Blockchain Strategy in Norway

Case Study for Evry

As part of my corporate entrepreneurship, I was among 20 students who were selected to study abroad in Bergen, Norway for Spring Break. Student teams partnered with Graduates from the Norwegian School of Economics(NHH) to consult with Evry, a digital innovation company. My team discovered that Evry can be the first to start a blockchain management software to eliminate food waste across Europe.

Proof of Concept

Generally, It takes months to prevent and locate contaminated food. On 2017, there were a total of 787 recalls in Europe. It costs $9.5 million per recall (16% Increase since 2016). Norway’s food prices are the 2nd largest in Europe, 257% higher than average. The European losses cost $171 Billion due to food waste every year. 88 million tons of food is wasted every year in Europe.

Norwegian supermarket wastes cost $369,353,400 in financial losses and 150,000 tons of CO2 emissions. Currently, there are no Norwegian regulations that dictate how to handle food waste beyond the landfill

Our Norwegian partners validated the facts by speaking with agricultural leaders in the industry.

In summary, There are already existing strategies in Super Markets for short shelf life for price reductions up to 50%. Only 48% of Norwegian supermarkets partake in redistribution of surplus produce to charities.

Furthermore, these are the drivers of analysis that refines the problem:

• Within Evry’s current capabilities and technological inclinations, can Evry eliminate food waste?
• How might we handle inventory so that we communicate transparently where all customer and client expectations are met?
• How can we minimize errors and improve food safety and quality standards?
• How do we meet suppliers with a service that reduces call times at a competitive price?
• How can we offer a cheaper and profitable service for Evry?

27 months after implementation, Evry is projected to return their initial Investments of $640,000. Produce will have the blockchain ability to be tracked from farmers to wholesale.

Solution

• Transform the food system by working with every actor along the food supply chain to create a structure in which access to data achieves security, sustainability, integrity, and better produce for all
• Farmers will be able to leverage automated processes and meet market demand for high quality, sustainable products
• Distributors will be able to accurately track food products to provide real time data on food delivery and safety
• Consumers will benefit from certified, trustworthy data on their food’s lifecycle from when it was planted to when it was purchased, creating a new norm of food quality

Industry Analysis

• Norwegian Food Waste Regulations & Policies
• No current regulations in dictate how companies handle food waste beyond not landfilling food
• Results in companies doing the cheaper option of throwing food out instead of donating
• Norwegian Environment Agency formally suggested making the sorting of food mandatory for corporations and private households
• IBM, WalMart, JD.com Partnership
• Conducting research to test feasibility of product. During their tests, they were able to track the source of a food in a mere 2.2 seconds, rather than the 3 weeks it took them to do it without blockchain technology
• Consumer-facing App has not yet been developed
• Opportunity for Evry to be ahead of the game, by developing a consumer-facing application

Methodology

• Blockchain software built on the Ethereum Network using ERC20 (Ethereum’s platform for developing)
• The software’s objective is to remove supply chain discrepancies and provide:
• Transparency
• Traceability
• Cost-Effective, Highly Efficient, and User-Friendly Solutions
• The software takes the form of a monthly subscription, each subscriber retains their own fork on Blockchain and is granted access via a Privacy Key
• Currently, most agrifood supply chain agents record data on paper with some others using systems that don’t “speak to each other”
• The food system is a shared responsibility and for it to work properly, every agent in the supply chain needs to be able to work together on a common system

How Blockchain Works

• Supply chain agents upload data into predetermined records, called “blocks”
• Data uploaded is confirmed by the receiving end when they inspect the shipment/receiving goods
• This confirmation takes the form of a Smart Contract, where the data strings form ½ blocks, and the confirmation forms the other ½ block of data to create a chain of blocks of data inputs on the Supply Chain
• Access is restricted to any of those with the privacy key to enter and view data
• Once the data is confirmed, the block becomes immutable

Visual MVP

In retrospective

By creating a Blockchain Supply Chain Management Software for tracking agricultural-based inventory, Evry will leverage a digital bridge that engenders honesty, trust, and transparency for food producers, distributors, retailers, and consumers. This software would curtail produce waste, streamline data entry, and slash time-consuming and costly recalls.

Throughout the report, we emphasize the importance of Evry tapping into the Norwegian and eventually the European market. Europe has yet to adopt a comprehensive solution to address the large food waste, contamination, and fraud problems that are growing steadily. After developing this software, farmers, consumers, distributors, retailers, and other wholesalers will be able to keep track of their produce at every stage in the supply chain.

Evry is projected to earn their initial investment of $640,000 back 27 months after implementation. Evry’s development, implementation, and management of our recommended software will help alleviate many of Europe’s food supply issues while earning positive returns within three years.