Oxfam blockchain project BlocRice will enhance the bargaining powers of farmers as well as connect everyone in the supply chain digitally to ensure transparency and greater efficiency. The project intends to ensure that farmers get a good amount in return from the buyers when they negotiate. The program was first launched as a pilot program in April this year which will continue until March 2019. Importantly, BlocRice will ensure higher price to the farmers for their products.
According to the county director of Cambodia Oxfam, Solinn Lim the project BlocRice will offer the farmers a collective bargaining power as all the agricultural cooperatives will be a part of the contract. The project is currently in the testing phase and wants to gain approval and feedback from all the actors/participants who are a regular part of the supply chain.
BlocRice aims to promote blockchain-based smart contracts
Lim stated that Oxfam’s primary aim is to promote smart contracts based on blockchain technology. The contract will be a sort of three-way digital agreements in between the Cambodian rice exporters and organic farmers and the buyers from the Netherlands.
According to Lim Oxfam blockchain project, BlocRice will promote digital contracts used as a tool for empowering society and economy. She further added, “The application of blockchain technology is expected to enhance the negotiation power of small-scale farmers in their rice value chains, who are usually poor primary producers” reported Khmer Times.
A cooperative of organic rice farmers from the province of Preah Vihear is helping the implementation of this project. As per the report, Oxfam project will link the cooperative using smart contract and blockchain technologies with almost every agent who is a part of the supply chain. Incidentally, a rice cracker manufacturer from the Netherlands, SanoRice will also be a part of the supply chain and will be connected to the cooperative through smart contract. The Dutch manufacturer uses the rice from the Oxfam cooperative as raw material for manufacturing its products.
Amru Rice will be one of the companies participating in the Oxfam blockchain project BlocRice as an exporter. Its CEO Song Saran reflected upon the positive impacts of this initiative stating that the project will enhance traceability, transparency, trust, and fairness in the supply chain, reported News BTC. Importantly, this project will improve the livelihoods of the farmers.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]