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- Nikkei Asian Review has reported that Blue Korintji Coffee will be powered by Blockchain technology.
- Farmers across Asia have employed Blockchain for the improvement of supply transparency and to enhance production.
- Murasaki stated the concern that it takes time to help farmers understand the benefits and concepts of blockchain technology.
- IBM, US technology giant, unveiled about the launch of an app that allows the consumers to track the coffee supply chain
- Murasaki also claimed that Emurgo’s blockchain database would be helpful to banks and other financial institutions.
Nikkei Asian Review has reported that Blue Korintji Coffee will offer various benefits. It helps to pay customers to identify which framer grew their coffee, the company that roasted the beans, and the logistics that are involved.
Singapore startup Emurgo in partnership with Blue Korintji, has started an initiative to create a premium product that boosts returns to farmers. This initiative is mechanized by Blockchain technology. Indeed, Blockchain is the latest technology that can help build trust amongst an unconnected group.
Budi Isman, Blue Korintji’s founder, told Nikkei Asian Review that blockchain technology could help its company in the differentiation of its product. The product could be differentiated in growingly competitive markets where consumption since 1990 has increased fourfold.
It is a fact that people are keen to pay higher prices for products that they trust. In the same context, Budi said that it would pay a premium to farmers who produced coffee beans if he was sure about it.
Asian Farmers employ Blockchain to improve supply transparency
Consumers are reportedly showing greater concern regarding the production of food and its impact. Also, as the Asian tastes are growing more sophisticated, there is concern regarding the working conditions of the involved workers too.
The United Nations’ Food and Agriculture Organization (FAO) has also employed the blockchain technology. It is working with Papua New Guinea pork producers to prove that their livestock is meeting international standards. And also to help them win access to the global markets.
International charity Oxfam is helping the Cambodian rice growers to make use of the blockchain technology. This is for the promotion of fair trade through the ensuring of adequate payments to farmers. Also, this helps consumers decide to make more informed purchases.
FAO investment officer Gerard Sylvester said that the development of expertise in one field particularly would prove to be helpful. Also, within that field, to have a focus on one important value chain will help sustain solutions.
However, challenges still exist as many blockchain agriculture projects are yet in the pilot phase.
Major Concerns regarding the use of Blockchain-tech
Emurgo Indonesia CEO Shunsuke Murasaki stated a major concern regarding the introduction of Blockchain to farmers. He said that it takes time to help farmers understand the benefits and the concept of blockchain technology.
Khim Sok, a manager at Oxfam in Cambodia, stated another major challenge. He noted that the challenge was most of the farmers did not operate smartphones. Also, most of the blockchain projects are still establishing a detailed business model.
On the contrary, Sok added that all the actors in this organic rice supply chain have shown interest in the blockchain technology and have committed for the implementation of this project together.
At the start of this year, IBM, US technology giant also unveiled about the launch of an app. The app allows consumers to track the coffee supply chain. IBM has partnered with Beyers Koffie, leading global players and the Itochu Corporation, the Colombian Coffee Growers Federation.
Blue Korintji Coffee decided to make use of blockchain technology through a social project. This project aimed to increase 500 farmers’ income. The farmers who worked with it near the Kerinci Seblat National Park.
The transactions are first recorded in the smartphones by Farmers and companies based on each invoice. These records are then stored in the Blockchain-powered database.
Lembah Kerinci Developindo, a parent company of Blue Korintji at the current owns six coffee shops in Indonesia. They are reported to have turned $117,000 in the year 2019. In the nearing years, it looks forward to increasing the revenues.
Emurgo was founded in 2017. It is part of the Cardano project and is also linked to the technology behind the cryptocurrency Ada. Cardano project is developed by Input Output Hong Kong, a US-based startup, and is centered around a blockchain platform.
Emurgo’s blockchain database will help build trust
Murasaki also claimed that Emurgo’s blockchain database would be helpful to banks and other financial institutions as well. It can provide data, including crop yields and sales that determine farmer creditworthiness.
Before the employing of Blockchain, every transaction used to be a paper. This hindered the building of trust. However, the new database will provide ways to help prove themselves.
