STiR coffee and tea magazine

46 STiR coffee and tea / Issue 3, 2017 (June/July) L inking coffee cooperatives and smallholder farmers to other parts of the supply chain would be a lot easier with real-time analy- sis and verification of their coffee crop quality and payment on the spot reasoned the founders of Colorado-based bext360. The company's blockchain technology also enables consumers at the other end of the chain to track their coffees' origins as they make their individual purchasing decisions and see for them- selves the positive impact their buying decisions make on the farm. Blockchains are a network of cloud-based da- tabases that track digital information and transac- tions. Using bext360, farmers and cooperatives access a field-operated application program in- terface (API) called a "bextMachine" to get real- time analysis, pricing and to receive payment for their products. Once entered in the system, specific lots of beans are tracked through the supply chain – from the point of origin through export-import to roast- ing and delivery to retail locations. The company, which raised $1.2 million is venture capital from the financial technologies Tech Assisted Transparency Artists concept of kiosk that timestamps and grades arriving coffee cherry. Growers are paid more for coffee that is the optimal color, size, and density. A price is visible for the amount of coffee. If they don't like the deal the coffee is returned and they can go elsewhere. Prices are based on bids from coffee buyers.Growers who accept receive a digital credit and funds are transferred to their account. investment group SKS Venture Partners, will sell bextMachines for $1,500 to $2,000 depending on functionality. The bext360 will analyze cherry, parchment, and green coffee beans, according to Allyson Quijano, bext360's director of partner- ships and business development. "We will be applying a fee per transaction based upon the level of analysis," Quijano said. "This will be similar to the copy machine model where the fees will cover the maintenance and provide all access to the data and analysis via our API so companies can integrate into their own tracking systems or point-of-sale systems." Here's how bext360 works. Using a bean analysis scanner in the field, bext360 can provide accurate and transparent grading of beans at the farm. Buyers who like the product submit a bid. The coffee farmer or cooperative can choose to accept that offer. The buyer submits payment into the blockchain system and that value is deposited immediately to the farmer in the correct currency. "The farmer will be more accurately compen- sated for the beans and this allows the fair-trade payment to be made seamlessly," Quijano said. "There's no paperwork and no delay in payment." By Dan Shryock

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