Oxfam Brings Blockchain to Cambodian Rice Farmers

Oxfam International, a confederation of independent charitable organizations, is pilot-testing a blockchain-enabled farming project in the northern province of Preah Vihear in Cambodia to ensure rice farmers are getting better prices for their produce.

The Blockchain for Livelihoods from Organic Cambodian Rice, or Blocrice, will track prices of rice and empower the most vulnerable farmers to give them the technology for fair grain prices. Initially, the project involves 50 organic rice farmers, but Oxfam intends to expand the program across the country, said Nikkei Asian Review.

"We expect to bring traceability, transparency, financial literacy and best practices [to] contract farming in Cambodia," said Kann Kunthy, managing director of AmruRice, a Phnom Penh-based rice exporter which is also joining the pilot.

According to the report, Blocrice would promote contract farming among exporters, farmers’ cooperatives, rice cracker makers and other stakeholders. Using blockchain technology, rice contracts will predefine the trade volume, purchase price, delivery method and other conditions.

These data will be registered and digital on the blockchain platform, with trade and payment records updated continuously.

"The sheer fact of being registered as an actor on the blockchain platform implies that people matter," said Oxfam Cambodia country director Solinn Lim said. “Blocrice will give them a platform to empower themselves."

Despite comprising 60% of Cambodia’s workforce, only a minority of the country’s farmers and farm workers have formal contracts with their buyers. This lack of information and knowledge in rice prices exposes farmers to exploitation, as many of the traders charge high interest on loans taken by the farmers.

In addition, the farmers are pressured to sell their produce to rice traders to service their debt. Often, the farmers receive a pittance as payment for their harvests.

But Oxfam hopes to change the situation through Blocrice. The technology will improve the farmer's condition by giving them collective bargaining power as farmers' cooperatives will be a crucial party to the contract.

Lim said the pilot project would run up to March 2019 to coincide with  Cambodia’s primary harvest season and to allow them to sell rice harvested in the rainy season at a better price.

A similar blockchain-powered project is to be launched in the southern Philippines to uplift the lives of farmers.

Financial services provider Traxion said it would integrate blockchain technology to farmers and farm workers in Mindanao to allow them to receive their salary securely using electronic wallets.

TraXion chief executive officer Ann Cuisia explained at a recent event:

“By engaging farmland owners, they can use the QR code. The QR code will be their e-wallet and can be used in cashless transactions. They can also cash out it through ‘bayad’ [payment] centers.”