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American startup KnowSeafood will launch a direct-to-consumer online fish market using blockchain. The project aims to increase traceability and trust in the fish chain and will allow consumers to track the seafood they purchase from the moment they are caught until delivery arrives.
The American seafood market has an average of 4-7 intermediaries before the product reaches the grocery stores. Additionally, 90% is imported, with some claiming that up to half are captured in America and re-imported after being processed overseas. Such inefficiencies and time-consuming processes in the supply chain limit the traceability of provenance and open the door to food labeling errors and opportunities for fraud. In fact, according to a survey by the New York Attorney General, more than 25% of seafood products in New York State stores have been mislabeled, rising to more than 40% in the city.
KnowSeafood’s online market structure excludes intermediaries in the supply chain. The company will work directly with the seafood pickers so that the products are shipped from the harvester to KnowSeafood to consumers.
The platform uses the VeChain blockchain and all collectors are required to use the blockchain. Harvesters are expected to upload collection, processing and shipping information using VeChain’s ToolChain.
The initiative will also incorporate the StoryBird Supply Chain Transparency App, which provides the consumer with the experience of interacting with fishermen’s profiles and allows them to explore the sustainability practices they adopt in more detail. Farmer connect’s “Thank My Farmer” app offers a similar experience. It was recently implemented in a blockchain solution for Orang Utan Coffee Retail in the UK.
The fish market already has more than ten suppliers lined up. They include Norwegian Aurora salmon from Lerøy, rock coast lobster tails, and Alaskan golden halibut.
KnowSeafood’s initiative is in line with the company’s mission to provide consumers with access to sustainable and ethically produced seafood. The service reflects recent trends in consumer demand and seafood purchasing behavior. A study conducted by GlobeScan in 2018 found that 70% of fish consumers would like greater transparency from companies on the sustainability of their product and 72% agreed that to save the oceans, fish consumption should come from sources. sustainable.
As consumers become more aware of food fraud and unethical practices in food supply chains, traceable products become more attractive. Terra Delyssa olive oil experienced a significant increase in demand after implementing the traceability features for its bottles and also predicted a 30% spike during the pandemic. For KnowSeafoods, while sustainability and traceability are significant benefits of using blockchain, seafood producers can also benefit from a likely increase in demand.
Production costs are also likely to decrease due to fewer intermediaries in the supply chain. Australia’s Two Hands digital market, which has already implemented a project similar to the KnowSeafood initiative, generates cost savings of around 20% across the entire supply chain.
However, blockchain solutions prevail in the aggregation of value through food traceability of sustainable and ethical production practices. The Sustainable Shrimp Partnership recently launched an IBM Food Trust-linked blockchain platform, and India ByteAlly partnered with Feed the Future Bangladesh Aquaculture and Nutrition Activity to begin experimenting with a seafood-centric blockchain food traceability program in Bangladesh.
