Sustainable Food Systems
Transparency in the agricultural supply chain is critical for building trust between buyers and sellers. The ability to trace food from source to market could revolutionize smallholder farmers' ability to participate in the economy.
Smallholder agriculture refers to small farms that are often a mix of cash crops and subsistence farming. AGRA claims that smallholder agriculture will be the future of Africa as food production must increase and African nations are pressured to provide resources closer to home to supplement the costs associated with participating in the global supply chain via an intermediary.
Smallholder agriculture refers to small farms that are often a mix of cash crops and subsistence farming. AGRA claims that smallholder agriculture will be the future of Africa as food production must increase and African nations are pressured to provide resources closer to home to supplement the costs associated with participating in the global supply chain via an intermediary.
The goal of using blockchain to empower smallholder agriculturalists is to boost this type of agriculture's market share and inclusion in the global economy. Making smallholder agriculturalists heard in the system and represented in legislation is critical for creating a more inclusive economy that gives smallholder famers a more level playing field.
Since a blockchain-based application can trace food from source to market, it is able to ensure transparency in the systems' safety and ethics. It is also a way to provide channels of direct communication from the farm to the customer in order for those parties to negotiate fairer prices! For example, with:
- Food traceability: this helps in food safety responsiveness. For example, if information about food origin can be traced instantly, contaminated food products can be detected on the shelves and quickly removed.
- Reduced transactions: suppliers can make direct mobile payment transactions to the buyers. Retailers, farmers, and manufacturers can claim premiums of some products by using this technology. This can greatly help a smallholder farmer to gain access to the international market.
This technology also makes it easy for farmers from developing countries to access financial help. While previously these farmers may not have been able to afford the capital needed to modernize their business practices, blockchain-enabled mobile banking keeps track of the ledger account for easy entrée to financing. Learn more about how blockchain can be used to support smallholder farms here and here.