Dominate Dairy Industry with Blockchain Supply-Chain Technology

In recent decades, the dairy industry has been rocked by several scandals. Customers have lost confidence in the sector due to spoiled milk in China or salmonella-contaminated milk in France. The current milk production paradigm is also challenged by several ethical issues (producer compensation, animal welfare, etc.).

As a result, blockchain technology has been widely used to address these challenges. Increasing traceability and transparency has become the top priority of dairy companies.

What is Blockchain Supply Chain Technology?

Blockchains are public, shared archives that record digital transactions.

Blockchain can facilitate direct network transactions between individuals and institutions (without an intermediary) in a decentralized network. Blockchain technology allows transactions to be performed securely and stored to record what happened.

The cryptographic algorithms ensure that no blockchain transaction document can be changed after it has taken place. Blocks comprising a collection of transactions are joined together by cryptographic hashes in a blockchain.

Blockchain technology can ensure that every batch in the dairy supply chain is tracked accurately. Blockchain makes it extremely easy to identify a faulty link and invalidate all compromised sets in the event of a foodborne illness.

Unlike bulk recalls of entire product lines, the granularity of blockchain can minimize food waste and related financial costs in the dairy supply chain and impact on brand image.

Partnership: As a decentralized and distributed ledger, blockchain is a trusted third party that allows secure tracking of trade between all players in the food chain (feed mills, farmers, cooperatives, manufacturers and retailers).Transparency: Providing complete transparency about a product’s journey is a great way to differentiate yourself from competitors. In addition to providing proof of quality to consumers, the blockchain also provides a full history of a product. Research has shown that consumers are more likely to buy a product that provides more specific information and are more likely to spend more on a product that reflects their values.Reassurance: In addition, tangible evidence of product claims (tags, audits, etc.) will increase consumer confidence. Using blockchain, these independent certification bodies can verify certificates by providing the necessary information (proof of origin, environmental footprint, animal welfare, etc.). Certification becomes easier. That’s why consumers find it more attractive.

Due to blockchain implementation in the dairy industry, consumers trust the products, increasing the demand for the package. Security measures include secure processing and storage of official documents and digital verification to protect intellectual property rights and patent systems, reduce food fraud and improve the food safety blockchain in the dairy industry.

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Using Blockchain Technology to Address Supply Chain Pain Points

Blockchain can bring greater transparency in the supply chain and lower costs and risks throughout the supply chain. In particular, innovations in the blockchain supply chain can deliver the following benefits of blockchain in the dairy industry:

Primary Potential Benefits

Ensure company standards are met by increasing the traceability of the materials supply chain. Reduced losses from counterfeit/grey markets trading. Outsourced contract production is becoming more transparent and compliant. Reduce administrative costs and paperwork.

Secondary Potential Benefits

Improve company reputation by providing transparency about the materials used in products. Improve the credibility and reliability of data sharing. We reduce public relations risks associated with supply chain malpractice. Stakeholder engagement.

Blockchain in the dairy industry:

Supply chains can be tracked more transparently and accurately using blockchain: organizations can digitize physical assets and create a decentralized view of all transactions, enabling end-to-end tracking from production to delivery to use. Both businesses and consumers benefit from this greater transparency in the supply chain.

With blockchain, supply chains can be made more transparent. For example, fraud for high-value goods such as diamonds and pharmaceutical drug companies could use blockchain to understand how ingredients and finished goods are passed on by subcontractors. Each reduces or eliminates the impact of counterfeit products on end-user confidence by reducing or eliminating profit losses from counterfeiting and gray market trading.

Milk Industry Supply Chain:

Outsourced contract manufacturing also allows companies to maintain greater control. Blockchain supply chain case study shows that blockchain allows all parties in a supply chain to share information, potentially reducing communication errors or data transfer errors. We can spend less time validating data and more time delivering goods and services, either to improve quality, reduce costs, or both.

Last but not least, the blockchain supply chain case study says that blockchain can streamline administrative processes and reduce costs through effective control of supply chain data. Processes involving manual compliance or credit checks can be accelerated through a distributed ledger with all relevant information.

Blockchain Supply Chain Technology in the Dairy Industry

In recent years you have probably heard of blockchain technology. In 2008, a person (or group) with the ‘Satoshi Nakamotopseudonym launched the blockchain to act as Bitcoin’s ledger.

In layman’s terms, the blockchain digitally records all transactions.

What are the benefits for the dairy industry?

The traceability of the dairy supply chain includes tracing the journey of milk and milk products, from their production to their consumption. Years ago, ties between dairy producers, processors/manufacturers, traders and buyers had weakened. Information hardly reaches the consumer.

Although the members of the dairy chain store different data, they usually do not communicate or coordinate. Due to this lack of interaction between farmers and consumers, along with the globalization of the dairy industry, a better traceability system for Indian milk is needed.

Blockchain technology and the IoT are considered in the modern scientific literature as a solution to improve traceability in agri-food chains.

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Stages of Blockchain Supply Chain Technology in the Milk Industry

While most of us have at least one dairy product in our home every day, we rarely think about the complicated road that the commodity takes to reach our doorstep.

As products in the dairy industry become more and more diverse, the supply chain becomes more complex and extensive, requiring reliability. It seems that a blockchain in the dairy chain is the only way to solve the trust and quality dilemma.

Unlike the West, milk producers in India are very disorganized resulting in incompatible milk composition and quality. There is no detailed, actionable information to help them improve their operations. Lets talk about blockchain in milk industry :-

productivity:- With 22 percent of global milk production, India is the world’s largest milk producer and is in dire need to improve not only productivity, but also quality, connectivity and transparency. With blockchain in the dairy industry, consumers will have more confidence in the products, increasing the demand for the package. It includes the secure processing of official documents and digital authentication to protect intellectual property rights and patent systems, promote transparency in the supply chain, reduce food fraud and improve food safety.Transparency:- Transparency has never been so critical. However, it has never been fully demonstrable, so whether brands fulfill one or more evolving drivers is only the first step towards brand awareness. Brands will need to implement traceability to demonstrate compliance with many evolving drivers, especially if they consider and it is possible with blockchain in the dairy industry.Customer Satisfaction:- According to research, consumers who value the evolving drivers of their purchasing decisions are more likely to use social media, mobile applications and digital resources to gather information about products and brands along the path to purchase. They also distrust the food industry more in general.”

Brands Adopting Blockchain Supply Chain Technology

Health & Wellbeing at Milk Mantra: As a dairy producer, Milk Mantra sought a bulletproof supply chain to ensure the best quality, pure and healthy products while increasing the sustainability of its network of farmers. Olam Agro for Social Impact: This leading agribusiness is committed to making a positive social impact. The sustainable rice project involves implementing blockchain technology in agriculture for food traceability, promoting sustainable rice cultivation in Basmati cultivation areas, improving farmers’ livelihoods through the production of residue-free (quality) Basmati rice.Supply Chain Traceability by Slay’s Coffee: Food traceability is an integral part of Slay’s entire food supply chain, allowing Slay to not only claim it’s transparent, ethical and sustainable, but also prove it. With this approach, this leading dairy brand builds an unbreakable bond of trust with its consumers while brewing the story of the milk as if it were their baristas.


As information is exchanged at different points in the food supply chain, Blockchain in agriculture generates a digital identity that represents the journey of the dairy industry. As the milk moves from the shelter to the dairy farm and eventually to the consumer, the various stakeholders track and trace the bean’s life cycle using a combination of Android-based mobile and web applications. So for any type of development related to blockchain, feel free to contact BR Softech. We unburden you and offer the best quality services at reasonable costs.

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