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European Digital Innovation Hubs Network

Green Point's Digital Leap in Sustainable Farming

Green Point's Digital Leap in Sustainable Farming
Published at 26 August 2024 | Slovenia

General details


Services provided
Test before invest
Technologies
Blockchain and Distributed Ledger Technology (DLT)
Sectors
Agricultural biotechnology and food biotechnology

Challenges

Green Point stands as a pivotal distribution center orchestrating a dynamic short food supply chain, encompassing a diverse range of locally sourced vegetables, fruits, and various other regional products. Established in 2018, the company's foundational mission revolves around bridging the gap between local farmers and end consumers, offering a bounty of locally produced, fresh, and nourishing procedure.

At its core, the short food supply chain network spans over 70 local farmers, food producers, and cooperatives. This network comprehensively covers the entire production spectrum, encompassing cultivation in both greenhouses and open-air environments. Green Point leverages its dedicated distribution center to manage the logistics intricacies of this expansive network, ensuring seamless operations. The company employs a multifaceted approach to sales, engaging diverse avenues that include public institutions (such as schools, kindergartens, and elderly care homes), private entities (including restaurants and spas), alongside its own retail outlets and a robust online platform Zelena točka (Green Point).

A hallmark of Green Point's ethos is its relentless pursuit of innovation within the sphere of business models and   technologies. This commitment remains aimed at augmenting the share of locally sourced safe and wholesome food on the plates of end consumers. Crucially, the company actively undertakes initiatives to raise awareness about the significance of supporting local food producers while advocating for the consumption of safe, healthy and regionally sourced food.

However, achieving these objectives necessitates an unyielding commitment to ensuring transparency, traceability, and trust in local food production processes, which remains an ongoing challenge for Green Point. Through the implementation of cutting-edge technologies like blockchain, Green Point's unwavering commitment to promoting a sustainable, healthy and locally rooted food ecosystem.

Solutions

The Green Point actively engages in the transformative realm of digitalisation through its participation in the DIH Agrifood initiative under the encompassing umbrella of DIGI-SI. Aligned with the Farm2Fork strategy and in light of the specific challenges faced by the customer, the company is strategically implementing cutting-edge blockchain technology to meticulously trace products' journeys from the agricultural field directly to the discerning consumer's table. Collaborating hand in hand with the esteemed Blockchain Lab:Um at the University of Maribor further fortifies their technological endeavours.

Blockchain technology, often abbreviated as BC, stands as a powerful enabler within this context, offering a robust solution that seamlessly fits into the intricate framework of the short food supply chain. Its decentralized and immutable nature ensures an unalterable ledger of each product's journey, creating a comprehensive record accessible to all stakeholders involved. This transparency not only instils confidence in consumers but also establishes a platform for trust and accountability throughout the supply chain network.

By leveraging blockchain technology, The Green Point pioneers a paradigm shift, setting new standards in ensuring authenticity, traceability, and credibility of locally produced food. This innovative approach not only enhances consumer confidence but also revitalizes the essence of community-driven, sustainable food practices, fostering a deeper connection between producers and consumers in the ever-evolving landscape of the modern food industry.

Results and Benefits

This seamless integration of blockchain technology has tangible results and benefits for Green Point. Firstly, it empowers The Green Point to ascertain the precise origins and the producers behing each individual piece of vegetable or fruit. Such meticulous tracking and recording provide consumers with an unparalleled guarantee of the source's authenticity, assuring them that they've acquired safely grown produce from nearby sources. This commitment to transparency and traceability in local food production aligns seamlessly with the ethos of the short food supply chain.

More specifically, the solution has yielded concrete, measurable impacts for both the EDIH and customers: It has allowed for Enhanced Transparency and Trust in the food supply chain. Every piece of produce can be accurately tracked from farm to table, ensuring authenticity and safety. This has fostered trust among consumers by providing verifiable product origins and quality. Moreover, there is Improved Traceability as the utilisation of blockchain technology has enabled precise traceability in the food chain. The Green Point can now accurately identify the farms responsible for producing specific fruits or vegetables, a capability not readily available before. Furthermore, there is Direct Connection with Local Producers, this direct link empowers consumers to support local agriculture, reducing intermediaries in the food supply chain. In addition, Access to Living Lab and Collaborative Testing has allowed for proactive collaboration with stakeholders and pre-investment testing. This environment leveraged digital capacities for experimentation and innovation. Alos, Blockchain integration elevated The Green Point's digital capacities, enabling efficient data management for food traceability, ensuring data accuracy, seccurity, and accessibility for internal use and consumer verification. Lastly, Integrating five farms into the blockchain system lays the groundwork for scalability. As more farms join, the benefits of traceability and transparency will amplify, impacting more consumers and reinforcing trust in their products.

In summary, blockchain adoption within the digital transformation process, supported by EDIH ecosystem, has empowered The Green Point to estbalish a transparent and traceable food supply chain. Access to digital capacities and collaborative testing has ensured safe, locally produced food, fostering consumer trust and confidence.

Perceived social/economic impact

The integration of blockchain technology in the food supply chain by The Green Point, orchestrated through DIGI-SI and the DIH Agrifood, has the potential for significant social and economic impacts.

Social Impact:

  • Enhanced Food Safety: Blockchain-enabled traceability ensures consumers' access to a safe and authentic produce, empowering individuals to make informed choices about the origin and quality of the food they consume, promoting healthier eating habits.

  • Support for Local Farmers: Direct connections with local farms support the livelihoods of small-scale farmers. By shortening the supply chain, fairer prices can be ensured, encouraging sustainable agricultural practices and bolstering local economies.

  • Consumer Empowerment: The ability to trace each product to its source instils a sense of empowerment in consumers. They can support local agriculture, reduce environmental impact and promote sustainability in food consumption.

Economic Impact:

  • Market Competitiveness: The implementation of blockchain technology positions The Green Point as an innovative player, enhancing their competitiveness by offering unique selling points such as transparency and authenticity, potentially leading to increased market share and revenue.

  • Efficiency Gains: Through streamlined supply chains and reduced intermediaries cost efficiencies can be achieved, benefiting producers and consumers by potentially lowering overall food costs while ensuring fair compensation for farmers.

  • Fostering Innovation: Blockchain integration fosters an environment conducive to innovation. This encourages the development of new technologies, jobs, and expertise within the digital and agricultural sectors, contributing to economic growth.

The impact of this digital transformation extends beyond immediate stakeholders. It creates a ripple effect in society, promoting healthier food habits, supporting local economies and stimulating innovation and growth within the digital and agricultural sectors.

Lessons learned

Adoption of blockchain technology in the food supply chain by Green Point, facilitated through DIGI-SI and the DIH Agrifood, offered valuable lessons for both the EDIH and customers.

Effective technology Integration worked. Blockchain implementation successfully enhanced transparency and trust by accurately tracking produce from farm to consumer, ensuring authenticity and safety. A Collaborative Ecosystem facilitated collaborative testing and experimentation, ensuring thorough vetting of solutions before implementation. Establishing direct connections with local farms shortened the supply chain, promoting local produce and fostering consumer trust.

What didn't work were potential integration challenges including initial hurdles in onboarding farms or integrating their systems into the blockchain network due to technological barriers or resistance to change. Educating stakeholders about blockchain's benefits and functionalities required continuous effort. Widespread adoption and understanding of this technology remains a challenge.

Key areas for improvement include onboarding, where enhancing the process of onboarding farms onto the blockchain system could improve efficiency. Simplifying integration processes and providing support for farmers to adopt the technology seamlessly would be beneficial, as well as continued education for consumers and stakeholders about blockchain's advantages in food traceability remains crucial for wider adoption and understanding.

Given our experience of working with Green Point to find a solution to their issues, we have identified advice for other EDIHs. We emphasise collaborative testing within ecosystems like DIGI-SI and utilise Living Labs to test solutions thoroughly before implementation. We highlight the importance of concentrating efforts on educating stakeholders about blockchain's benefits to facilitate smoother integration and wider adoption. EDIHs should strive for continuous improvement and remain open to feedback.