Blockchain and certification for more sustainable coffee Production : how can blockchain complement the sustainability certifications

University essay from SLU/Department of Molecular Sciences

Abstract: Blockchain technology is increasingly gaining momentum in the food supply chain, as a technology to shape trust by installing transparency and fairness through assured digital identity, digital traceability, and unchangeable records. The study aimed to evaluate the impacts of sustainability certifications in coffee production, with an objective to assess if blockchain technology, could complement the major applied sustainability certification schemes for more sustainable coffee production. A systematic review of impacts of certifications based on socio-economic and environmental dimensions and existing certifications shortfalls were assessed. Thereafter a theory of change and the Multi-level perspective frameworks were employed to illustrate an intervention matrix, describing how blockchain technology can complement the shortfalls of applied sustainability certifications in coffee production. Simultaneously quantitative and content research methods allowing to answer the research questions were used to analyze dataset including self-reported impacts, from interviews and surveys conducted through self-administered questionnaires to non-random sampled actors from Coffee farmers, farmers cooperatives, coffee processors, exporters, government, Non-governmental organizations in Rwanda, and coffee importers and processors in Sweden, from March to May 2021. Results from the self-reported impacts indicate high training levels and skills connected to certification, have increased the environmental activities, and can lead to price improvement. The thesis reveals an unsustainable certifications structure from the economic perspective, with a high role played by the governments, and NGOs in support of certification compliance costs. In addition, results reveal a larger part of certified coffee being sold as conventional, due to lack of buyers. Consequently, sustainability certifications are failing the existing economic imbalance within the coffee value chain but continue to be an important tool. This implies that blockchain would be an option to complement the existing sustainability certifications shortfalls, for an efficient coffee production chain, to provide transparency, and fairness to enhance the inequitable and unbalanced coffee chain.

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