dFarm has built the road using Blockchain technology in the agriculture industry to create systems that will record the journey taken by produce through the supply chain by utilizing the power of a shared secure ledger. Also, older agricultural models are seeing a resurgence, using the Blockchain to improve upon established practices.
Issues solved by blockchain
While agriculture is the most significant sector in rural areas and provides livelihood for 70 per cent of the world’s poor, it is also the industry that suffers the biggest disconnect between the supplier and the retailer. Using Blockchain, however, a direct link has been established that ensures farmers receive fair payment for their produce. It also enables retailers to verify that they are getting paid quickly and properly.
It is essential for smallholdings and agricultural concerns to be able to keep track of their transactions and contractual obligations with buyers, suppliers and other stakeholders in order to maintain proper accountability. Using Blockchain minimizes fraud, maximizes transparency and ensures that each link in the supply chain is quickly satisfied. The connection between commodity buyers and farmers can now be monitored more closely and distribution channels streamlined even further.
Firms operating within the agricultural sector often have extensive contractual obligations to a multitude of stakeholders. Innovations like blockchain, IoT and AI have a beneficial impact on areas like hedging contracts and pre-sales of harvests.
Produce tracking & tracing origin of produce
By establishing a Blockchain-driven ecosystem for the registration, payment and transportation of crops or other agricultural produce, buyers can also verify that the product they are receiving is exactly what they have paid. With every step of the transaction process recorded using Blockchain, retail buyers are able to deal with their supplier directly and transfer payment via mobile quickly and efficiently.
With crop prices fluctuating wildly based on demand, weather, and global production levels, Blockchain can provide an easy solution between farmers and buyers seeking to negotiate a fair price on their product. By providing both parties with access to information on similar transactions, as well as on the current stock price of goods, even suppliers in rural areas are able to determine what the farmer’s harvest is currently worth and sell it to distributors at a price that reflects global market conditions.
One of the most obvious uses for Blockchain is in data monitoring. Farmers will now be able to capture data in real-time that will help them plan estimation of produce effectively. This will help maximize the success rate of their harvests. Over time, this information will become an invaluable resource to the farmer.
Minimizing human error
There are a multitude of ways in which Blockchain can take tasks away from the workforce and automate them in order to minimize errors. It is often an individual mistake that causes physical and financial losses in the agricultural sector and so adopting technological innovations can minimize the amount of resource that is wasted or misused. Also, Blockchain can present information to farmers regarding tainted products throughout their supply chain: what types of crop are they; where were they grown? By drilling down into this data set, the farmer can then minimize future losses.