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Fair Trade Coffee, Digitalized.
With computer vision technology, blockchain can be used to ensure transparency and fair payments in the coffee supply chain.
đź’– This week's byte: Blockchain can be used to ensure transparency and fair payments in the coffee supply chain. With computer vision technology, collecting and storing accurate data about commodities would be the foundation of addressing the complex issue.
đź“– The Story
Who, When, and Where — Context
Founded 2017 in the US, Bext360’s tech-driven fair trade solution to the coffee supply chain started its story in Honduras and has been expanding to Mexico, Peru, El Salvador, Ethiopia, and Nicaragua.
Why — Challenge
Even with the vast global coffee market and numerous people who make their living by growing coffee, it is difficult for the farmers to receive a fair price for their beans and get paid instantly; the complexity of the coffee supply chain makes it difficult to ensure its accuracy and efficiency, which will force both suppliers and consumers to compromise transparency and trustworthiness of a cup.
What and How — Tech Solution
Bext360 has developed a mobile app equipped with an “AI vision” that automatically and accurately measures the quality of coffee beans and grades them for fair pricing; both producers and buyers of coffee beans have access to the reason behind a price. The records about coffee cherries are then stored in a blockchain network, allowing consumers to know where beans came from and who paid what to whom along the way. The end-to-end traceability solution makes the coffee supply chain more transparent for everyone who’s in the value chain.
đź’ˇ Key Insights
The global supply chain of commodities is complex, and it often makes people behind the scenes invisible — causing exploitation from underpaid laborers.
Point solutions (e.g., solution A for farmers, solution B for buyers, …) may not be sufficient. Rather, a holistic approach is needed that connects an origin — one side of the ends — to consumers — the other side — in a traceable manner.
Yet, multiple technologies can be blended into a final deliverable, so we can efficiently and effectively address a systemic issue — like the mobile app, AI vision, and blockchain in Bext360’s case.
âś… Try This
Read Fairtrade International’s summary of challenges and opportunities in the coffee industry.
đź“Š Did You Know?
According to World Population Review’s summary, Luxembourg had the highest per-person coffee consumption in 2020 (6.5 kg — or 14 lbs — per person per year). Meanwhile, the United States, Brazil, and Japan were the top countries that drank the most coffee in the world in 2020-2021.
💠Share your thoughts: Pick one food product you consume regularly and study where it’s coming from, all the way up to producers of raw ingredients. Notice any invisibility in the product’s journey can be a part of bigger challenges and opportunities in the global supply chain.
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