The transformative potential of blockchain and other digital technologies in enhancing supply chain visibility and traceability is crucial for the agricultural sector. These technologies improve efficiency, transparency, and profitability.
The recent live session of Food For Mzansi’s Gather to Grow on Instagram focused on blockchain technology and other digital tools and how these decentralised approaches ensure transparency and efficiency from farm to table.
Jon Trask, chief executive officer of Dimitra Inc, a company dedicated to developing software platforms to support farmers worldwide, explained how his company implements blockchain technology.
“Our application starts as a mobile or web application, and it uses blockchain as a tool to enhance certain areas of what we do. We look very much like a traditional technology to our average user,” he said.
Reducing fraud in supply chain
Trask explained that Dimitra’s applications, primarily mobile and web-based, use blockchain to securely record and share data. This technology provides a permanent and immutable record of transactions, enhancing transparency and reducing fraud.
“If a farmer enhances their traceability with our blockchain, and that results in the farmer receiving a higher price on packing or export, they get some grant money. So we continue to work on finding ways for farmers to make a little bit more money. They write what the price they received was. We track the locations of those processing facilities so that we can have traceability all the way through,” Trask said.
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Anzill Adams, co-founder and chief executive officer of Data Ledger, provided an overview of his company’s work in South Africa. Adams shared that Data Ledger, established in 2019, focuses on using blockchain technology to improve supply chain transparency in various agricultural sectors.
Improving supply chain transparency
“I think Data Ledger was the first blockchain development company in South Africa. Probably one of the first in Africa. And the name Data Ledger is interesting because in one word, it describes what the blockchain is. The blockchain, in essence, is a data ledger,” Adams shared.
Adams discussed several key projects, including Beef Ledger, which tracks cattle from birth to consumption, and Wine Ledger, which traces wine production to combat fraud. He also introduces Halal Ledger, a system designed to ensure the authenticity of halal meat products, addressing a significant issue in the halal economy.
“In South Africa, we’re still thinking about agriculture from an analogue perspective. So the ability to actually adjust to that rate of change so that we can remain viable actually does not exist at the moment. The longer we take to achieve that, the worse it becomes for us to actually sustainably farm,” Adams said.
Adams emphasised the challenges of digitising supply chains in South Africa, particularly resistance to change among middle and senior management.
“They fear change. I always remind them that it’s not technology that’s going to replace them if they’re scared about that. It’s actually people who know how to use technology that’s ultimately going to replace them,’’ he said.
Embracing technology in farming is key
Both experts shared success stories and challenges from their respective experiences. Trask mentioned projects in Cameroon and Ethiopia focused on deforestation measurement and greenhouse gas credits, while Adams highlighted the reluctance to adopt new technologies as a major barrier.
“We have also digitised the process for greenhouse gas credits and the evaluation and certification of credits for farmers. Over time, as the farmers do carbon neutral or carbon advantageous farming practices, we can measure that and calculate the credits they’re entitled to. They can earn those credits after they’ve been evaluated, documented, and then some percentage of those need to be audited,” Trask said.
The experts agreed on the importance of digitalisation in agriculture and the need for industry leaders to embrace these changes to ensure sustainable and profitable farming practices.
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