GrainChain Utilizes Blockchain to Unite Honduras’ Coffee Industry
GrainChain, a software platform that creates blockchain and internet-of-things (IoT) innovations for the agricultural industry, has signed agreements with stakeholders from every part of the coffee industry in Honduras to deliver its commerce platform that helps minimize risk, improve conditions and encourage reinvestment. GrainChain is working with groups across the coffee growing process, bringing the entire supply chain together on a single platform for the first time.
Honduras is one of the world’s leading producers of coffee, but the industry in the country has been in a state of crisis for the past several years due to falling prices and difficulties with sustainability. GrainChain’s unprecedented step in uniting parties across the coffee supply chain in Honduras accomplishes three primary goals that will help guide the future of the industry by improving trust between farmers and banks, ultimately opening more services for people in remote areas who were previously unbanked. It will also improve accuracy for entire process and clarity
GrainChain’s platform includes a digital wallet, enabling remote and unbanked farmers to apply for loans to bring their farms and crops up to higher standards. Banks can then direct the use of that money so that it can only be applied to the intended purposes, which helps mitigate and control risk. GrainChain’s unchangeable smart contracts further improve traceability and operational logistics for vendors and buyers.
“Growing coffee is such a widespread process with so many variables that it has traditionally been impossible to get people on the same page, which lowers trust across the entire supply chain,” said Francisco Fortin, general manager of Confianza SA-FGR, a major insurance provider to the agriculture industry. “With GrainChain’s blockchain platform, we can assure that all parties are able to participate in the product with much greater visibility and minimized risk through every step.”
GrainChain’s implementation across the entire supply chain will further benefit stakeholders in the Honduras coffee industry. Banks and insurance companies will use GrainChain to respectively manage loans to thousands of small-to-medium-size farmers then simplify and automate underwriting of those loans. Co-ops and growers will benefit from GrainChain’s advanced traceability tools, farmer management, logistics management and farmer loan programs. And last but not least, national exporters and marketplace buyers will benefit from using GrainChain’s smart contracts for settlement, traceability, purchasing commodities and instant transfer of title.
“Our platform provides guarantees and visibility through the entire process, which empowers growers and vendors while reducing risk to bankers and buyers,” said Luis Macias, CEO of GrainChain. “We believe that building agricultural industries with blockchain tools will encourage reinvestment and improve quality throughout by giving people a single platform they can trust.”
GrainChain’s products give farmers access to their commodities via mobile apps, enabling them to see their inventory in real-time and giving them the ability to make decisions on the field. Through its suite of blockchain-based and IoT products, GrainChain improves efficiency, creates complete transparency and reduces human entry errors throughout the state. The commodities’ measurements – such as quantity, quality and humidity – are captured by one of GrainChain’s products and applied to their appropriate inventory, which enables immediate contract settlement.