Supply chain traceability is a natural use case of blockchain technology. Hashed Network has been designing solutions for clothing, cannabis, and agriculture traceability. In this document, we’ll take a deep dive into an opportunity with Peru’s Ministry of Agriculture and the Ministry of Production that has been in progress since 2020 with the goal to build a blockchain traceability application for their cacao and coffee producers.
Hashed (previously Digital Scarcity & Mighty Wizards Partnership) have signed LOI with the Ministry of Production of Peru and the National Cooperative Business Association and are currently participating in an RFP.
Small producers of organic cacao and coffee have lost credibility with International buyers due to the detection of glyphosate in random testing. Forcing entire cooperatives into less profitable markets due to the negligence of a few bad actors. E.g. Non-organic cacao is added last minute to the cooperative lots and mixed with the organic.
There is increasing government and end-consumer pressure for products to support sustainable environmental and social practices
Governments want to leverage census data and agricultural registries as the starting point of Traceability. It keeps census data up-to-date and enables the deployment and measurement of assistance programs. There are well-known certifications like Fairtrade and USDA and EU-certified Organic. But there are no reliable solutions for small producer narratives about location, quality, and social impact to reach consumers. They currently get lost in the supply chain.
A decentralized, initially government and international buyer sponsored traceability application that is simple to use and allows producers to track their production lots in an immutable ledger.
Using unique, verifiable digital identities throughout the integrated traceability process aligns incentives not only for producers but also for certifiers and the government.