FairChain aims to create a shared value chain with positive externalities for all involved. FairChain implements blockchain technology in cocoa, coffee and tea supply chains. All actors in the chain become players in the same ecosystem, enabling those who traditionally have the least power to become a CEO of their own product. Farmers earn living income, while B2B and B2C customers decide how much they pay the producer and what they pay a premium for. The blockchain platform is developed by a FairChain IT team icw UNDP, KrypC, using the Stellar platform, with features including tokenization, farmer digital payments and precision agriculture.
Capability and features
Retail customers will receive a physical BLT token in their product packages and will be able to scan the token (that represents a monetary value of €0.50 cents). This takes them to the FairChain website, where the customer can choose to either Redeem the token (use it as a discount for their next purchase) or Share the token with to one of our three impact projects on Ecological, Economical or Healthcare level.
With a web app, all players in the value chain log data, e.g. coffee volume, price, processing/transaction costs, date, time, location, handler. This creates transparency and traceability as well as supply chain efficiency. FairChain redistributes value in the chain, e.g. enabling customers to pay a premium to a farmer for producing high quality, or for achieving an impact target like education.
Farmers are able to et online with their own digital identity, managing harvest forecast and results, eventually negotiating directly with customers, and receiving price premium for quality and impact targets.
NGOs receive full insight in real coffee value chain, giving them an opportunity to implement a ‘beyond certification’ solution on a large scale. In the future there will be an application where NGO’s can upload specific impact projects, for example “X amount of BP measurements in Ethiopia”, and customers can gift their token to that specific project and receive performance based confirmation of the project they supported. NGO’s will have to first perform before the smart contract will deposit the tokens in their wallet. The received tokens can then be exchanged to Fiat currency.
Progress to date
To date, over 3,000 farmers have been impacted by FairChain.
FairChain has partnerships with UNDP, FAO, RVO (NL) Dutch Embassy Ethiopia and KrypC
The team are currently replicating the Limu, Ethiopia pilot large scale Ecuador cocoa sector, chain-wide deployment.
Every half year, we send out an eNewsletter with the most current news on digital solution for the agriculture industry. To join, enter your email address below and hit the subscribe button!