Coffee on the blockchain is not a new concept, but one project has made serious gains (or should that be grains?) into the market by signing deals with major players in Honduras, the sixth largest coffee producer in the world. GrainChain, one of the companies that comes under the umbrella of Medici Ventures, Overstock’s blockchain investment arm, is rolling out its blockchain-based solution to Honduran coffee producers to help minimize risk, improve conditions, and encourage reinvestment within all aspects of the coffee supply chain.
12,000 Growers Signed Up
Despite being one of the world’s biggest coffee producers, Honduras’ coffee industry has been rocked by falling prices and difficulties with sustainability in recent years. In addition, a move towards organic, ethically grown coffee has put more pressure on already financially pinched farmers. GrainChain aims to reverse this with their comprehensive platform that uses connected Internet of Things (IoT) devices and distributed ledger technology (DLT) to accurately report every step of the process, dramatically improving clarity and protecting farmers to ensure they receive quick and proper payment. GrainChain has already signed up some 12,000 growers to the platform and is now seeking to extend it to reach more stakeholders throughout the cycle, such as buyers, insurance companies, banks, and exporters.
A Growing Solution
GrainChain’s platform currently accounts for 2% of Honduras’ 8 million annual coffee bag harvest, with Luis Macias, CEO of GrainChain, saying in a press release how blockchain technology benefits everyone in the process:
Our platform provides guarantees and visibility through the entire process, which empowers growers and vendors while reducing risk to bankers and buyers. We believe that building agricultural industries with blockchain tools will encourage reinvestment and improve quality throughout by giving people a single platform they can trust.
Brazil, the world’s biggest coffee producer, also has a blockchain-based project to help farmers to buy machinery and fertilizers against future crops, while Uganda has also been experimenting with DLT to verify coffee bean authenticity.
