Short Food Supply Chains (SFSC) are chains in which goods or food are identified by and traceable to a farmer, and the number of intermediaries between the farmer and the consumer remains minimal or ideally nonexistent. Several types of SFSCs exist, such as (1) CSAs (Community-Supported Agriculture), (2) on-farm sales, (3) off-farm schemes (e.g., farmers markets, delivery schemes), (4) collective sales, particularly targeting public institutions and mostly involving local or proximity sales, and in some cases (5) distance sales. These food chains have specific social impacts, economic impacts at regional and farm levels, and environmental impacts, generating clear consumer interest. SFSCs operate throughout the EU, with country-specific differences in the dominant types of SFSCs. Generally, SFSCs are predominantly small or micro-enterprises composed of small-scale producers, often associated with organic farming practices. Social values, such as providing quality products to consumers and enabling direct contact with producers, are typically prioritized over environmental or economic values.
Current food supply systems face increasing challenges related to food fraud and consumer trust. Food fraud poses serious risks to public health and damages the European food industry, causing annual losses of 10–15 billion euros. Food fraud occurs when food or drink is sold in a way that deliberately misleads or deceives consumers for financial gain. Although food fraud is not new, the motivation to adulterate or counterfeit food for profit is growing, necessitating new solutions. Existing food safety management systems are not always designed to detect or mitigate fraud, but new guidelines from the Global Food Safety Initiative (GSFI) now require such capabilities.
At the same time, consumers are increasingly aware and informed about the food they consume. They seek comprehensive information about food origin, nutritional content, certifications, and other relevant details.
On the other hand, consumers are more and more conscious and informative about food they eat. They are interested to know everything about food origin, food nutrition, food certificates and other relevant information.
The main challenges in Short Food Supply Chains (SFSCs) can be summarized as follows:
The solution to these challenges lies in a blockchain-based, data-driven UFSE (Urban Food Systems and Ecosystems) marketplace. This platform optimizes multi-stakeholder dialogue processes, utilizing blockchain to provide reliable and transparent proof of monetization processes or contract agreements.
To ensure transparency, traceability, and trust in local food production, blockchain technology (BC) represents a natural technological fit in the so-called SFSC. Each SFSC stakeholder (except the consumer) receives a BC-related digital identity, whereby every SFSC stop processes a BC transaction digitally signed by a registered and verified SFSC stakeholder (e.g., producer, delivery service, etc.). Each BC transaction includes basic BC-related information (i.e., timestamp, digital identity, signature) along with specific food details (i.e., type, harvest region, harvest datetime, etc.) and logistics information (i.e., LOT number, type, etc.). The proposed end-system also enables the storage of digital proofs (i.e., harvest or delivery photos, etc.), which are stored on a related IPFS or Swarm network. The BC network consists of a Hyperledger Besu (Ethereum) Consortium Type BC network.
Green Point (Zelena točka) is a Short Food Supply Chain that focuses on (1) helping farmers produce local products, (2) connecting them into a cooperative and educating them on branding, (3) collecting their local products, (4) distributing the products through Green Point Trans to customers, and (5) selling the products through the Green Point. Green Point is a founding member of the Digital Innovation Hub AGRIFOOD (DIH AGRIFOOD), supporting its target groups and members in the digital transformation of their businesses.
Since Green Point operates as a distribution center, organizing a SFSC in the North-Eastern part of Slovenia (Pomurje region), it prioritizes addressing the issue of food fraud by preventing counterfeiting of local food origins and ensuring that customers receive an origin guarantee. Numerous cases exist where local producers falsely claim to sell imported third-party products as their own.
To tackle these challenges, blockchain technology is introduced across all levels of the supply chain. This process starts with farmers producing local food, continues with logistics and storage operations, and extends to all sales channels within the SFSC, including physical stores, web stores, and wholesale. The solution ensures the integration of existing software with blockchain technology.
The following steps are implemented:
