From ambiguity to transparency: Blockchain-enabled origin traceability for premium agricultural product

Rising living standards have turned premium and origin-specific agricultural produce into a symbol of lifestyle and social prestige, but limited consumer expertise leaves room for adulteration by mixing products from non-core origins with core products without supply chain traceability. Achieving transparency and traceability in the agricultural supply chain has long been a challenge until blockchain technology emerged as a credible, immutable solution. This study explores how blockchain-enabled origin traceability alters premium agricultural retail by affecting the farmer’s choice between the honest origin differentiating and opportunistic blending. We analyze the farmer’s strategic decisions by considering consumers’ heterogeneity stemming from their ability to discern the true origin without a blockchain traceability system, and conduct a parallel analysis after its implementation. We find that without blockchain, the farmer always favors blending to increase profits and, even under the differentiating strategy, sets an overpriced retail price to exploit the high willingness to pay. With blockchain, transparency empowers the farmer to credibly differentiate products and align profits with honest operations. Finally, we present a real-world case study demonstrating how blockchain supports both profitability and market integrity. This research underscores that, when properly implemented, blockchain-enabled origin traceability aligns economic incentives with the honest retailing strategy, bolsters consumer trust, and upholds integrity throughout the agricultural supply chain.