Indian company Sahyadri Farmers Producer Co has announced that it is implementing a blockchain to track food from the farm to the table. Sahyadri Farmers Producer Co aims to increase payments to farmers by improving efficiency and transparency in supply chains.
A farmer-producer company is a hybrid of cooperatives and private limited companies. The idea is to organize farmers to improve their negotiating positions while ensuring effective business practices. More than half of India’s population depends on agriculture for their livelihood.
Sahyadri Farmers Producer Cooperation is one of the largest farm producing companies in the country with revenue in 2009-2020 of $ 4.6 billion (us $ 61.8 million). It currently promises farmers a 25% share in the final price of goods sold by the firm. Using blockchain to save friction costs, the company aims to increase the share of farmers to 50%.
The company uses blockchain to increase the transparency of its business. It will use it to provide customers with information such as crop and product quality information. In addition, the project will show the money that the farmer receives, and expenses such as processing, packaging, and transportation. Customers must scan the QR code on the product packaging to get information about the origin.
By increasing consumer confidence, the solution allows farmers to get detailed information about where their individual products went and at what price they were sold. Along with origin, blockchain also ensures food safety and will help Sahyadri farmers prove their sustainability requirements.