Blockchain supports small farmers in reaching a minimum living income
The gap between actual income and the minimum living income for rice farmers in Cambodia is 31%. Together with Oxfam Novib and with the help of the fund for responsible conduct from the Rijksdienst voor ondernemend Nederland, we continue to apply blockchain technology on the international value chain of Cambodian rice. In phase 2 of the BlocRice pilot, we follow and monitor the improvement in income of 500 local farmers.
Tijmen de Vries (S&P), Joost Schuttelaar (S&P) and Rogier Verschoot (Oxfam Novib) presented the results from phase one during a 30-minute Youtube Livestream and shed their light on the benefits of Blockchain technology in making data accessible and transparent for farmers, chain actors and consumers.
The supply chain of rice is relatively straight forward. Many of the links have already improved, except for human rights in terms of poverty.
The living income benchmark of Cambodian rice farmers has been established at 4500 euro per year. The gap between actual and desired income is -31%. A strategy to close this gap is to improve income from yield, other sources such as intercropping and reducing costs within cooperation’s.
The data provided isn’t transparent and farmers lack access to data to improve their yields. Risks need to be proactively addressed and monitored by working together with local famers and cooperatives.
Blockchain is a useful technical asset to make data widely accessible as it is used to share data between multiple actors without a central authority or third parties to intervene. This is all based on the principle of mutual trust.
Three apps are being built:
1. Farmers, who can track their yields, timing and sell bags of rice to online sellers
2. Chain actors, who can visit transaction forecasts, manage product safety etc.
3. Consumers, who can see the value and supply chain, including prices paid.
Transparency in value chains is putting pressure on chain actors and consumers to choose the products that have the highest scores on honest production and price.
The goal of implementing blockchain technology is to follow and monitor the improvement in income of local farmers. Transparency in value chains is putting pressure on chain actors and consumers to choose the products that have the highest scores on honest production and price.
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