Blockchain for agricultural supply chain
Summary
TLDRThe video script explores the complexities of the agricultural supply chain and introduces blockchain as a solution. It highlights challenges like tracking provenance and transparency. The example of mango cultivation in Uttar Pradesh, India, illustrates how blockchain ensures trust and efficiency through smart contracts, benefiting stakeholders like Raj Kishor, Mohan, and Charles Becker in Germany.
Takeaways
- 🌐 **Complexity in Agricultural Supply Chain**: The agricultural supply chain involves multiple stakeholders and processes, making it difficult to track and trace the produce.
- 📈 **Challenges in Provenance Tracking**: Importers struggle to verify the origin and quality of produce due to the sequential and opaque nature of the supply chain.
- 🏢 **Centralized Bodies Lack Trust**: Private agencies that certify produce are not always trusted by international importers.
- 🚦 **Delays in Information Flow**: Sequential information flow between stakeholders can lead to delays in decision-making processes.
- 🔒 **Blockchain as a Solution**: Blockchain technology can provide a trustworthy and transparent system for all stakeholders.
- 📝 **Smart Contracts for Trustless Transactions**: Smart contracts enable transactions without the need for a centralized authority, increasing trust among untrusted stakeholders.
- 📱 **Real-time Information Access**: Each stakeholder has access to the same distributed ledger, allowing for near real-time updates and transparency.
- 🥭 **Case Study: Mango Cultivation**: The script uses the example of mango cultivation in Uttar Pradesh to illustrate how blockchain can streamline the supply chain.
- 📑 **Certification and Invoices on Blockchain**: The use of blockchain ensures that all certifications and invoices are recorded and accessible to all relevant parties.
- 🚚 **Logistics and Delivery Tracking**: The logistics process, including pickup and delivery, is updated on the blockchain, ensuring transparency and traceability.
- 🌍 **Global Acceptance of Produce**: Blockchain increases the acceptance of Indian produce globally by ensuring transparency and trust in the supply chain.
Q & A
What is a typical agricultural supply chain?
-A typical agricultural supply chain involves a complex set of interconnected processes between various stakeholders, such as producers, inspection and insurance companies, logistics and shipping agencies, manufacturers, and importers, before the produce reaches the consumer.
What are some of the challenges faced in the agricultural supply chain?
-Challenges include difficulty in tracking provenance, tracing the place of origin and quality of produce, lack of trust in centralized certification bodies, sequential information flow causing potential delays, and overall lack of transparency leading to loss of track of transactions.
How does blockchain technology address these challenges?
-Blockchain technology allows any activity to be documented and stored in a distributed ledger with consensus among all stakeholders, making the network more trustworthy. It enables untrusted stakeholders to transact through smart contracts without a centralized body and provides real-time information access to all stakeholders.
Who is Raj Kishor and what is his role in the supply chain?
-Raj Kishor is a mango cultivator from Uttar Pradesh who sells his mango produce in bulk to Mohan, who owns the Royal Pulp Factory.
What is Mohan's role in the supply chain?
-Mohan, the owner of the Royal Pulp Factory, receives orders to export mango pulp, such as from Charles Becker in Germany, and is responsible for processing the mangoes into pulp and managing the export logistics.
How does the blockchain network facilitate transactions between Raj and Mohan?
-The contracts between Raj and Mohan are stored as smart contracts on the blockchain network. Once the mangoes are harvested and the logistics company delivers them to Mohan's warehouse, the smart contract is executed, and the payment is initiated through an open account transfer.
What happens when the mango pulp is ready to be shipped to Charles Becker?
-The pulp is inspected and certified, an invoice is issued to Charles, and once the bill of lading is uploaded by the shipping company, the smart contract between Mohan and Charles is executed, and the payment is initiated.
How does Charles Becker benefit from the blockchain network?
-Charles Becker can remotely track the provenance of the mango pulp from India, ensuring transparency and trust in the quality and origin of the product.
What is the significance of the distributed ledger in the blockchain network?
-Every stakeholder has their own copy of the distributed ledger, which ensures that all have access to the same information and can verify transactions, increasing trust and reducing the need for a centralized authority.
How does blockchain technology increase the acceptance of Indian produce globally?
-Blockchain technology ensures transparency in every transaction through a trustworthy private network, which can increase the acceptance of Indian produce globally by providing reliable information about the origin and quality of the produce.
What is the role of smart contracts in the agricultural supply chain?
-Smart contracts automate and execute transactions based on predefined conditions, such as the delivery of goods or the certification of produce, without the need for intermediaries, thus streamlining the supply chain process.
Outlines
🌐 Challenges in Agricultural Supply Chain
The paragraph discusses the intricacies of the agricultural supply chain, involving multiple stakeholders such as producers, inspectors, insurance companies, logistics, and shipping agencies. It highlights the difficulty in tracking the provenance and quality of produce due to the sequential and opaque nature of information flow. The paragraph introduces the concept of blockchain as a solution to increase transparency and trust among stakeholders by allowing them to document and store activities in a distributed ledger.
Mindmap
Keywords
💡Agricultural Supply Chain
💡Stakeholders
💡Provenance
💡Blockchain
💡Smart Contracts
💡Distributed Ledger
💡Centralized Bodies
💡Transparency
💡Royal Pulp Factory
💡Becker Packaged Foods
💡Global Acceptance
Highlights
Agricultural supply chain involves complex processes between various stakeholders.
Challenges include difficulty in tracking provenance and understanding the quality of imported produce.
Centralized bodies may not be trusted by international importers.
Information flow is sequential, leading to potential delays.
Lack of transparency and tracking of transactions is a common issue.
Blockchain can document and store activities in a distributed ledger with consensus.
Smart contracts enable transactions without a centralized body.
Each stakeholder has a copy of the distributed ledger for real-time information access.
Raj Kishor specializes in mango cultivation in Uttar Pradesh.
Mohan owns the Royal pulp Factory and exports mango pulp to Charles Becker in Germany.
Contracts between stakeholders are stored on the blockchain as smart contracts.
Produce is certified with standard certificates and the process is transparent.
Once the mangoes are harvested, the invoice is generated, and logistics are arranged.
Delivery receipt is updated and available to all stakeholders on the network.
Smart contracts execute when consignment is accepted, initiating payments.
Mohan makes mango pulp, which is inspected and certified.
Charles Becker can track the provenance of the mango pulp from India.
Blockchain simplifies life for everyone in the supply chain, ensuring transparency.
Blockchain increases the acceptance of Indian produce globally.
Transcripts
a typical agricultural supply chain
involves complex interconnected
processes between various stakeholders
such as the producer inspection and
insurance companies logistics and
shipping agencies bangs manufacturer and
importer before it reaches a consumer
sitting in another corner of the globe
however in this long process there are
quite a few challenges importers find it
difficult to track provenance to
understand the place of origin and
quality of the imported produce as the
produce moves between multiple
stakeholders the ownership or custodian
information becomes difficult to trace
centralized bodies especially private
agencies that certify crop produce may
not be trusted by international
importers information flow between
stakeholders is sequential leading to
potential delays in downstream
decision-making overall stakeholders
lack transparency in this process and
loose track of relevant transactions so
how do we tackle these challenges
introducing emphasis blockchain any
activity can be documented and stored in
the distributed ledger only with
consensus among all participating
stakeholders thus making the network mo
trustworthy than any individual entity
untrusted stakeholders can transact
amongst each other through smart
contracts without the need for a
centralized body every stakeholder will
have their own copy of the same
distributed ledger which enables
information access in near real-time
meet Raj Kishor from uttar pradesh who
specializes in mango cultivation every
year branch sells a bulk of his mango
produce to Mohan who owns the Royal pulp
Factory in uttar pradesh mohan intern
receives an order to export mango pulp
to charles Becker who owns Becker
packaged foods in Germany
he will add details about his crops
request inspections and get his produce
in short at the right time the contracts
between ranch and Bohan as well as
between Mohan and Charles are stored on
the blockchain network as smart
contracts relevant stakeholders certify
the produce with standard certificates
once the mangoes are harvested branch
generates the invoice and requests a
pickup the logistics company picks these
mangoes up from Rajas farm and delivers
it to moments warehouse the delivery
receipt is updated and made available to
all stakeholders on the network once
Mohan accepts the consignment the smart
contract between Mohan and Raja is
executed at Mohan spank will be notified
to initiate an open account transfer to
launch cash or spank the transaction
details will then be updated on the
blockchain network meanwhile Mohan is
busy making mango pulp to be delivered
to Charles Becker the pulp is inspected
and certified as well
Mohan then issues an invoice to Charles
child's tracks the provenance of the
product entirely from where the mangoes
were cultivated to the inspection and
insurance details perform accepting the
invoice Mohan then raises a shipment
request with the shipping company once
the bill of lading is uploaded by the
shipping company the smart contract
between Mohan and Charles gets executed
and chances bank initiates a payment to
Mohan spank the transaction details are
updated on the network thus child
sitting in Germany is able to remotely
track the provenance of the mango pulp
imported from India emphasis blockchain
simplifies life for everyone in the
supply chain it ensures that all
stakeholders in transparency in every
transaction through a trustworthy
private network and increases the
acceptance of Indian produce globally
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