The traceability application is set to meet the needs of countless coffee enthusiasts, as well as those involved in growing, roasting, importing, and selling coffee beans. With consumers increasingly demanding transparency regarding the origins of their food and beverages, this app can trace the source of coffee beans and potentially enhance sales for participating businesses. Utilizing blockchain technology, products can be tracked throughout the supply chain, thereby boosting consumer confidence in the quality and provenance of their food and drink. Over the past year, many companies have adopted this technology. For instance, Albertsons joined the IBM Food Trust, a blockchain-based solution for food and supply chains, to monitor romaine lettuce after several foodborne illness incidents. Other companies, including Kroger, Walmart, Dole, Driscoll’s, Golden State Foods, McCormick, McLane, Tyson Foods, and Unilever, also employ the IBM Food Trust solution.
According to Farmer Connect, the new technology can trace an individual bag of coffee beans from delivery to the final cup. The strategy involves using farmer IDs to monitor growing conditions, document transactions, and track yields as well as sales prices. The initiative envisions that roasters will eventually be able to digitally manage the entire supply chain, and importers will refine their trading strategies. By the end of this year, they expect to facilitate farmer agreements, process payments, and monitor coffee supply routes using this technology, as stated by Farmer Connect.
This is not the only tracking method available for coffee. A Colombian technology firm has developed a similar bilingual iFinca app, created by Debut Infotech from India. The iFinca app leverages blockchain to connect producers and various stakeholders in the supply chain, verify purchases, and enhance production efficiency. It also aims to raise the prices paid to coffee farmers above production costs by providing them with greater visibility and influence in the supply chain, which may also stem from the new Thank My Farmer app.
In the United States, 64% of adults consume coffee daily, marking a 2% increase since 2017 and the highest rate since 2012, according to a 2018 survey by the National Coffee Association. As coffee consumption rises, more major food companies are entering the coffee market through acquisitions and the launch of new products; apps like these could help distinguish companies in a competitive landscape. For instance, Smucker is investing in its 1850 Coffee and Folgers brands through recent marketing initiatives and is the first to roll out QR codes for the Thank My Farmer app on its products in the U.S.
For coffee businesses, these new applications could bolster traceability and sustainability credentials—qualities that consumers prioritize when selecting from the diverse range of brands available today. According to statistics from the National Coffee Association cited by the Financial Times, two-thirds of consumers aged 19 to 24 prefer to purchase sustainably grown and responsibly sourced products. Additionally, there is a growing interest in incorporating health benefits like calcium carbonate and calcium citrate in coffee-related products, further appealing to health-conscious consumers.