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In anticipation of upcoming legislation, food and beverage (F&B) operators in Singapore have been encouraged to integrate blockchain technology into their operations to enhance compliance standards.
The call came as lawmakers in the city-state focused their efforts on enhancing traceability standards within the local ecosystem to ensure consumer protection in line with the new Food Safety and Security bill. Members of Parliament (MPs) advanced the bill past the second reading as it moves toward its final stages.
The bill seeks to eliminate unsafe and expired food products from the supply chain before the final consumer can access them. A community reading of the bill makes it mandatory for sector players to keep clear information on food items, handling processes, and importers.
“The bill introduces detailed requirements for food traceability and recall records, ensuring that unsafe food products can be quickly identified and removed from the market,” said one analyst.
While the bill does not expressly mention blockchain, pundits opine that adopting the technology is the most obvious path to compliance. Blockchain offers immutability and transparency, allowing regulators and consumers to assess the quality of food items and ensure that they meet their set standards.
When merged with Internet of Things (IoT) technology, parties can verify food handling processes while maintaining supply chain efficiencies to eliminate wastage.
A handful of food and beverage firms already utilize blockchain in their operations, including The Grow Hub, with its on-chain food traceability platform. Experts are pushing for industry-wide collaboration and significant investment from sector players to ensure that the whole ecosystem achieves traceability compliance.
“Small food operators must ensure that employees are trained on the updated safety standards to ensure that everyone involved in food handling is knowledgeable about the new requirements,” said Kala Anandarajah, Associate at Rajah & Tann.
The bill also spells out steep penalties for defaulters. Enterprises are expected to shell out $50,000 for violations, while individuals will face a hefty $25,000 fine. Repeat offenders face the grim penalty of jail time and the possibility of license revocations.
Singapore has been pushing for a full-scale blockchain adoption powered by a robust rule book for service providers and a raft of initiatives to facilitate enterprises’ integration of the technology. Currently, the region faces stiff competition from Hong Kong in its pursuit of regional dominance for blockchain adoption.
Sustainable agriculture poised for growth
In other news, the market value of blockchain applications in sustainable agriculture is projected to reach $290 million by 2032, driven by various factors and new market participants.
Currently, the sector’s capitalization is estimated at $174 million, with projections indicating a compound annual growth rate (CAGR) of 5% by 2032. Although this prediction seems optimistic, it pales in comparison to other blockchain applications in global industries.
According to a recent market analysis, the need for greater transparency levels and improved supply chain management systems will be the biggest drivers for adoption. However, it highlights potential stumbling blocks including steep integration costs and unclear regulatory standards.
The report further indicates that the large enterprise segment is likely to retain its leadership in the sector due to its strong financial resources. In contrast, small agricultural businesses are expected to experience the most significant growth in blockchain applications as they work to meet sustainability requirements.
Governments and the public segment will be major adopters of blockchain for sustainable agriculture by 2032. At the moment, this segment holds a clear lead over the industry powered by a raft of agricultural ministries and regulatory agencies turning to Web3 technologies.
In the coming years, the report highlights the rise of a hybrid segment, merging the strengths of the public and private sectors to power new adoption metrics for the sector.
In terms of stakeholders, the manufacturing segment holds a clear industry lead with pioneers adopting the technology for quality assurance and food safety standards. However, the retail segment is expected to experience significant growth next year as consumer awareness increases.
Given the distinct position of retailers in the supply chain, blockchain adoption levels in the segment will have far-reaching effects on the ecosystem. By application, use cases in tracking and traceability will become mainstream while payments and settlements will record similar growth by 2032. Southeast Asia is projected to have the highest CAGR levels but North America and Europe are expected to maintain their current lead.
To achieve a market capitalization of nearly $300 million, experts are hinting at the potential integration of blockchain with IoT and artificial intelligence (AI). Several solutions have highlighted the role of blockchain in combating food crises with real-world use cases striking the point home.
In India, authorities are turning to blockchain for seed distribution to farmers, using digital ID systems for authentication to prevent fraud. Combined with AI, sector players are surging ahead to record impressive productivity figures as the globe inches toward its food security goals.
Watch: From farm to plate—Blockchain revolutionizes livestock industry
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