8/14/23, 11:00 AM 7 Benefits of IBM Food Trust | IBM

7 Benefits of IBM Food

Trust
01

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5 min read

Supply chain efficiency

Running a more efficient food network

Inefficiency in the food system is a pervasive problem worldwide, made more apparent by the
COVID-19 crisis, which stressed the global supply chain.1 With so many participants, there are
endless opportunities to lose efficiency and profits. Inefficiencies negatively affect consumer
pricing, the carbon footprint, food waste and expected freshness. According to the United Nations,
1.4 billion tons of perishable food is wasted due to inefficiencies found with the food supply chain.2

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What’s standing in the way of driving new food chain efficiencies?

Legacy supply chains slow companies down

Though some large retailers are deploying new technologies like blockchain3 to
create automated and intelligent supply chains, most companies are bogged
down in manual paper-based processes that make it difficult and time-
consuming to identify issues and manage inventory.

Slow adoption of digital supply chain tools keeps companies in the dark
Even though visibility and transparency will be key to their success over the
next 10 years4, companies have been slow to adopt digital tools that could
enable better supply and demand matching and identify waste hot spots.

Poor coordination across the food chain network creates waste

Irregularities in the global food system make hand-offs far from seamless.
Enabling a system that tracks product loss, waste and expiration dates could
save USD 150 billion annually5 in food waste.

Blockchain for the food system

A shared digital food supply chain powered by blockchain helps supply chain players better
collaborate with each other to operate more efficiently and adapt to change.

Working smarter across a shared ecosystem

Easily identify process inefficiencies, eliminate bottlenecks and optimize
your supply chain for continuous growth.

Real-time demand forecasting

All food system participants can now know the provenance, real-time
location and status of their food products. Armed with better data,
companies can develop more accurate supply and demand forecasting
models, localize the sourcing of ingredients and restructure contracts.

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Scalability
Automated processes and end-to-end synchronization can create
efficiencies at every step.

IBM Food Trust creates a secure, shared and permissioned record of transactions. This enables
unprecedented visibility during each step of the food supply chain, so you can achieve new levels of
trust and transparency, making food safer and smarter from farm to fork.

Download PDF (313 KB)

1
Tackling the 1.6-billion-ton food loss and waste crisis, www.bcg.com/publications/2018/tackling-1.6-billion-
ton-food-loss-and-waste-crisis , BCG, August 2018

2
In Wake of Romaine E. coli Scare, Walmart Deploys Blockchain to Track Leafy Greens,
corporate.walmart.com/newsroom/2018/09/24/in-wake-of-romaine-e-coli-scare-walmart-deploys-
blockchain-to-track-leafy-greens , Walmart Communications, September 2018

3
www.bcg.com/publications/2018/tackling-1.6-billion-ton-food-loss-and-waste-crisis

4
www.bcg.com/publications/2018/tackling-1.6-billion-ton-food-loss-and-waste-crisis

5
www.bcg.com/publications/2018/tackling-1.6-billion-ton-food-loss-and-waste-crisis

02
5 min read

Brand trust

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Enhance your reputation for safety and quality

Building customer trust in food

Now more than ever, consumers have numerous options when it comes to where to buy their food.
With such a competitive food industry, brand differentiation is important to remain top of mind for
buying decisions. Sustainability — often the key differentiator in a crowded marketplace — is a driver
of consumer loyalty.1 Trends show that consumers want to know more than just the nutritional
information — they want to know the food’s origin, when it was grown and how.2

How are you innovating your company to stay ahead of the curve?

Consumers are becoming more “sustainable-conscious”

Driven by recent sustainability awareness efforts, consumer attention to the
matter is growing. Recently, 78% of people surveyed were willing to change
food consumption habits to reduce their environmental impact.3

Companies are moving beyond compliance

The bar is rising for both safety and quality. Food companies are setting their
own independent standards and programs for food safety and freshness,
beyond those needed to be compliant.

Brand loyalty doesn’t exist without the presence of food quality and safety
In fact, 20% of shoppers actually switched brands after a product recall.4
Consumers, along with other key players in the food system, want more details
and visibility about the food they consume in order to make informed decisions.

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Blockchain for the food system

A digital food supply chain powered by blockchain enables full transparency so that consumers,
retailers, manufacturers and suppliers all have confidence and trust in the companies that we
purchase and consume our food from.

Full transparency
Top-to-bottom visibility into the food chain enables brands to quickly and
proactively manage damaged products without disrupting the entire
supply chain.

Competitive advantage
When consumers and supply chain partners know that brands are
transparent about the quality and origin of their foods, it builds brand
equity and trust, creating differentiation.

Food confidence and trust

By tracking each step of the food supply chain and sharing data on an
immutable ledger, participants can ensure the promised quality of goods
is indisputable.

“ Consumers don’t just buy on brand name anymore.

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They buy on brand attributes.”5

Peggy O’Shea-Kochenbach
Food & Health Specialist

Download PDF (269 KB)

1
Consumer expectations moving beyond the label, www.foodbusinessnews.net/articles/14977-consumer-
expectations-moving-beyond-the-label , Food Business News, December 2019

2
What do consumers want to know about their food?, co-nxt.com/blog/what-do-consumers-want-to-know-
about-their-food/ , C.O.nxt

3
Nielsen: Which sustainability attributes matter most to consumers?, www.foodnavigator-
usa.com/Article/2019/12/03/Nielsen-Which-sustainability-attributes-matter-most-to-consumers , Food
Navigator, December 2019

4
Discover what matters to the modern shopper, www.lr.org/en-gb/resources/2019-uk-food-survey/ , Lloyds
Register

5
From messages to conversations: How food marketing has evolved, www.fooddive.com/news/from-messages-
to-conversations-how-food-marketing-has-evolved/437878/ , FoodDive, March 2017

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Food safety

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Help ensure safety and regulatory compliance

Improving food safety across the supply chain

Food recalls are an immense safety problem and a threat to profitability. Last year, Food Safety
magazine counted 337 food safety recalls in the US.1 Companies surveyed put costs at up to USD 30
million per incident2, stemming from direct costs plus such indirect costs as penalties, lawsuits, lost
sales and brand damage. In addition to the societal and business impact, huge stocks of food are
wasted and consumer trust is crushed.

What’s standing in the way of taking food safety concerns off the table?

Not all companies can quickly identify the cause of a food safety incident
Tracing food across the supply chain takes days, if not weeks, as companies
struggle to track a mix of digital and paper-based food data documentation
across a complex and growing network of suppliers and distributors.

Gaps in supply chain monitoring create vulnerabilities

Deficiencies in production and monitoring processes expose the food system to
vulnerabilities that could be eliminated. In response, some retailers are
deploying blockchain for end-to-end traceability and monitoring of food
products in the supply chain.3

Outdated food traceability practices aren’t built for the modern era
Regulators are now demanding state-of-the-art practices and modern
technologies to ensure food safety, and blockchain can help bring organizations
up to standard.

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Blockchain for the food system

With a digital food system, network participants have access to tools and data to improve food
safety and become a proactive contributor to bettering the food system as a whole. Blockchain
technology stores digitized records in a decentralized and immutable manner, promoting trust and
transparency which in turn helps to better the food system and ensure safer food.

Transparency
Know the provenance, real-time location and status of any food product.
A transparent food system is an accountable food system.

End-to-end traceability
If a food safety issue is reported, it is immediately clear who is impacted
and who should take action.

Food confidence
With IBM Food Trust, you have a trusted source for increased supply
chain visibility. Additionally, organizations can know which foods have
been grown or produced in a certified manner, reducing contamination
risks and potentially harmful food fraud along the supply chain.

“ IBM Food Trust achieves new levels of trust and

transparency, making food safer and smarter from
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farm to fork.”4

Scott Gottlieb
FDA Commissioner

Download PDF (449 KB)

1
A Look Back at 2019 Food Recalls, www.food-safety.com/articles/6487-a-look-back-at-2019-food-recalls ,
Food Safety Magazine, March 2020

2
Evaluating the real costs of a food product recall, www.snackandbakery.com/articles/92105-evaluating-the-
real-costs-of-a-food-product-recall , Snack Food & Wholesale Bakery, September 2018.

3
How Walmart used blockchain to increase supply chain transparency, theleadershipnetwork.com/article/how-
walmart-used-blockchain-to-increase-supply-chain-transparency , The Leadership Network, January 2020

4
Statement from FDA Commissioner Scott Gottlieb, M.D., on findings from the romaine lettuce E. coli O157:H7
outbreak investigation and FDA’s efforts to prevent future outbreaks, www.fda.gov/news-events/press-
announcements/statement-fda-commissioner-scott-gottlieb-md-findings-romaine-lettuce-e-coli-o157h7-
outbreak , FDA, November 2018

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Sustainability

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Help ensure the promised quality

Building a sustainable food network

Across the globe, consumers are demanding to know more about their food — where it came from,
the effect of its production methods on our planet, and how workers and animals were treated in the
process. In fact, 54% of consumers say it’s at least somewhat important that the food they buy is
produced in an environmentally sustainable way.1 Sustainability is no longer a bonus; it’s imperative
for both the consumers who demand it and for future business models.

What’s bringing sustainability to the forefront of food conversations?

Consumers are becoming more “sustainable-conscious”

Driven by recent sustainability awareness efforts, consumer attention to the
matter is growing. Recently, 78% of people surveyed were willing to change
food consumption habits to reduce their environmental impact.2

The cost of unsustainable food practices is adding up

“True Cost Accounting” is shedding light on the price of unsustainable food
practices. Unsustainable sourcing and biodiversity loss, due to unsustainable
production methods, result in hidden costs. Research shows that consumers
unknowingly pay twice as much for their food due to such costs.3

A growing population
With the global population expected to boom from 7 to 10 billion by 20564,
companies are looking for ways to decrease their ecological footprints.

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Blockchain for the food system

A digital food supply chain powered by blockchain enables new levels of trust and transparency
across the food ecosystem, increasing awareness of sustainability opportunities and practices
during each step of the food chain.

Full transparency
With end-to-end transparency, users can guarantee provenance and gain
a clearer view of where inefficiencies and lack of sustainability exist
across the entire supply chain.

Certified responsible practices

Farmers, producers and other food actors can automatically digitize and
easily share audits, certificates and other records, proving that they
utilize and promote sustainable and ethical practices.

Food confidence and trust

By tracking each step of the food supply chain and sharing data on an
immutable ledger, participants can ensure the promised quality of goods
is indisputable.

“ They [consumers] want companies who balance the

social, environmental and economic impact of
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responsibly producing nutrient-rich foods to

nourish people while protecting the planet.”5

Erin Coffield
National Dairy Council

Download PDF (358 KB)

1
Consumer Research on Sustainable Eating and Food Waste, foodinsight.org/consumers-insights-future-of-
food-sustainability-food-waste/ , Food Insight, September 2019

2
Nielsen: Which sustainability attributes matter most to consumers?, www.foodnavigator-
usa.com/Article/2019/12/03/Nielsen-Which-sustainability-attributes-matter-most-to-consumers , Food
Navigator, December 2019.

3
True Cost Accounting, sustainablefoodtrust.org/key-issues/true-cost-accounting/ , Sustainable Food Trust

4
World Population: 2020 Overview, yaleglobal.yale.edu/content/world-population-2020-overview ,
YaleGlobal Online, February 2020

5
The good food movement: Emphasis on global impact, transparency drives ethical food production,
www.naturalproductsinsider.com/sustainability/good-food-movement-emphasis-global-impact-
transparency-drives-ethical-food-production , Natural Products Insider, September 2018

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5 min read

Food freshness

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Accurately judge remaining shelf life

In pursuit of fresher food

The demand for fresh food is more than a passing fad — 66% of U.S. consumers have increased their
spending on fresh food over two years running.1 That was before the pandemic struck, when tons of
fresh food bound for shuttered schools and restaurants went to waste. As the food supply chain
adjusts to the new normal, food freshness is even more important. More than 50% of consumers
don’t feel safe in stores and now shop less frequently, so they need food to last even longer.2

What’s spoiling our efforts to optimize food freshness?

Food travels far before reaching your plate

Grocery stores are a hub of globalization. On average, more than five countries
are represented on American plates.3 This can contribute to increased spoilage
in fresh food, due to extended time in transit and storage.

Food chains are becoming increasingly complex and global

Fresh produce now spends up to 50% of its shelf life in transit from paddock to
retailer.4 Complex supply chains, along with gaps between producers,
distributors and retailers, decrease the velocity of travel and increase
challenges to maintaining food freshness.

Poor visibility creates product loss and decreases margin

As food begins its post-harvest transport, it basically becomes invisible, making
it difficult to pinpoint what happens to the 33% of our global food supply that is
lost or wasted.5

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Blockchain for the food system

A digital food supply chain powered by blockchain enables full transparency across the food
ecosystem so that retailers are able to provide fresher options (with increased shelf life) to their
consumers, leading to reduced product loss and increased margins.

End-to-end traceability
Track how fresh food really is and how long it’s been traveling in real-time
to confidently understand remaining shelf life.

Full transparency
Top-to-bottom visibility into the food chain enables companies to know
exactly where food is coming from and the conditions under which it was
shipped.

Supply chain efficiency

Access to secure transactional data, temperature data and inventory
levels, for example, allows your team to make proactive decisions based
on that data that can optimize and improve efficiencies in the supply
chain.

IBM Food Trust works with each member of the food ecosystem to achieve new levels of trust and
transparency, making food safer and smarter from farm to fork. It enables companies to collaborate
and digitize records, which increases visibility during each step of the food supply chain.

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Download PDF (339 KB)

1
Deloitte: Fresh food spending is on the rise, but the store perimeter is still underperforming,
www.foodnavigator-usa.com/Article/2019/11/13/Deloitte-report-Consumers-fresh-food-spending-on-the-
rise , Food Navigator, November 2018

2
The future of fresh Patterns from the pandemic, www.deloitte.com/us/en/insights/industry/retail-
distribution/future-of-fresh-food-sales/pandemic-consumer-behavior-grocery-shopping.html , Deloitte,
October 2020

3
Calculating The Cost of Food Miles, www.babylonmicrofarms.com/blog/calculating-the-cost-of-food-miles ,
Babylon Microfarms, August 2019

4
The Challenges of Fresh Produce Logistics, www.logmore.com/post/the-challenges-of-fresh-produce-logistics
, Logmore, June 2019

5
The Cost of Food Spoilage, cargodatacorp.com/cost-food-spoilage/ , Cargo Data

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5 min read

Food fraud

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Help eliminate the chance for fraud and errors

Uncovering food fraud along the supply chain

Driven by the complexity of today’s global food system, food fraud continues to thrive: It’s a global
business exceeding USD 50 billion dollars annually.1 As long as there is a profit to be made (and
there is), everything from honey and milk to fish and olive oil is at risk for adulteration. Regardless of
the level of safety implications or where the vulnerability occurred, suppliers are largely liable for
the impact—but everyone in the food industry suffers.

What’s keeping food fraud alive?

The food supply chain runs on outdated practices

Today’s increasingly complex, fragmented and global food supply chains have
led to a steep increase in food fraud.2 Regulators are demanding state-of-the-
art practices and technology3 to help bring organizations up to standard and
ultimately create a more transparent food system.

Complex supply chains create blind spots

Many companies simply lack the awareness of where and how they are
susceptible to food fraud; however, with up to 10% of the food system affected
by food fraud4, weak links can occur across raw materials, ingredients, products
and packaging.

There is a better way to reduce fraud

Blockchain can enable USD 31 billion in food fraud savings globally by 2024 by
immutably tracking food across the supply chain, and compliance costs can be
reduced by 30%.5

Blockchain for the food system

A shared digital food supply chain powered by blockchain enables full transparency by digitizing
transaction records and storing them in a decentralized and immutable manner, eliminating
opportunity for fraud across the food chain.

End-to-end traceability

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Increased surveillance shines a light on each link in the food chain,

enabling real-time traceability of food fraud culprits — and creating
accountability.

Collaboration
Secure data-sharing between food chain actors eliminates the possibility
for participants to move fraudulent foods unknowingly.

Transparency
Improved transparency allows fewer opportunities for fraudsters to
penetrate your supply chain, and permanent records enable better
management of material safety and quality standards.

IBM Food Trust creates a secure shared, and permissioned record of transactions. This enables
unprecedented visibility during each step of the food supply chain, so you can achieve new levels of
trust and transparency, making food safer and smarter from farm to fork.

Download PDF (238 KB)

1
An update on food fraud, fsns.com/news/an-update-on-food-fraud , Food Safety Net Services, January
2020.

2
Agriculture commodities on blockchain, www.ibm.com/blockchain/resources/food-trust/agriculture-
commodities/, IBM Food Trust

3
Piracy in the Pantry, theanalyticalscientist.com/fields-applications/piracy-in-the-pantry , The Analytical
Scientist, September 2020

4
The Real Cost of Food Fraud, www.tracegains.com/blog/the-real-cost-of-food-fraud , TraceGains , January
2020

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5
Blockchain to save the food industry USD 31 billion by 2024, driven by IOT partnerships,
www.juniperresearch.com/press/press-releases/blockchain-to-save-the-food-industry-$31-billion-b ,
Juniper Research, November 2019

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5 min read

Food waste

Help minimize waste hot spots

Driving food waste out of the supply chain

With up to a third of all food produced ending up in the trash1, the global imperative to reduce food
waste is gaining momentum, but lacking traction. Estimates place the volume globally at over one
billion tons of food going into landfills each year.2

What’s standing in the way of toppling the food waste mountain?

Reducing food waste is challenging

Even with companies and countries on board (the US aims to halve food waste

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by 2030)3, reducing food waste remains complex, requiring efforts across the
supply chain, from farmers and distributors to retailers and consumers.

Insufficient infrastructures keep companies in the dark

Even though studies suggest widespread adoption of digital supply chain tools
could reduce food loss and waste by up to USD 120 billion annually4, companies
have been slow to adopt digital tools that could enable visibility into the food
chain and identify waste hot spots.

Questionable freshness leads to consumer waste

Every year, a third of fresh food is thrown away globally by consumers who are
unsure about the quality of their food.5

Blockchain for the food system

With a digital food system, network participants can now better track the quantity of food wasted
and of food rescued. Blockchain technology stores digitized records in a decentralized and
immutable manner, promoting trust and transparency which in turn helps reduce food waste.

End-to-end traceability
A digital food supply network powered by blockchain enables full
transparency across the food chain to maximize shelf life, optimize
partner networks and increase recall response efficiency, helping reduce
waste.

Collaboration
Selective data sharing enables all in the food system to adopt consistent
standards, policies and procedures.

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Full transparency
With greater visibility into food waste, food producers, distributors and
retailers can help identify opportunities to reduce food waste along the
supply chain.

IBM Food Trust creates a secure, shared and permissioned record of transactions. This enables
unprecedented visibility during each step of the food supply chain, so you can achieve new levels of
trust and transparency, making food safer and smarter from farm to fork.

Download PDF (230 KB)

1
The Cost of Food Spoilage, cargodatacorp.com/cost-food-spoilage/ , Cargo Data

2
Consumer Behaviors & Perceptions of Food Waste, foodinsight.org/consumers-perception-food-waste/ ,
Food Insight, September 2019.

3
Sustainable Management of Food, www.epa.gov/sustainable-management-food/united-states-2030-food-
loss-and-waste-reduction-goal , EPA

4
Tackling the 1.6-billion-ton food loss and waste crisis, www.bcg.com/publications/2018/tackling-1.6-billion-
ton-food-loss-and-waste-crisis , BCG, August 2018

5
Food Loss and Waste Database, www.fao.org/platform-food-loss-waste/flw-data , U.N. Food and Agriculture
Organization (F.A.O)

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