- VeChain solutions can mitigate demand for transparency and improve China’s food chain.
- Numerous companies have signed agreements with VeChain and position it as a key player in economic recovery.
Aidan Connolly, President of AgriTech Capital and CEO at Cainthus, has published research on China’s food sector woes. In the context of the post-pandemic Covid-19 economic recovery, Connolly argues that VeChain could be “a game-changer”.
Although the Asian giant faces a “predicament,” as Connolly’s publication states, it has a recovery plan in place for 5 key areas. For the Chinese food industry alone, which is looking to improve with the application of technology (Agri-FoodTech), the country is expected to invest close to $6 billion.
Therefore, VeChain and its solutions will be key in multiple sectors due to the increasing demand for transparency in the food chain. In recent years, the Chinese population has been exposed to news about fraud, contamination, food inspection failures. This phenomenon has been exacerbated by the use of social networks, according to the executive. In that sense, Connolly writes:
A company that is a potential game changer is VeChain, a Chinese blockchain platform designed to enhance information flow for complex supply chains.
VeChain’s numerous partnerships in China
VeChain is mentioned in the publication along with ZhongAn Technology, a company behind a sensor called GoGo Chicken. This allows a farm to place the sensor on a chicken’s ankle. That way, relevant data can be stored about the animal such as its diet, health, the conditions in which it lives.
Along with VeChain, other companies, and solutions mentioned, Connolly estimates that ZhongAn can “revolutionize” the Agri-FoodTech industry in China. However, the increased adoption of this technology and the reduction of its costs when applied on a large scale will be highly relevant. AgriTech’s CEO states:
China is leveraging home-grown, cutting-edge technology to produce food more efficiently in a sustainable environment. Venture investment in Chinese Agri-FoodTech companies rose 66% YoY in 2020
With its multiple partnerships and solutions already integrated into real-world companies and use cases, VeChain distinguishes itself from other companies, as Connolly states. In this regard, he mentioned VeChain’s strong strategic partnerships with large enterprises:
In 2020 VeChain became the first blockchain-based entity to join the China Animal Health and Food Safety Alliance (CAFA) and has already formed strategic partnerships with the Chinese divisions of Bayer, Walmart, BMW and LVMH.
As reported by CNF, VeChain appears to be a centerpiece in the Asian giant’s 5-year national plan. Focused on developing China’s capabilities around blockchain technology, a report from the government-backed channel Shanghai Media Group (SMG) gives a “solid” signal of support for VeChain in the region.