'Digitalization in the agri and food sector is lagging behind'

Digitization in agricultural trade is increasing, but there are still many opportunities. For example, more and more new products and services are becoming available, which companies have to make use of. Blockchain is mentioned as an example. However, experts report that so far the opportunities are little addressed.

"The need for digitization is large, especially in an increasingly complex food and agri sector," says Ruud Hurne, director of Food & Agri at Rabobank Nederland, at the Network event 'Digitalization in the commodity trade'. This is because very large amounts are involved in, for example, the grain trade; trust and transparency are important here.

Blockchain as a solution
It is mainly blockchain that is mentioned as a solution to ensure trust and transparency. It is an innovation that will become increasingly important. “Companies will have to seize this opportunity, otherwise they risk being squeezed out of the market,” Huirne said.

Huirne describes blockchain as a "shared, non-manipulable administration." "A certain agreement is made between a group, in which a non-manipulable ledger is used. All information is useful for everyone. That data cannot be deleted either." Nanning de Jong, managing consultant at Berenschot, also agrees. He added that this is happening without a powerful central party.

Question from society
The demand for digitization does not only come from the demand for trust, but also from society. For example, the government and consumers are increasingly demanding more transparency. This can be guaranteed through technology, also to prevent various crises (eg the fipronil affair).

However, experts are concerned about the use of digitization in the agri and food sector. For example, De Jong mentions that the agri and food sector is lagging considerably behind the government, for example. "The sector can still learn a lot from the other sectors, and they will have to do so quickly," says De Jong.

Transparency
A concern for enterprises is that blockchain entails too much transparency. You do not want the competitor to know exactly what business you do. Many of those transactions are based on trust. However, De Jong knows a solution for this: "Blockchain does not have to be visible to everyone. That would also cost too much energy. You also have the 'private blockchain', for example. This does not have to jeopardize your competitive position."

According to Huirne and De Jong, the advantage of the technology is that fraud can then be reduced. This is due to the increased transparency. Huirne: "Reducing fraud is very important, because every year no less than €40 billion worth of fraud is committed in the food sector."

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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