How blockchain is transforming agricultural supply chains

What problem does blockchain solve in an agricultural supply chain?

Blockchain solves a trust problem between companies that do not know each other. An agricultural supply chain involves growers, cooperatives, hauliers, exporters, importers and distributors, and each of them keeps its own records. When a question arises about the origin or condition of a batch, rebuilding its history means gathering documents from all of them. A shared, tamper-proof ledger lets anyone check that history in a single place.

The report on blockchain for agriculture by FAO and the International Telecommunication Union puts it this way: the technology can provide "an immutable record from the provenance to the retail store" of a product. That record builds consumer trust and makes it possible to reward growers who follow good practices.

Which real cases does FAO document?

In 2019, FAO and ITU documented several real uses of blockchain in the food chain, from tracing a consumer product to paying for harvests. Three examples from the report show different uses of the same technology:

• Barilla, working with IBM, records every stage of its pesto, from growing the basil to the customer, and consumers can check it by scanning a QR code on the jar.
• IBM Food Trust works with retailers such as Walmart to track food along the supply chain.
• AgriDigital, in Australia, settled a grain sale on a blockchain in December 2016, with payment made at the same moment ownership changed hands. In that sector, payment terms usually ran from two to five weeks. The report presents the case as the company itself described it.

Why does it matter for the avocado trade?

Avocado is a good example of a long, global supply chain. According to FAO, global avocado exports grew by 13 percent in 2025, to around 3.3 million tonnes. Mexico typically accounts for about 40 percent of export volumes, and Peru remained the second largest supplier in the world, with a share of almost 25 percent in 2025.

At that scale, a single batch can pass through several countries and companies before it reaches the consumer. FAO notes, for example, that much of the Peruvian avocado entering the European Union goes through the Netherlands and Spain. Every hand-off is a point where data gets lost or payments get delayed, and a shared ledger reduces both risks.

What does European law already require on traceability?

The European Union has required food traceability since 2002, with or without blockchain. Article 18 of Regulation (EC) 178/2002 states that the traceability of food must be established at all stages of production, processing and distribution. Every operator must be able to identify who it buys from and who it sells to, the principle known as one step back, one step forward.

There are clear reasons behind that requirement. The European Commission reported that its Agri-Food Fraud Network registered 758 fraud suspicions in 2023, a 26 percent rise on the previous year. Physical losses add to this: FAO estimated that 13.8 percent of the food produced in 2016 was lost between the farm and the retail stage, retail excluded.

When is blockchain not worth using?

Blockchain is not worth using when a shared database or an agreement between the parties already solves the problem. The FAO and ITU report itself warns that claiming blockchain is the only mechanism to build trust, cut costs and speed up transactions is not entirely true, and that moving a process onto a blockchain can add costs without tangible benefits.

The technology does not guarantee that the original data is true either: it records, unalterably, whatever someone enters. That is why the strongest projects combine the ledger with sensors, certifications and field checks that make the data reliable from the very first step.

How does Avocate apply it?

Avocate is a project under development that combines blockchain with IoT sensors to record the traceability of agricultural products from their origin. The platform plans to issue digital certificates of quality and origin verified on blockchain, and it is building its minimum viable product with selected partners.

The aim is to use the technology where it adds something concrete: origin data that cannot be altered, certificates that anyone can check and faster payments between parties who do not know each other.