Blockchain technology in the poultry industry: Why use it?

Blockchain has become a popular word in terms of cryptocurrencies like Bitcoin, but what benefits can it bring to the poultry industry in terms of data collection and transparency?

Kevin Otto (Austin Alonzo)
Kevin Otto (Austin Alonzo)

Blockchain has become a much-hyped term, most commonly associated with cryptocurrency, but the technology has many applications beyond just the banking industry, which could greatly benefit the poultry industry as well. Although the technology is new, its application is actually rather simple, according to Kevin Otto, senior director, community engagement, GS1 US, speaking at the 2019 International Production & Processing Expo on February 12.

What is blockchain?

Otto explained that blockchain is a decentralized ledger, where there are many database copies and many owners. Its key benefits are that data housed in the blockchain is transparent, secure and immutable, unlike a traditional centralized database in which there is only one database and one owner.

“That’s really the value behind blockchain, that you have the ability to share data in a much more transparent way than you will some of the legacy systems you may be leveraging today,” he said.

Another benefit of blockchain is that it is resilient to organizational or technology failure, so no data will be corrupted or lost, as well as allows for setting authorization and access permissions for users. As a database, the data stored in it can be massive, making it hard to work with, so it is most effectively used to house critical data and reference other data stored off the blockchain.

Uses for blockchain in poultry

As the industry continues to work to be transparent about its production processes, blockchain offers many benefits for companies that implement it.

Among the benefits Otto listed were that blockchain can:

  • Improve yields
  • Maintain safety and quality
  • Improve supply chain visibility and traceability in case of a recall
  • Provide product quality and provenance
  • Optimize customer experience and personalization
  • Avoid companies experiencing food quality issues

Kevin-Otto-IPPE

Kevin Otto | Photo by Alyssa Conway

Other considerations

While blockchain can bring many benefits to poultry producers, it is only useful if your company is collecting data — and it’s the right data. Otto emphasized that it’s important for companies to assess what data they are collecting, what data they are sharing or want to share, and what data is needed to accomplish the company’s objectives or solve their problem.

He also advised that before implementing blockchain, companies must have basic business processes in place, leverage standards such as GS1 and build on the company’s existing foundation of what data is already being collected.

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