Honduran coffee and cocoa producers can now access global markets to market their products in a more fair and balanced way, using blockchain solutions from IBM and Heifer International.
In a Press release, the technology giant IBM and the global anti-poverty organization Heifer International, reported that small and medium coffee and cocoa producers in Honduras can now access new global markets and make better business decisions about their products through solutions blockchain developed by the technology giant.
IBM makes platforms available to agricultural producers in the country IBM Food Trust e IBM Watson Decision Platform for Agriculture, in collaboration with the organization Heifer International, to allow producers to market their products in a more fair and balanced way, and to improve their yields. According to the statement shared by IBM, Honduran coffee and cocoa producers lose up to 59% of the value of their production, because they sell it at very low prices to intermediaries, earning less than 1% of the sale of a cup of coffee.
Blockchain solutions offered by IBM and Heifer International aim to enable small-scale producers to benefit from global markets and improve supply chain logistics through blockchain technology.
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Transparency and fair prices in the supply chain
The potential of blockchain technology has made it gain ground in different industries, including agricultural production. The characteristics of this technology allow for transparency throughout the supply chain, providing a safe option for agricultural producers, who can reliably market their products to obtain better prices.
IBM's blockchain solutions will initially benefit producers of Heifer Honduras' Chocolate4All project, who trade their products through the COPRANIL cooperative, dedicated to the marketing of coffee, and Chocolate Halba, which markets cocoa.
IBM Food Trust helps farmers and buyers trace coffee and cocoa beans from the production area to the point of sale, improving supply chain transparency and reliability and increasing market access. The platform also provides a record of provenance for small-scale agricultural producers, giving them a competitive advantage over others in the markets.
Improving production processes
For its part, “IBM Watson Decision Platform for Agriculture” allows farmers to enjoy a predictive tool with geospatial, meteorological, environmental and field data, based on Artificial Intelligence and the Internet of Things (IoT), to improve production processes.
Access to this type of data, which is provided through the platform in a personalized way and adapted to a farmer's arable land, allows him to design much more optimal planting patterns, as well as generate weather alerts in time to protect his production and guarantee better yields.
“These insights can help farmers and agribusinesses make more informed decisions to improve crop yield and value,” IBM said in its statement. Ensuring food safety and sustainability are also objectives that are sought to be achieved through the “IBM Watson Decision Platform for Agriculture.”
Jesús Pizarro, Vice President of Financial Innovation at Heifer International, indicated that the combination of both technological platforms will help farmers to “identify the different ways to improve production processes, digitalize the value chain and open market access”In this way, they will be able to access a price differential that truly compensates for their work in the field.
Blockchain in agricultural production fields
Blockchain technology is playing an increasingly important role in agricultural fields, helping producers register and certify seeds, monitor the development of their crops, guarantee traceability and transparency in the supply chain, and ensure fair, direct and even decentralized payments.
IBM and Heifer International’s blockchain initiative will promote social well-being and improve the economic sustainability of farming communities by contributing to the productive processes of small producers. On the other hand, other companies and organizations have been using blockchain technology to improve the insurance industry and provide farmers with support in case of losses due to natural disasters, weather conditions or other factors.
Decentralized blockchain oracle network Chainlink and financial insurance firm ACRE Africa partnered last year to benefit small and mid-sized farmers in Kenya, East Africa, and provide them with access to agricultural microinsurance through a tamper-free blockchain platform.
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