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Digital technologies to overcome supply chain challenges in the agriculture industry

Supply Chain A common agricultural supply chain includes farmers, suppliers, processors, distributors and consumers, among other links. The impact of external factors on agricultural production, such as climate, pests and diseases, which are difficult to predict and control, makes it very difficult to meet the established objectives. Lack of traceability in the agricultural supply chain, slower financial transactions, intensive manual labor, and other challenges raise concerns around the efficiency of the agricultural supply chain. As if that were not enough, counterfeits can also exist at each stage of the supply chain and negatively affect all interested parties, commercially and legally.

A more resilient supply chain through digital

These challenges can be turned into opportunities through the use of digital technologies to improve agricultural productivity and efficiency of field workers through the digitization of various field operations and the constant improvement of agricultural practices based on real intelligence. that provides actionable information. Next we will see how technologies are helping in supply chain management.
  • Reduce post-harvest losses with Artificial Intelligence
About a third of the food produced is wasted through post-harvest losses that occur along the value chain. AI applications are primarily used in agriculture to predict environmental impact on crop yields, helping farmers make tighter harvesting decisions. These applications help develop patterns that can be used to analyze the data and turn it into useful information for farmers. Additionally, agricultural technology companies are developing predictive systems that can help predict storage conditions and suggest preventive actions against spoilage in stored food products. In some cases where labor is challenging, robots and machines have been developed that can assist in the harvest of certain crops to minimize post-harvest losses.
  • Potential Elimination of Fraud and Counterfeiting
With the blockchain-based supply chain, the agricultural industry can show how a product was treated from the field to the supermarket shelf with the strictest adherence to organic principles. Consumers can scan a QR code to verify for themselves the organic nature of their products. Additionally, with a blockchain-enabled tracking system, there is much less chance that fraudulent or counterfeit products will arrive and be put up for sale in retail stores. Fraudulent or counterfeit food is estimated to cause losses of about $ 40 billion annually. Limpieza de patatas
  • Traceability
It enables companies to track the environmental, economic, health and social consequences of agricultural production processes, making it possible to calculate the real cost of food. It can also help meet the growing consumer demand for transparency and can improve producers’ incomes, market access, and opportunities for access to capital. Big brands serving consumers around the world have to keep a close eye on the supply chain to make sure they offer only the finest products. Traceability from the field to the store shelf is an important factor in establishing the origin of a food ingredient and is perceived by end consumers as a benchmark for quality and food safety. State-of-the-art digital tools are used to track all the processes involved in the cultivation of agricultural produce and thus contribute to further strengthen the supply chain and gain the trust and loyalty of end consumers.
  • Agricultural finance
Blockchain can bring transparency to agricultural financial transactions, credit history, and financial arrangements for small farmers who want to invest in agriculture. Shared access and irreversible agreements will allow small farmers to pay for raw materials and machinery partially or after delivery and will guarantee fair market prices.
  • Food safety
Blockchain can provide an efficient and reliable solution to the urgent need for product traceability and supply chain transparency. By recording information about products at each stage of the agricultural supply chain, the blockchain helps eliminate redundant processes, ensure quality control, and monitor storage conditions. Agricultural companies already monitor crops with smart IoT devices, and the application of DLTs will strengthen detection technology by recording and verifying all data.]]>