Coffee producers brag about high quality beans and sustainable production methods. Should we trust their word for it and simply enjoy our coffee in the morning? How can blockchain technology ensure that our coffee is sustainably farmed?
Coffee is commonly divided into two broad categories; Arabica and Robusta. Arabica is considered high quality with superior taste whereas Robusta is used for cheaper types of coffee such as powder coffee. Labeling coffee “100% Arabica” is a classic way to imply that the coffee is of high quality, but it is no guarantee that the beans have been ethically sourced or is sustainably farmed. Considering that there are hundreds of different eco labels it is impossible for the consumer to be certain that each package of coffee is following eco labeling guidelines. Contamination is also an issue in the coffee business. Researchers at Quadram Institute claim that between 5 and 20 percent of all Arabica labelled coffee may in fact contain significant levels of Robusta. Fraudulent activity in the coffee sector is big business as the global coffee market is worth USD 466 billion. Is there a way to increase consumer trust, and trace and parse coffee from the farm to the cup?
In fact, there is a growing trend in specialty coffee to include traceability information such as the name of the farm, location, and crop year on coffee packaging. However, blockchain technology takes traceability to another level. Blockchains often use new technologies, such as remote sensing technology and artificial intelligence to collect and analyze data. Customized sensor networks can be used to track time, temperature, and humidity levels which is stored on a blockchain. This data may be vital for food safety.
For example, Walmart is collaborating with IBM to utilize blockchain technology for tackling food safety in the supply chain. Food safety and blockchain initiatives are being initiated in China, South America, and Central America.
One major benefit of using blockchain technology is increased transparency. Coffee companies in Indonesia use blockchain technology to ensure that the production process is secure. Upon purchase consumers can scan the QR code on the package to learn facts about harvesting, roasting, and shipment time. Each bag is traceable and the blockchain ensures that the information is immutable.
Futhermore, blockchain technology provides verifiable trust instead of general information. Putting it simply. It is difficult for a coffee company to use fraudulent practices when each step of the production process is tracked on a immutable blockchain. Blockchains can be used to analyse the production process and to certify products. Eco certifications mean something when companies are transparent by using blockchain technology.
It’s a win-win situation. Coffee companies realize that consumers are quality and environmentally conscious and put in the work to improve customer relations. Companies can enjoy increased sales when customers can verify that the coffee is sustainable.
There are also marketing benefits of using traceable production processes. We speak highly of things we trust and coffee companies experience increased social media engagement when they focus on transparency.
In summary, coffee companies that use blockchain technology can build better relationships with customers and increase efficiency, and reduce the risk of food recalls, fraud, and product loss.
This taste like better coffee.