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- Agricultural company AGRINURTURE has announced plans to adopt blockchain technology for its contract growers.
- The company will collaborate with decentralized autonomous organization BLOX to mint its stablecoin, Agritoken, which will be used for payment and lending support to farmers.
- The Agritoken system is intended to offer lower interest rates than traditional microfinance options and improve transparency, security and efficiency for farmers, leading to a higher quality of life.
Antonio Tiu, the chairman and CEO of Agricultural company AGRINURTURE Inc. (ANI), announced recently that the firm is set to adopt blockchain technology for all its contract growers.
While the technology may seem novel and technical in the agricultural industry, Tiu assured that he was able to assimilate and determine which blockchain is most ideal for the country’s farmers through his more than two years of an exploratory process where he canvassed and vetted blockchains from all over the globe, The Manila Times reported.
This is where ANI will be collaborating with Wyoming-based decentralized autonomous organization (DAO) BLOX:
“BLOX is already disrupting many industries in the Philippines. It only made sense for us to extend this innovation to agriculture. Farmers will be able to benefit from the benefits – transparency, security, and efficiency – that BLOX will bring. For them, this will inevitably mean a higher quality of life.”
According to him, the company will mint its stablecoin called Agritoken on BLOX in a closed-loop ecosystem for payment and lending support to farmers, which will offer lower interest rates than traditional microfinance options.
“By monitoring the use of the AgriToken stablecoin, the Philippines‘ produce exporter can fast track quarantine protocols and better achieve food security. In turn, contract growers can focus on what they excel: produce the right quality and quantity. This game changer will significantly disrupt the sector and improve their quality of life,” Blox wrote in a statement.
Further, ANI stressed that utilizing the blockchain will ensure that farmers borrow responsibly and use the stablecoin to fund only designated inputs and services such as fertilizer, seedlings, pesticides, and post-harvest equipment, among others.
“My goal with this closed-loop stable coin concept is to uplift the life of every Filipino farmer via financial inclusion. I want to achieve inclusive growth of the unserved and underserved to be able to break from the cycle of debt traps set by the loan sharks. By doing so, they can grow and expand their farming operation and ultimately move up the value chain in the agricultural sector,” Tiu concluded.
Blockchain Technology in Agriculture Industry
This is not the first time that the agriculture industry is tagged as one of the possible industries to benefit from blockchain technology.
As early as 2018, the Davao Agri-Trade Expo (DATE) put blockchain and internet-based marketing in the spotlight during its Agribusiness Innovation Conference, adding that “using these emerging technologies will help draw young people towards the agriculture industry.”
This idea is seconded by an article written by BitPinas contributor Randy Knutson in 2019, who highlighted that “the introduction of a new economy under Blockchain in Caraga will enable modern and sustainable practices in putting their natural resources to good use – to connect at the forefront of the world market.”
And just recently, insure-tech firm Igloo launched its Weather Index Insurance, the firm’s first blockchain-based, farmers-focused parametric insurance that automates claims through a smart contract on the blockchain.
What is Agrinurture?
ANI was an importer, trader, and fabricator of post-harvest agricultural machines, later it became a local supplier and manufacturer of conveyor systems and other rice mill equipment. Eventually, the company diversified to various agro-commercial businesses which specifically focused on the export trading of Philippine carabao mangoes as its main revenue stream.
This article is published on BitPinas: PSE-Listed Agrinurture Will Adopt Blockchain, to Mint Agritoken on Blox
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.