- Ripple and Mercy Corps launch blockchain pilot to support Colombian farmers.
- Blockchain tracks farm-to-table food, fighting fraud and boosting sustainability.
- Pilot includes 46% female farmers, improving agreements and retailer trust.
Ripple Impact has launched its second pilot of the year in partnership with Mercy Corps Ventures and WËIA. This new initiative is being carried out as part of the “Unlocking Opportunity” program. It seeks to strengthen Colombian smallholder farmers by helping them earn more money and become financially included. The project relies on the XRP Ledger (XRPL) and its blockchain technology to enable this achievement.
Blockchain Helps Track Food from Farm to Table
First, there are many issues affecting Colombia’s agriculture sector. It is estimated that 86% of small farmers work without a formal agreement. They lack adequate information about their past financial activities. Because of this, many AI systems are not considered for financial services. Additionally, it is estimated that almost 8 in 10 people living in rural areas in Colombia cannot obtain credit. This consequently means that 70% of the minimum living wage is how much smallholder farmers make on average. This leaves them unable to escape from poverty.
Buyers also often face difficulties confirming that food is truly sustainable. Currently, a lot of consumers are interested in knowing where their food is from and how it was produced. Unfortunately, approximately 10% of the entire food industry deals with food fraud, valued at around $50 billion annually. The pilot aims to address such issues.
XRPL plays different roles in this project to address various issues. Blockchain traceability will monitor the journey of farm products from the seeds being planted to the moment they are harvested. The QR code contains all this information. Using XRPL, the system ensures security, fast speed, affordability, and no harm to the environment.
Secondly, the system makes it easier for farmers to work with those who provide inputs and sell their products. It gives farmers higher earnings and improves their regular deals with traders. It improves the functioning of the supply chain as a whole.
Third, WËIA is offering assistance to farmers through a “Farm Now, Pay Later” plan. This way, farmers pay for seeds and fertilizers after using them, so they can get the goods before paying. They will be able to pay back the loan through the profit from what they sell. This system is based on the blockchain data collected through the XRPL.
Ripple Project Uses XRPL to Improve Retailer Satisfaction
So far, around 300 smallholder farmers are taking part in the pilot. In total, they process approximately 240 tonnes of panela per month. Notably, 46% of the farmers are female. Since this figure is more than double the national average, it demonstrates how important gender inclusion is.
The goals of the pilot are crystal clear. The company checks if verified sustainability data can raise the prices of its products. Next, it will review whether using the XRPL makes retailers more satisfied with the tracing process. In addition, it will look at whether there is an increase in formal agreements between farmers and buyers by the end of the pilot.
Overall, Ripple, Mercy Corps, and WËIA plan that this project will assist Colombian farmers by giving them more tools, a connection to markets, and more money. If implemented successfully, it has the potential to improve farming worldwide using blockchain.
