Moyee Coffee, the first multinational coffee company based out of Ethiopia, has created unique digital identities for the 350 farmers it currently works with, according to a report. This means that buyers can see exactly how much each individual grower is paid, with prices set at 20 percent above the market rate.
Soon coffee lovers worldwide will be able to use the blockchain to tip farmers or fund projects such as a new planting program, all through a mobile app.
The roastery in Addis Ababa employs nearly 40 Ethiopians, a third of them women. They sift, roast and package prized Arabica beans for export to Europe under the Moyee brand, founded by a Dutch social entrepreneur. The company has has been using blockchain technology to ensure the supply chain is transparent and are attempting to keep as much of the profits as possible inside Ethiopia, one of the world’s poorest countries.
“It’s the world’s favorite drink. We drink over 2 billion cups a day,” said Killian Stokes, who set up the Irish branch of Moyee. “The industry’s worth $100 billion and yet 90 percent of coffee farmers in Ethiopia live on less than $2 a day”.
Majority Of Ethiopia’s Arabica Farming Profit Fails to Reach The Farmers
The company adheres to FairChain practices. FairChain’s mission is to use “cutting-edge technologies to facilitate inclusive business models and shared value chains. Because when you give developing countries the right knowledge, skills and technologies, you empower them to produce and package the commodities they farm. You give them the power of profit”.
Ahadu Woubshet, Managing Partner at Moyee Coffee, Ethiopia said: “For decades the world has enjoyed the finest of Ethiopia’s Arabica coffee, while the majority of the profit has failed to reach the farmers. My vision for Moyee is to establish the world’s first specialty coffee brand that is as equitable as it is delicious. A company that produces quality beans and still delivers fair value”.
Aaron Davis, head of coffee research at Britain’s Royal Botanic Gardens at Kew has undertaken research that shows climate change and deforestation are putting more than half of the world’s wild coffee species at risk of extinction. Arabica was the first species of coffee ever to be cultivated, and is the dominant cultivar, accounting for the majority of global production. Ethiopia is the birthplace of Arabica and is particularly worrying for Mr Davis because he has found that up to 60 percent of the land used to grow coffee could become unsuitable by the end of the century.
“The more a farmer is paid, the more resources he will be able to devote to climate resilience,” he said.