April 17, 2023

Saudi Food Authority Uses Blockchain for Tracking Agri. Products



The Saudi Food and Drug Authority (SFDA), in collaboration with the Digital Government Authority (DGA), is exploring ways to see the possibility of the use of blockchain technology to track the movement of agricultural products.

The SFDA’s experiment to use the blockchain comes within a framework of the Kingdom’s transformation to the digital economy.

In a press release, SFDA said the experiment, which is the first of its kind in tracing the movement of products on a large scale, focused on tracking the movement of products from the farm to the point of sale and end-users along with full transparency from all parties, including the farm, the slaughterhouse, and the retailer.

“By recording data in a decentralized manner, the end consumer can have confidence in the product’s journey, ensuring security and immutability,” the press release said.

The blockchain-based experiment also included showcasing more information about the supply chain partners, like the “Halal” certificate from the Saudi Halal Center, in the form of NFTs in a move to promote the values of transparency, which in turn bolsters the level of trust among supply chain partners and consumers.

The food market revenues in Saudi Arabia reached $61.52 billion in 2023, according to the market data portal, Statista. The market is expected to achieve an annual growth of 4.13% during the period between 2023 and 2027.

In August 2017, Walmart announced the use of the same blockchain technology in partnership with big names in the supply chain industry, including Dole, Kroger, McCormick, Nestlé, Tyson Foods, and Unilever to collaborate and find new applications that could help increase food traceability.

Earlier this month, reports showed that the public Investment Fund (PIF) of Saudi Arabia, the Saudi sovereign wealth fund, started investing in several Web3-related venture capital (VC) companies over the past months.

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