Want to tackle climate change from home? Take a look in your cupboard. Where are you buying your products from and how are they produced?
It is hard to reimagine our supply chains today as the average consumer is spoilt for choice when it comes to their shopping habits. Taking a closer look at our consumption habits means being conscious about buying behaviour and understanding the socio-economic and environmental impact of the products we consume.
Let’s take tea as our example which is almost a staple in every household. In late Autumn many plants around us are beginning their descent for Winter but tea leaves are still shining bright. Tea leaves aka Cameillia Sinensis are renowned for their glossy beauty and resilience. The cultivation and distribution of the second most loved drink in the world offers an interesting use case for blockchain technology.
The journey of tea
Tea cultivation began in China around 350 CE. In 780 CE, Lu Yu published one of the first books about tea, detailing tea leaf shapes and ceremonies. By the early twelfth century, merchants had introduced tea to the Muslim world, where it was consumed in place of wine and other forbidden stimulants. It would take almost another 500 years for tea to become a global powerhouse. There is a message here about never giving up but this is not the focus of our article today.
The colonial impact and tea’s global spread
Although a lot of our colonised past is tainted with invasion, injustice and systemic racism, the awareness of many global plants and products must be attributed to this time also. In the nineteenth century, the British, addicted to tea, began cultivating native varieties in India, relying on indentured Central Indian labourers. By the late 1880s, British imports of tea from India and Ceylon surpassed those from China, embedding tea deeply into British culture and identity.
Using blockchain to track sustainable consumption
Eco-conscious consumers today are fed up with brands that over-promise in regard to their green objectives. Greenwashing, where companies falsely claim to be environmentally friendly, is still commonplace but as consumers have more places to vent online, brands need to act ethically to avoid new levels of backlash.
The demand for transparency when it comes to production and distribution is surging. Blockchain technology offers a new means to verify and validate the sustainability of tea production and consumption, providing transparency from farm to cup.
Also Read: Understanding the role of fintech, blockchain in transitioning to net zero
By integrating Internet of Things (IoT) sensors in the supply chain, data on energy consumption, water usage, and carbon emissions can be recorded on the blockchain. This data is transparent and tamper-proof, allowing consumers to trust the sustainability claims of their favourite tea brands.
Ensuring ethical sourcing
Blockchain can track tea leaves from their origin in fields to the final product. This traceability ensures that tea is sourced ethically, fair wages are paid, and sustainable farming practices are adhered to. Consumers can scan a QR code on their tea packaging to see the entire journey of their tea, guaranteeing its authenticity and ethical production.
Supply chain transparency
Enhancing supply chain efficiency blockchain technology improves the efficiency of tea supply chains by reducing paperwork, lowering costs, and speeding up transactions. Smart contracts automate payments and agreements, ensuring that farmers receive timely payments and reducing the risk of fraud.
This increased efficiency can lower the cost of tea production, benefiting both producers and consumers. Morpheus Network leverages technology to optimise and automate supply chains. By providing end-to-end visibility and ensuring compliance with regulatory requirements, they can help businesses track their products transparently from origin to destination.
Supporting small farmers
Blockchain can also facilitate financial inclusion for small tea farmers. ReFi DAO focuses on regenerative finance, aiming to build financial systems that prioritise environmental sustainability and social equity. By integrating blockchain technology, ReFi DAO creates transparent and accountable financial ecosystems that support sustainable agricultural practices and fair trade, benefiting small tea farmers and the environment.
Furthermore, Decentralised finance (DeFi) platforms can offer microloans to farmers, using their blockchain transaction history as a form of credit scoring. This access to capital allows farmers to invest in better farming practices, increasing their yield and income.
EthicHub connects small farmers with global investors through a blockchain-based crowdlending platform. By providing micro-loans and ensuring fair interest rates, EthicHub empowers farmers to improve their agricultural practices and achieve financial stability. Their successful model in the coffee industry demonstrates the potential for similar applications in the tea sector.
Blockchain technology has the potential to revolutionise the tea industry by ensuring ethical sourcing, combating greenwashing, enhancing supply chain efficiency, and supporting small farmers. Embracing this technology can build trust with consumers, enhance environmental credibility, and contribute to a more sustainable future for the world’s second-most loved beverage.
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This article was first published on June 25, 2024
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