Coffee Industry Embraces Blockchain for Enhanced Traceability and Ethical Sourcing

Coffee Industry Embraces Blockchain for Enhanced Traceability and Ethical Sourcing
Cocoa traceability helps Nestle conform to the EUDR. Image source: Getty Images/ Milequem Diarassouba

The coffee industry is increasingly focused on enhancing traceability to meet consumer demands for transparency and sustainability. By leveraging digital tools like blockchain technology, coffee companies can now track every stage of coffee production, from farm to cup. This ensures that coffee is ethically sourced and environmentally sustainable. Key steps include direct farmer engagement, adopting certifications like Fair Trade and Rainforest Alliance, and providing consumers with detailed supply chain information via QR codes.

One example of this shift is Nestlé’s traceability program, which underscores the industry's move towards greater accountability. Nestlé has been implementing these measures to improve the transparency of its coffee and cocoa supply chains, reflecting a broader industry trend. The company’s efforts include direct support to farmers, ensuring ethical farming practices, and offering consumers the ability to trace their coffee’s journey. This initiative is part of Nestlé's ongoing commitment to sustainability, aligning with its global goal to combat issues like deforestation and unethical labor practices in coffee production.

Nestlé's Income Accelerator works with farmers to develop farming practices such as pruning. Image Source: Nestlé

As of June 2024, the coffee industry continues to prioritize traceability, with companies increasingly adopting these technologies to meet both regulatory requirements and consumer expectations.

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