“We don't need it” - Insights into Blockchain Adoption in the German Pig Value Chain
Hauke Precht, Marlen Jirschitzka, and Jorge Marx Gómez
This study investigates why blockchain technology, despite its acclaimed benefits for transparency and traceability, has not been adopted in the German pig value chain. Researchers conducted eight semi-structured interviews with industry experts, analyzing the findings through the technology-organization-environment (TOE) framework to identify specific barriers to implementation.
Problem
There is a significant disconnect between the theoretical advantages of blockchain for food supply chains and its actual implementation in the real world. This study addresses the specific research gap of why the German pig industry, a major agricultural sector, is not utilizing blockchain technology, aiming to understand the practical factors that prevent its adoption.
Outcome
- Stakeholders perceive their existing technology solutions as sufficient, meeting current demands for data exchange and traceability without needing blockchain. - Trust, a key benefit of blockchain, is already well-established within the industry through long-standing business relationships, interlocking company ownership, and neutral non-profit organizations. - The vast majority of industry experts do not believe blockchain offers any significant additional benefit or value over their current systems and processes. - There is a lack of market demand for the features blockchain provides; neither industry actors nor end consumers are asking for the level of transparency or immutability it offers. - Significant practical barriers include the high investment costs required, a general lack of financial slack for new IT projects, and insufficient digital infrastructure across the value chain.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I'm your host, Anna Ivy Summers. Host: Today, we're exploring a fascinating case of technology hype versus real-world adoption. Host: We’re diving into a study titled, “‘We don't need it’ - Insights into Blockchain Adoption in the German Pig Value Chain.” Host: With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Thanks for having me, Anna. Host: To start, what was this study trying to figure out? Expert: It investigated a simple question: why has blockchain technology, which is so often praised for enhancing transparency and traceability in supply chains, seen virtually no adoption in the massive German pig industry? Host: So there's a real disconnect. We hear constantly about how blockchain can revolutionize food supply chains, but here we have a major industry in Europe that isn't using it. What’s the core problem the researchers were addressing? Expert: The problem is that gap between the theoretical promise of a technology and the practical reality of implementing it. Expert: The German pig value chain is a huge, complex economic sector. You would expect that technological advances would move beyond the research phase and into practice. Expert: But they haven't. The study wanted to identify the specific, real-world factors that are preventing adoption in such a significant industry. Host: How did the researchers go about finding those factors? Expert: They went directly to the source. Instead of just analyzing the technology, they analyzed the *need* for the technology. Expert: They conducted in-depth interviews with eight senior experts from across the value chain. These were decision-makers from slaughterhouses, IT providers, and quality assurance organizations. Expert: They then analyzed these conversations to map out the barriers based on technology, organization, and the wider business environment. Host: And the study’s title, "We don't need it," gives us a pretty big clue about what they found. What were the key discoveries? Expert: The title says it all. The first major finding was that industry stakeholders believe their existing technology solutions are perfectly sufficient. Expert: They already have systems for data exchange and traceability that meet current demands. From their perspective, there is no problem that requires a blockchain solution. Six of the eight experts interviewed saw no additional benefit. Host: That’s a huge point. But what about trust? We're always told that's blockchain's biggest selling point. Expert: That was the second critical finding, and it’s perhaps the most interesting one. The industry doesn't have a trust problem for blockchain to solve. Expert: Trust is already built into the very structure of the industry. They have long-standing business relationships, interlocking company ownership, and neutral, non-profit organizations that oversee quality and data. Expert: These organizational structures have created a trusted environment over decades, making a "trustless" technology like blockchain simply redundant. Host: So the problem that blockchain is famous for solving doesn't actually exist here. Were there any other barriers? Expert: Yes, very practical ones. The experts reported there is simply no market demand. No one—not their business partners, and not the end consumers—is asking for the radical level of transparency blockchain could offer. Expert: On top of that, you have the usual suspects: the high investment costs, a general lack of spare budget for new IT projects, and an insufficient digital infrastructure in some parts of the value chain. Host: Alex, this moves us to the most important question for our listeners. What does this mean for business? What are the key takeaways for leaders considering new technologies? Expert: I think there are three powerful lessons. First, don't start with the technology; start with the problem. Ask yourself, what is the specific, urgent pain point we are trying to solve? If you can't clearly define it, a new technology won't help. Host: A solution in search of a problem. A classic pitfall. What's the second lesson? Expert: Don't underestimate your existing, non-technical systems. This study showed that trust was achieved through business structure and relationships, not software. Expert: Before investing in a technical solution, business leaders should analyze how their current partnerships, contracts, and organizational models are already solving key problems. Sometimes the best system isn't digital at all. Host: A great reminder to look at the human element. And the final takeaway? Expert: Follow the demand. The researchers found no market pull for blockchain's features. If your customers and partners aren't asking for it, you have to question the business case. Expert: The crucial question for any new tech adoption should be: who wants this, and what tangible value will they get from it? If the answer is vague, the risk is high. Host: So, to summarize: the German pig industry isn't using blockchain, not because the technology failed, but because their existing systems work well, they've already built trust through their business structures, and there's no market demand for what it offers. Expert: Exactly. The final verdict from the industry was a clear and simple, “We don’t need it.” Host: A powerful lesson in looking past the hype to the practical reality. Alex Ian Sutherland, thank you for breaking this down for us. Expert: My pleasure, Anna. Host: And thanks to our audience for listening to A.I.S. Insights, powered by Living Knowledge. Join us next time for more actionable insights from the world of business and technology research.
blockchain adoption, TOE, food supply chain, German pig value chain, qualitative research, supply chain management, technology adoption barriers