Blockchain platform Farmer Connect nets US$9M to fund “collaborative ecosystem” for traceable commodities
16 Mar 2021 --- Purchasing decisions are often driven by evidence of fair, traceable and sustainable agricultural practices in products. With the aim of further elevating this transparency using blockchain, Farmer Connect, a global supply chain software, has secured US$9 million in a Series A investment round.
“The pandemic has shown digitalization is essential for the vast majority of businesses’ survival. Our technology can help provide this safeguard,” Michael Chrisment, CEO of Farmer Connect, tells FoodIngredientsFirst.
“[Traders] can now provide more than just the raw material commodity as brands see [Farmer Connect] as a way to showcase the quality of products and relationships with producers.”
The Series A funding will support the development of new products and services specifically in the area of ESG and SDG tracking, and the recruitment of sector-specialist teams in global sectors that impact smallholder farmers, such as coffee, cocoa, tea and spices.
The investment round was led by Itochu Corporation, a Japanese general trading company that supplies raw materials to global manufacturers and retailers.
Additional investors from Europe and both North and South America participated in the round, along with founding partner Sucafina, the “Farm to Roaster” coffee company.
Blockchain is leveraged in an increasing variety of agri-food applications, including livestock tracking.End-to-end traceability
“Transparency Triumphs” is leading among Innova Market Insights’ Top Ten Trends for 2021, with a spotlight on emergent technologies like invisible barcodes and near-field communication technology that help brands convey creative product storytelling.
Over the last year, this has included blockchain-enabled livestock tracking, “bean-to-bar” cocoa tracking, anti-deforestation geospatial surveillance and transparent sandwiches.
“The agriculture supply chain is crying out for a data-led approach, and consumers want to be able to make informed decisions about the products they buy,” stresses Chrisment.
“Traceability has traditionally been highly challenging and fragmented, but technologies like blockchain bring all parties in the supply chain together, simplifying the exchange and tracking of information and payments, and enabling greater trust,” notes the ex-Kraft Foods and Nestlé executive.
This, in turn, empowers smallholder farmers, reduces inefficiencies for global enterprises and informs people about how their products were produced.
The Farmer Connect platform helps smallholder farmers to connect digitally to the “collaborative ecosystem,” and its blockchain technology ensures traceability and data validation by all parties.
Its “thank my farmer” app then allows consumers to trace the origins and quality of the commodity and even financially support the producer that grew the raw goods.
This collaborative network enabled by Farmer Connect software ensures safe and “immutable” supply chain data, which supports producers in accessing financing and investment. Traders, roasters, retailers and brands benefit from task automation, reporting and smart contracts.
Farmer Connect has a growing roster of partnerships, which includes Brazilian coffee cooperative Cooxupé.A spread of industry partnerships
The Series A financing follows significant growth in 2020, which saw a positive uptick in revenue and a growing roster of clients and industry partnerships. These include Cooxupé, the largest coffee cooperative in Brazil, UCC Coffee, Beyers Koffie and The JM Smucker Company.
“There is huge supply chain demand for traceability, ESG and SDG tracking, carbon footprint tracking and further task automation. This investment round will help us to scale rapidly to meet demand and fulfil our commitments to support industry transformation,” Chrisment comments.
“The Farmer Connect software is well-timed with the rapidly increasing demand for solutions that bring traceability and trust to the agriculture supply chain,” says Koji Yamamoto, general manager of Itochu’s Sugar, Confectionery Materials, Coffee & Dairy Products Department.
“We believe there is a definite demand from the market for more transparent and ethical solutions that provide value to all actors of the supply chain.”
The Farmer Connect software is based on IBM Blockchain Transparent Supply, adding new features such as the ability for farmers to participate directly in data sharing and control.
By Benjamin Ferrer
