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Oxfam has officially launched its blockchain-based program, called BlocRice, which aims to provide farmers with significantly greater bargaining power and to increase supply chain efficiency by directly connecting buyers and suppliers through their system.
The new program, which has undergone successful trials in Cambodia, has the main objective of increasing revenue for farmers, who can be severely underpaid, allowing them to form agricultural cooperatives that operate similarly to trade unions, which ensure that the prices of agricultural products increase the border.
Solinn Lim, national director of Oxfam in Cambodia, spoke about the launch of the BlocRice initiative, explaining that it will promote the use of smart contracts between rice growers and organic exporters in Cambodia and buyers in the Netherlands.
"BlocRice promotes the use of such digital contracts as tools for social and economic empowerment It is expected that the application of blockchain technology increases the bargaining power of small farmers in their value chains rice, which are usually poor primary producers, "explained Lim.
The use of smart blockchain-based contracts will be cohesive across all parts of the supply chain, and Oxfam has already negotiated and facilitated the use of these products among rice growers in Preah Vihear province in Cambodia, exporters to Cambodia and SanoRice, in the Netherlands producer of rice crackers.
Lim added that all information regarding the supply, transport and use of rice will be shared through a central system, based on blockchain, which will allow a more cohesive and transparent relationship between all the parties involved.
"BlocRice promotes the use of such digital contracts as tools for social and economic empowerment It is expected that the application of blockchain technology increases the bargaining power of small farmers in their value chains rice, which are usually poor primary producers, "he explained.
Furthermore, the modernization of the rice ecosystem by BlocRice will also introduce cashless payments to farmers, many of whom previously did not have bank accounts, using the accounts provided by the Acleda bank.
Related reading: Oxfam to empower Cambodian rice growers with Blockchain
The positive benefits of Blockchain on humanity
Oxfam's latest initiative provides a perfect example of how blockchain technology can improve life by empowering individuals and rebalancing power relationships between the parties involved in commercial relationships, including trade.
Song Saran, CEO of Amru Rice, one of the companies that will participate in BlocRice as an exporter, spoke of the positive impact of the initiative, stating that "it will increase transparency, traceability, equity and trust in the chain of and improve farmers' livelihoods ".
Saran also added that although the BlocRice initiative is initially exclusive for the increase in products, the same system and the same concept could easily be applied to other products and also to other sectors, adding that, if it has success, could be extended to all communities currently exporting through Amru Rice.
Shutterstock foreground image.
