CHAPTER 1

INTRODUCTION

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INTRODUCITON:

Blockchain forms the bedrock for cryptocurrencies like Bitcoin (Blockchain Explained. (2014,
June 13). Investopedia. https://www.investopedia.com/terms/b/blockchain.asp ). Bitcoin the
world’s most talked and used cryptocurrency uses blockchain platform. This made
blockchain more popular than ever before. Blockchain became the new buzz word of 20th
century. Recently a wide range of blockchain-based software’s, applications, platforms has
been developed for business use. Many supply chain organizations are trying to implement
blockchain technology in their supply chain process. Best example is Maersk-IBM and
Walmart-IBM. These two companies have made a benchmark in the usage of blockchain in
their supply chain and had been a success factor for their business. Blockchain technology
has shown promising results for improving supply chain networks in recent applications and
has already impacted our society and lifestyle by reshaping many business and industry
process (Zhang, J. (2019). Deploying Blockchain Technology in the Supply
Chain. Blockchain and Distributed Ledger Technology (DLT) [Working
Title]. https://doi.org/10.5772/intechopen.86530). These companies use blockchain for
traceability, deliver clarity, reduce potential supply chain inefficiencies, decrease tracking
time, etc. From their pilot run, it is said to be that both organizations had a successful result
and achieved desired goals (IBM-Maersk Blockchain Effort Builds with Nearly 100 Users. (n.d.).
JOC.com | Container Shipping and Trade News and Analysis. https://www.joc.com/technology/ibm-
maersk-blockchain-effort-builds-nearly-100-users_20180809.html).

“Gartner Predicts 90% of Blockchain-based supply chain initiatives will suffer ‘Blockchain
Fatigue’ by 2023” (Gartner Predicts 90% of Blockchain-Based Supply Chain Initiatives Will Suffer
‘Blockchain Fatigue’ by 2023. (n.d.). Gartner. https://www.gartner.com/en/newsroom/press-
releases/2019-05-07-gartner-predicts-90--of-blockchain-based-supply-chain ). This Gartner study
says that 90% of the blockchain-based supply chain projects will be failure and many projects
won’t even reach the pilot run. This is mainly because other organizations are
misunderstanding on blockchain and the process to be followed during the implementation of
blockchain (Ranger, S. (2019, June 20). Your Blockchain Project is Going to Fail Because You Made
One of These Seven Mistakes. ZDNet. https://www.zdnet.com/article/blockchain-seven-ways-your-
project-is-probably-going-to-fail/).

Indian dairy industry is a 2.5-billion-dollar industry in India with a 6.4% growing every year
(The Dairy & Milk Processing Market in India, 2018-2019 & 2023ResearchAndMarkets.com. (2019,

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March 22). https://www.businesswire.com/news/home/20190322005336/en/Dairy-Milk-
Processing-Market-India-2018-2019-2023). India’s 150 million small dairy farmers, local
cooperatives and networks of small-scale vendors have made the country the world largest
producer of milk, because of growing market both national and international players are
entering in this market (Indian Dairy Under Threat from New Trade Deals. (n.d.). GRAIN |
Home. https://www.grain.org/en/article/6257-indian-dairy-under-threat-from-new-trade-deals).
There are many rules and regulations are implemented by Indian government for the safety of
consumers. But still the milk borne diseases are affecting the consumers in the market. This is
mainly because of less traceability and control in the supply chain of dairy products. “68%
milk & milk products in India not as per FSSAI standard: Official” ( 68% Milk & Milk Products
in India Not As Per FSSAI Standard: Official. (2018, September 5). The Economic
Times. https://economictimes.indiatimes.com/industry/cons-products/food/68-milk-milk-products-
in-india-not-as-per-fssai-standard-official/articleshow/65689621.cms?from=mdr ). Milk in India
found to be most highly-adulterated food product despite FSSAI assurances of safety,
northern part of India has more adulteration in milk compared to the other parts of India
(Foodnavigator-asia.com. (2019, June 14). Milk in India Found to Be Most Highly-adulterated Food
Product Despite FSSAI Assurances of Safety. https://www.foodnavigator-
asia.com/Article/2019/06/14/Milk-in-India-found-to-be-most-highly-adulterated-food-product-
despite-FSSAI-assurances-of-safety, FNB News - Milk Contamination in India - The Ways and Reasons
| FNB News. (n.d.). Food & Beverage News. https://www.fnbnews.com/Top-News/milk-
contamination-in-india--the-ways-and-reasons-45602).

Most of the adulteration in milk is happen in the supply chain part ( FNB News - Milk
Contamination in India - The Ways and Reasons | FNB News. (n.d.). Food & Beverage
News. https://www.fnbnews.com/Top-News/milk-contamination-in-india--the-ways-and-reasons-
45602). This paper studies and examine whether creating a blockchain platform for the supply
chain of milk and milk products will help in the reduction of milk borne diseases caused by
adulteration of milk. So that the industry can have more traceability, clarity and control over
their supply chain. This platform can also reduce the loss made by product recalls. To create a
blockchain platform for milk and dairy industry in India, we have to study the industry
clearly and have to understand the process, regulations, different certificates and more.

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Blockchain:
To understand this paper, we need to know about the blockchain (not deeply). Blockchain is
the new buzz word of 20th century. All the giant firms are betting on this new emerging
technology and many financial firms are running pilot and full version in their process. In
layman’s terms a blockchain is essentially a back-end database (called a digital ledger) that is
distributed amongst all users of the database who each have their own copy of the ledger.
This allows a blockchain to have no central party running it. Information is added to the
blockchain in batches (called ‘blocks’), which are interconnected line-items of the database,
linked together in a chronological fashion, forming a continuous ‘chain of blocks. Every line-
item on the blockchain will exist in perpetuity as data cannot be overwritten. In order to make
a change of any information in the blockchain, the change will be stored in a new block,
recording that ‘A’ changed to ‘B’ at a certain date and time. This makes the blockchain
immutable and allows users to have a full view of historical transactions, which makes all
data on a blockchain credible. In normal databases, each company will typically have their
own record of a transaction which may or may not correspond to each other. With blockchain
on the other hand, there will be a single source of truth mitigating this issue ( Blockchain
Explained. (2014, June 13). Investopedia. https://www.investopedia.com/terms/b/blockchain.asp).
Structure of a blockchain is in below diagram.

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 Figure 1.1: Structure of Blockchain

When it comes to transactions, the blockchain technology is characterized by a specific

verification process, whereby existing connected nodes in the network identify a new
transaction taking place in the network. Whenever any member of the network (a “node”)
posts a new transaction, that transaction will be added to the digital ledger of existing
transactions once it has been verified by the members. Transactions can be distinguished
based on the different scope or area of work the blockchain is set up to support. Examples are
business and legal transactions. In business transactions, a blockchain works as a way of
exchanging value between peers which could be digital assets such as insurances, currencies
or data. For legal transactions, a blockchain can eliminate the risk of falsification of
documents including but not limited to contracts, insurances and patent claims.

As with any other emerging technology, there is much confusion about the blockchain and
what business models it may support. In many cases, this confusion can be attributed to the
different blockchain structures: public and private blockchains. The original understanding of
blockchain is that of a public one where everyone has permission to read and write on the
ledger and takes part in the consensus process. A private blockchain, on the other hand, acts
as a closed ecosystem in which authorized participants can share information and record

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transactions. While a public blockchain is better suited for B2C or C2C transactions where
crypto-economics are part of the business model, a private blockchain is mainly used in B2B
ecosystems to install trust, transparency and efficiency into B2B exchanges.

Blockchain Technology in Supply Chain:

Top ten fortune companies in the world are developing their own blockchain platform in their
supply chain even though it’s a critical decision. This is because of the advantages and
benefits they get by using this technology.

Supply chain is regarded as one of the ventures where blockchain has the greatest potential to
disturb. The quantity of utilization cases for blockchain in inventory network the board
continue expanding as the business progressively acquires familiarity with the innovation. In
addition to other things, blockchain can be utilized to improve contract the executives,
improve inventory network perceivability and security and make item provenance. The
manner in which supply chains are overseen is apparently inadequate with regards to
encouraging data sharing and planning the tasks among included substances. The time that
must be given to taking care of an issue or unwinding a particular informative error will
probably increment as the system develops. Making a stride back, the principle advantages of
blockchain in store network the executives can be bucketed into two significant classes being
either 1) operational efficiencies or 2) improving trust and security. While different advances
exist so as to make inventory network perceivability, (for example, API's2 and Supply Chain
Control Towers3), a blockchain doesn't have the downsides of being incorporated and
progressively helpless to security dangers. That being stated, a blockchain isn't really the
correct device for all inventory chains as the materialness relies upon the degree of
multifaceted nature of the store network and the worth made from expanded perceivability
over the production network. While a blockchain might comprehend a lot of inventory
network difficulties, one must assess whether the impacts of blockchain as to store network
perceivability and security exceeds the intricacy of executing a blockchain. Henceforth, it is
significant for directors to completely comprehend their production network structure before
considering actualizing a blockchain arrangement. In accordance with this, supervisors
should likewise consider the basis behind executing a blockchain and how store network
perceivability and security can give huge enhancements and advantages to their inventory
network (Blockchain technology for supply chains--A must or a maybe? (n.d.). McKinsey &

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Company. https://www.mckinsey.com/business-functions/operations/our-insights/blockchain-
technology-for-supply-chainsa-must-or-a-maybe).

These advantages could for instance identify with confirming marked items against fake
items, just as giving an ensured review trail to natural crisp items. Additionally, as a
blockchain encourages upgraded data sharing between production network on-screen
characters, it will permit quicker and progressively effective merchant determination forms.
Accordingly, blockchain gives a sheltered and changeless approach to share reasonable data
in seller assessment procedures, for example, money related execution and quality principles.
This is significant in present day supply chains where merchant changes are progressively
visit.

SUPPLIER:

A supplier is the person who delivers product or service to their customer. Their main agenda
is to provide high-quality products or service to their customer which will satisfy them. A
supplier in a business is somebody who goes about as a middle person between the maker and
retailer, guaranteeing that correspondence is prospective and stock is of adequate quality.

Suppliers have a tremendously significant job at each phase of the item lifecycle. From
sourcing crude materials to helping slope up generation, and to discovering better alternatives
for crude materials as the market begins getting immersed, organizations need to work
intimately with their Suppliers to get the best out of their items (Corrigan, K. (2018, October
18). What Is a Supplier and What Is Their Role in a Business? Read More.
Oberlo. https://www.oberlo.in/ecommerce-wiki/supplier).

Importance of Technology Used by Suppliers:

A supplier is the most important partner for any business, with a goal of product delivery to
the customer. More and more adaptation of technology leads to more change in customer
expectations. The need for a real time and seamless integration in supply chain management
is become increasingly important.

For assembling organizations to fabricate considerable client bases, digitization of business

forms has gotten even more a need than a worth include recommendation. This has expanded
the necessity for making a computerized domain that flawlessly incorporates the activities did

7
by different elements in the inventory network. Mechanical progressions presently empower
organizations to manufacture start to finish inventory network arrangements that accelerate
forms and stay away from bottlenecks in the production network.

Strikingly enough, constant or close to continuous data is the key factor in production
network the board. Production network the board programming is intended to oversee and
upgrade the trading of data of across different key store network accomplices to accomplish
such results as without a moment to spare acquisition, decrease of stock, increment of
assembling effectiveness and to address client issues in an opportune manner. As a rule, these
innovation arrangements empower organizations to accomplish some degree of on-request or
mass customization in the generation cycle (Role of Technology in Supply Chain Management.
(n.d.). DirectiveGroup. https://www.directivegroup.com/ideas/tools/news/blog/role-of-technology-
in-supply-chain-management/).

Importance of Logistics in Business:

Any business leader will tell that the importance of an efficient organized logistics. They
understand that practicing seamless logistics is a key element in the customer satisfaction and
fulfilling their demand and outperforming competitors. Whatever the size of your business,
you will need to develop and extend. That most likely methods developing a local, worldwide
or worldwide level. Whatever your business area or industry, coordination’s can help cut on
the expenses and time you spend to move items starting with one point then onto the next.
Supply chains are intricate and touchy as they rely upon continually changing client requests.
An inventory network can't guarantee high esteem on the off chance that it is without
adequately composed vehicle. Therefore, coordination’s is one of the most pivotal factors in
the nature of any store network. On the off chance that you take a gander at successful
vehicle done right, you may get the feeling that it "appears to be straightforward". It really
requires a great deal of uncommon information, aptitudes and expert administration to get it
look so "easy. Try not to let the final product of good coordination’s fool you it takes a great
deal of specific help to get it to stream so easily. Powerful vehicle improves a production
network by diminishing (if not keeping away from) misuse of materials and time. This assists
supply with affixing experts transport items and convey them to the correct area, on time
which is a need for any fruitful business (Why Logistics is So Important to Supply Chains. (2016,
July 19). A & A. https://aacb.com/why-logistics-is-so-important-to-supply-chains/).

Importance of Real-Time Data in Business:

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90% of the world’s data was created in the past two years. At present, we are creating more
data than this world has ever seen. In reality as we know it where even a couple second defer
when exchanging applications on our cell phones can cause moment circulatory strain spikes,
"quick" is never again the standard that we apply to our computerized communications. This
requirement for continuous reaction isn't only a customer concern; in fact, numerous ventures
are starting to depend all the more intensely on the capacity to gather, dissect and follow up
on information immediately. Real-time data enables associations to contend all the more
viably, benefit from prompt client openings and improve productivity. Across businesses,
organizations are utilizing ongoing information to draw in with end clients, and it's getting
progressively basic to the administrations they give (Barnett, M. (2017, August 1). The
Importance of Real Time Data & Five Reasons Why You Need it. Fourth
Source. https://www.fourthsource.com/data/importance-real-time-data-five-reasons-need-22014).

Business Partners:

Figure 1.2: Benefits of Partnership

Partners is one of the important reasons for a business growth. Manufacturer and suppliers
from time taught us how to strategically partnership to do business and achieve desired
outcomes, this trend is still taken and used by till date. An association shows itself in various
structures, extending from entrepreneurs collaborating to put resources into a venture to share
specialized information and thoughts between firms. Whatever any business does, it is

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essential to search for the correct association understanding that advantages the two
gatherings.

Firms need an abundance of information and that information comes in abundance with key
association understandings. This offers you the chance to develop and gain from another's
point of view. The entirety of the information would be placed into utilization to additionally
fabricate your image and business later on. Organizations increment your rent of information,
skill, and assets accessible to improve items and contact a more prominent crowd. These set
up together alongside 360-degree criticism can soar your business to incredible achievements
(The importance of Partnership in business. (2020, February 25).
Profit.co. https://www.profit.co/blog/the-alphabet-p/partnership/the-importance-of-partnership-in-
business/).

Blockchain as a Service (BaaS) Platform:

Blockchain as a service is one the most emerging and talked about business model in this
world. Many companies and start-ups are developing their own platforms and BaaS. It is
about providing ecosystem to different business for dealing with their blockchain framework.
In this environment, the organizations can analysis, test and do look into. At the present time,
Microsoft (Azure), Amazon (AWS), IBM (BlueMix), and so forth offer blockchain as a help
(BaaS) and are the ideal case of the decentralized business model. The end clients (for this
situation business, new companies or association) don't need to stress over how blockchain
functions and don't have to set it up before chipping away at it. BaaS additionally kills the
requirement for equipment, which thusly, empowers new businesses, organizations or
associations to concentrate on their advancement cycle.

Most basic engineers or groups can't guarantee the unwavering quality and security of the
blockchain framework, which somewhat influences the nature of their applications.
Blockchain administration over distributed computing conditions, for example, organization
and framework observing, brilliant agreements investigation and testing. In view of these
administrations, designers can concentrate on the business code to investigate how to apply
blockchain innovation all the more suitably to their business situations, without trying to keep
up and screen the framework.

Blockchain-as-an administration (BaaS), the blend of cloud computing and blockchain, is a

contribution that enables clients to use cloud-based answers for assemble, have and deal with
their own blockchain applications, savvy agreements and capacities on the blockchain. The

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BaaS suppliers deal with all the important assignments and exercises to keep the framework
spry, operational and effectively open. It is an intriguing advancement with regards to the
blockchain environment that is in a roundabout way supporting the blockchain appropriation
across organizations by helping endeavors improve activity process and decrease
arrangement cost. It depends on, and works like, the idea of Platform-as-a-Service (PaaS)
model. Mists can empower the redistributing of aptitudes and skill with respect to innovation
organization and the board. Blockchain is a developing innovation, implying that specialists
in the territory are restricted, and sought after. In that capacity, BaaS can encourage
innovation get to, giving reflections over the lower-level specialized subtleties. As of now, a
key BaaS advertising center is around rapidly setting up the advancement condition to help
organizations in their craving to investigate the blockchain innovation's latent capacity.
Moreover, it can likewise give a progression of activity administrations, for example, search
inquiry, exchange accommodation and information investigation dependent on blockchain.
These administrations can assist designers with checking their ideas and models all the more
rapidly. The administration capacity of BaaS stage is encapsulated in its more grounded
instrumentality, which encourages the creation, organization, activity and checking of
blockchain. As of late, numerous enormous organizations have step by step discharged their
BaaS stages, for example, IBM blockchain and Microsoft Azure Blockchain, however the
administrations gave by these stages still have a few constraints ( What Is Blockchain-as-a-
Service (BaaS)? (2018, May 17).
Investopedia. https://www.investopedia.com/terms/b/blockchainasaservice-baas.asp).

Food Safety and Transparency:

People around the world are more concerned about the food which they eat. More and more
concerns on food safety and edible products are increasing this is because people are more
focused on their health. Consumers are stressed over the security of their food products they
consume. These worries are brought about by a proceeding with succession of food
embarrassments and episodes during the most recent decade. Accordingly, consumers call for
top notch food, food honesty, wellbeing ensures what's more, straightforwardness.
Governments are forcing new rules and regulations. Retailers are forcing new requests on
their inventory chains. Food supply chains respond by executing frameworks to improve the
item's quality and assurance its wellbeing, simultaneously making straightforward that they
do as such. Such moves can be made at the degree of either the individual organization or the
total system of supply chains. We portray the difficulties engaged with accomplishing

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sanitation and straightforwardness by coordinating in the store network organize. To this end,
we expound on a certifiable case in a SME situation.

Food safety is as of now viewed as a significant issue for all partners in nourishment
generation. Purchasers and different partners are progressively worried about the proceeding
with grouping of nourishment embarrassments also, episodes (broadly portrayed by Van
Dorp, 2004). These outrages regularly get wide inclusion in the news media and in proficient
distributions. Thus, purchasers know about BSE, dioxin, FMD, MPA, Nitrofen, and different
contaminants that were discovered wide spread in nourishment items because of blunders
underway forms or potentially connected with the utilization of sullied crude materials or
creation implies. Because of poor cleanliness in institutional kitchens, providing food and
private family units, there is an upward pattern of detailed nourishment occurrences including
salmonella, campylobacter and E. coli 0157:H7. Customer observations in this way show an
expanding concern about sanitation and about properties of the nourishment they purchase
and eat. Albeit much data is accessible because of marking shows, this doesn't generally
convert into more certainty. It is vital to the nourishment business to secure marks so as to re-
establish and keep up shopper certainty. It has been perceived that there is an expanding
requirement for straightforward data on the nature of the whole evolved way of life, upheld
by present day following what's more, following strategies (Trienekens and Beulens, 2001).
Excellent nourishment, honesty and related administrations also, data ought to be ensured.
Shoppers call for nourishment that can be completely believed, they request security
certifications and data with respectability to affirm their trust. (Respectability of data is
characterized as 'the data gave is in conformance the reality its delineates'.) This call is voiced
specifically by retailers who state necessities to be met by their providers, and is additionally
improved by NGOs and lawmakers. The EU is planning new approaches, guidelines and
laws, specifically the General Food Law (GFL). The last law will be successful as of January
2005. An ongoing diagram of current enactment and benchmarks is given by Van
Plaggenhoef, Batterink, and Trienekens (2003). Over the previous decade, quality
confirmation has gotten a foundation of sanitation approach in the nourishment business.
Much spotlight has been on necessary quality administration frameworks. These frameworks
remember all means for nourishment generation chains, for example, supply of crude
materials, nourishment producing, bundling, transportation and coordination’s, innovative
work, upkeep of creation hardware and preparing and instruction of staff. Progressively,
nourishment quality is related with a proactive strategy what's more, the production of

12
necessities to keep up safe nourishment supply (Folstar, 2001). In 1993 the FAO-WHO
Codex Alimentarius Committee has suggested HACCP as the best framework to keep up
affirmation of safe nourishment supply. Progressively, quality affirmation frameworks are
bolstered by speedy and explicit techniques for examination to a great extent due to progress
in atomic science (DNA-techniques) also as in data innovation. Coupling research centre data
frameworks to creation and the board data frameworks makes powerful systems for quality
confirmation in natural ways of life. It is normal that expansion of information on quality
deciding variables in natural ways of life will prompt improvement of confirmation and
upkeep just as to increasingly maintainable frameworks; it has been recommended that
mechanical nourishment supply has never been more secure previously (Karel, 2000). The
business network in the nourishment production network respects the call for wellbeing from
their clients, customers, government and different partners as significant main thrusts for
nonstop development. These developments centre around executing frameworks to improve
the item's quality and to ensure its wellbeing, at the same time causing straightforward that
they to do as such on the level of the production network. Organizations take such activities
both at the degree of the singular organization, the degree of individual (shut) chains of
collaborating organizations and the degree of open systems of associated supply chains
(alluded to as production network systems or SCN). Particularly the necessity of
discernibility powers organizations to coordinate on SCN level, and to set guidelines and
systems. Thus, arrangements, for example, following and following frameworks offer new
business openings (Hofstede, 2003), for example since they:

• empower coordination’s and procedure upgrades along the chain,

• have significant results as to obligation (protection organizations).

All the more explicitly, the previously mentioned sanitation concerns have lead (chains of)
organizations to respond by a blend of the accompanying activities:

1. they broaden their variety by items and brands that are related with wellbeing and quality.

2. they guarantee their respectability as for sanitation furthermore, quality in correspondence

to partners such as shoppers and government bodies.

3. they officially register their exhibition, so as to support their respectability claims.

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4. they set up both authoritative and specialized frameworks to impart inside and commonly
about their quality execution, so as to improve it (quality control frameworks, following and
following frameworks).

Affirmation frameworks are notable appearances for the most part including each of the four
degrees of activity (ISO9000, HACCP, BRC, and so on.; see Van Plaggenhoef et al., 2003).
The last three activities recognized include outer correspondence about wellbeing related
issues. (Chains of) organizations try to be straightforward on wellbeing issues. In our look
into ventures we have so far discovered that there is no common definition and
comprehension of straightforwardness. We found an assortment of lexicon things and, in
ventures, operational definitions from alternate points of view. Significant and surely
understood points of view are then the coordination’s point of view focussing on the
whereabouts of items and related properties consistently and the quality point of view where
the item and its quality properties are predominant. Hofstede (2002) proposes the following
nonexclusive meaning of straightforwardness. Apparently, straightforwardness is a critical
factor in both setting up sanitation and client trust. However, straightforwardness as of late
came up as an interdisciplinary research subject (Madumidha, S., Ranjani, P. S., Varsinee, S. S., &
Sundari, P. (2019). Transparency and Traceability: In Food Supply Chain System using Blockchain
Technology with Internet of Things. 2019 3rd International Conference on Trends in Electronics and
Informatics (ICOEI). https://doi.org/10.1109/icoei.2019.8862726).

Milk Borne Diseases and Testing:

In developing countries, in the name of industrialization humans have brought series of

serious problem to their society, one of them is collecting and distributing milk from various
sources, this gave birth to disease transmission in milk. In times past, milk was gathered from
little gatherings of animals in homesteads and it was provided to few individuals living close
by. In any case, with the approach of industrialization, populace development and
urbanization, the interest expanded definitely. Milk supply through the little homesteads
never again satisfied the expanding need. Henceforth commercialization of the milk business
at last occurred.

In light of the accessible clinical records, the absolute soonest archived flare-ups brought
about by the sullying of milk and other dairy items were likely because of diseases with
Campylobacter spp, Salmonella typhi, Corynebacterium diphtheriae or Streptococcus
pyogenes, albeit most germs had not yet been secluded around then. With the current

14
mechanically accessible devices for warm handling of milk and given the global standards
and guidelines, the danger of contamination has drastically diminished however we should
know about the generally not insignificant rundown of pathogens which can in any case cause
sporadic cases or intermittent flare-ups and of the a lot shorter rundown of pathogens which
can even now sidestep the present standards applied to the preparing of dairy items.

Many tests are performed on the milk to identify different bacteria present in it. For refined
and recognizing microscopic organisms, various kinds of media have been utilized. Milk
itself is brimming with every one of the supplements required for the organisms to develop.
In any case, when testing for various microbial species, so as to have the option to separate
and recognize various organisms, specific media are utilized (for instance violet red bile agar
for coliforms or potato dextrose agar for yeast and shape). For the standard plate check
(SPC), the MacConkey medium is utilized, at room temperature. The media is basically
utilized in two weakening’s dependent on the example accessibility. As indicated by the
International Dairy Federation guidelines, SPC is performed with non-particular media, for
example, PCA (Plate Count Agar), while MacConkey agar is a specific media used to
distinguish and disengage Gram-negative microscopic organisms. The prescribed brooding
conditions are 30°C for 3 days or 32°C for 2 days. The accompanying choices are accessible
for distinguishing gas delivering coliforms: SSLB (single-quality lactose juices – 4 g of
media powder in 100 mL of refined water with an example expansion of 1 or 0.1 mL) or
DSLB (twofold quality lactose stock – 8 g of media powder in 100 mL of refined water with
an example expansion of 10 mL).

When meaning to identify yeast and shape, the development of microorganisms should be
restrained (for instance, that of coliforms and certain spore framing microscopic organisms)
and this should be possible through the expansion of 10% tartaric corrosive to the medium.
Tartaric corrosive is utilized rather than different anti-toxins in view of its high impact at
little focuses and furthermore in light of its long-time span of usability. One significant
perspective is that media containing tartaric corrosive are single-utilize just and can't be
reused in the wake of putting away in light of the development of gas and foam in the
medium whenever put away alongside the vehicle for a more extended span. The examples
are first gathered from the accompanying inspecting focuses: milk tanker wash; examining
port of capacity storehouses; arbitrary milk packs; swabs from the laborers at the pressing

15
area; swabs from the containers utilized for capacity; swabs from the milk pressing moves;
margarine test from the yield of Continuous Butter Making machines (CBM); swabs from
spread handlers; swabs from the plastic sheets utilized for pressing spread; example of
margarine wash from CBM; irregular example of frozen yogurt from the assembling
procedure; swabs from the handlers of the dessert items; irregular paneer (Indian cheddar)
and doodh peda (desserts) tests; swabs from the handlers of paneer and doodh peda; arbitrary
margarine milk, curd and enhanced milk tests; swabs from the particular handlers; water tests
from the Effluent Treatment Plant, wash water and preparing water.

Supply Chain Management of Milk Products:

Figure 1.3: Supply Chain of Milk and Dairy Products (Source: Shah,  D. (2016). Synthesis of
Agribusiness Success Models Under Co-Operative and Private Sector in India.  SSRN Electronic
Journal.  https://doi.org/10.2139/ssrn.2885224)

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Supply chain for dairying starts from feeding the cattle. The type of grain, creature feed plant,
vetenery helps for the creature (steers and wild oxen). Milk is taken out from the mulching
animal on the consistent schedule by the dairy ranchers (huge, medium and little scale
ranchers). Assortment of milk by assortment focuses (different milk cooperatives social
orders). Milk gathered by the agreeable social orders are sent to the dairy plants where
chilling of milk, handling and bundling of milk and milk item, transportation of milk and
milk item is completed. The transportation of chilled milk and milk items starting with one
spot then onto the next is done through the methods for refrigerated vans, or protected milk
tankers vans of private, government and cooperatives social orders. Last prepared milk and
milk items are shipped to different retails outlets, stores, and to retails markets from where
the handled milk and milk items at last reaches to their end clients.

Issues and Challenges at The Procurement Stage:

1. Fulfilling occasional spikes in need and capacity to quantify the nature of secured
milk at the source.
2. Complex rationale of instalments to makers dependent on fat, strong non-fat (SNF)
and nature of milk got.
3. Monitoring truck and tanker courses, just as abilities for review, checking and
instalment dependent on course or separation.
4. Perceivability into the timeframe of realistic usability and stock-outs of crude
material.

Issues and Challenges at The Production and Standardization Stage:

1. Manual and tedious procedures for milk institutionalization estimation, dealing with
creation arranging dependent on nonstandard crude material, tending to developing
nourishment worries from buyers.
2. FAT bookkeeping and powerful following of FAT misfortune in the creation
procedure.

Issues and Challenges at The Small Suppliers’ Level:

1. Insufficient bolstering of creatures.

2. High disease capacity.
17
 3. Low hereditary capability of creatures.
4. Absence of chilling areas.
5. Abuse of ranchers.
6. High production costs.
7. Deferred instalment of duty.

Issues and Challenges at Collection Location Level:

1. Milk base predominantly comprising of little holders.

2. Contribution of such a large number of mediators.
3. Holes in data.
4. Improper screening system.
5. Absence of Infrastructure.
6. Control of the nature of milk by the ranchers.

Issues and Challenges at The Processing Stage Level:

1. Seasonal Production and fluctuating supply.

2. No quality standards.
3. Adulteration and Food security.
4. Absence of prepared and gifted specialists.

Issues and Challenges at The Storage and Logistics Stage Level:

1. Lack of cold storage facilities.

2. Improper in maintaining temperature of products during transportation and storage.

Advantages of Blockchain In Food Traceability:

Traceability is essential in preventing or responding quickly to food contamination, disease,

drug or pesticide residues, or attempted bioterrorism

Transparency: One of the greatest advantages of blockchain is its open nature. Blockchain
innovation gives provenance, detectability and straightforwardness of data. For instance, in a
nourishment store network, the entirety of the exchanges for one thing of nourishment can be
seen and approved anytime. This will permit each gathering in the inventory network to have

18
a superior image of the nourishment's excursion, all as a computerized record gave in the
blockchain.

Security: Blockchain gives a changeless record of exchanges, which are then assembled in
hinders that can't be modified or messed with. Exchanges are checked and affirmed by accord
among members, making misrepresentation increasingly troublesome. Nourishment extortion
is subsequently more uncertain and, on the off chance that it occurs, simpler to spot.
Simultaneously, buyers are consoled that organizations can't change the data in an offer to
conceal the genuine source and development of the item through the inventory network.

Decentralized: Blockchain gives a nonpartisan open stage. No outsider is expected to

approve exchanges – rather, there's a lot of decides that all members — the two clients and
the administrators of the framework — must maintain. This is profoundly significant in
complex stock chains were trust is low and consistence is hard to measure. Actually, The
Economist has named blockchain "The Trust Machine".

Real-time data: Because blockchain innovation works on a conveyed (instead of

incorporated) stage, every member approaches the very same record records. At the point
when data is refreshed, it's refreshed for everybody in the system simultaneously. This
engages the entire store network to be increasingly receptive to any misrepresentation
dangers or sanitation calamities.

Blockchain innovation could carry points of interest to each player inside the store network:
producers, processors, merchants, providers, retailers and controllers. Here are some of them:

Producers – Any endeavors to mess with a nourishment thing as it travels through the
inventory network can be quickly distinguished and forestalled before the nourishment
arrives at the retailer.

Retailers – Should a possibly unsafe nourishment item make it onto racks, stores can
distinguish and expel just the dangerous things. This takes out the requirement for expensive
group reviews.

Consumers – The straightforwardness and receptiveness of the blockchain consoles shoppers

that the nourishment they are purchasing and eating is actually what the name says it is. At
present 75% of customers don't believe the precision of nourishment marks.

ADVANTAGES OF BLOCKCHAIN:

19
Improved traceability:

If your company deals with products that are traded through a complex supply chain, you’re
familiar with how hard it can be to trace an item back to its origin. When exchanges of goods
are recorded on a blockchain, you end up with an audit trail that shows where an asset came
from and every stop it made on its journey. This historical transaction data can help to verify
the authenticity of assets and prevent fraud.

Greater transparency:

Transaction histories are becoming more transparent through the use of blockchain
technology. Because blockchain is a type of distributed ledger, all network participants share
the same documentation as opposed to individual copies. That shared version can only be
updated through consensus, which means everyone must agree on it. To change a single
transaction record would require the alteration of all subsequent records and the collusion of
the entire network. Thus, data on a blockchain is more accurate, consistent and transparent
than when it is pushed through paper-heavy processes. It is also available to all participants
who have permissioned access. To change a single transaction record would require the
alteration of all subsequent records and the collusion of the entire network.

Enhanced security:

There are several ways blockchain is more secure than other record-keeping systems.
Transactions must be agreed upon before they are recorded. After a transaction is approved, it
is encrypted and linked to the previous transaction. This, along with the fact that information
is stored across a network of computers instead of on a single server, makes it very difficult
for hackers to compromise the transaction data. In any industry where protecting sensitive
data is crucial — financial services, government, healthcare — blockchain has an opportunity
to really change how critical information is shared by helping to prevent fraud and
unauthorized activity.

Increased efficiency and speed:

When you use traditional, paper-heavy processes, trading anything is a time-consuming

process that is prone to human error and often requires third-party mediation. By streamlining
and automating these processes with blockchain, transactions can be completed faster and
more efficiently. Since record-keeping is performed using a single digital ledger that is shared
among participants, you don’t have to reconcile multiple ledgers and you end up with less

20
clutter. And when everyone has access to the same information, it becomes easier to trust
each other without the need for numerous intermediaries. Thus, clearing and settlement can
occur much quicker.

Reduced costs:

For most businesses, reducing costs is a priority. With blockchain, you don’t need as many
third parties or middlemen to make guarantees because it doesn’t matter if you can trust your
trading partner. Instead, you just have to trust the data on the blockchain. You also won’t
have to review so much documentation to complete a trade because everyone will have
permissioned access to a single, immutable version.

Challenges of Blockchain:

51% Attacks:

The Proof of Work accord calculation that secures the Bitcoin blockchain has demonstrated
to be proficient throughout the years. Nonetheless, there are a couple of potential assaults that
can be performed against blockchain systems and 51% assaults are among the most talked
about. Such an assault may occur on the off chance that one substance figures out how to
control over half of the system hashing power, which would in the end permit them to upset
the system by deliberately barring or changing the requesting of exchanges.

Regardless of being hypothetically conceivable, there was never a fruitful 51% assault on the
Bitcoin blockchain. As the system becomes bigger the security increments and it is very
impossible that diggers will contribute a lot of cash and assets to assault Bitcoin as they are
better remunerated for acting sincerely. Other than that, a fruitful 51% assault would just
have the option to adjust the latest exchanges for a brief timeframe on the grounds that
squares are connected through cryptographic evidences (changing more established squares
would require immaterial degrees of processing power). Likewise, the Bitcoin blockchain is
extremely flexible and would rapidly adjust as a reaction to an assault.

Data Modification:

Another downside of blockchain systems is that once data has been added to the blockchain it
is very difficult to modify it. While stability is one of blockchain’s advantages, it is not
always good. Changing blockchain data or code is usually very demanding and often requires
a hard fork, where one chain is abandoned, and a new one is taken up.

21
Private Keys:

Blockchain uses public-key (or asymmetric) cryptography to give users ownership over their
cryptocurrency units (or any other blockchain data). Each blockchain address has a
corresponding private key. While the address can be shared, the private key should be kept
secret. Users need their private key to access their funds, meaning that they act as their own
bank. If a user loses their private key, the money is effectively lost, and there is nothing they
can do about it.

Inefficient:

Blockchains, especially those using Proof of Work, are highly inefficient. Since mining is
highly competitive and there is just one winner every ten minutes, the work of every other
miner is wasted. As miners are continually trying to increase their computational power, so
they have a greater chance of finding a valid block hash, the resources used by the Bitcoin
network has increased significantly in the last few years, and it currently consumes more
energy than many countries, such as Denmark, Ireland, and Nigeria.

Storage:

Blockchain ledgers can grow very large over time. The Bitcoin blockchain currently requires
around 200 GB of storage. The current growth in blockchain size appears to be outstripping
the growth in hard drives and the network risks losing nodes if the ledger becomes too large
for individuals to download and store.

22
23
 CHAPTER 2

METHODOLOGY

24
Objectives:
 To analyse the supply chain of milk and milk products and also the challenges and
problems in it.
 To deploy blockchain technology for Indian food ecosystem to increase the safety and
reduce waste.
 To create a blockchain platform which will help the traceability and transparency of
the supply chain of milk products and make it more efficient and simpler for the
suppliers, manufacturers and customers.

Literature Review:
Blockchain technology has been recommended as a solution for networking issues
(McConaghy, McMullen, Parry, McConaghy, & Holtzman, 2017), trust concerns (J. Wang,
Wu, Wang, & Shou, 2017; Weber et al., 2016), and traceability in the supply chain
(O’Marah, 2017). Blockchain remedies allow supply chain parties and stakeholders to track
bottlenecks in the flow of products. The system can discover if the products are kept in one
place for a long time or placed at a wrong location which is particularly significant for
refrigerated goods (Casey & Wong, 2017). Moreover, blockchains provide right and precise
information about potential suppliers and customers’ liquidity as well as current financial
status. In fact, blockchain is a solution for risk reduction and trust enhancement among
supply chain partners (Tapscott & Tapscott, 2017). Blockchain remedies with its features
capable of traceability and transparency enhancement, are considered an approach for the
supply chains monitoring concerns (Casey & Wong, 2017). So potential challenges such as
supply chain sustainability can be tackled through applying blockchain solutions. In this way,
all company transactions are recorded in the ledger which makes it possible to proof
responsibility and company dishonesty in sustainability related issues
(Xia & Yongjun, 2017). In addition, many researchers have proposed the deployment of
Internet of Things (IoT) technologies, including RFID (Radio-Frequency Identification),
WSN (Wireless Sensor Network), GPS (Global Positioning System) and GIS (Geographic
Information System), etc., in supply chain management. The position of products, packages
and shipping containers can be traced at each step with IoT, radiofrequency identification
(RFID) tags, sensors, barcodes, GPS tags and chips. This allows an enhanced, real-time
goods tracing information reliability and security. The combination of blockchain and the IoT
is proposed to tackle the aforementioned challenges in addition to preserving consistent data.
Offering a reliable sharing service, blockchain can be used to develop the IoT, where

25
information is trustable and observable. Data sources are always detectable and it will stay
immutable through enhancing the security. This integration would be a key solution under
circumstances where the IoT credential information should be distributed among numerous
members in the network. This has been initiated to be known as cited by Malviya (2016),
when blockchain technology has been proposed as the solution to privacy, scalability and
tractability concerns in the IoT paradigm. Nevertheless, blockchain is not completely
perceived yet and the tendency to its application for supply chain traceability beside IoT is
still in preliminary stages due to its immaturity (Francisco & Swanson, 2018). Additionally,
even the most innovative and high-level technologies are impractical if they are not
properly being adopted by their users in spite of the hype and potentials (Mathieson, 1991).
For this reason, in this research, we have tried to apply the blockchain technology in order to
address the participants trust requirements in collaborative business processes of agricultural
supply chain. In this context, this research pursues the integration between the blockchain
technology and IoT in supply chain in the agricultural industry. Our proposed research would
be conducted through Design Science Research (DSR) method. Using Design Science
Research method, this research is going to design an artifact to explore the most important
trust oriented requirements and priorities at every stage of agricultural supply chain for a
blockchain information system in order to implement real-time
agricultural food traceability, and significantly improve the trust among agricultural supply
chain stakeholders. Proposing Q methodology as the research artifact, through the iterative
approach of DSR, we are going to explore supply chain participants’ subjectivity about the
trust requirements and priorities in different stages of agricultural supply chain that can be
fulfilled by the blockchain features, and consequently evaluate the blockchain contribution to
agricultural supply chain trust improvement. Global supply chains are growing more complex
and complicated. Current supply chain system operates under disparate methods between
disconnected systems where there is no clarity of a single state of truth. Everyone in the
ecosystem maintains their own current state in isolation, which leads to challenges like lack
of transparency, traceability, accountability, and efficiency (Roy, Ganguli, & Goswami, 2019,
p. xx).
Using the proposed blockchain-based framework with smart contracts, supply chain
managers can track the progress of logistics and cash flows and consequently develop
corresponding strategies to mitigate inefficiency. Using the proposed blockchain-based
process to track the supply chain process in a timely manner and enhance the degree of
supply chain process automation might be a good starting point for future research regarding

26
the improvement of supply chain performance (Chang, Chen, & Lu, 2019, p. xx). The roots
of blockchain technology lie in other fundamental underlying technologies such as data base
systems, public key cryptography, smart contracts, and consensus protocols (Kumar, Liu, &
Shan, 2019, p. xx).

Blockchain technology is new buzz word. Seems that it does not have great impact in the
society. But it has been a familiar for majority of the society. Using data gathered, one will be
able to recognize if our current society is ready for implementation of BT in supply chain.
Large majority of our society is expecting to soon have blockchain integrated into supply
chains. The industries include transportation, products sold, food, medical and health,
finance, and more (Cohen, 2019, p. xx).

In one research, blockchain technology is used in transaction between High-value

Commodities. This is a business model like Amazon for High- Value commodities. The
business model is focused for real-estate, diamond and rare art industry. They use gRPC to
communicate, synchronize data and data sending. In this research they are focusing on the
transaction speed (Xu et al., 2019, p. xx). This is prototyping development. The prototype
allows not only faster development of blockchain applications, but also faster integration with
the supply chain business (Sinclair, Shahriar, & Zhang, 2019, p. xx). There are some
advantages implementing blockchain in supply chain. They are Reducing paper work and
administrative costs, Reducing or eliminating fraud and counterfeit products, facilitating
origin tracking, Recalling a product in a time-efficient way (Azzi, Chamoun, & Sokhn, 2019,
p. xx).

Some companies have started integrating blockchain with IoT’s by using IoT as a bridge
between virtual and real world. And the nodes will be communicating with the help of IoT
(Rožman, Vrabič, Corn, Požrl, & Diaci, 2019, p. xx). A decentralized, peer-to-peer platform
called BPIIoT for Industrial Internet of Things based on the Block chain technology. With the
use of Blockchain technology, the BPIIoT platform enables peers in a decentralized, trustless,
peer-to-peer network to interact with each other without the need for a trusted intermediary
(Bahga & Madisetti, 2016, p. xx). BT connects the nodes into a public and secure system that
provides reliable services of a supply chain. Breaking complex logistics system on smaller
parts, individual users of the platform are taking care of fewer processes at any given moment
(Rožman, Vrabič, Corn, Požrl, & Diaci, 2019, p. xx).

27
An agri-food supply chain company uses RFID with blockchain for better traceability
systems. With trusted information in the entire agri-food supply chain, which would
effectively guarantee the food safety, by gathering, transferring and sharing the authentic data
of agri-food in production, processing, warehousing, distribution and selling links (Feng
Tian, 2016, p. xx). The novelty of the technology makes it a risky proposition especially
given the lack of knowledge and understanding. Many companies are still trying to parse the
hype from the true capabilities and potential (Saberi, Kouhizadeh, & Sarkis, 2019, p. xx).
One research study tells that organization should not blindly believe Blockchain, in each and
every step of supply chain there should be traditional quality check and auditing process to
create a legit transactional record. This will thereby to trust the whole transaction. If a party
obtaining or owns more than 50% of thenetworks hashing power, it could present a threat to
the consensus protocol thereby allowing the miners themselves to enter illegitimate
transactions into the block chain. Important advance as it means that any falsification of the
material source has to be done prospectively in real time, which is a much harder challenge,
than at any time retrospectively falsify a physical transactional record, where hard copy
documents can be simply substituted with new versions containing different facts (Shireesh
Apte & Nikolai Petrovsky, 2016, p. xx).

Supply chains are increasing in complexity. Globalization, shifting cultural and socio-
economic structures, sustainability influences, and new technologies are all aspects causing
greater complexities. Managing supply chain networks and distributing goods is critical to
also maintaining organizational competitiveness (Sarpong, 2014). The supply chain can span
over many vertical stages, hundreds of horizontal relationships, multiple geographical
locations, diverse financial systems and payment structures, multiple individual personalities
and entities involved, and with varying temporal pressures depending on the product and
market. These dimensions are difficult to manage and typically the best we can do is make
them initially effective and efficient with continuous improvement as a goal. Many have
viewed new technologies to help in this improvement goal. Our first caveat in this situation,
before we go into the supporting technology, is that technology – alone – will not solve
supply chain concerns. In this report we focus on one particular technology, an information
and networking technology – blockchain. Blockchain’s prominent use in the cryptocurrency
community (Swan, 2015) has caused practitioners, developers, organizational users, and
academics to parley it into an enabler for supply chain improvement and competitiveness
(Saberi et al., 2018). Blockchain – essentially a distributed, digital ledger – has many

28
applications and can be used for multiple types of exchange, agreements and contracts,
tracking, and payment (Crosby et al., 2016).
Blockchain’s promise and hype are difficult to parse (Saberi et al., 2019). A sanguine
perspective seems to have taken hold over the past few years, although judiciousness in
capabilities, as with all technologies has become more prominent. Proponents for blockchain
in supply chain have argued that increases in efficiency and transparency from blockchain
can positively influence a number of supply chain activities. Managing inventory, material
flows, warehousing, designing products and services, to the delivery and payment; are only
some of the supply chain activities that are purported to be influenced (Kouhizadeh & Sarkis,
2018).
Maintaining the reliability and integrity in the supply chain is another important capability
that can be provided by blockchain (Kshetri, 2018). Overall, according to the strongest
proponents, enhanced transparency, improved auditability and security, and potential for
innovation, are positive measures and influence the supply chain industry if they adopt
blockchain.

Research Gap:

1. Why did we choose milk industry instead of choosing other industry in FMCG?

Milk products has one of biggest growing market in India and India is one of the biggest
producers of milk and milk products. But the supply chain of milk products in India doesn’t
had changed in the past decades. No new innovations or technologies has implemented in
supply chain of milk. Because of this many farmers and consumers are suffering and
impacted because of the lag in this supply chain. As per the study, almost 68% of the milk
produced in India are contaminated with disease. Many had lost their lives because of
consuming contaminated milks. There are no research or studies conducted to implement
technology in the supply chain of milk and milk products. This is the reason why we choose
milk industry rather than other industries.

2. Where there is no research or studies made on the supply chain of milk industry?

All the researches regarding supply chains are based on manufacturing of automobiles,
logistics, reverse logistics, etc are made. And there are studies which explains the supply
chain of milk products. But there is no researches or studies which can change or implement
new technology in the supply chain model to increase the efficiency.

29
3. On what basis we considered blockchain technology for the milk products supply chain?

Walmart and Maersk implemented blockchain technology in their supply chain to increase
the traceability, speed, efficiency and decrease the paper work. Especially in the case of
Walmart, Walmart used blockchain technology in their mango and pork supply chain to find
the origin of the products, reduce the defects and increase the traceability of the products.
And blockchain is the new technology which is used by other industries in their supply chain
to increase the security and traceability of the products. From this we concluded that
blockchain will help the milk products supply chain and will take them to next phase of
industry 4.0.

4. Will blockchain be implemented in all the phases of the supply chain of milk products?

No, blockchain will be implemented in the phase wise. Because you cannot implement
blockchain in supply chain at one stretch, because milk products supply chain consists of
huge network from all over the country, mostly in rural part of the country. Most of the
producers of milk are from the village side of the country, data entry will take a huge amount
of time such as feeding the database with the farmer, cows and places details. There are many
procedures during the collection of milk in the co-operative milk collection centre. To make
this as a process it will take huge time and there was less time to understand and study the
milk industry.

5. Why did you choose this design for the blockchain platform?

The proposed model for the blockchain platform is defined from the Maersk blockchain
platform. It is very successful model when compared to other industries and also very easy to
implement when compared to other models in this industry. This is the main reason why the
Maersk model is chosen.

Discussion and Data Collection:

Documentation and Certification in milk products supply chain is gathered by interviewing

industry experts, retailers and FSSAI documents. The Blockchain platform is reviewed by
industry experts

Question 1: How the supply chain of milk from farmers till the packaging works?

When a local farmer brings his milk from mulched cow to the co-op milk collection centre
will be checked for quantity and FAT percentage in it. The FAT percentage is the important

30
key to decide the price of the milk. For example, if the milk contains more than 13% of FAT
then it will be getting the highest price. Then this milk will be stored in the milk container
which will be transported to the processing plant. From this plant the raw milk is processed
and made into different products, packed and sent to different places for the customers.

Question 2: Do you have any system or cloud data to store which farmer gave the particular
milk?

No, we don’t have any technology to store the data which contains who and where the
particular batch of milk is produced. But there will be ID cards for the farmers and the cows
will be having a tag number which will be enrolled in the local government veterinary
hospital. Because the farmers who grow cows should have the record whether the cow is
treated with proper medicines and flu injections. These data’s will be easily available in the
local hospital. Every farmer will be having an ID with him because the government is giving
incentives to them for agricultural purpose.

Question 3: How will you trace the milk from origin till end? Do you have system to track
them from end to end?

No, we cannot trace if the milk is mixed with other batches. Because all the milk from one
collection point will be filled and transported in a milk container. Once it reaches the
processing plant all the milk from different collection point will be mixed and processed to
desired products. So, we cannot track which product is from which batch of milk. There is no
system which can track from end to end

Question 4: If there is any contamination in milk or if cow from particular region is diseased,
you will be rejecting all the products?

Yes, if there is any contamination, we will be rejecting all the products because there is no
way we can trace and point that this particular batch only had that issue.

Question 5: If there is a platform which can trace and contains all the data of milk such as
origin, which cow’s milk and who is the donor of the milk, at what time and date it is
collected, etc, will that be useful for you?

Yes, because at present situation we cannot trace or can see the origin of the milk. And there
are many problems. So, if there is a platform which can show or record all the data to make it

31
more visible, will be useful for us. This will increase more transparency in the system, so
there will be no adulteration in the milk and will be safer for the customers.

32
CHAPTER 3
FINDINGS

33
Documents and Certificates in a Milk & Dairy Supply Chain:

Figure 3.1: Documentation involved in milk & dairy supply chain

A. Legal
i. FSSAI License and Registration of Manufacturer/Supplier/Dealers/Retailers
ii. Pollution Control Board Certificate of plant/manufacturing unit
iii. Record of Discharge Effluent & its Compliance with statutory requirements - ETP
Compliance
B. Procurement/Quality
1. Raw material receiving and traceability records (including records for milk being
received from Milk Collection Centres, BMCs, Chilling Centres).
2. Receiving records for raw materials and additives (other than milk)

34
3. Quality Control / Lab test reports records/Compositional analysis/Microbial test
records – raw milk, processed milk and milk products.
4. External testing reports - Microbiological / chemical test reports pertaining to milk
and milk products, water, other food ingredients, additives etc
5. Certificates of Analysis/COA
6. Internal and external audit records/ Corrective action (CAPA).
7. Records for receipt of packaging materials and COA/Supplier certification.
8. Certificate for Virgin / food grade Packing material
9. Certificate of Ink approved for use for milk and milk products packet.
10. Testing record of Packaging materials.
11. Records of samples picked up FSSAI/State FDA authorities.

35
Blockchain Platform for Milk and Dairy Supply Chain:
The given below diagram is the model for the Milk & Dairy Blockchain Platform. This
platform consists of all the blocks which can trace a batch of milk from start to end. By using
this platform traceability of milk products will be easier and faster when compared to
traditional because there is no existing platform for the milk & dairy industry.

Figure 3.2: Blockchain Platform for Milk and Dairy Products

Milch Cow:

For milk, the process starts from milking cow. This process will happen in a big farm or by
an individual cow. Every cow has a certificate and every farm has a license from state and
central authority. When the milk is milch from cow the milk quantity is measured. The
farmer should upload all the certificates of cow such as medical and other certificates in the
platform which will be used for traceability.

Co-op Collection:

Each and every state have co-op collection centre to collect milk. All most all the villages and
towns have this collection area where farmers bring their milch milk and test it for standards
and sell it. Every farmer has their own identity card and has unique number in it. The co-op

36
collection officer will register his entry and start testing the milk. In this testing, the
temperature, FAT percentage and quantity of the milk is calculated. This will be entered in
the platform. This method of collecting data will be secure and can be used for future uses.
By storing certificates and test results in blockchain platform a checking officer can anytime
see and verify the milk product for authenticity.

Trucker:

In this stage the co-op collection will send the collected milk from the farmers to processing
plant for producing dairy products from it. The co-op centre has assigned a trucking company
which is capable of collecting and delivering milk to processing plant in controlled
temperature. In this process the truckers will come to the co-op collection point and load all
the milk containers into their truck and deliver it to the processing plant. During this process
the trucker has to have many documents and license to transport milk in his truck. Even if
there is one document is missing the state authorities will cease the truck which leads to
contamination of milk which is inside the truck.

The truck will be equipped with temperature sensors, security camera, RFID sensors, etc.
These sensors are connected to the blockchain platform which will be monitored directly by
the persons who are tracking the trucks. This process and technologies will help customers
for real-time data collection. Through this technology a processing plant can identify whether
the milk which is transported in truck is maintained in controlled temperature.

This will help companies to analyse and monitor milk throughout the transportation stage. By
doing this companies can recommend trucks to improve quality and eliminate errors in their
process.

Processing Plant:

Milk is one of the most consumed items that are devoured by individuals from over the
world. There are various milk handling plants that have been set up so as to take into account
the necessities of the shoppers. There are improvements occurring in the mechanization of
dairy preparing plants in the nation. These have functioned admirably to complement both the
quality just as the amount of milk generation in India.

The plant will record all the process which are done during the production of milk and milk-
based products. Such as ingredients, temperature, etc. These data’s will be stored in the
platform. This will process of storing will happen in batch system so that they can

37
differentiate the products and can reduce the replacement cost of products if they get
contaminated. After this the processing plant will upload the documents and certificates
which shows the proof that the milk is processed in the right standards.

The certificates consist of all the documents such as the equipment and machineries details
which are used for the process such as their manufactured date, their service date and their
temperature and chemicals used during the process. This will enable the companies to track
the manufacturing process completely without any latency and false data.

Warmth treatment might be delegated:

 Purification
 Sanitization (In Bottle)

UHT (ultra-high-temperature) treatment coordinated with aseptic pressing.

Purification HTST (high-temperature brief timeframe - warming at 72°C for 15 seconds)

satisfies the accompanying fundamental goals:

 To defend general wellbeing by crushing every single pathogenic bacterium.

 To expand the keeping nature of fluid milk by devastating the greater part of the milk-
souring miniaturized scale life forms.
 To guarantee an item with a decent keeping quality.

Cleansing (in bottle) is the term applied to a warmth treatment process which has a
bactericidal impact more prominent than sanitization. Despite the fact that it doesn't bring
about sterility, it gives the prepared milk a more drawn out time span of usability. This is
accomplished halfway by utilizing a progressively extreme warmth treatment (about 110°C
for 20–30 min) and incompletely by applying the treatment after the jug is filled and fixed
which takes out the danger of pollution during bundling. Because of the long holding time at
this raised temperature, the item has a cooked flavour and an articulated dark coloured
shading.

UHT treatment is a procedure of high bactericidal impact, created as a ceaseless stream

process in which the milk is warmed at 135°C–150°C for around two seconds in particular.
This treatment must be coordinated with aseptic bundling in sterile compartments. UHT milk
has less articulated cooked flavour and no darker shading.

38
As a basis for bundling prerequisites for purified milk all in all, a time span of usability of a
few days at a temperature underneath 10°C can be expected. In-bottle disinfected milk can
regularly be kept for quite a long time and UHT milk aseptically bundled can be kept for a
while, both without refrigeration, gave the bundle isn't opened. In the wake of opening, the
sterility of the item is lost and the time span of usability turns out to be near that of sanitized
milk.

Offers of unpasteurized milk are uncommon in nations with a created dairy industry and
frequently precluded by law. In any case, there are some place obtained milk is bubbled at
home as a typical propensity despite the fact that the crude milk is of a high sterile standard.
In such cases heat treatment in the milk plant might be considered as a pointless cost and not
legally necessary. This is the situation in Switzerland, albeit even there as of late the portion
of warmth treated milk in the all-out deals is expanding.

Packaging Plant:

When the item fabricating procedure is done, the milk goes to the filling and bundling
process. Milk can be stuffed into various kinds of bundles: container, glass, pockets, PET
jugs, and so forth. Disinfected milk that requirements to have a long timeframe of realistic
usability ought to be filled and pressed utilizing aseptic advancements. For this situation, past
cleansing of the bundle ought to likewise be finished. MachinePoint Engineering supplies
filling and pressing frameworks and furthermore aseptic filling and pressing frameworks.

Contingent upon the sort of milk created the innovations and procedures change.
MachinePoint Engineering supplies the accompanying gear and innovations:

 Milk Reception Systems

 Putting away frameworks: Tanks, Aseptic Tanks, Valves and Pumps Solutions
 Blending Units
 Cream separator or Milk institutionalization
 CIP/SIP units
 UHT , Pasteurizers, Filtration frameworks
 Warmth exchangers
 Homogenizers
 Goal
 Drying and fixation advances

39
  Evaporators
 Filtration advancements
 Filling and Aseptic Filling
 Bundling and aseptic bundling in glass, container or plastic Water sanitization or
cleansing line

Delivery Truck:

Completed items must be appropriately secured during delivery. The kind of vehicle or
holders required relies upon the sort of item and the conditions under which it must be
moved. Except if you take successful control measures, completed items may get defiled
during delivery or may not arrive at their goal in a reasonable condition for utilization. This
can happen in any event, when legitimate cleanliness control measures were taken when you
made the item.

Transportation control measures ought to include:

 Shielding item from potential wellsprings of sullying.

 Isolating item from non-perfect items on a similar burden.
 Shielding item from harm that could make it unsatisfactory for utilization.
 Keeping the item at the correct temperature to forestall the development of
deterioration smaller scale living beings that may abbreviate the timeframe of realistic
usability of the item.

The vehicles and compartments used to ship nourishment ought to be kept clean and in great
condition. In the event that you utilize a similar vehicle or compartment for moving various
nourishments or for shipping non-nourishment items, it must be successfully cleaned and
sterilized (if fundamental) between loads.

Criteria for receiving:

At the point when you get fixings or bundling materials, outwardly assess the vehicle to
affirm:

 It is appropriate for shipping nourishment (it ought to be very much fabricated, kept
up in great condition, simple to spotless and encased to shield the heap from residue,
exhaust and climate)
 It is spotless:

40
  The administrator can demonstrate when it was last cleaned
 It doesn't have any smells
 There are no indications of rat movement
 On the off chance that different things are carried on a similar vehicle, they are:
 Not things that might taint your fixings or bundling materials
 Appropriately isolated from your fixings or bundling materials (for instance, by
utilizing physical dividers or plastic overwrapping)
 On the off chance that the fixings or completed item must be kept at a particular
temperature:
 The vehicle has kept them at that temperature
 The temperature was observed and recorded all through the excursion
 Make a record of the state of the vehicle for every conveyance got.
 Sign shipment solicitations and keep them on document as a record of receipt.

Criteria for shipping:

Before items are stacked onto the vehicle, outwardly investigate the vehicle to ensure:

 It is at the correct temperature for the item being delivered

 It can keep the item at the correct temperature all through the excursion
 The temperature can be checked during the excursion
 The vehicle is inacceptable condition, spotless, liberated from scents and liberated
from any indications of rat or bug exercises
 The item is adequately shielded from defilement, including residue and vapor
 Cleaning records are accessible
 No different things being dispatched in the vehicle could sully your item
 Your item will be adequately isolated from some other kinds of nourishments or non-
nourishment things in the vehicle during the excursion
 Record the aftereffects of your review.
 Ensure the completed item being stacked is in sound condition with no open, spilling
or harmed compartments. Burden the vehicle in a manner that keeps your item from
getting harmed or sullied.

41
  For items requiring refrigeration, pre-cool the trailer, turn off the reefer preceding
stacking (to forestall ice develop), load rapidly and afterward walk out on following
stacking.

Distribution Centre:

As distribution is the last stage in the promoting of milk and milk items, the offices for
dispersion ought to guarantee that the nature of the items are kept up, alongside its auspicious
inventory. The report finds that presently around 80% of the absolute milk delivered is
conveyed through the profoundly divided chaotic division, which incorporates nearby milk
merchants, wholesalers, retailers, and the makers themselves. Then again, the composed dairy
industry appropriates the staying 20% of the complete milk produced. The report has likewise
distinguished a few difficulties in the conveyance of milk items in India. As per the report,
perhaps the greatest test looked by the dairy business is the lopsided circulation of cold chain
offices all through the store network. This frequently brings about the perishability of the
item because of longer occasions taken in arriving at the office and the end shoppers.
Different difficulties in the dissemination of milk items incorporate - low infiltration into the
rustic market, absence of appropriate transportation foundation, absence of mindfulness on
great conveyance rehearses, and so forth. As per an expert at IMARC Group "despite the fact
that the sorted out dairy area in India has a few retailers and merchants, there is as yet the
requirement for a composed system of wholesalers to help decrease the circulation costs by
institutionalizing the appropriation procedure".

Aside from the dissemination framework, the report likewise gives an understanding into
different parts of the dairy business in India, for example, the market size, showcase
fragments, key players, costs, acquirement, government arrangements, exchange, and so
forth. The report which depends on both work area-based research and various rushes of
essential research is an unquestionable requirement perused for any individual who intends to
wander into the dairy business in any structure.

Wholesaler and Retailer:

Wholesalers and retailers will procure their stocks from distribution centre. After buying
stocks the milk and milk products will be sent to the stores which are located in different part
of the region. These stores will be located in the highly demanded area such as heart of city
or where market demand is high. Some retailers will be having delivery van or persons who
can deliver the products directly to customers house.

42
43
MODULE STRUCTURE OF LOGISTICS PLATFORM:

Figure 3.3: Module Structure of Logistics Platform

The logistics module structure is divided into three layers. The top layer is the transaction
layer which is used to complete the operation of forward and reverse logistics services
throughout the process, including transportation, tracking, customs declaration, bill payment,
after-sales service, and so on.

44
The middle layer is the collaboration layer. According to the information obtained in the
transaction layer, forwarders take part in a particular task through cooperation with other
logistics providers. They consider the uncertainty and risk of logistics jobs, design an optimal
plan and send it to the transaction layer users.

The bottom layer is the management layer. The central control system manages the integrated
task and stores the data which obtained from the above two layers to the database. At the
same time, it acquires the latest management orders going through the analysis of DSS.

45
CHAPTER 4
CONCLUSION

46
CONCLUSION:

Compared to the traditional supply chain with the newly proposed blockchain platform for
milk and dairy supply chain, the proposed blockchain platform might have significant
advantages. The proposed blockchain based supply chain can improve the degree of
automation and transparency, the study shows that there are many chances that a manufacture
can have control over the supply chain and they can use all the information available in the
blockchain platform for the safety of the consumers. This can increase the transparency in the
supply chain and reduce waste and increase the security of the milk and milk products (as
proposed in the Walmart case). Blockchain technology is an emergent and potentially game-
changing technology for supply chains (Blockchain: A Technology Game Changer. (2018, August
29). Hacker Noon. https://hackernoon.com/blockchain-a-technology-game-changer-acfce5c8af1b,
403 Forbidden. (n.d.). 403 Forbidden. https://supplychaingamechanger.com/blockchain-in-the-
supply-chain-is-a-game-changer/). There are many technologies available in the market, and
also many barriers to adapt in the supply chain management. Many companies are still trying
to adapt this technology by using it to full capacity and potential. In this paper we have
showed the model and different methods to adapt and implement blockchain in the milk and
dairy supply chain. We had our study to reviewed by expert panel members who work in the
milk industry for many years. But we couldn’t make trail run for the proposed model because
of time and human resource constrains. So, we leave the experimental part of this model for
future study and research.

47
 CHAPTER 5
BIBLIOGRAPHY

48
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APPENDIX

52
Appendix:

To analyse the projected model in this paper, there is no research conducted on this subject to
make sure whether the developed model is appropriate or not. To justify this, we have
interviewed experts who is in the milk industry for more than 7 years. His name is Krishna
Murthy, who is working as a secretary in the co-op milk collection centre in Puttuthakku,
Vellore. We asked questions about the supply chain of milk, challenges, and traceability of
the product. And also, we showed our blockchain platform model and asked his opinion
about it.

53