The new program, Cambodia, has a primary goal of increasing revenues for farmers, who can be severely underpaid. By allowing them to form agricultural cooperatives that operate similarly to labor unions. Ensures that agricultural product prices rise across the board.
Solinn Lim, the country director of Oxfam in Cambodia, discusses the launch of the BlocRice initiative. Explains that it will promote the use of smart contracts. They are promoted between organic rice farmers and exporters in Cambodia and buyers in the Netherlands.
“BlocRice promotes the use of digital contracts as tools for social and economic empowerment. The application of blockchain technology is expected to enhance the negotiation power of small-scale farmers, who are usually poor primary producers,” explains Lim.
However, the use of blockchain-based smart contracts will be cohesive between all the parties in the supply chain. Oxfam has negotiated and facilitated the use of these products between rice farmers in Cambodia’s Preah Vihear province, exporters in Cambodia, and SanoRice, the Dutch rice cracker manufacturer.
Lim added to it saying that all the information regarding the sourcing, transportation, and use of the rice, will be shared through a central, blockchain-based system. Hence this will allow a more cohesive and transparent relationship between all involved parties.
Furthermore, BlocRice’s modernization of the rice ecosystem will introduce cashless payments to farmers. Because, many of these farmers, previously did not have bank accounts, and were using accounts of the Acleda bank.
The Positive Impact of Blockchain on Humanity
Oxfam’s latest initiative presents a perfect example of how blockchain technology can enhance lives by empowering individuals and rebalancing power-relationships between parties, participating in business relationships, including trade.
Song Saran, the CEO of Amru Rice, spoke about the positive impacts of the initiative. Says that it will “increase transparency, traceability, fairness, and trust in the supply chain by and enhance the livelihoods of farmers.”
Saran further added that although the BlocRice initiative will initially be exclusive to rise products. The same system and concept can be easily applicable to other products and even other industries. Hence, adding to that if it’s successful, it expands to all of the communities currently exporting through Amru Rice.
You can subscribe to our newsletter for more latest updates.