Blockchain to Bring More Transparency and Fairness to Coffee Industry
Originally published on: CoinSpeaker
Read the original article
February 18, 2019
Today it may seem that blockchain has reached practically all the sphere s of our life. Thanks to the capacities that it has, it has already attracted the attention of numerous industries and it doesn’t seem that it is going to stop.
While millions of people drink coffee every day, not all of them have previously thought the emerging technology has already reached the coffee production industry.
Blockchain in the Coffee Production Industry
By the moment when coffee appears in our cups, it has already passed through dozens of different stages starting from farming and roasting and ending up with distributing and selling. Such a long and complex process presupposes involvement of a great number of intermediaries.
It’s one of the reasons why Moyee Coffee, a coffee brand, has taken a decision to apply blockchain to its system. In collaboration with pioneersbext360 and theFairChain Foundation, the company has already started the realization of their pilot blockchain coffee project in Ethiopia.
It is planning to launch the first blockchain coffee project in the world to enhance and optimize the entire procedure. The processes that exist today in the coffee production industry are not transparent enough, middlemen try to make money from nothing, but at the same time coffee farmers don’t get a reward that they really deserve to have.
Moyee operates a roastery with nearly 40 Ethiopians in Ethiopia’s capital that traditionally exports Arabica beans to Europe. According to the company, coffee producers receive only 2% of the added value of every cup of coffee.
“The industry’s worth $100 billion and yet 90 percent of coffee farmers in Ethiopia live on less than $2 a day,” explained Killian Stokes, who has established the Irish branch of Moyee. And it definitely shouldn’t be so.
Moyee, that has a slogan “radically good coffee”, has decided to bring more fairness to the industry and create unique digital identities for the farmers that it currently cooperates with. There are 350 of them. It means that now buyers will have an opportunity to see how much money each grower gets.
The new blockchain-powered platform will also enable users to tip farmers via their mobile app, or to support different related projects like a new planting program. All stakeholders including farmers, roasters, and consumers will get access to the data of the supply chain and know the history of the product they get. It is said that such an approach will reduce uncertainty and increase trust among market players.
Blockchain in other Spheres
It’s not the first case of how the emerging technology can be used to bring benefits to the community. Nowadays there are lots of examples.
For instance, let us remind that the UNICEF Innovation Fund has decided to invest $100,000 in blockchain projects, aiming to address the global problems within the finance, healthcare, and other sectors. Moreover, in 2018, FedEx Institute and Good Shepherd Pharmacy established a partnership to use blockchain and distribute unused cancer drugs to those who can’t afford them.
Bearing in mind all the capacitities of blockchain, we can make a conclusion that it’s only a beginning of its integration in various spheres.