Blockchain technology: The 'passport' for agricultural exports to major markets

14:30 | 05/10/2018 Economy- Society

(VEN) - In September 2017, the first batch of Vietnam’s fresh dragon fruit was sent to Australia, with the standard of blockchain-based traceability, marking a new step forward of the agricultural sector in enhancing quality of agricultural products exported to the world market.

the passport for agricultural exports to major markets

A tracing system based on blockchain technology provides consumers with information from production to consumption, all of which is done in real time.

The tracing system works this way: A farmer picks up fruit and sells it to a trader, who logs in on a platform and uploads information about the batch of fruit transacted. A transaction and a QR code is generated, which accompanies a batch of fruit until it is on supermarket shelves. Traders log in on the platform and enter information about the transaction created by the farmer in the previous stage. Other stakeholders who perform cleaning, packaging and exporting then log in on the platform and upload their information about the previous transaction. All information after being posted is not allowed to remove, making blockchain technology extremely important for businesses and consumers.

According to the Ministry of Agriculture and Rural Development, the agricultural sector reached US$19.4 billion in export turnover in the first half of the year, an increase of 12 percent compared to a year ago. The sector is forecast to reach export turnover in the whole year of US$40-41 billion.

However, quality of agricultural products seems not to be properly considered. According to experts, the application of blockchain technology can resolve this problem. In order to make good use of this technology, experts say that it is necessary to help farmers better understand the benefits. Traceability of agricultural products will only be realized with the participation of all parties, from ministries, departments, and agencies to businesses, producers and consumers.

The draft master plan for implementation and management of stamps of traceability in the whole country waiting for consideration by the Ministry of Science and Technology and approval by the government is expected to trace the origin of three product groups, including agricultural products, medical items and light industrial goods.

Blockchain technology is applied in many different areas such as banking, virtual currency management, medical

records, health insurance information, and product traceability. In Vietnam, this technology will be put into the digital

economy development strategy in the coming time.

Thanh Thanh