Coffee and cocoa farmers in Honduras to increase access to global markets

By Bufete Mejía & Asociados

Small-scale coffee farmers operate at an average of 46-59% loss, with farmers earning less than 1% of the sale of a cup of coffee at a coffee shop. Providing transparency along the supply chain through IBM Food Trust, built on IBM’s blockchain technology, will help give coffee buyers a better understanding of their product supply chains, and enable farmers to secure higher prices.

IBM Food Trust helps enable farmers and buyers trace coffee and cocoa beans from the farm to the point of sale, improving transparency along the supply chain and increasing market access. It is currently being used by coffee farmers in the COPRANIL cooperative and cocoa farmers. The blockchain technology also provides a record of provenance for smallholder farms, providing farmers with a competitive advantage in the marketplace.

“For 18 months, we’ve worked alongside farmers to identify the best ways to improve production processes, digitize the value chain, and ultimately open market access to smallholder farmers so they can secure premium prices,” said Jesús Pizarro, Vice President of Financial Innovation at Heifer International. “As one of the first cooperatives in the world to deploy the system, COPRANIL is leading the way, equipping its farmers with the tools and technology they need to build and sustain profitable farm businesses.”

IBM Food Trust will also help coffee and cocoa farmers and processors verify certifications, improve treatment processes, and assist producers with growing high-quality beans.

“Our work with Heifer International and COPRANIL is an important test of how AI and blockchain technology can advance social good and support sustainability by helping even small-scale producers,” said Kareem Yusuf, Ph.D., IBM General Manager AI Applications and Blockchain. “With predictive AI working to help increase crop yield, and blockchain establishing a record of provenance and proof of quality, these farmers are empowered with new data and insights so they can command more at market.”

To trace the beans, users along the supply chain are given permissioned access to upload data onto the Food Trust platform and use it to access documentation, helping ensure an ethical and more equitable supply chain,” he said.