The USDA has proposed changing its rules for organic products to include blockchain technology to track the supply chain.
According to an August 5 USDA Agricultural Marketing (AMS) report, the agency expects electronic tracking systems, including digital ledger technology (DLT), to play a “fundamental role” in tracking the supply chain of organic products. ,
“DLT can provide secure, verifiable, transparent, near real-time traceability at the component level in complex supply chains,” the report said. It is important to note that DLT can also protect confidential business information and trade secrets by automatically limiting confidential information to authorized persons.
However, the agency acknowledged that the use of a new technology such as DLT will require additional time and development before the system can be implemented in the food industry.
The proposed amendment states that “inadequate access to technology and communication in rural areas, adoption of global electronic standards (interoperability) and cost sharing are barriers to widespread use of electronic tracking.”
Supply chain test cases
USDA report does not mention blockchain technology, but mentions several pilot programs as reference materials, including Walmart, which uses blockchain tracking systems for mango and pork, Swiss headquarters with food giant Nestlé, testing the public blockchain for its milk supply chain, and a seafood company. American. Bumble Bee Foods controls the yellowfin supply chain from Indonesia.
Any individual, company, or organization involved in the global organic agricultural supply chain that is not currently required for accreditation under the current USDA program can review the proposed rule and submit comments by October 5th.