The agricultural business has revolutionized in recent years but still faces multiple handles. The supply chain has been faced with the non-transparent, inefficient and noncommunicating network made up of processes, data, actors, and products. Disconnection and lack of transparency complicate issues of fair pricing and quality of products.
The need for data integration has resulted from the regulatory pressure, scandals and food crises. Transfer of funds to business partners in other countries without delay or worry of fraudsters.
Blockchain will play an important role in supply chain intelligence for technology that facilitates easy traceability of product information. What this technology has brought African must embrace to eliminate the dreaded scourge of poverty.
Blockchain technology you can trace an apple to the grower immediately. Supply chain is more transparent with blockchain. It helps in food safety responsiveness since the information about a food origin is instant; it gives information that consumers expect. Specific food products are traced at each time hence reducing food waste. Example, contaminated food products can be detected on the shelves and quickly removed.
Reduced transactions and fair pricing
Blockchain provides an open platform for both supplier and buyers to negotiate for reasonable prices of their goods. Suppliers can make direct mobile payment transactions to the buyers. This eliminates intermediaries and brokers. Retailers, farmers, and manufacturers can claim premiums of some products by using this technology. It has been referred to as distributed ledger since it shares information across many synchronized computer networks. This greatly helps an African farmer easy access to the international market.
Reduces human error
Digital technology reduces financial and physical losses attributed to human negligence and failure. The workforce can be reduced when services are automated hence cutting on wastage and misuse of resources. Blockchain help farmers minimize on future losses by availing relevant data regarding the type of crop and possible diseases to attack the crop. It builds trust and decreases buyers default that leads to 43% wasted food produced.
Better access to financial grants and loans
This technology makes it easy for farmers from developing countries to access financial help since many farmers from these countries cannot afford the capital to modernize their farming. Mobile banking keeps track of the ledger account for easy entrée to financing. Financial access to African farmers has remained a constraint with an estimated 2% of financial institutions lending the agricultural sector. Blockchain technology can provide a decentralized platform that gives transaction history and a reliable farmer’s identity. The digital inform enables farmers to acquire loans.
Used in crop insurance
Farmers have been faced with unpredictable weather condition is the advent of agriculture. It has been a difficult task for farmers to claim for their damages since most of them in the developing countries don’t keep records of the doings. But with the introduction of this technology verification is easy and first. Insurance providers and farmers have been depending on inefficient technologies and legacy to foot the claims. However, with the setting in of Blockchain, the sector now faces disruptions and has the opportunity to effect change.
Blockchain technology has the prospective to solve problems in the agricultural and food industry tremendously. Farmers in the developing world have always impressed technology that delivers real value and makes sense. Present day farming will be improved if blockchain technology is impressed. The challenge to this technique is connecting viable business model technology and compelling cases. From digital identification management to a micropayment system, blockchain based resolutions has been dabbed to leapfrog nonexistent and traditional Africa’s infrastructure and push the new era into inclusive growth.