legislation identification (e.g., RFID), any adoption
to reduce deforestation, including the of a traceability program would require
2012 Forest Code, the Working Group for additional costs to set up and maintain
Legal Amazon and the TAC Commitment new infrastructure. The domestic markets,
have worked with meatpacking companies however, have shown great interest
to reduce non-compliant beef suppliers in traceability. About 62.4% of polled
by implementing and enforcing the Brazilian customers favor mandatory beef
regulations, working with law enforcement traceability in the country and are willing
by sharing supplier lists with geospatial to pay for it, and 86.6% disagree with the
maps twice a year in addition to consenting traceability programs only being instituted
to annual independent compliance audits,54 for foreign destinations.57
and demanding that suppliers follow TAC
Commitment standards.

Additionally, with several food-sanitation concerns in 2017.61 After several meat
scandals surrounding the Brazilian beef processors were caught bribing inspectors
industry in 2017, many key importers, to certify spoiled or salmonella-infected
including the United States, have placed meat, China, Mexico, Japan, Chile, the
bans on fresh beef from Brazil. Allegations EU, and Hong Kong all took significant
of food sanitation inspectors taking bribes measures to avoid importing Brazilian beef.62
for either allowing rancid products or The United States followed suit later that
simply not inspecting meatpacking facilities year, after finding that an abnormally high
at all have harmed public trust in Brazilian percentage of Brazilian beef shipments
beef products and increased the interest in failed health inspections.63
greater visibility into the beef production
supply chain in the country.58 With significant revenue at stake in banned
fresh meat products and loss of consumer
The only legally required traceability system confidence, the Brazilian industry has
that currently exists in Brazil is the Animal begun to express greater interest in more
Transit Guide (GTA in Portuguese), which widespread systems of accountability and
accompanies cattle lots as they move quality attestation. Furthermore, recent
from one farm to another.59 This document studies indicate that improvements to
confirms the start and end of a cattle inefficiencies in the beef supply chain could
transaction but does not contain information save hundreds of billions of dollars in energy
about anywhere else that the cattle may costs and potentially reduce the estimated
have been before the latest trade nor does 42% of Brazil’s total climate change for
it track cattle individually. If recorded which the beef industry is responsible.64
digitally, the GTA has the potential to be In general, with increased competition
cross-referenced with CAR registrations and decreased market shares, along with a
for sustainability tracing. The Agricultural variety of widely recognized problems and
Management Platform (PGA) maintained by inefficiencies throughout the supply chain,
the federal government stores aggregate major firms in the industry have incentives
GTA information that could potentially be to embrace technological innovation. In the
interconnected with prior GTA data for more past, they have also shown interest and a
complete tracking and tracing of suppliers.60 strong ability to collaborate successfully
on efforts for the public good, such as the
To rebuild consumer confidence and meet Zero Deforestation Agreements.
Brazil and importing country regulatory
requirements, beef supply chain actors Many of the inefficiencies in the Brazilian
could create greater transparency and cattle trade involve animal production,
auditability, manage health and safety beginning with food intake and weight gain
risk, and create operational efficiencies involved in fostering animal productivity
using a blockchain traceability solution. and growth.65 While Brazil has the world’s
Over the last few years Brazil’s largest beef largest head of cattle, which is over eight
production firms’ revenues have fallen times that of Australia, it fails to produce
because of a series of scandals and health even four times as much beef as Australia.

The reason is largely due to slower speeds This lack of trust, along with shipment denials
in turning over cattle at different points and corresponding legislation restricting
in the Brazilian supply chain, ultimately Brazilian imports to many countries, has
resulting in less slaughter and less lowered revenues and raised risk across the
product output per year.66 supply chain. Blockchain-enabled traceability
for cattle and beef products could present
Blockchain technology and solutions a great opportunity to confirm health and
present an opportunity to reduce many of safety, to assign liability if and where health
the inefficiencies in the Brazilian beef supply issues arise, and to flag and recall products
chain. For example, the velocity of cattle that have been through particular institutions
through the supply chain could be improved or contamination-causing conditions. It
with more direct contact between buyers could also make it simpler to ensure products
and sellers and less dependence on brokers through the supply chain and reduce the risk
and intermediaries. This improvement of shipment denial at entry inspections.
could ultimately increase the percentage of
Brazil’s cattle ready for slaughter each year. Additionally, consumers around the world are
Additionally, better insights from cattle increasingly concerned with the sourcing and
producers and grain producers into each responsible production practices of their food
other’s inventories could lower the costs of products. According to the global Unilever
raising cattle and potentially help increase study previously discussed in this report, a
the percentage of cattle being raised on third of consumers are now choosing to buy
forms of animal feed, allowing cattle to from brands they believe are doing social or
be slaughtered younger and heavier with environmental good.68 The report concludes
increased yields, consistency, and quality. that sustainability and responsible sourcing,
It could also reduce the competition for while an attractive market differentiator
land with the grain industry.67 now, is becoming an imperative for market
viability. Blockchain traceability, in addition
The risks borne by the Brazilian cattle to restoring trust and confidence in Brazilian
industry are mainly centered around health meat products, has the potential to help
and safety concerns, primarily viruses that processing firms further differentiate their
have been found in animals and end beef products and offer certification of superior
products. In the current supply chain, there attributes, such as sustainability.
are many animal and carcass handlers, and
it can be difficult to determine where the Key traceability challenges exist in the
meat became contaminated, particularly for current Brazilian processed beef supply
any blended or mixed products. Even if the chain. As Brazilian processed beef moves
inflection point can be determined, it can from point of origin to point of sale, there
be very difficult to recall products because are significant technical and operational
there is limited visibility into animal and challenges to enabling blockchain-based
product movements throughout the traceability across diverse supply chain actors.
supply chain and the country. Cattle may go through several different farms
and ranches before reaching a slaughterhouse.
One of the major challenges at this stage is a
lack of segregation at the cattle level. Cattle

is largely tracked in batches through GTAs, mobile applications for low-tech actors, and
and re-batched at each farm or ranch integrate existing platforms with a blockchain
where a GTA may be discarded and a new solution. During the production phase,
GTA is created. Additional key supply chain cattle undergo a significant transformation
challenges include low technology capacity in identity from the cattle farm to the
for Brazilian actors; a lack of a standardized consumer, passing through many steps of
approach to tracking data, units of processing. Thus, operational complexities
measurement, and labeling products; and in tracing beef are high, and moderate to
issues with fraudulent products. significant effort is required to establish new
processes and training to trace beef as it
Of the four commodities in this study, undergoes processing with diverse actors.
beef was found to be the least feasible,
and would require significant effort to From a market and financial perspective,
align market incentives. For a starting as beef is cut up, the high-value beef is
point, consider a use case beginning from separated from the low-value byproduct,
the point of origin to abattoir in the beef and there appears to be little incentive
supply chain. Analysis of key challenges to invest in the traceability for byproduct
along the beef supply chain demonstrates without also investing in traceability
medium to high complexity, with moderate technology and infrastructure for the
to significant effort required to enable higher-value product. Processed beef
end-to-end traceability in the supply chain. therefore lacks well-aligned market and
financial incentives to invest in moderate
At the farm level, actors are low tech and a to significant technical and operational
moderate effort would be required to reach efforts of tracing beef in the short term.
a significant number of cattle producers and
introduce traceability and RFID technology to A blockchain-enabled traceability solution
trace each individual animal in a transaction. from the point of origin to abattoir, or the
Currently, cattle are often transferred in groups point where the carcass and meat start
between multiple farms before reaching the to be separated, may be more feasible.
abattoir. The only transaction documentation Brazil has regulations that support point
is the GTA, which does not currently appear of origin traceability and zero deforestation
to enable tracking of individual animals. practices, and thus, may be one starting
In addition to the introduction of tagging point for further investment. Benefits and
technology, effort is required to digitize the value drivers of a blockchain traceability
CAR to confirm that the farm is compliant solution could include strengthened audit
with the Forest Code as well as the GTA to trails, proof of authenticity (to combat
digitally log the transfer and include identity fraudulent products), and improved data
information for each individual animal when sharing and visibility to batch segregation.
transferred from one farm to another.
Aside from the individual challenges of
Throughout the supply chain, moderate each commodity, there is no one size fits
technical effort is required to digitize existing all in traceability solutions. There are many
paper-based documentation, introduce different types of traceability solutions in
tagging technology (such as RFID), build the market, each having a specific focus

and serving specific commodities and However, market pressure is now
geographies. Supply chains are largely reaching the tipping point required to
decentralized and non-integrated, and they encourage investment in traceability. This is
involve several diverse actors with only ad predominately due to the health and safety
hoc or opportunistic relationships with each recalls of these commodities, which shifts
other. Moreover, technology is focused on the focus to processing points.
the enterprise level, mostly ERP, purchasing,
and inventory management software; it is not
well suited for use among multiple partners
as there is often mistrust among these
partners or few incentives to share openly.
Figure 8: Current Brazilian beef supply chain process map
Feed comes Some facilities Limited info about Scope of this All products Consumers
primarily from have herd where cattle study is limited must be demand
soybeans management came from. Some to processed presented by standards,
crushing process IT software, but track carcasses beef exported inspection by without
though 85% of limited after slaughter, from Brazil FSIS at import paying a
cattle is grass fed standardization but many do not. to US center. premium
Meat US Importer,
Feed Calf Exporter Wholesaler, Retailer, Buyer
Purchase Operations Farm Abattoir Processing
Plant Foodservice
GTA GTA
Subsequent MAPA FSIS
farms for
GTA
GTA
different DIPOA FSMA

cattle ages
CSI FDA
GTA
GTA
Feedlot Exporting meat Originating country

products requires must be certified by
GTA: only doc that is legally registration/ FSIS. Imported
required in cattle trade Last 30-40 days inspection by products must label
of cattle life, but MAPA, DIPOA, same data as
Vet: oversees health results only 10% of cows and CSI domestic. Custom
MAPA: oversees # in shipment go to feedlots. certification forms filled out.
KEY CHALLENGES
Low tech, Limited data is Multiple Non-segregated Alleged high level Lack of
predominately legally required instances of new supply chains with of corruption – standardized
paper-based to trade in live data creation many instances lack of trust for approach to data,
documentation animals and abolishing of mixing batches human entry labelling and units
of data trails and re-batching or audit results of measurement

PILOT PROFILES AND
PRIORITIZATION
For this study, four key criteria were selected to help
evaluate the feasibility of, and value provided by, a
blockchain traceability solution for the four selected
commodities and use cases.
• Market feasibility and value: • Financial feasibility and value:

The appropriate demand and market Introducing blockchain is financially
conditions are in place to enable feasible because the required capital
participants in the market to be interested is available to the actors who need it,
and beneficial to participate. The solution and they can reasonably expect a return
must provide demonstrable business value, on investment either through revenue
and incentives for each participant in the increase or cost savings.
blockchain ecosystem with sufficient value
that each participant is expected to receive.
Summary
• Technical feasibility and value:
The technology is a good fit for the While blockchain traceability solutions
industry and its actors’ needs; these could be created for all four commodities,
needs should be addressed directly this study’s findings indicate that certain
through the key benefits that blockchain use cases could be prioritized based on
technology specifically brings, including value provided and operational and market
its ability to allow multiple parties access feasibility conditions. The design and
to the same data. development of the technology and technical
solution are similar across use cases.
• Operational feasibility and value: The complexity of combining blockchain with
There is sufficient capacity and existing traceability applications need not
coordination to enable adoption. be overly complicated. The least ideal use
This would include a practical and cases had significant operational challenges
manageable governance model for that are not currently offset by sizeable
effective collaboration, as well as business value and market feasibility to
capabilities, processes, training, and make them investment ready.
the like, to put the solution into practice,
and sustain and scale the solution.

Meanwhile, the best use cases have Thai farmed shrimp
sizeable potential business value, which
can offset some of the operational Although an end-to-end blockchain
challenges of implementation. The four traceability solution that starts with
commodities listed in order of high to low aquaculture feed may not be technically
feasibility are as follows: feasible at this time due to the additional
complexity and scope of looking into feed,
Indonesian wild-caught a blockchain traceability solution to track
shrimp from farm to the consumer may
fresh/ frozen tuna
be more feasible if the separation and
With limited technical complexity, wild- segregation of shrimp can be maintained
caught fresh and frozen tuna has the through processing. Blockchain-enabled
attributes of a strong use case for end-to- traceability starting at the shrimp farm can
end traceability. Wild-caught fresh/frozen allow for the tracking of shrimp produced
tuna has a relatively high global price in compliance with health and safety
and high consumer awareness of tuna’s standards and maintaining a documented
overfishing and product quality. Relative to chain of custody to meet import
the other commodities under examination, regulations, such as the U.S.’s Seafood
tuna has a more linear supply chain with Import Monitoring Program (SIMP).
limited processing, a trackable product unit
identity and increasingly aligned business In terms of operational feasibility, the
and regulatory incentives. Tuna’s identity process of tracing the supply chain
can be traced effectively by individually between farm and retailer has several
tagging tuna with RFID tags until it enters relatively small, yet straightforward steps,
a processing facility, as has been piloted in which makes it more viable. There is some
a few places already. From the processing vertical integration between brokers who
facility onward, the whole or portioned are contracted by processing plants as
fresh and frozen tuna can be packaged in a well as processing plants and wholesalers,
box with an affixed barcode that connects therefore requiring less operational effort
the physical and digital identity of the to coordinate the adoption of new
product contained in the blockchain technology and production methods.
until it is delivered to the consumer.

Brazilian soy Brazilian processed beef
In the case of whole soy beans sold to While the processed beef use case has
China for processing, piloting blockchain low market and financial feasibility, there
may enhance compliance with and is greater potential value in creating a
enforceability of the Brazil Forest Codes blockchain pilot to digitize the exchange of
and CAR registration because there is live cattle and validate its origin and chain
strong regulatory support for preventing of custody from the farm to the abattoir—
deforestation. A soy blockchain pilot could the point where the carcass and meat start
cover transactions from farm to wholesaler. to be separated. Brazil has supporting
Due to the technical complexity of the regulations, and there has been some
corresponding supply chains for soy for traction with companies to commit to zero
human consumption, soy oil, soy for feed deforestation practices. In other words,
production, and others, it would be difficult purchasers would avoid purchasing cattle
to maintain traceability data as the product from farms that contribute to deforestation
potentially gets further mixed and refined. (i.e., those without proper CAR registration).
Tracing whole beans until they reach the Therefore, using blockchain to trace
wholesaler is technically feasible and individual cattle between farms and
would allow processors to confirm they are validate that all farms have proper CAR
purchasing whole beans from a sustainable registration could allow Brazilian beef
source—where the sustainability and/ purchasers to confirm that their beef is
or commercial value may justify the compliant, regardless of the form it takes
investment and a “good enough” solution after processing. This could serve to the
can be developed while other supply chain benefit of businesses trying to prove to
issues are being addressed. regulators and consumers that their beef is
compliant, and was grown sustainably, that
Brazil has supporting regulations, and the is, it did not to contribute to deforestation.
Soy Moratorium creates disincentives, such
as penalties and embargoes, for purchasers Tracing the production process of beef
that get soy from farms contributing to beyond the abattoir is technically complex
deforestation (i.e., those without proper CAR and the market incentives are not well
registration). Therefore, using blockchain aligned. Beef undergoes a significant
to trace soy with valid proof of proper CAR transformation from the cattle farm to the
registration from farms to storage silos ultimate consumer, passing through many
and beyond could create an incentive for steps of processing and exchanging hands
purchasers of whole beans to confirm that many times, adding to its complexity. As it
their soy is compliant, regardless of the is cut up, the high-value beef is separated
form it takes after processing. from the low-value byproduct, and there
is very little incentive to invest in the
traceability for byproduct without also
investing in traceability technology and
infrastructure for the higher-value product.
Note: Additional information on the scoring

across the four criteria is available upon request.

Figure 9: We recommend a pilot across the end-to-end supply chain
ACTOR & ADDITIONAL TRACKING

THEIR ROLE TECHNOLOGY MECHANISM
Digitize logbook to track GPS
Vessel Captain location and improve catch
Records the catch and creates data; train vessel captain and
GPS crew on new data & tech
a product ID. LOGBOOK
RFID TAG
IOT
IDN PORT
Ensure that facilities work
STAGE 1
AUTHORITY directly with suppliers and

financial incentives trickle down
Middleman/Broker
Convey the product and its identity
Rollout RFID tagging system to
information between actors. tag each tuna fish caught; train
vessel captain & crew on
tagging process
Mini-Processing Facility
Record intake, verify quality, track PACKAGING Build mobile app for
batches across product forms, and unconnected users in Stage 1
label appropriately. and train these users
IOT
Aggregator/Broker Modify plant production

& Transporter process to ensure tracking &
STAGE 2
BARCODE
segregation of products
Aggregate goods while
maintaining segregation and
convey the product and its identify Develop integration between
information between actors. existing IT system and the
blockchain
Primary Processing Facility
PACKAGING
Record intake, verify quality, track Standardize barcode across
batches across product forms, and actors; train workers on updated
label appropriately. IOT packaging & labelling process
Exporting Vessel
Ensure that wholesalers and
Transport goods while maintaining
STAGE 3
BARCODE retailers work directly with

segregation. suppliers and financial
incentives trickle down
US PORT
AUTHORITY
Secondary Processing Facility

PACKAGING Ensure that market and
Record intake, verify quality, track
batches across product forms, and regulatory incentives are
aligned in order to receive
label appropriately. IOT product premiums
STAGE 4
BARCODE
Wholesaler
PACKAGING
Record intake, verify quality, and
label appropriately if needed. IOT
Retailer PACKAGING
Record intake, verify quality, and
maintain supplier labelling or label
appropriately if needed. IOT
STAGE 5
CONSUMER BARCODE

Tradeoffs intellectual property, liability rules, and
other aspects. Existing operating models
With all the potential benefits that and ways of doing business need to be
blockchain solutions can bring to supply thought through, and this effort should
chain management, there are also several be factored into any implementation.
challenges to be considered. First and
In a global network, coming to a set of
foremost, the supporting infrastructure,
standard data and formats to enabling
that is, the tools, machinery, and enabling
sharing is challenging. It is important to
technologies required to pilot a blockchain
decide among actors what is the common
solution, must be available to the required
set of data that all participants need to
parties. For example, if the goal of a
access. Not all data needs to be shared and
blockchain pilot is to track cattle through
not all data should be shared and accessed
a supply chain, a traceability solution/
by everyone. Agreeing on a small set of
platform that can assign individual animals
core data that would benefit all actors upon
an identifier would need to be available
sharing enables focus on scope and a clear
and implemented. In many supply chains,
pathway to succeed, rather than getting
actors may not have access or resources to
stuck on numerous data attributes that could
properly integrate existing technology and
be shared. Creating this minimum viable data
processes with the traceability application.
set will enable an easier path for pilots to take
Thus, it is important to consider at what point
place and demonstrate business value. It is
in the supply chain a pilot should take place
important to consider legal and compliance
to prove blockchain is able to deliver value.
regulations and how the solution will be
It is critical to consider a starting point as
able to meet these. Compliance needs to be
pilots to prove value should not be conducted
considered as part of the design to ensure
on the end-to-end supply chain. It is important
that the solution is viable.
to learn from a pilot what is achievable
before refining and expanding to the rest Most organizations will continue to use
of the supply chain. Choosing a practical their current systems and might be hesitant
starting point in the supply chain is the key. to experiment with blockchain. As such,
the true costs, innovative cost-sharing
The creation of consortiums and associated
models, as well as a clear business case
governance models also pose a challenge
and incentives must be articulated to each
to development of a blockchain for supply
of the participants. Incentives need to be
chain management.69 Building a consortium
compelling enough to justify migrating
of actors with suppliers, competitors, and
toward a blockchain-based approach and
others is complex and takes time and effort
tailored to each party. Several organizations
to design and implement. Operationally,
will likely be hesitant to change the status
it may prove quite different to how these
quo without seeing significant investments
actors engage today. For example, new
made across their industries. Many will
models may be required to engage and
at least want to see a minimum viable
align partners or new regulations may need
ecosystem for an implementation already
to be developed to agree on competition,
in place before getting involved.

Lessons Learned and Potential Opportunities
from Other Sectors
Blockchain pilots in food traceability are growing. The team explored case studies, featured
below, related to the use of blockchain for fish, beef, grains, and other foods to understand
the successes and failures. The following six case studies were the most relevant to our
feasibility study and contained the most secondary information available for analysis.
Figure 10: Case study summary
WWF,
Traseable, Belagricola, Walmart, Accenture,
Provenance69 Beefledger71
Sea Quest Fiji, IBM72 IBM73 Bill of Lading
Conensys70
Geography
United
Indonesia Fiji Australia Brazil Central America
Kingdom
Commodity
Grains (incl.
Tuna Tuna Beef Mangoes 12 containers
Soybeans)
Unknown Ethereum Ethereum Hyperledger Hyperledger Ethereum with

Platform
(hybrid) with ERC20 Fabric Fabric permission

(ConsenSys smart contract (permissioned) & (permissioned) layer on top
Proof of Stake) (permission- smart contracts (IBM Food (hybrid)
less) (IBM Agritech) Trust)
Mobile, IoT / sensors, IoT, blockchain, IoT and IoT and Blockchain
blockchain, smart tagging, analytics, smart blockchain to blockchain to to record
and smart and blockchain contracts, track grains track mangoes events and
tagging to track to drive out and digital stored in through the transactions
responsibly illegal fishing, tokens to track warehouses supply chain, across multiple
caught tuna and make supply provenance, for quality from farm to parties in
Summary
certifications/ chains fairer streamline assurance, consumer, shipment,

claims from and aid payments, with the goal with the goal provide real-
catch to instantaneous mitigate of optimizing of identifying time track and
consumer, auditing fraud risk, grain trading provenance trace to align
aiding proof of and provide with global and improving shipper and
compliance to transparency in exporters food safety carrier of the
standards along sustainability issues load movement
the chain
Local NGO, Fishery, Cattle breeder, Cooperative Farm, packing Exporter,

fisherman, processing grazier, feedlot, producers, house, import forwarder,
Key Nodes
supplier, facility, exporter cattle agent, warehouse warehouse, export port,

retailer transporter, originator processing carrier, import
abattoir, company, rural facility port, importer
distributor, credit bank
retailer

WWF,
Traseable, Belagricola, Walmart, Accenture,
Provenance 70
Beefledger72
Sea Quest Fiji, IBM73 IBM74 Bill of Lading
Conensys71
QR codes QR codes and PO #, price, Grain quality Batch number, Data attributes
and NFC RFID chips, weight, actor ID (ex: moisture farm origin, across data
Data Tracked
stickers, actor temperature, level), actor ID factory data, sheets (e.g. bill
ID, location, certifications, expiration of lading)
attributes or vessel #, date, shipping
certification, weight, actor details, food
fishing method ID, time stamp safety audits /
certificates
Not quantified Not quantified Not quantified 15% GM-free Traceability to Data attributes
Key Impact
Soybeans point of origin can be reduced

added value went from by approximately
(anticipated) 7 days to 2 80%
seconds

Key Learnings Other solutions have established
consortium business networks across the
The summarized learnings below inform
food commodity ecosystem. For example,
the recommendations on how blockchain
Belagricola and IBM’s grain quality assurance
can be rolled out across supply chains to
tracking solution was composed of a Grain
enable traceability:
Exporters Business Network (GEBN) and
a diverse set of players, including grain
producers, rural credit cooperatives,
warehouse companies, trading exporters,
agrochemical companies, freight forwarders,
Developing a successful blockchain and port authorities. Each business partner
initiative requires identification of had a node on the chain.75
the right use case and involvement
of a group of parties that can align
their incentives
To reap the full business benefits of a
blockchain supply chain network, a group Sharing product data on the
of actors in the ecosystem needs to be blockchain is key to establishing
aligned and engaged, ideally forming a and tracking provenance; what
consortium. In the Bill of Lading concept, data should be on- versus off-chain
the consortium parties included a global requires careful consideration
product manufacturer, a freight agent
Tracing a food commodity digitally
or “shipper,” an ocean freight carrier,
requires consistent data on the identity
a customs agency, and Accenture, the
of the commodity as it passes through the
blockchain administrator. A clear value
supply chain. Often, there is no standard
proposition was presented to all.
for a product’s “identity,” but many
Existing paper-based and repetitive organizations have defined identifiers or
documentation is costly, slow, inefficient, specific data attributes that serve to identify
and error-prone—up to 70% of data is the specific product. Provenance defines
replicated. Blockchain allowed for clarity a food commodity on its blockchain by its
in transparency of information to relevant nature, quality, quantity, and ownership.76
parties in near real-time, thus significantly BeefLedger defines its key data dimensions
improving efficiency, streamlining as product, period, place, people, and
processes and speed of operations, price.77 In the example of Provenance,
lowering the efforts in meeting customs certification and license information was
compliance requirements, and improving tracked to achieve proof of compliance
accountability. Ultimately, the client’s at each step of the supply chain.78
managed data attributes dropped from As blockchain supply chain solutions are
38 to 7 that were critical to all parties piloted, it is critical to consider what type
in the blockchain network. of data should be on-chain versus off-
chain given the permanence of blockchain,

and given that there are risks associated and logistics. Soybean information, such as
with data, for example, if bad actors know moisture level, was recorded automatically
that there is a regularly shipment of high- on the blockchain by IoT, allowing for grain
valued commodities from A to B, they could classification to apply a batch digital quality
intercept the supply chain and thereby seal.79 Like Belagricola, WWF leveraged IoT
causing significant damage to commodity and sensors to track the temperature of
prices, manipulating the market. Once the tuna through the supply chain for cold chain
data is on-chain, it cannot be removed. and quality assurance. Other uses include
Thus, organizations need to consider the capturing the weight of the commodity and
unintended consequences and possible geolocation of a vessel.
high-risk outcomes that could take place in
the process of considering the technology.
Interoperability between the

blockchain system and enterprise
Robust, reliable, and standardized data
systems across diverse actors in the
is best captured using data-capture
supply chain is critical; user experience
technologies, such as Internet of
should be considered at each level
Things (IoT), sensors, and smart tags
For any digital solution to be adopted by
All food traceability blockchain solutions
every actor on the food supply chain, ease
include the use of traceability technologies
of use is essential to encourage adoption.
to digitize the identity of the food
For the fisherman, the warehouse manager,
commodity and/or track changes to the
and/or other similar actors in the product
product in real time. Information captured
ecosystem to use the technology, the
by a human can be subjective, unreliable,
technology must be of value. It needs to
and/or susceptible to fraud, even among
make their day-to-day lives easier, more
experts in the field. The use of sensors and
efficient, and fit for purpose. Actors across
IoT, for example, allows for the automated
the supply chain will need appropriate
capture of consistent, reliable data as the
applications that serve their needs.
product moves through the supply chain.
In Provenance’s tuna pilot, a mobile solution
Many of the case studies reviewed leverage
was used to allow fishermen to register their
a smart tagging mechanism to identify
catches. At the point of catch, a fisherman
either an individual product or box of
would send a simple SMS message to
products through the supply chain. With the
register their tuna catch. With each SMS,
scan of a QR code or RFID tag, data on the
a new asset accompanied by a permanent,
product can immediately be recorded at that
unique ID was issued on the blockchain.
location and time. Other uses of traceability
This unique digital ID would then be
technology include providing specific data
transferred from fisherman to supplier
on the product to add to the blockchain.
on the blockchain during purchase of the
For example, Belagricola leveraged IoT for
tuna product. At the processing facility
measuring data on grains during storage

or warehouse, Provenance integrates with deploying permissioned or private blockchain
an existing traceability and production to apply appropriate business and risk rules,
software system, such as Tally-O. At the end manage the ecosystem and network, apply
of the supply chain, Provenance conducted the appropriate governance model, and
a workshop and prototyping session to protect the parties in the ecosystem, as
develop a smartphone application that well as protect the confidentiality between
allowed consumers at a UK grocery store trusted parties. In the UK Bill of Lading proof
to view the history of each product through of concept, Ethereum was used, which had
the scan of an NFC-enabled smart sticker.80 specific security requirements in place to
protect information.
Sensitive data on key actors and their

food commodities should always be A trusted, neutral third party that plays
protected in an ecosystem that impacts an audit or certification function would
global consumers and capital markets be beneficial to increase the level of
Data shared on blockchain is tamper-evident trust of each participant and the data
and accessible to those that have the right that they enter into the system
permission to see it. Therefore, organizations To improve the trustworthiness of the system
that are building a blockchain-based solution and the confidence that the right pieces of
should consider what type of data should be information are gathered by trusted parties,
on-chain, what data need to be accessed by there is a role for a neutral third party to
whom, for how long and for what purpose, certify, audit, and/or regulate participants.
and what data should be limited to one-to- This role can vary based on the commodity
one transactions. Blockchain supports access and part of the supply chain being addressed.
control concepts and can be very granular. For example, to capture tuna catch data
For food commodities specifically, tracing a in Indonesia, Provenance leveraged local
commodity can include sensitive data about NGOs to register fishermen and validate
actors and their products. A malicious actor their compliance to an external standard at
with access to this information could impact the point of capture, which resulted in the
consumers and capital markets. fishermen’s eligibility to participate in the
Provenance chain of custody. The local NGOs
Both Belagricola81 and Walmart82 leveraged a
had the audit systems, external standards
permissioned Hyperledger Fabric blockchain
information, and local networks in place to
platform to trace food quality and safety.
complete this assessment, and their existing
Even with public blockchain platforms, a
technology capabilities allowed them to
permission layer can be leveraged to provide
share the registration on the blockchain.83
the right users permissions to certain data.
Most enterprises and governments will be

Blockchain deployment patterns
Figure 11: The three most common deployment models for blockchain solutions
CENTRAL INFRASTRUCTURE CONSORTIUM PLATFORM INSTALL BASE

LEADER (HUB AND SPOKE) OF PEERS CONVERTED TO NETWORK
UX UX UX
Logic Logic Logic
Data Data Data
Blockchain solutions like those described In a Consortium of Peers model, different

above are being deployed in distinct stakeholders (governments, regulators,
ways. Coordination, strategy, governance, producers, processors, suppliers, NGOs,
infrastructure, and the supporting etc.) agree to form a consortium to build and
ecosystem can be led through a central operate a blockchain supply chain system
leader or consortium of partners, for that they all use. Each participant would
example. In a market leader-centric, or “Hub have their own incentive to participate.
and Spoke” model, a single entity would This model is more complex in governance
lead the effort of designing, implementing, and adoption than the Hub and Spoke model,
and operating the blockchain supply chain but the outcome is also transformational
system and get the rest of their supply as it considers a wider ecosystem of
chain partners to adopt and participate stakeholders vertically and horizontally.
in the system. This is the model adopted
in some of the initial supply chain pilots In a model where a platform install base is
primarily led by a single large organization converted to network, existing organizations
with several suppliers in their supply chain. that already must communicate with each
other, with data going back and forth
between each other, would benefit by
connecting through a blockchain network;
this increases efficiency significantly
as it reduces the need to validate and
reconciliate data between the parties.

CONCLUSIONS

Blockchain makes it possible for a system of independent
actors to share and trust a record of digital assets, transactions,
and information. In doing so, it offers the potential to disrupt
and transform existing business models.
A growing number of successful pilots fraud, and even alleviate humanitarian

show how blockchain can provide the challenges, such as exploitative labor
network for registering, verifying, and practices and environmental degradation,
tracking goods transferred between by enabling greater certainty, transparency,
distant, and often mistrustful, parties and accountability on the information
connected via a supply chain. It can also shared between parties.
improve operational inefficiencies, reduce
Blockchain should be evaluated against other technologies

with a specific use case to quantify benefits and costs.
For all four of the commodities, farms are, locations to close the digital divide.
by nature, geographically dispersed and A well-defined use case can help
decentralized at the base of the supply chain. businesses determine if blockchain
Initial information input at this level needs is the right path by testing what value
to be supported by technology and it can unlock.
processes that allows for decentralization.
Blockchain is a good fit for this and has Blockchain technology and business use
the potential to deliver cost savings (e.g., cases for supply chain are growing rapidly.
reduced data reconciliation or faster recalls) Those considering these solutions should
and efficiency gains (e.g., reduction in be involved in the evolution of the technology
duplicative processes and paper-based and its applications. Blockchain offers
documents). Using a blockchain-based a variety of market actors the opportunity
system could improve the speed at which to become better environmental stewards,
data can be collected from diverse locations. in large part because of its promise to
enable greater transparency, trust, and
To reap the full benefit that blockchain could accountability. Blockchain platforms are
bring, there needs to be a degree of digital still being developed and refined, and its
capabilities across the supply chain, the potential is still being discovered. Early
availability and willingness to implement adopters can shape the way the technology
traceability applications that can be integrated advances by applying it in new ways,
with blockchain, and basic connectivity to addressing new issues, and supporting
help the base of the supply chain in remote a variety of different actors.

Some use cases should be prioritized based on business
value while others require additional business incentives
to be financially viable.
Current food supply chains vary in their may be a key place to start, there may
complexity, regulatory environment, be a strong business case for investing
and market incentives, so blockchain may in blockchain for lesser-value products
not be feasible across all food commodities when the overall goal is to gain or regain
in the near term. Therefore, defining the brand trust, when recalls have been
use case is critical to establishing success frequent or costly or where efficiencies
metrics. For example, a use case with gained could make a substantial impact
environmental sustainability as a goal may on profit margins.
have a different design and implementation
path than a use case focused on food It would be more difficult to deploy
safety and recall time. blockchain capabilities in the near term
for specific food supply chains where little
The level of effort and transformation value is expected from blockchain; some
required to implement the pilot should of these include supply chains that are
be carefully considered and evaluated highly disparate, with little standardization
against the value that it brings and the of data, operate in highly complex markets,
feasibility criteria. Food commodity supply or lack clear financial incentives, regulatory
chains with reliable and trackable product incentives (e.g., using a blockchain traceability
identity, as well as those that align to system to comply with regulations in a
business and regulatory incentives more efficient way), and/or limited potential
(e.g., ability to trace a food contamination product premiums. To unlock the full value
outbreak quickly to the source), may and to motivate companies to invest and
provide an easier starting point as less adopt a blockchain, the system needs to
up-front transformation work may be accommodate different commodities and
required. Additionally, while investing should support multi-ingredient packaged
in blockchain for higher-value products foods across an entire supply chain.

When a blockchain-based traceability system for the full
end-to-end supply chain for a given food commodity
is not feasible, a minimum viable product should
be prioritized.
In certain cases, an end-to-end blockchain capabilities, where there are multiple

system with full coverage of the entire parties requiring a consistent set of data
supply chain may not be feasible. attributes for their own operations and
However, organizations can still realize where operations and financial incentives
the advantages of blockchain traceability are well aligned to transform the existing
for a portion of the supply chain where the process by eliminating inefficiencies
impact and/or commercial benefit justifies through blockchain. This minimum viable
the investment. Most successful pilots product can then be prioritized and should
choose to start in a selected segment of be considered as a starting point. Focus on
a given supply chain; few would attempt what can be agreed on between the parties
to do this end-to-end. and who the right parties are, and evaluate
whether there are sufficient business gains
It is far more realistic and practical made, prior to increasing participation
to start at a specific point in the supply or building out a full consortium.
chain that already has some digital
To implement a blockchain traceability system, a degree

of digital transformation is required; thus, a significant amount
of up-front effort across commodity supply chains is required
to achieve sufficient integration and interfacing as well as the
proper market incentives.
A significant portion, if not majority, developing collaborative relationships and

of the effort will center on governance governance approaches that consider the
setup and implementation as well as needs of all actors, and digitally transforming
the digital transformation that would be key actors to bring technology infrastructure
required for the user/customer experience. to a baseline level that allows participation
The effort required to pilot and scale a and compliance. Significant change
blockchain solution could include vertically management and capacity building may
integrating and setting up preferred supplier also be required, particularly for actors
relationships within the supply chain, who are less familiar with the technology.

Supply chain actors may need to invest in closing the digital
divide to participate.
Without the proper incentives and support, and geospatial technologies, and electronic
some actors will not be able to participate. payment systems. The cost of participation
To fully realize the benefits of blockchain may be prohibitive to key actors who will
and ensure widespread adoption, additional require additional investment, support,
enabling technologies may be required and incentives. However, this could also
to help ease reliable data input, such as be a catalyst to help close the digital divide
smartphones, tablets, scanners, sensors in rural populations and developing countries.
The successful application of blockchain requires strong planning,

mobilization, and coordination.
It also needs a comprehensive technical platform economy. The functional and

and functional strategy that works for a technical strategy serves as a “North Star”
broad set of actors in the supply chain for the consortium and their technology
and a strong supporting ecosystem. partner(s). To be successful and widely
Blockchain both enables and requires adopted, the investment and processes
a new way for businesses to work for adoption of blockchain traceability
together. To achieve the business benefits, solutions require a supportive market
organizations along the supply chain need and regulatory ecosystem.
to collaborate to become more of a
It is not necessary for all supply chain data to be accessible

across all actors. Actors should agree on a data model that
can share required traceability data and protect sensitive
product data on the blockchain.
Food supply chain data can be sensitive. solution should only share data that
Breaches to data security can impact is required to enable product traceability
global markets and the broader consumer across the end-to-end supply chain and
population, as well as de-incentivize actors leverage layers of permissions to only
to join a blockchain traceability solution. allow certain parties to access certain
Thus, actors involved in the blockchain product data.

Private, public, and hybrid blockchain solutions each have unique
strengths and weaknesses depending on specific requirements.
It is not necessary to build applications on a public blockchain
to reap the benefits of transparency and accountability.
The decision to go with a certain type of consumers and the public see would
blockchain depends on the organizations require an application and user interfaces
that are participating, objective of the that are built specifically for the end users
group, the types of data to be shared, to have access to the appropriate information,
transactions that will take place, business such as product origin. The blockchain
rules and policies, risk appetite of the itself is a network of data that requires
organizations, performance and security translating into meaningful information
requirements, and numerous other factors. for the end user. With private, permissioned
blockchain systems, there is the need for
For example, enterprises and organizations governance between participating
use private, permissioned blockchain for organizations; this is true even if public
greater control on who they choose to work blockchain is used as a platform among
with and who participates in the network, a group of organizations. A consortium
what types of policies and rules need to be should first design the business case
implemented, privacy and data confidentiality, and requirements and then focus on
and which types of capabilities that are selecting a platform that is best suited
required for their needs. What data the to meet the need.
A solution design with the minimum amount of negative

disruption to the current supply chain is recommended
to increase blockchain adoption in the near term.
To encourage users to adopt a blockchain not just limited to blockchain. The focus
system, the system needs to provide value. on blockchain may increase the speed of
Processes need to emulate what they are change at the base of the supply chain as
today but be more efficient, easier to use, large enterprises at the top of the chain have
faster, and cheaper for users to rapidly a greater need for transparency of information,
adopt the system. It needs to be intuitive greater efficiency, and cost reduction,
and require minimal amount of user training. as well as greater need for improving
In the food commodity supply chains their reputation and “green credentials”
of interest, a significant level of effort is to their consumers and shareholders.
required to digitize and standardize product The digital transformation required could
data and allow actors to transmit reliable help to close the digital divide, but the user
data; in fact, this is true for any digital experience for each type of user across
agriculture supply chain transformation and the supply chain must be considered.

A blockchain traceability solution should consider the
implications of cross-platform interoperability.
Interoperability is key to ensuring the data Today, there are multiple blockchain
consistency across the ecosystem and its platforms used, but none have emerged
integration with the systems and solutions as a clear winner for supply chain.
of other actors. Both technical interoperability Organizations will encounter layered
and functional interoperability should be costs just as they do with multiple
considered when designing the blockchain “traceability” software vendors.
solution. It is likely that there will be several Organizations need to ensure there
different blockchain supply chain solutions is flexibility built into their application
in the market and they might be incompatible architecture to enable applications
from a platform perspective, for example, to operate across different platforms
one system uses Hyperledger Fabric in the future.
and another application uses
Hyperledger Sawtooth.
There is a vital role for anchor businesses and regulators

to take a lead in the adoption of blockchain traceability
solutions and multi-stakeholder collaboration.
To move beyond trust-dependent and and financial incentives. These incentives

self-reporting approaches to traceability can be achieved with innovation,
toward trust-independent transparency willingness to collaborate, leadership
and accountability in the market, commitment to a shared vision, and
downstream businesses and regulators coordination from organizations with
ought to take the lead in coordinating the ability to convene and facilitate broad
blockchain traceability solutions. participation from the top of the supply
If these are to succeed, they will chain to its base.
require appropriate regulatory, market,

Developing a blockchain solution should be incremental
and iterative.
The end-state solution does not need to Actors should aim to start small and start
be realized immediately, and actors should “somewhere” and prove business benefits,
take an agile approach to test, refine, assessing and re-assessing the blockchain
and roll out a solution through a proof of solution at each point. Actors should take
concept, a limited production pilot, and the successes to key ecosystem partners
production and scaling. A blockchain to grow the consortium and encourage
solution for a food supply chain will take participation. In this way, the investment
time to fully develop. Achieving the proper will increase incrementally at each step,
buy-in and realizing benefits across and actors can decide to close or continue
actors will require an incremental and the initiative with minimal risk.
iterative approach to a solution design.
In addition to core business drivers and financial measures

of success, blockchain has potential to drive impact in social
good use cases, such as environmental sustainability.
By revolutionizing how organizations to be able to have access to information

manage and share information as well to influence how food commodities are
as extract insights, new models begin traded, produced, and sold, and consumers
to emerge for promoting responsible want organizations to be held accountable
and sustainable practices for food for the decisions they make. The rule book
commodities. Examples include the ways for blockchain supply chain systems has yet
that actors perform, compete, and draw to be defined and this is an opportunity for
value from commodities and public goods. organizations to influence and collaborate
New measures for business performance to build a shared vision. As organizations
may also be introduced, redefining what experiment and continue to bring to market
it means to be a green and sustainable successful projects, the trend is here
company. Likewise, consumers need to stay.

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AUTHORS ABOUT ACCENTURE
CHRISTINE LEONG Accenture is a leading global professional
Managing Director services company, providing a broad range of
Accenture Global Blockchain Identity Lead services and solutions in strategy, consulting,
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unmatched experience and specialized skills
TAL VISKIN across more than 40 industries and all business
Senior Manager functions—underpinned by the world’s largest
Accenture Development Partnerships delivery network—Accenture works at the
Blockchain for Development Lead intersection of business and technology to
tal.viskin@accenture.com help clients improve their performance and
create sustainable value for their stakeholders.
ROBYN STEWART
With 459,000 people serving clients in more
Manager
than 120 countries, Accenture drives innovation
Accenture Development Partnerships
to improve the way the world works and lives.
robyn.stewart@accenture.com
Visit us at www.accenture.com.
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Commissioned and funded by the

Gordon and Betty Moore Foundation

The Moore Foundation commissioned Accenture, a leading global professional

The four commodities examined in the study—beef, soy, wild-caught tuna,

Accenture and the Moore Foundation recognize the valuable insights of

2 BLOCKCHAIN FEASIBILITY STUDY

In general, companies do not know transparency, and accountability among

3 BLOCKCHAIN FEASIBILITY STUDY

4 BLOCKCHAIN FEASIBILITY STUDY

• Innovation drive – Leverage innovation Further detail is provided throughout the

5 BLOCKCHAIN FEASIBILITY STUDY

While many industries, organizations, and companies are

6 BLOCKCHAIN FEASIBILITY STUDY

7 BLOCKCHAIN FEASIBILITY STUDY

Blockchain can be a significant game- A smart contract is a component of

8 BLOCKCHAIN FEASIBILITY STUDY

9 BLOCKCHAIN FEASIBILITY STUDY

If products could be more easily identified and

10 BLOCKCHAIN FEASIBILITY STUDY

11 BLOCKCHAIN FEASIBILITY STUDY

A blockchain is a type of distributed ledger Public blockchains use complex algorithms

12 BLOCKCHAIN FEASIBILITY STUDY

13 BLOCKCHAIN FEASIBILITY STUDY

Provenance Tamper Evidence Control Security

14 BLOCKCHAIN FEASIBILITY STUDY

This section identifies the key components of implementing a blockchain

Figure 2: Blockchain project implementation process

PROJECT INITIALIZATION PROJECT PLANNING PROJECT EXECUTION

ITERATIVE LOOP BY ITERATIVE LOOP THROUGH

15 BLOCKCHAIN FEASIBILITY STUDY

• Convene relevant supply chain Market feasibility and value:

Model Technical feasibility and value:

16 BLOCKCHAIN FEASIBILITY STUDY

17 BLOCKCHAIN FEASIBILITY STUDY

• Logistics systems • Product tagging (RFID, NFC-embedded

18 BLOCKCHAIN FEASIBILITY STUDY

Additionally, required data should be

for Change It is important to address the key drivers

19 BLOCKCHAIN FEASIBILITY STUDY

Figure 3: Use case objectives

A clear, consistent objective of the blockchain

A clear start and end point

A consistent definition of essential data and why it is required

Sufficient integration and consistency within the supply chain

20 BLOCKCHAIN FEASIBILITY STUDY

Figure 4: High-level feasibility findings

Source: Accenture Analysis

21 BLOCKCHAIN FEASIBILITY STUDY

22 BLOCKCHAIN FEASIBILITY STUDY

23 BLOCKCHAIN FEASIBILITY STUDY

Limited tracing Incomplete and/

Limited data Brokers may Aggregation

Ministry of Marine Affairs and Fisheries (Indonesia) MOT

Source: Accenture Stakeholder Analysis

24 BLOCKCHAIN FEASIBILITY STUDY

25 BLOCKCHAIN FEASIBILITY STUDY

Aquaculture is the fastest-growing There is evidence of a supporting

26 BLOCKCHAIN FEASIBILITY STUDY

27 BLOCKCHAIN FEASIBILITY STUDY

28 BLOCKCHAIN FEASIBILITY STUDY

29 BLOCKCHAIN FEASIBILITY STUDY

Tracing and Brokers may A sub-set Non-segregated

Commercial Transhipment Port Processing Fishmeal Feed Mill Feed