Blockchain: An Alternative to Enable Traceability in the Agricultural Supply Chain in Panama

Currently, the large volume of imports, the lack of interest of young people to work in the agroindustry, the lack of implementation of new technologies and the excessive participation of intermediaries in the supply chain are some of the main challenges the producers of the agricultural sector in Panama face. All this has repercussions on the absence of a traceability system that guarantees and certifies the origin of the products originating in this sector. This paper presents a design model that adapts new technologies such as blockchain in the agribusinesses in order to optimize the processes in the supply chain, and specifically improve the traceability of the product. First, the current state of the agricultural supply chain in Panama and the state of the art of blockchain technology are analyzed. Consecutively, the variables that influence the competitiveness of the agricultural sector as well as the basic principles of the blockchain technology are defined and an evaluation about which principles could optimize the competitiveness variables of the agricultural supply chain is made. Finally, a conceptual design model is presented that shows how the blockchain technology could improve processes in the Panamanian agricultural supply chain.