Blockchain as an Enabler of Circular Supply Chains in the Food Industry

Abstract

Circular economy (CE) has become prevalent worldwide due to its economic and environmental benefits. More and more practitioners have deployed CE in supply chains to improve operational efficiency and sustainability. Thus, the integration of CE and supply chain has developed a new concept: circular supply chain (CSC). In particular, the CE model could remarkably reduce food waste within food supply chains (FSCs) and diminish the environmental impact from FSCs. Such a FSC that adopts CE principle is known as circular food supply chain (CFSC). However, lack of technical support for effective communication is a significant difficulty in developing CFSCs. Blockchain technology (BCT) could be the potential solution to this problem because of its decentralisation, public information sharing, high traceability and transparency, high security etc. Although many researchers have studied CFSCs in recent years, few studies investigate BCT as an impetus for CFSC development. Therefore, this research will fill this gap, focusing on the feasibility of BCT-based CFSCs, how BCT can establish CFSCs, and possible barriers. In addition, a few recommendations on developing BCT-based CFSCs will be provided.