AgroWeb3 Workshop: Transforming Food Systems Through Blockchain Technology

Powered by LACChain Ecosystem in collaboration with IDB & the International Fund for Agricultural Development (IFAD) ,the AgroWeb3 workshop, held at the United Nations offices in Nairobi, Kenya, on November 14, 2024, brought together NGOs, private sector representatives, farmers, and professionals from both the technology and agriculture industries. Chasing Mavericks, invited by IFAD, was among the distinguished participants at this important workshop, which focused on how small-scale farmers can leverage blockchain technology to overcome persistent challenges.??

Empowering Smallholder Farmers Through Blockchain?

At its core, AgroWeb3 seeks to empower smallholder farmers by connecting them to the digital economy. Its objectives include enhancing market linkages, increasing supply chain visibility, and improving funding capabilities. By eliminating structural obstacles, AgroWeb3 aims to transform smallholder farmers into fully engaged participants in an inclusive agricultural value chain.??

Farmers and Crypto: A Clear Distinction

One important note made during the conference was that farmers would not interact directly with cryptocurrencies at any point soon. Instead, blockchain would serve as a backend technology to facilitate transparency, traceability, and efficiency in agricultural processes.??

Themes and Highlights from the Conference?

1. Farmers as Central Beneficiaries

A recurring theme of the conference was ensuring that smallholder farmers are active participants in the digital transformation of agriculture. Blockchain technology was showcased as a tool to enable farmers to claim greater control over their data and products, unlocking new opportunities.??

2. Solutions-Driven Discussions

The conference emphasized actionable solutions to real-world challenges facing rural farmers. Speakers shared practical approaches to overcoming barriers, including case studies and innovative blockchain applications tailored for the African agricultural landscape.??

3. Transforming Food Systems

Digital tools were highlighted as key to building more inclusive, transparent, and efficient food systems. These innovations promise to boost productivity while addressing sustainability and equity concerns, ensuring that no farmer is left behind.??

Challenges Facing African Farmers??

African smallholders face significant obstacles that hinder their growth and competitiveness in global markets, including:?

- Digital Exclusion: Over 60% of rural farmers lack access to digital tools, impeding their ability to access markets and adopt advanced technologies.??

- Land Tenure Issues: Unverified land ownership restricts farmers’ access to formal financing and market opportunities.?

?- High Compliance Costs: Regulatory requirements are often prohibitively expensive for smallholders.??

- Limited Market Access: Exploitation by intermediaries and inadequate infrastructure result in unfair pricing and lost opportunities.??

- Data Deficiency: Without reliable data, farmers struggle to make informed decisions about crop management and market strategies.??

LACChain’s? Role??

LACChain, a key partner at AgroWeb3, presented blockchain-driven solutions tailored to address these challenges. With a focus on traceability, digital identity, and financial inclusion, LACChain is bridging the gap between smallholders and global markets.??

Key Blockchain Solutions by LACChain:

??- Traceability and Provenance: Blockchain ensures transparent tracking of agricultural produce, boosting buyer confidence and promoting fair trade.?

?- Decentralized Digital Identity: Farmers can establish digital identities to access services and financing.??

- Data Ownership: Blockchain empowers farmers to monetize their data, such as soil conditions or crop yields.?

?- Carbon Credit Access: Farmers adopting sustainable practices can participate in carbon credit markets, generating additional income.?

?- Financial Inclusion:By enabling microcredit access, LACChain supports farmers in scaling their operations.??

Success Stories: Lessons from Latin Latin America??

LACChain’s successful implementation in Latin America serves as a blueprint for Africa. To date, the platform has reached 93 million farmers and implemented over 120 blockchain solutions. One notable example is Agrayu, a platform in Peru that uses data and blockchain to optimize soil and crop management, transforming family farmers into agro-entrepreneurs.??

Preparing for EUDR Compliance

The conference also addressed the European Union Deforestation Regulation (EUDR) which takes effect on December 30, 2025. Compliance will hinge on blockchain solutions that provide transparent and verifiable data.??

Key EUDR Compliance Requirements:

- No Deforestation Post-2020: Agricultural products must not originate from deforested areas after December 31, 2020.??

- Supply Chain Transparency: Clear documentation and verification of land use and production practices.??

- Declarations of Legality: Exporters must affirm their adherence to EUDR standards.??

- Risk Assessments: Each product must undergo a risk analysis to ensure compliance.??

Charting the Path Forward??

The AgroWeb3 conference explored the opportunities that blockchain offers to transform agriculture in Africa. Its mission is to make farmers the most important actors in the value chain, bringing about a more transparent, efficient, and inclusive agricultural system. To realize this vision, farmers, governments, technology providers, and policymakers must work together.??

Mariatu Kamara IFAD Kenya's Country Director, emphasized the importance of digital inclusion for enabling systemic changes in agriculture. The conference underscored that the future of African agriculture is digital—and blockchain is key to unlocking its potential.??