Blockchain meets AI for sustainable and EUDR-compliant coffee production
Originating in Africa and expanding over Asia and the Americas, coffee has made its way to the cup of people from all around the world. As an industry that has grown to be worth $460 billion, it is subject to multifaceted debates.
For coffee enthusiasts, the question might be whether the coffee beans are over-roasted or if the blend contains high-quality beans. As for activists, coffee production is a cause for environmental and social concerns.
Coffee is a commodity widely associated with deforestation. And income disparities are a long-standing issue that threaten the existence of small-scale producers. With the awareness about such issues increasing, the demand for ethical sourcing among consumers has reached high levels. Three out of four coffee drinkers place importance on sustainable and eco-friendly production methods as well as farmers being fairly compensated.
EUDR: A must-have compliance for coffee producers
Clarifying coffee’s journey goes beyond being a business policy and becomes an obligation. Prepared by the European Union, the Regulation on Deforestation-Free Products (EUDR) is a framework designed to limit Europe’s contribution to global deforestation. The regulation requires products on the EU market to be deforestation-free and produced in full compliance with local environmental and labor laws.
The soon-to-be-enforced legislation obligates businesses to provide traceable proof for their products. EUDR rules principally target imported goods, which highlights the need for worldwide supply chain solutions to ensure compliance.
However, most smallholder farmers, which are the majority of coffee producers, are barely making a living income. Moreover, most of the countries making up the coffee belt, the region where coffee grows, are technologically underequipped.
Lack of resources limits the ability to track production processes and makes it virtually impossible to comply with stringent regulations such as EUDR. This poses a risk for smallholder farmers and underdeveloped regions to be excluded from international markets, narrowing down the already limited income opportunities even more.
Emerging technologies such as blockchain, artificial intelligence and Internet of Things provide a way to efficiently trace supply chains, optimize farming and improve yields. The combination of them may help local farmers in taking necessary actions to abide by EUDR rules, which will be enforced a bit later for small businesses.
Blockchain for small farmers
Dimitra is a global agricultural technology (AgTech) company that focuses on transforming agriculture with cutting-edge technologies. By leveraging blockchain, IoT and AI, Dimitra helps farmers improve productivity, reduce costs and meet regulatory demands. The native ERC-20 token of the Dimitra network, DMTR, facilitates transactions and incentivizes sustainable farming practices within the ecosystem.
Connected Coffee is Dimitra’s all-in-one platform that brings coffee farmers, cooperatives and traders together. It serves as a supply chain management solution that tracks coffee from cultivation to distribution and provides data such as product origin, ingredients and farming techniques involved. The platform ensures the coffee produced meets global quality standards and complies with the upcoming EUDR, preventing smallholder farmers from cutting off from international markets.
Source: Dimitra
The ecosystem also enables smart farming with the help of IoT and AI. Farmers get access to data that will help them improve productivity and profitability while maintaining sustainable farming practices. With IoT devices, real-time field and storage data are collected.
AI takes the role of farmer’s assistant and analyzes field data to make suggestions such as plant and harvest time and water schedule. Data-driven farming makes it possible to grow healthier plants with less expense.
Source: Dimitra
In-app purchases are also available on Connected Coffee to improve user experience. Buyers can place orders with farmers to shorten the procurement process and even grade coffee batches to make better purchase decisions.
Connecting farmers to international markets
Dimitra also empowers local farmers by teaming up with large agricultural companies that prioritize their well-being. Partnerships with organizations like Alkaff and ARASCO connect farmers to international markets while scaling the platform.
Arasco, an international food company, supports food security and sustainability in the Middle East. With Dimitra’s help, Arasco enhances traceability and transparency across its supply chain, improves data management and boosts efficiency while addressing the challenge of aligning local farming practices with international regulations.
EUDR-compliance is a responsibility not only for farmers but also companies and importers. Alkaff, an Italy-based green company, has partnered with Dimitra to prepare for the upcoming EUDR. By utilizing Dimitra’s deforestation platform, Alkaff will map its entire supply chain and prepare automatic due diligence reports to ensure compliance.
Towards a sustainable future
Dimitra supports over 1,000,000 farmers and has partners in 68 countries. Its Connected Coffee platform empowers farmers from diverse regions, including Indonesia, Ethiopia, Honduras, Cameroon and Saudi Arabia.
Integrating blockchain into agriculture is a growing trend. Blockchain projects such as Dimitra help farmers comply with regulations, lower environmental impact and optimize yields. By becoming part of the ecosystem, consumers get guarantee about food security and have the chance to contribute to a sustainable future.
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