Food industry told to harness blockchain amidst stricter safety rules

Parliament wants to ensure unsafe food can be quickly removed from the market.

Singapore’s food sector should adopt blockchain technology to help it track products across the supply chain, amidst a legislative push for better food safety, according to legal and food industry experts.

Traceability takes centre stage in the city-state’s Food Safety and Security bill, which Parliament passed on second reading on 8 January.

“The bill introduces detailed requirements for food traceability and recall records, ensuring that unsafe food products can be quickly identified and removed from the market,” David Ettinger, partner at Keller and Heckman LLP Shanghai Representative Office, told Singapore Business Review.

Under the measure, the industry must keep details about importers, food descriptions such as brand and lot numbers, and recipient contact information for animal feed producers.

Tech like blockchain for traceability and the Internet of Things (IoT) for monitoring could be used to simplify compliance with the bill, said Wendy Lim, a senior lecturer from Taylor’s Culinary Institute (TCI) of Taylor’s University in Malaysia.

In Singapore, one company that uses a blockchain-powered food traceability platform is The Grow Hub.

Kala Anandarajah, head of Competition and Antitrust and Trade at law firm Rajah & Tann Singapore, said bigger food operators and supply chain players should guide and carry their smaller counterparts. “The aim is that food operators streamline compliance processes.”

Companies in the food business should check how they will be affected by stricter regulations, whilst training their staff to ensure compliance, analysts said.

“Small food operators must ensure that employees are trained on the updated safety standards to ensure that everyone involved in food handling is knowledgeable about the new requirements,” she added.

Ettinger said Singapore’s bill would cover wider food supply activities, including donations and free distribution, not just sales.

The bill also mandates businesses to stockpile specific quantities of key food products to manage potential shortages. For instance, rice importers must hold a two-month stock.

Lim said food operators seeking pre-market approvals for novel and defined foods should document food handling practices and adhere to stringent hygiene standards given hefty fines for violators.

First-time corporate offenders face a fine of as much as $50,000, while individual violators face a $25,000 fine or one-year jail term, or both, Jenny Li, counsel at Keller and Heckman’s Shanghai Representative Office Li pointed out. Repeat offenders face more severe penalties.

Anandarajah noted that the license of violators could also be suspended or revoked.

The bill also bars offenders whose licences were revoked for repeated food safety violations from reapplying for the same type of licence for as long as three years. Singapore laws allow immediate license reapplication after a conviction.

Anandarajah said the measure would make Singapore’s food industry more competitive and compliant with international trade standards, whilst boosting local food safety and public health.

Li said the bill consolidates and updates food-related legislation into one comprehensive framework, simplifying the process for market players, including importers; however, it is worth noting that operators may still need to refer to other regulations, such as the Singapore Food Regulations, for specific requirements (e.g., food labeling standards and use of food additives).