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Livestock WealthPoverty in South Africa has historically been linked with the institution of the racial apartheid regime. The national government began to pass segregationist policies in 1948, with racial discrimination policies only officially dismantling in 1994 when South Africa became a democracy and Nelson Mandela stepped into power. Livestock Wealth is a company that introduced South Africa to “crowdfarming” as a means of supporting farmers and alleviating poverty in the country.

Apartheid and Poverty

Under the apartheid regime, the minority-white government passed policies aimed at keeping black South Africans, who made up a majority of the population, from having any meaningful participation in the economy. This left millions trapped in cycles of poverty and the residual effects of such discriminatory policies are still being contended with, in the effort to reduce poverty today.

Apartheid laws confined poor South Africans to rural regions and made the migration to urban areas difficult. The lack of opportunities and social mobility in rural areas made overcoming poverty a challenging task. The legacy of this limited mobility is still present today. South African provinces in rural areas have more households in chronic poverty compared to urban provinces. As of 2015, 25.2% of the population of urban areas lived below the upper-bound poverty line (UPBL), whereas 65.4% fell below the UBPL in rural areas. In order to reduce poverty, it is most important that rural communities receive support and investment.

Livestock Wealth

Livestock Wealth is a startup founded in 2015 by Ntuthuko Shezi which aims to provide investment for farmers in South Africa’s rural areas. Livestock Wealth allows investors from anywhere in the world to effectively purchase from South African farmers four different livestock and crop options: a free-range ox, a pregnant cow, a connected garden or a macadamia-nut tree. When the cows or the crops are sold, both the farmer and the investor receive a share of the profit.

The investment provides liquidity to farmers for whom there is limited availability of short-term funds. Livestock Wealth is currently a credit provider with South Africa’s National Credit Regulator and is registered with the Agricultural Produce Agents Council.

Livestock Wealth currently has 58 partner farmers all across the country and all cows are hormone-free and grass-fed. In recent years, its business has expanded to also provide meat for investors who join the “Farmers Club.” There are currently more than 2,800 investors with Livestock Wealth and more than $4 million has been invested.

Alleviating Poverty in South Africa

Livestock Wealth is a representation of an initiative that has great potential to alleviate poverty in South Africa. South Africa’s rural populations have a long history of exclusion from the economy and have struggled to reduce poverty for decades. Livestock Wealth provides cash investments for farmers and creates a market in which they can reliably trade. By doing so, the firm exemplifies an innovation within the South African economy, one which is helping to alleviate poverty and can inspire others to do the same.

– Haroun Siddiqui
Photo: Flickr

Renewable Energy in Costa RicaThe country of Costa Rica has an abundance of natural resources available. The particularly abundant renewable resources that Costa Rica uses in great quantity is its wind and hydro energy. Costa Rica has embraced renewable energy and has benefitted from it in a multitude of ways but there are also some less obvious ways it has benefitted from renewable energy.

Renewable Energy in Costa Rica

Renewable energy has helped small business owners and farmers. This would explain why so many of them are supportive of renewable energy. Since deforestation has been largely stopped because of renewable energy, the biodiversity in Costa Rica has been able to remain. Costa Rica’s mass only makes up 0.03% of the Earth. Nonetheless, 6% of the Earth’s natural wealth and biodiversity is located within Costa Rica.

It is this biodiversity that has become so useful to the farmers of Costa Rica. Biodiversity reduces the need for fertilizers and pesticides that the farmers would normally use. Other natural resources can be used for farming as well. Cacao shells, for example, can be used for mulch and logs can be used to make the soil richer.

Renewable Energy Helps Tourism

Tourism has also benefitted from renewable energy in Costa Rica. Tourism is an extremely important part of Costa Rica’s economy. Tourism alone brings in about $1 billion to the country and employs around 155,000 people. This is a substantial amount of people in a country home to about four million people. Renewable energy indirectly helps protect tourism in Costa Rica, in particular, ecotourism. By protecting these natural resources, Costa Rica ensures that people will continue to visit the country to see the beauty of its natural and conserved environments.

The Los Santos Wind Power Project

Renewable energy has also helped small and local communities in many ways. Los Santos is one such area that has seen these positive impacts. Los Santos has particularly benefitted from the use of wind energy. The area is one of the windiest regions within Costa Rica. Currently, the Lost Santos Wind Power Project is installing wind turbines in the region.

The project has built enough windmills in the area that the region is able to generate 12.75 MW of wind energy, provide 50,000 inhabitants with the electricity they need and prevent around 15,000 tonnes of carbon from being released into the atmosphere each year. The energy produced by the wind turbines can then be sold to the government. The money that is earned can be used to help the local community. For example, the money made from selling energy that is produced can be used for the construction of new schools. Additionally, the installation of wind turbines will also create new jobs for people. To keep turbines functioning and ensure they receive repairs when needed, technicians must be available to work on them.

Renewable Energy, Renewable Hope

Renewable energy in Costa Rica is beneficial for a multitude of reasons, as set out above. The money from the generation of renewable energy can be used to help small communities. The tourism industry in Costa Rica will continue to thrive and because the environment will remain undamaged so will the amount of biodiversity that helps farmers.

– Jacob E. Lee
Photo: Flickr

Blockchain-Based Land Registry in HondurasProof of land ownership is an essential tool to protect the livelihoods of those who depend on livestock and agriculture to feed their families and earn an income. However, in many developing countries such as Honduras, systems of land registry are unreliable and prone to corrupt manipulation, leaving farmers vulnerable to unlawful land seizures. Blockchain-based land registry aims to address this.

Blockchain-Based Land Registry

Despite this, the rise of blockchain technology has brought about a potential solution to undependable land registry systems. Providing a secure system of digitized land titles does more than protect property rights. It also gives farmers the ability to borrow against their land assets to raise capital, which could be used to invest in their businesses and broaden their economic opportunities. Blockchain-based land registries can be used to protect Hondurans’ land ownership rights.

Land Theft in Honduras

In 2015, the government of Honduras reached out to Factom, a U.S.-based blockchain technology company, to develop a nationwide land registry system. This decision came in light of the growing threat of land title fraud in Honduras, which would often occur at the hands of bureaucrats hacking the existing government land title database to steal land for personal use.

In a country with rampant corruption and unsecured land registry systems, Honduran farmers are at risk of falling into poverty and displacement at the hands of government officials or powerful landowners seeking to broaden their commercial agricultural holdings. A secure system of registry built with blockchain technology would provide a solution to this problem.

Stalled Efforts in Implementation

Although Honduras reached out for assistance in building a secure system, by the end of 2015, efforts to develop it stalled due to the government’s unwillingness to continue the effort. Nonetheless, there is still hope for the eventual continuation of the project, as it has the backing of the World Bank and other international donors.

Blockchain-based land registry systems represent an optimal solution for Honduran farmers because of their unique security. These systems track transactions with a timestamped digital signature and store them in a connected, distributed array of computers scattered around the internet. The digital signature tracks the history of ownership, thereby making the land title unsusceptible to tampering. Furthermore, blockchain technologies can utilize GPS coordinates to describe the exact dimensions of each claimed land parcel and pair it with the digital ID of the owner. The result is a secure system that protects farmers’ rights to land ownership.

The Intersection of Tech and Poverty

Innovations in technology and the spread of internet access are crucial in the fight against global poverty. Blockchain-based land registry solutions enable farmers to protect their livelihoods and invest in expanding and diversifying their agricultural yields. As more farmers better their economic situations and poverty levels decline, the demand for consumer goods rises, which bolsters trade and the wider global economy.

Investing in solutions to global poverty thus entails a two-way path of rewards: developing countries are lifted out of poverty and developed countries establish a connection with a new trading partner. When one country is lifted out of poverty, every country benefits.

– John Andrikos
Photo: Flickr

Agroforestry Can Reduce Global PovertyForests provide food, medicine, fodder and energy for 250 million of the world’s extreme poor. If utilized properly, the method of agroforestry can reduce global poverty. The resources and benefits that forests can provide are often inaccessible to those in poverty due to the private ownership of forests.

Ownership of Forests

Approximately 77% of the world’s forests are owned and administered by governments that do not recognize the claims of indigenous peoples and local communities to the land. Since government priorities do not always align with community needs, the locals who need the forests to survive do not receive the benefits that they should. For example, the timber and ecotourism industries in Africa are skyrocketing but the locals do not share in the profits.

Agroforestry

Agroforestry, the agricultural practice of growing trees and shrubs around crops or pastureland, can ameliorate this problem. Agroforestry builds on existing agricultural land already owned by communities to create new forests not owned by the government, thereby circumventing the ownership problem and guaranteeing that profits remain in the community. Agroforestry systems are smaller in scale than typical forests but they still deliver many of the same positive results: they diversify production, restore soil fertility and increase biodiversity.

The benefits of agroforestry extend beyond environmental issues. Agroforestry can reduce global poverty by increasing food resources and security, improving nutrition and increasing profits for farmers.

3 Countries Using Agroforestry

  1. Bolivia uses agroforestry to reduce food insecurity. Bolivia is one of the biggest producers of organic cacao, which despite being edible, is not a major food crop. Cacao is grown mostly wild or in monocultures, though there is a growing shift to agroforestry systems where cacao trees are intercropped with shade trees and other by-crops like bananas and avocados. Over 75% of Bolivian households lack regular access to basic foods. Thanks to agroforestry, 40% of the population who depend on agriculture for their livelihoods can both produce more food and earn more money to buy what they do not grow. The Research Institute of Organic Agriculture (FiBL) found that the return on labor was double for agroforestry systems compared to monocultures even though the cacao yields were 40% higher in the monocultures. The revenue difference came from the sale of the by-crops, which offset the lower cacao yield. The by-crops helped farmers earn a profit but also represented a food source for the communities.

  2. Burkina Faso uses agroforestry as a means of women’s empowerment. The U.N. Development Program estimates that an average of three million African women work directly or indirectly with shea butter. Women have historically played an important role in the extraction of shea butter but they have not always been compensated for their work, even as the industry and profits grew. Agroforestry allows for more community involvement in farming, which in turn opens up opportunities for women. NGOs like CECI and WUSC help to train women in shea harvesting as part of the Uniterra project, which aims to get women involved in entrepreneurial ventures such as developing their own shea butter businesses for international exports. As a result of agroforestry, more women are empowered to take themselves out of poverty.

  3. India is a global leader in agroforestry policy. India was the first country to create a national agroforestry policy in 2014 despite existing policies that were unfavorable to agriculture, weak markets and a lack of institutional finance. The country set the ambitious goal of increasing national tree cover to 33% as a way to make agriculture more sustainable while optimizing its productivity. Agroforestry is currently in use on 13.5 million hectares in India but the government hopes to expand it to increase benefits like reducing poverty and malnutrition by tripling crop yields. Already, agroforestry provides 65% of the country’s timber and almost half of its fuelwood. Timber production on tree farms generates 450 employment days per hectare per year, which can reduce rural unemployment, and in turn, rural poverty.

The Potential of Agroforestry in Poverty Reduction

Many other rural communities in Latin America, Sub-Saharan Africa and Southeast Asia have relied on agroforestry throughout history, with and without government backing. As a whole, agroforestry is underused in the fight against global poverty. Nations with large agricultural sectors need to adopt agroforestry policies and promote the training needed to help farmers implement agroforestry on a large scale. These agroforestry efforts have the potential to significantly contribute to global poverty reduction.

– Brooklyn Quallen
Photo: Flickr

TechnoServe is Alleviating PovertyNearly two-thirds of developing countries rely heavily on the economic profit of agriculture to support local financial infrastructure. The industry holds high profitability but farmers rarely have the means to create a profitable business. TechnoServe works closely in agricultural advancements, creating capitalizing markets for countries to grow upon. Technoserve is alleviating poverty through its initiatives in the agricultural sector.

Training Skills for Farmers

Kenya, Haiti and Zambia are some of the many developing countries rich in natural resources that are in high consumer demand, such as mangos and cashews. The support and training skills implemented by TechnoServe work to profit on the supply and demand. These natural resources could provide significant economic growth if farmers are given the skills to create a profitable business. Technoserve has partnered with nearly 4,000 businesses and upwards of 300,000 farmers each year.

TechnoServe’s mission is to implement training methods that these regions lack, such as skills in management training, finance and secure markets that are needed to create profitable enterprises. The implementation of training skills and knowledge allows individuals and communities to continue to carry the skills for a lifetime.

TechnoServe has made a lasting impact for millions of individuals and in 2019 it was rated the number one nonprofit fighting poverty by ImpactMatters.

Focusing on Women’s Empowerment

The annual report from 2019 reveals an increase in entrepreneurship for farmers and women, highlighting specific countries, and more specifically, women’s impact. In 2019, 38% of beneficiaries were women or women-owned businesses. Overall, 317,493 individuals and companies, as a result of Technoserve’s help, display increased profitability and financial benefits of $200,579.

In developing countries, women face gender barriers that are disproportionally more likely to affect them. Women’s economic empowerment is vital for alleviating poverty and creating employment opportunities. Investing specifically in women’s economic opportunities, such as access to training, knowledge and resources, could impact farm production up to 30%, allowing for increased employment opportunities. Studies estimate that this change could impact the global GPD by 26%, or $28 trillion.

Women in Business (WIN)

Working closely with businesses and organizations, Technoserve is alleviating poverty by proactively working to create social equity within communities. Breaking the barrier of gender inequality to empower women-run institutions through funding and support, improves the quality of life and financial status. For instance, Technoserves five year program designed for women, called Women in Business (WIN), focuses on female entrepreneurs in Mozambique. Similar training is also provided for men through Technoserve, to create complete gender balance.

More than three-quarters of economically active Mozambicans are involved in small and informal businesses, 60% of whom are women.” Despite most business owners being women, their businesses are less likely to employ as many people and are relatively smaller than their male counterparts. Highlighting gender barriers, women face higher demands at home due to families and are not likely to receive the same networks, information and opportunity. The WIN program utilizes a market systems approach to produce partnerships with private sector companies, associates and service providers, to create an inclusive market for women. WIN is able to provide these women resources through the partnership established with the Swedish International Development Cooperation Agency (Sida). Sida assists TechnoServe’s initiative through funding, providing resources such as creating employment opportunities, equipment, financial services and products needed.

Overall, TechnoServe is alleviating poverty with initiatives in the agricultural industry and acknowledges the important role of women in this endeavor.

– Allison Lloyd
Photo: Flickr

Poverty in PanamaPanama — the narrow bridge of land that connects North and South America. The tropical country is renowned for its natural beauty and diverse plant, animal and bird life. Yet, all that sparkles, is not glitter. Panama’s economy is highly unequal and there’s a wide gap between the rich and the poor. Poverty in Panama is as much of a prominent feature of the country as its landscape.

Rural Poverty

Ethnicity and geographic location determine one’s poverty in Panama. Panamanians who live in rural areas do not have adequate access to resources, such as hospitals and schools. This is a result of the lack of professional doctors and teachers or mentors in rural areas.

Panama is the second worst in income distribution in Latin America, which leads to sector-specific poverty. Unpaved roads in the country make it are especially difficult for farmers. Accordingly, they do not end up selling their crops in big cities where they can earn a large income. Thus, begins a chain of poverty in Panama that devolves into poor hygiene, sanitation, child labor, malnutrition and eventually yet another generation submerged in loans.

Child Poverty

About 27.7% of Panamanian children live in poverty and 12% experience malnutrition. Failure to register children at birth causes many to go without citizenship. Thus, the government is ignorant on its exact child population and cannot justly allocate money to the “nonexistent.”

Around 15% of children are victims to early marriages. The legal age to marry in Panama is 16 for boys and 14 for girls. However, most of these children are not registered with the government, so kids are married off at ages as young as 10.

The minimum age for working in Panama is 15. Even with this being the case, 5-year-old children can be seen carrying bricks in construction sites. Severally underage workers — child laborers — even appear in big cities like Panama City and Tocumen. To earn a few dollars more, families force their children to work. However, it’s at the cost of children being mentally and physically exploited.

The Rays of Light

Panama has done much to fight poverty. From 2015-2017, poverty in Panama declined from 15.4%  to 14.1%. In the same time span, extreme poverty decreased from 6.7% to 6.6%. Additionally, there are currently multiple NGOs working to help poverty and other problems in Panama. One is to Educate Women in Panama. The organization’s goal is to help lower poverty in the future through more women and girls getting their education. Education will help these women find jobs easier, lowering the poverty rate.

The country, with aid of NGOs and the government, has the potential to bridge the income inequality gap and make itself an equitable society for all, regardless of class, region or ethnicity. Panama can be as bright and colorful as its beaches for not only the urbanites but also the rurals.

Riddhi Bhattacharya
Photo: Flickr

African AgribusinessesOn November 30, 2020, USAID announced a joint operation with the Swiss Agency for Development and Cooperation and the IKEA Foundation to contribute $30 million to Aceli Africa to help bridge the financing gap experienced by many African agribusinesses. The grant is estimated to have a tremendous impact and will unlock $700 million in financing for up to 750 African agribusinesses in Tanzania, Kenya, Rwanda and Uganda.

Agri-SMEs Lack Financing

Much of Aceli Africa’s work focuses on a data-driven approach to incentivizing financial institutions to provide loans for small and medium-sized African agribusinesses or “agri-SMEs”, as Aceli Africa calls them.

According to Aceli Africa’s research, agri-SMEs represent a golden opportunity to solve hunger and poverty throughout Africa and help fulfill key U.N. Sustainable Development Goals (SDGs), such as gender equality and climate action.

This is because smallholder farmers consist of both men and women and provide direct access to food sources that are responsibly raised in accordance with the needs of the local environment. Furthermore, the expansion of the agricultural sector in Africa is two to three times more effective in eliminating poverty than growth in any other sector.

Despite the great potential of African smallholder farms, banks are largely unwilling to loan them much-needed financing to power additional growth. Banks do not have the risk appetite for small farms in Africa due to price volatility, the seasonality of farming, pest invasions and a weak regulatory environment.

The result of this is an investment shortfall of $65 billion per year for agri-SMEs in Africa. Initiatives focused on microfinancing do not provide enough financial injection for agri-SMEs, which are larger than the microenterprises that are the usual recipients of microloans. Agri-SMEs are thus left out of financing. However, the work of Aceli Africa aims to change these circumstances.

Aceli Africa Incentivizes Banks to Loan to Agri-SMEs

To bridge this gap in financing, Aceli Africa partners with numerous organizations such as USAID, the IKEA Foundation, Feed the Future and the International Growth Center to incentivize banks to loan and provide technical assistance to agri-SMEs.

This is where the aforementioned $30 million contribution has the potential to positively impact agriculture and African agribusinesses. One of the incentive programs that Aceli Africa employs is to cover the losses of the first loan that a financial institution gives to an African agri-SME.

This works by depositing 2-8% of the loan’s value in a reserve account that the lender can access when losses are experienced. This boosts risk appetite among lenders and makes banks and other institutions more willing to invest in agri-SMEs in Africa.

Aceli Africa also provides technical assistance for financial management for African agri-SMEs through online tools and other in-person approaches to help smallholder farmers optimize growth using the loans they receive. These approaches have the potential to put U.S. taxpayer dollars to effective use by addressing poverty and hunger abroad.

United States Outreach is Key in Combatting Poverty

USAID’s decision to partner with the Swiss Agency for Development and Cooperation and the IKEA Foundation to contribute to the work of Aceli Africa symbolizes the value and power of international partnership in the fight against global poverty. When the United States decides to lead on an issue, the rest of the world follows. Key international partnerships are essential for the United States to take the lead and garner international support to address key global issues.

– John Andrikos
Photo: Flickr

Fair trade productsIn a global marketplace full of exploitative producers and hungry consumers, fair trade product markets can seem like a welcomed compromise that allows exporters in developing countries to prosper from their resources. These initiatives usually involve goods exported from developing countries to higher-income trading partners, including coffee, tea, cocoa and handicrafts. In more socially conscious trading models, producers are compensated equitably for their products and held to higher environmental and social standards. However, the true efficacy of fair trade models is complex.

Price and Accessibility

Consumer attitudes and behaviors play a significant role in the pervasiveness of fair trade products. Buyers often report positive attitudes toward more ethically traded items but are not always willing to pay the inevitably higher prices. As a result, fair trade products are still a more niche commodity, making up less than 1% of the market. Ironically, the extra expense of these items often makes them less accessible to lower-income consumers in developed countries, creating connotations of elitism. Despite these setbacks, the demand for more ethical products is steadily on the rise.

Fair Trade Product Marketing

Despite many well-intentioned consumer attitudes, fair trade product markets frequently feature marketing strategies that conjure up imperialistic images. Rather than honoring the work of exporters as equitable trading partners, many marketing campaigns portray farmers as grateful and dependent on western purchases.

Transparency in Fair Trade Certification

In products marked as fair trade, the certification might only apply to the product’s raw materials, rather than the full process of production. This means that a shirt made with fair trade cotton could have been manufactured in a sweatshop. Naturally, this lack of transparency can mislead consumers and dilute the meaning of the certification.

Economic Impact of Fair Trade

The efficacy of fair trade as a poverty management tool is up for debate as well. Although fair trade marketing is centered on empowering those in producing regions and reducing poverty, the effects are not as straightforward as many well-intentioned consumers might hope. A 2014 study theorizes that these practices are somewhat effective, “although on a comparatively modest scale relative to the size of national economies.”

Often, the poorest workers are spared the prosperity from fair trade product market practices. A study that observed coffee mills in Costa Rica between 1999 and 2014, explored the impacts of fair trade systems on household incomes within the region. Researchers found that farm owners and skilled growers reap most of the benefits. Unskilled laborers receive no benefits other than the economic spillover of an increasingly prosperous coffee-growing region.

Many requirements of the fair trade certification are inaccessible for growers with fewer resources. Smaller producers might struggle to pay the fees associated with becoming certified fair trade producers. Similarly, producers struggle to attract large corporate trading partners who have no interest in paying the extra cost of sourcing materials equitably. NGOs like Maya Traditions, which helps Guatemalan artisans sell their products on the international marketplace, aim to make entrepreneurship accessible to small producers in developing countries.

The Verdict

The efficacy of fair trade systems is the subject of a great deal of criticism. While fair trade products like coffee, tea, and cotton are worth investing in, the benefits are imperfect and not accessible to all producers or consumers. Some activists advocate for a ‘direct trade’ system, in which consumers can buy goods directly from growers while paying growers sums closer to retail prices. However, the direct trade model comes with its own set of challenges and infrastructural changes. Nonetheless, establishing a system that allows producers to reach more advanced development from trading their crops is challenging but is certainly worth investing in.

Stefanie Grodman
Photo: Flickr

Building Sustainability through LivestockAround the world, billions are lost to see how vital livestock is to a sustainable lifestyle. For many in the developed world, the meat we buy at the grocery store every week and the process it has to go through may seem a bit amorphous and, some would argue, potentially problematic from an ethical perspective. The importance of sustainable livestock is crucial, not only to those of us lucky enough to be able to simply pick up a wide range of meats at a variety of places, but it can be the marker of success for local farmers and businesses in the developing world.

For those around the world that tend to livestock, they rely on it as a primary food source as well as for economic means. As a source of protein and nutrients, livestock is irreplaceable. Poor and developing countries find it difficult to access nutritionally balanced foods. Therefore, access to livestock such as cows and goats can provide much-needed food and economic relief when it comes to supporting yourself, your family and local businesses with products such as eggs, milk and other dairy products.

The acquisition is especially important in areas that are suffering severely from malnutrition. This is not lost on organizations such as, Oxfam and Heifer International that offer a charitable donation in the form of giving a family the much needed, “gift of sustainability,” as Oxfam calls it, such as a goat. Also, the economic and health benefits of owning livestock are not lost on many nations either. For example, Rwanda has initiated a government assistance program called One Cow per Poor Family (also known as Girinka).

A new study has expressed that this program shows great promise in limiting food insecurity. With Agriculture supporting 80 percent of the Rwandan population, owning livestock can also help with limiting the negative effects of soil infertility. However, in the absence of government assistance programs such as these, many poor families will be left with few options, should their crops fail or if other sources of income are dried up. And while there is no shortage of options when it comes to donating to help with food sustainability in underdeveloped nations, livestock sustainability sadly and continually falls to the waste side.

“The contribution of livestock to the wider rural economy remains under-appreciated by all players in development, except farmers,” says The Guardian in their article, “It’s time to recognize the important role livestock play in tackling poverty.” And with under-appreciation or lack of knowledge typically comes under-development and lack of funding. Additionally, livestock can take on many roles as it helps to keep families from slipping further into economic depression. For example, if the crops that the livestock are helping cultivate suddenly take a devastating turn, as they will often do, families will also have the option of selling the livestock itself to stay afloat.

Livestock also can give women in local communities the chance to not only make a profit but also help build economic sustainability for themselves as well. In a world where half the farmers are female, many women have taken the helm when it comes to raising and cultivating livestock. This work, which can be incredibly profitable, will not only give women a source of income and potential economic independence, but studies have shown that with these newfound funds, women will invest a majority of it back into the household. Those are expanded investments in school, food, healthcare, etc.

With the help of livestock, communities that are being ravaged by poverty have a chance to not only pull themselves out of it, but they provide an opportunity to build a sustainable future for themselves and their community. As long as livestock is brought to the forefront of discussions about poverty and development, then global sustainability can see greater positive results.

Connor Dobson
Photo: Flickr

 

Moyee Coffee is Helping Farmers in Ethiopia
The days of poor coffee farmers in Ethiopia receiving underpayment for hard work may soon be over as Moyee Coffee is helping farmers in the country. Moyee, a Dutch coffee brand, is transforming supply chains with blockchain. Moyee begins this process by creating unique digital identities for its coffee producers. Next, it sets prices at 20 percent over the market rate. Buyers can view these prices and choose to support the livelihood of farmers in Ethiopia. The coffee company is also creating an app that allows customers to tip farmers. These business decisions are what make Moyee the first multinational coffee company based in Ethiopia.

Why Coffee is Such a Tough Business

People consume billions of cups of coffee every day and the coffee industry is worth almost $100 billion, yet the producers of the coffee bean are among the world’s poor. Approximately 90 million people who help produce coffee live on less than $2 a day. To put that into perspective, most Americans spend more than $2 a day on a cup of coffee.

A lot of the problems associated with coffee farming and poverty have to do with climate change and price fluctuation. Climate change has altered growing seasons making it difficult to produce good quality crops. Species of coffee are dying out because of deforestation and soon farmlands may become unsuitable to grow coffee. Prices fluctuate often because of supply and demand. The problem is that when climate change damages crop yield, prices can be low which means farmers earn less than they should for their product.

How Blockchain Increases Profits for Farmers in Ethiopia

This is when Fairchain comes in. Fairchain is a version of blockchain that Moyee created. It is a digital supply chain that is completely transparent. The supply chain tracks every transaction from the coffee bean to the coffee cup. This allows blockchain to cut out the middleman and help control price fluctuations. When the supply chain is transparent, people and companies can see how much each chain in the line received to keep prices fair. This is what helps farmers when prices fluctuate dramatically because they get a fair price even when demand is low.

How Moyee Coffee is Helping Farmers

Moyee gives coffee farmers mobile wallets, tap cards, identification numbers and barcodes that allow them to receive payments directly. Moyee also allows customers who buy its coffee to support farmers by using a QR code. The code allows customers to tip the farmer or fund small programs that aid farmers like microloans or training.

The Moyee Brand has a growing impact in Ethiopia by using blockchain to increase profits for coffee farmers. The use of technology has allowed for supply chains to become more transparent. Transparency is key because customers are often unaware of where their product is coming from and how much the producer receives. The increase in profits can help farmers in a variety of ways. Their product yields could increase and they could live a more sustainable lifestyle. Middlemen used to take advantage of farmers and cut their profits, but Moyee is changing that and hopefully, it will serve as a model for other multinational corporations.

Gaurav Shetty
Photo: Flickr