How Blockchain Facilitates the Transition toward Circular Economy in the Food Chain?

Abstract

Food loss and waste are two of the many problems that modern society is facing. To date, among many solutions, the circular economy is the one prevailing. A successful transition toward a circular economy (CE) requires the food sector to overcome the challenges of today’s complex food supply chains such as information asymmetry, poor cooperation among stakeholders, and concerns about food safety. Blockchain, a form of distributed ledger technology, has been progressively gaining traction in supply chains in areas like data management, certifying product provenance and tracking products. Despite its importance, knowledge around the potential of the blockchain technology in facilitating the transition towards a circular economy in the agri-food sector is fragmented. This review provides evidence-based insights into the blockchain implementations in the food supply chains and the implications for CE. Our findings indicated four major areas that blockchain could accelerate CE in the agri-food sector: improving data utility; supply chain management efficacy; enhanced eco-efficiency; and superior traceability.

Discovering the conceptual building blocks of blockchain technology applications in the agri-food supply chain: a review and research agenda

“…In the same vein, blockchain enables the transition to a “circular economy”, minimises “food waste”, which is a significance issue in agricultural and food supply chains (cyan cluster). It also increases the efficiency of food supply chain management, its traceability and reduces environmental impacts (Pakseresht et al. , 2022), thereby supporting the achievement of the SDGs.…”

“…Industry 4.0 technologies, including blockchain, increase the efficiency and flexibility of this supply chain by improving food traceability and other essential aspects (Menon and Jain, 2024). Blockchain technology increases data transparency and streamlines food supply chain management, resulting in reduced food loss during production and waste during distribution and consumption (Pakseresht et al, 2022;Alonso-Muñoz et al, 2022). Through the use of decentralised systems and shared ledgers, blockchain addresses issues of information asymmetry while reducing transactional inefficiencies, making it applicable throughout the chain.…”

“…Farmers can use blockchain technology to communicate information about farm conditions, harvest times and market prices to retailers. In turn, retailers can optimise storage temperatures and improve the accuracy of demand forecasts, helping to reduce food waste (Pakseresht et al. , 2022).…”

Implementation of Blockchain Technology in Waste Management

“…Industries can use the blockchain to identify the origin and transportation route of food scraps and waste to recycling facilities for fertilizer production [59]. Using these data, they can build new fertilizer production facilities near waste sources to reduce transportation costs.…”

Overview of the Sustainable Valorization of Using Waste and By-Products in Grain Processing

“…The European Commission considers food waste as a priority area in order to achieve the Sustainable Development Goal target in agreement with the European Circular Economy Action Plan [14]. In addition, the European Commission amended the Waste Framework Directive 2008/98/EC, establishing as mandatory the monitoring and reporting of food waste by member states to create a baseline for monitoring the achievement of food waste reduction objectives and help identify relevant food waste streams to be utilized in a circular economy perspective [14][15][16][17]. In the European Union, the main grains processed from 2010 to 2020 were wheat, maize, rice, rye, barley, oats, and their related products.…”