With upcoming legislation in Singapore, food and beverage (F&B) operators are being urged to incorporate blockchain technology into their operations to improve compliance standards.
The focus on enhancing traceability standards in the local ecosystem is to ensure consumer protection in alignment with the new Food Safety and Security bill. The bill, which has advanced past the second reading, aims to remove unsafe and expired food products from the supply chain before reaching the final consumer.
The bill mandates sector players to maintain clear information on food items, handling processes, and importers. One analyst stated, “The bill introduces detailed requirements for food traceability and recall records, ensuring quick identification and removal of unsafe food products from the market.”
While blockchain is not explicitly mentioned in the bill, experts believe that adopting the technology is essential for compliance. Blockchain provides immutability and transparency, enabling regulators and consumers to assess food quality and adherence to standards.
When combined with Internet of Things (IoT) technology, blockchain can verify food handling processes and enhance supply chain efficiency to reduce wastage.
Several F&B firms, including The Grow Hub, are already leveraging blockchain for food traceability. Industry-wide collaboration and significant investment are being encouraged to ensure ecosystem-wide traceability compliance.
Kala Anandarajah, Associate at Rajah & Tann, emphasized the importance of training employees on updated safety standards for small food operators to ensure compliance.
The bill outlines hefty penalties for violations, with enterprises facing a $50,000 fine and individuals a $25,000 fine. Repeat offenders risk jail time and license revocation.
Singapore is pushing for widespread blockchain adoption with a robust rule book for service providers and initiatives to facilitate technology integration, aiming for regional dominance in blockchain adoption against competitors like Hong Kong.
Sustainable agriculture poised for growth
Blockchain applications in sustainable agriculture are projected to reach a market value of $290 million by 2032, driven by various factors and new market participants.
Currently valued at $174 million, the sector is expected to see a 5% compound annual growth rate (CAGR) by 2032. The need for transparency and improved supply chain management will be key adoption drivers, alongside challenges such as integration costs and regulatory standards.
The report predicts that large enterprises will lead in blockchain adoption, while small agricultural businesses will experience significant growth to meet sustainability requirements.
By 2032, governments and the public sector are expected to be major adopters of blockchain for sustainable agriculture. The rise of hybrid segments merging public and private sectors is anticipated, driving new adoption metrics.
The manufacturing segment currently leads in blockchain adoption for quality assurance and food safety, while the retail segment is poised for growth as consumer awareness increases.
Blockchain applications in tracking, traceability, and payments are expected to become mainstream by 2032. Southeast Asia is projected to have the highest CAGR levels, with North America and Europe maintaining their lead.
Experts suggest integrating blockchain with IoT and AI to achieve a market capitalization of nearly $300 million. Real-world use cases demonstrate blockchain’s role in addressing food crises, such as in India where blockchain is used for seed distribution to prevent fraud and enhance productivity.
Watch: From farm to plate—Blockchain revolutionizes livestock industry