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Palm Oil and Deforestation

Tucked away in the lush, tropical landscape of Indonesia lies a critical lifeline to the country’s economy and a key ingredient in our everyday lives: palm oil.

Indonesia is a proud producer of this essential global commodity. Not only is the country the world’s largest producer, but it also accounts for over half of the global palm oil market — a statistic that underlines not only the crop’s agricultural prominence but also its massive economic footprint.

Within the tapestry of Indonesia’s economy, palm oil threads run deep.

From plantations that dot the islands to the bustling ports where this golden oil begins its journey to markets far and wide, there is no mistaking that the industry supports millions of livelihoods.

It’s a sector that influences more than simple agricultural activity but everything from local employment to national GDP.

Unfortunately, there are pain points in palm oil production. In the face of these challenges, Dimitra Incorporated presents a unique solution to Indonesia’s palm oil problems. Dimitra, a global ag tech company committed to enhancing agricultural practices across the globe, is hoping to uplift the palm oil sector in Indonesia.

This fusion of vision and technology is focused on presenting sustainable solutions to Indonesia’s palm oil farming population. The goal is to address complex challenges in the industry and balance the scales between productivity and preservation.

It’s a mission that goes beyond business — one that aspires to leave a legacy of sustainability for generations to come.

The Palm Oil Paradox

Palm oil securely holds the crown as the world’s most widely consumed vegetable oil. From chocolates to shampoos, its ubiquity is unmatched. This story is not a tale of popularity but rather about efficiency.

When it comes to production, palm oil is in a league of its own.

The palm oil tree, a native of West Africa now flourishing in the tropical landscape of Indonesia, boasts impressive efficiency, producing more oil per hectare than any of its counterparts. Where other oils demand more land, palm oil trees thrive on less. It’s a stark contrast that positions palm oil production as an economical choice as well as an environmentally sound one, at least from a land use perspective.

Even with this increased efficiency in production, the thorny issue of deforestation still persists in the lands catering to this in-demand commodity.

The very land that acts as a home for palm oil plantations often comes at a jarring cost. Indonesia, a verdant expanse of tropical vegetation, has long felt the sting of deforestation. The loss of forests to palm oil plantations can’t be understated. As of 2021, over 15 million hectares of land are dedicated to palm oil plantations.

This fact sits uncomfortably with the global narrative of environmental conservation. However, it’s not as cut and dry as one might think.

The Problem with Deforestation

The green expanse of Indonesian rainforests hosts rich biodiversity that is both rare and remarkable.

As the palm oil industry expands to meet global demand, these natural landscapes face the threat of the ax and chainsaw. The link between cultivation and deforestation is not just a line in the sand. It is a deep chasm that raises alarm bells worldwide.

Deforestation leaves behind a wake of catastrophic environmental challenges. Once thriving habitats for countless species face complete annihilation.

One creature, the orangutan, has become the face of Indonesia’s palm oil problems. It’s said that every year, between 1,000 and 5,000 orangutans are killed in palm oil concessions. These apes find themselves on the brink, their homes replaced by endless rows of palm oil trees. Unfortunately, it’s not only the orangutan that faces the wrath of the world’s appetite for palm oil.

It’s tigers, slow lorises, Sumatran rhinos, clouded leopards, and a myriad of other animals.

This loss of biodiversity is not just a local issue; it’s a global concern, for these forests are the lungs of our planet, sequestering carbon and playing a pivotal role in the fight against climate change.

While the threat of deforestation in Indonesia seems unmistakable, some research suggests otherwise. Research results show biodiversity gain in palm oil plantations in as many as 44 species, with some animals adapting to the changing landscape and taking advantage of the growing expanse of plantations.

This presents a paradoxical problem, one that Dimitra aims to solve.

Understanding the Palm Oil Industry

While palm oil might not have the international acclaim as cocoa pods of coffee beans, its prevalence is unmatched. It’s in everyday products ranging from margarine to cosmetics. Even so, the conversation around palm oil isn’t just about omnipresence; it’s about the ethics of production.

Calls for palm oil boycotts have echoed across the globe, but they may not present a viable solution. As the World Wildlife Foundation (WWF) articulates, “Boycotts of palm oil will neither protect nor restore the rainforest, whereas companies undertaking actions for a more sustainable palm oil industry are contributing to a long-lasting and transparent solution.”

This statement underscores the impact of sustainable palm oil practices over the calls for outright boycotts and rejection.

Indonesia’s B35 Biodiesel Mandate

Another element in the palm oil narrative is Indonesia’s B35 policy.

This biodiesel blend sports a significant percentage of palm oil. Moreover, the new policy increases this percentage from 30% to 35%. This significant shift will bolster domestic palm oil demand by 2 million tons. However, the implications spread far beyond numbers.

Economically, the B35 policy is poised to save billions in foreign exchange and inject trillions into downstream industries. Environmentally, it has the potential to reduce greenhouse gas emissions by millions of tonnes of CO2 by cutting down on fossil fuel consumption.

This policy encapsulates a multifaceted approach, balancing economic gains with environmental consciousness.

Challenges in Palm Oil Production

The path toward sustainable palm oil production faces many challenges. But, within this complex landscape, several stand out:

  • Weak Certification Schemes: The efficacy of certifications like RSPOISCC, and RSB is sometimes undermined by lenient criteria and inconsistent inspections by independent auditors.
  • Declining Oil Extraction Rate (OER): This trend poses a problem for productivity and efficiency.
  • Production of Waste and Residue: The industry generates significant biowaste, which, if improperly managed, can lead to environmental and health concerns.
  • Pests and Disease: These natural threats can significantly reduce crop yields but can be managed through sustainable methods like biopesticides and biological controls.
  • Supply Chain Challenges: Issues in the supply chain can impede the implementation of sustainable practices.

While these challenges require complex solutions, one thing needs to be upfront in these discussions — the role farmers play. It’s easy to cast blame on the workers and farmers who toil away to meet the growing demand for palm oil. However, this blame is misplaced.

Instead, the focus should be on solutions and support. To overcome these obstacles, the industry, other stakeholders, and global organizations need to pave the way for more sustainable palm oil production and cultivation.

The Role of Dimitra

As the discourse around palm oil and deforestation intensifies, Dimitra is determined to develop sustainable solutions that benefit both farmers and the landscape.

Ricky Tanudibrata, Dimitra’s Indonesian country partner, encapsulates this vision succinctly: “Through the use of information, communication, and technology, palm oil plantations can become more sustainable, more transparent, and more acceptable to consumers and the world community because palm oil is a food that is managed responsibly.”

This statement from Tanudibrata is more than mere rhetoric. It underpins Dimitra’s mission and pivotal role in reshaping the narrative of palm oil production.

At the heart of Dimitra’s approach is a blend of cutting-edge technology and traditional farming practices. Their goal isn’t just to create sustainable palm oil plantations but to transform them into models of transparency and responsibility.

From precision agriculture to advanced data analytics, their tools enhance productivity and minimize the environmental impact, all while empowering farmers to leverage this next generation of agricultural technology.

Dimitra’s Solutions and Impact

Dimitra’s innovative approach to sustainable agriculture, partially palm oil production, hinges on several key areas:

  • Mapping of Plantation and Sustainable Practices: Through the Connected Farmer platform, palm oil farmers can accurately map their plantations. This mapping, along with data on land health, species, and production estimates, empowers farmers to adopt more sustainable practices.
  • Improving Farmer Welfare: Dimitra helps farmers leverage the power of technology to increase productivity, reduce costs, and mitigate risks. The result? A boost in not only welfare for farmers but also a contribution to the overall sustainability of the industry as a whole.
  • Traceability and Compliance: Dimitra’s technology ensures traceability in the supply chain. This is a crucial aspect of meeting environmental regulations. Transparency is essential to maintain consumer trust as well as to adhere to standards like the EU Deforestation Regulation.
  • Use of Technology in Crop Management: Satellite remote sensing technology provides valuable insights into soil health, plant health, and age. These tools are invaluable for detecting pests and diseases. As well as for guiding the rejuvenation of plantations with the end result of enhancing overall crop management.

Combating Deforestation

In the fight against deforestation, Dimitra’s next-generation ag tech solution, the Deforestation Module, plays an essential role.

The emphasis on traceability within the palm oil supply chain is not just about understanding the product’s origin or pinpointing production issues. It is also a crucial tool in complying with guidelines like the EU’s Deforestation Regulations.

Dimitra’s tools enable accurate monitoring and reporting, which serve as fundamental building blocks in the battle against deforestation. This ensures responsible cultivation practices across Indonesia and the world.

Diversified Farming as a Solution

Diversified farming, particularly the introduction of cattle farming alongside palm oil cultivation, offers a promising solution to the challenges faced by smallholder farmers.

During the rejuvenation phase of palm oil production, which often lasts two to three years, farmers often face a lack of income. By leveraging diversified farming practices, these farmers can develop an alternative revenue stream during this period.

Not only does it provide additional income and financial stability, it also improves the ecological balance by integrating different farming practices. This diversification is encouraged by local leaders and is gradually being embraced as a viable and sustainable option for palm oil farming communities.

Moving Forward: Dimitra’s Commitment

There is no denying that Indonesia’s palm oil industry is a vital cog in the nation’s economy. But, it stands at a crossroads.

Deforestation and sustainability challenges cast a long shadow, and the need for innovative solutions has never been more pressing. Here, Dimitra, with its suite of adaptable and advanced farming technologies, acts as a guide, shepherding Indonesian palm oil farmers into the future of agriculture.

Its solutions not only address the industry’s immediate pain points but also pave the way for a more sustainable future.

As Dimitra continues to lead the charge, the promise of a more sustainable, transparent, and efficient palm oil industry in Indonesia becomes an increasingly tangible reality.

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

Dimitra Partnership Series: Leading Farmers into the Future

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

Dimitra: Revolutionizing Deforestation Compliance Through AI and Satellite Technology

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

The Future of Agriculture: DMTR, AI, and Deforestation

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

Dimitra: Solving Deforestation with AI

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

Dimitra Partnership Series: World’s First Shipment With EUDR Compliance

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

How Does AI Blend into Dimitra’s Technology?

Dimitra AI – Artificial Intelligence (AI) in the agriculture market is projected to grow from $1.7 billion in 2023 to $4.7 billion by 2028.

Unfortunately, smallholder farmers, who produce nearly one-third of the world’s food, rarely benefit from these growing markets. Moreover, they are often the last to see progress coming from advanced technology like AI.

Working on the cutting edge of technological advancements, Dimitra’s agricultural application stack interweaves elements of AI and Machine Learning (ML) to support farmers across the globe and put next-generation tools into their hands.

While these applications meet varying and diverse needs with many different technologies, a critical component of this new green revolution is AI.

But how does it all work?

What does the experience look like for a farmer utilizing Dimitra applications to improve crop yields, manage livestock or battle the pox of global deforestation?

Let’s explore three key examples.

Crop Performance – Dimitra AI

On-the-ground data is essential to making real improvements in crop performance.

Satellite-based spectral and radar imagery analysis pairs with soil, weather, planting, and other agricultural data to deliver farmers AI-based recommendations that can have a significant impact on crop yields and overall productivity.

So, what does all this look like in a real-life use case? Let’s take a trip to South America.

In Bolivia, quinoa is a high-value crop. In 2021 alone, the U.S. spent nearly $25 million on the Bolivian superfood.

Even with all this capital flowing in, smallholder farmers responsible for quinoa production face challenges from low-tech processes, soil degradation, and pest issues. AI and ML models built for these Bolivian farmers utilize advanced weather monitoring alongside satellite imagery. This is to help mitigate crop failure and better predict future performance.

AI also helps battle the scourge of productivity in the area — pests.

Sensors and AI tools help farmers monitor pest threshold levels to enable them to quickly enact countermeasures and keep fields safe.

Through the Connected Farmer Platform, farmers like those in Bolivia can use AI tech to analyze data from all kinds of sources efficiently:

  • Inputs
  • Satellite imagery
  • Value chain partners
  • Internet of things (IoT) devices

The platform provides insights and recommendations to farmers that result in improved crop yields and, in turn, overall profits. Moreover, it connects national agricultural data to help governments generate reports and organize local agricultural value chains.

In fact, this results in improved traceability and useful data sets that help develop better public policies that increase GDP.

Animal Productivity

Family farmers rearing and caring for livestock across the world are facing competitive markets, inefficient herd management systems, and breeding practices that lag well behind modern standards.

When we talk about leveraging AI and ML to improve livestock performance, it directly translates to giving these farmers a data-driven advantage in their everyday decision-making.

Dimitra’s Livestock Guru puts those practical AI-based tools right into their hands.

Many environmental, management, and hereditary factors affect the performance of cattle. Moreover, having a comprehensive vantage point based on ML and statistical analysis results in better predictions, performance, and productivity across many different areas:

  • Cost optimization
  • Pasture management
  • Genetic selection
  • Farm performance

Nutrition, weather, water, disease, temperature, etc., all affect the lifecycle of the animals.

By categorizing livestock into groups using these conditions, Livestock Guru helps farmers make better-informed decisions based on data-driven predictions. This influences areas like farm management, animal management, and breeding.

The result? More efficient livestock practices for those who need them most and higher quality products.

Deforestation – Dimitra AI

Between 2015 and 2020, the rate of global deforestation fell from 16 million hectares per year to 10 million.

Thanks in part to changing perceptions toward global conservation and drives to enact regulation, we’re now in the third decade of deforestation decline. Far from over, though, the problem we face now is getting a clear picture of deforestation issues and effective methods to enforce regulations.

Dimitra’s Deforestation Compliance Module uses satellite imagery to differentiate between trees, crops, forested areas, and clear-cut sections to do precisely that.

ML models leverage this data to understand what’s happening on the ground without ever touching the soil. To intelligently identify the deforested areas in a sea of green, the module uses AI to determine texture, color, reflectivity, and much more.

This allows both farmers and traders to offer full transparency in their supply chain. Additionally, it allows them to prove with data-backed insights their compliance with deforestation regulations.

GPS track and trace is required to prove compliance in some global markets, like the European Union.

Connecting Everything to DMTR

While powerful AI technology delivers insights to farmers, it’s only a glimpse into the full Dimitra agricultural tech stack.

Underneath it all is an optimized blockchain architecture that powers a global marketplace, financial services, and distributed analytics. So how do these practical AI-powered platforms connect to the Dimitra Token (DMTR)?

Here are three examples:

  • Crop performance — this feature of the Connected Farmer Platform is available to license with payments in DMTR. The platform locks farmer rewards from licensing and use for a fixed period of time prior to releasing back to the cooperative.
  • Animal productivity — paying licensing fees in DMTR is the only way this module interacts with the token.
  • Deforestation — every deforestation certification generates revenue. The platform then uses the balance to pay filing fees, buyback tokens, or burn tokens.

AI Technology Powers the Future of Agriculture

Whether it’s tracking drone data or soil sensor activity, AI is a critical component of the next generation of agricultural products. Dimitra is taking those tools, combining them with other advanced technologies, and providing them to those who need them most.

As the world evolves, Dimitra is committed to developing an all-in-one agricultural platform that caters to farmers across the globe.

This platform utilizes AI and ML tech across the stack to deliver insights that offer real-world results. That means better crop productivity, better livestock management, and a clearer picture of global deforestation.

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

Revolutionizing Farm Finance: The Power of Dimitra’s Scorecard

Dimitra Scorecard – There are over 600 million smallholder farmers across the globe. For them, the ability to source reliable investments is a matter of survival. Unfortunately, presenting a transparent picture of the value they create with their land and crops is easier said than done.

Promises and word of mouth rarely satisfy the due diligence demands of financial institutions. They want data — a scarce resource for farmers who work with limited access to technology and on smaller plots of land.

If they can source funding, they’re then presented with the challenge of knowing where that money is best spent.

Dimitra Incorporated, a global ag tech and blockchain company transforming the landscape of modern farming, is on a mission to solve these problems. With the Dimitra Scorecard, farmers can present a clear and honest representation of their farm to lenders and bankers.

Let’s explore this new product from the Dimitra team. We’ll learn why it will play a critical role in how farmers, lenders, and even governments work together, as well as uncover how the Scorecard plays into Dimitra’s NFT platform.

Understanding the Dimitra Scorecard

So, what is the Dimitra Scorecard?

The Dimitra Scorecard stands as a pioneering tool in the agricultural landscape. It offers farmers a comprehensive evaluation report of their land. In essence, it’s like a report card for farmers. It presents a comprehensive and data-driven snapshot of their farm and land to lenders.

Think of it as a health check-up but for the land.

At the onset, Dimitra will evaluate the farm to form a baseline score. This initial score won’t include any necessary land improvements. Instead, it will cover a wide range of data points:

  • Soil pH
  • Soil texture
  • Soil organic carbon
  • Soil coarse fragments
  • Slope
  • Temperature ranges
  • Precipitation
  • Salinity
  • And others…

These data points will help the Dimitra team calculate what impact these variables have on crop potential. The Scorecard also includes an assessment of the farmer’s ability to cultivate specific crops. Part of this assessment is determined by the farmer answering a survey designed by Dimitra to ensure the best strategy. It’s not just about stating what the land is like now but also projecting what it could be.

Why It’s Important

With all these data points in tow, the initial baseline Scorecard will indicate what challenges a farm may have with irrigation and soil conditions, acting as a tool that encapsulates the health and potential of a farm.

These will inform the recommendations made to both the farmer and the lender.

For farmers, the Scorecard becomes a map that points out the rough and smooth terrain of their farming journey. It’s not just about spotlighting challenges; it’s about charting a practical course of action.

With a clear understanding of their farm’s current state, farmers can take strategic steps toward improvement.

The Scorecard offers lenders and investors a clear picture of a farm’s true potential. It shows not only the land’s current state but what it could achieve with the right financial support and improvement.

Dimitra hopes the Scorecard becomes an essential part of the financial decision-making process. It should help both farmers and lenders accurately assess the viability and profitability of a given farm.

Operational Mechanisms

This all sounds good on paper, but farms are living, breathing, dynamic ventures. As such, the Scorecard isn’t a static tool. Instead, it’s as dynamic and adaptable as the land it covers.

Initially set up in Kenya, the Scorecard’s success will pave the way for expansion into other countries like Brazil and Honduras. But this global journey is much more than a simple geographical expansion. As Dimitra refines the tool and sees experimentation in the field, it can cater to different crops and varying farm conditions.

Each crop and region has unique characteristics. Dimitra will meet farmers where they’re at by providing specially designed Scorecards for each different crop and region. One-size-fits-all is rarely the case, which is why each Scorecard is crafted to meet geographical and agronomic needs.

In Brazil, for example, we will have Scorecards specialized in different crops, including soybeans and coffee. Meanwhile, in Honduras, we will have Scorecards specialized in banana and cocoa plantations. This versatility makes the Scorecard a universally relevant tool, capable of assessing a wide variety of farming scenarios across the globe.

Target Audience – Dimitra Scorecard

We’ve already touched on who the Scorecard is for, but let’s break it down even further:

  • Farmers: They’re at the center of the Scorecard program. The Scorecard acts as a mirror, reflecting the true potential of their land, therefore helping them understand what crops will thrive and the health of their land while enhancing their chances of securing necessary funds or support.
  • Lenders: For financial institutions and private lenders, the Scorecard is a compass that points toward a more informed lending decision. The scorecard speeds up the loan process by providing a clearer picture of what the investment entails and the likelihood of a successful yield. This makes lending less risky and streamlines the process.
  • Government Agencies: For government entities involved in agricultural planning and support, the Scorecard will certainly become a strategic tool. It enables these agencies to assess the agricultural potential of different regions, helping craft national production plans and policies.

Putting It into Practice

A Kenyan farmer, unsure of the best crop for their land, turns to the Dimitra Scorecard for guidance.

The Scorecard, alongside the Connected Farmer platform, offers them a transparent analysis of their land. It reveals its suitability for avocados, a crop the farmer hadn’t considered before. This revelation allows for not only precise crop planning but also optimal space utilization.

But that’s not all the Scorecard offers. It also suggests that parts of the farm could support cashew nuts — offering a profitable crop diversification strategy.

This not only boosts potential income but also enhances the land’s sustainability.

Presenting this Scorecard to a lender expedites the loan process, providing the bank with confidence in the projected yields and the investment’s viability. On a larger scale, government agencies use such data for regional agricultural planning. This streamlines support and development efforts.

Integration with the Dimitra NFT Platform

The Scorecard provides a detailed picture of a farm’s potential, which directly impacts Dimitra’s utility NFT platform. This integration allows for a nuanced assessment of each agricultural asset, be it a plot of land or an individual tree.

Let’s take avocado trees as an example, which the Dimitra NFT platform currently includes with Dimitra’s partnership with the One Million Avocados project in Kenya. Scoring here will leverage a variety of factors:

  • Location of the tree
  • Photographs
  • Soil assays at the tree
  • Connected Farmer inputs
  • Experience level and diligence of the farmer
  • Farmer Know Your Customer (KYC)

The scoring system will also include external data sources related to the tree’s location, such as weather, disease, and pest reports.

Dimitra’s utility NFTs are pioneering innovative solutions in the agricultural sector. These NFTs go beyond digital representation. They enable farmers to secure crucial financing, connect directly with consumers, and monetize valuable agrarian data.

In addition, they offer new avenues for farmers to access funding, cutting through traditional financial barriers.

​​Empowering Futures: The Dimitra Scorecard’s Transformative Impact

Dimitra’s Scorecard, alongside the NFT platform, is a significant leap in agricultural innovation.

The Scorecard offers lenders and farmers a clearer picture of the true potential farms and crops offer. It’s a catalyst that not only streamlines the loan process for lenders but also empowers governments to make informed decisions on agricultural projects.

Dimitra is not just offering a new tool but a comprehensive solution.

This transformative approach is setting new standards in the agricultural sector, promising a more informed, efficient, and prosperous future for farmers worldwide. – Dimitra Scorecard

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

South Africa eyes stablecoins and blockchain for digital payments

Dimitra South Africa – The annual budget of South Africa revealed its treasury’s plan to promote the adoption of digital payments, which includes analyzing stablecoins and blockchain to “improve the lives and livelihoods of marginalized groups.”

The country’s 2024 budget review highlighted the need for structural reforms and a focus on improving public financial management. While detailing its plan to promote digital payments. The National Treasury announced an upcoming policy change on crypto assets, specifically for stablecoins.

“In 2024, the Intergovernmental Fintech Working Group will publish additions to include “stablecoins” as a particular type of crypto asset.” – Dimitra South Africa

The working group published a crypto regulation paper in June 2021. Which will be amended to include stablecoins into the crypto asset class. In addition to finalizing a diagnostic of the domestic stablecoin landscape. The report read: Dimitra South Africa

“It will conduct analytical work to understand the applicable use cases of stablecoins and to recommend an appropriate policy and regulatory response.”

Additionally, the Financial Intelligence Centre Act could be amended to require all institutions to report crypto transactions over 49,999 South African rand ($2,650). South Africa will also study the impact of blockchain-based tokenization on domestic financial markets.

The working group is expected to publish a paper by December 2024 outlining. “the policy and regulatory implications of tokenization and blockchain-based financial market infrastructure.”

Dimitra South Africa – Related: Web3 faces regulatory hurdles in Africa, slowing progress

The South African government will also run a three-year program in collaboration with Switzerland’s State Secretariat for Economic Affairs. And FinMark Trust to conduct four digital payments pilot projects. 

The four pilot projects include community digitalization, digitizing informal and low-income worker payments, cross-border remittances and cross-border trade. The aim of the initiative is to support small and informal businesses through payment innovation.

South Africa’s plans for digital disruption worked well for East African farmers as blockchain technology opened up global markets for the remote population. On July 20, 2023, AgTech firm Dimitra and One Million Avocados (OMA) — a sustainability-focused tech group — announced a partnership to help Kenyan avocado farmers boost production and quality through cutting-edge emerging technologies, including blockchain. – Dimitra South Africa

Dimitra Incorporated

New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City

info@dimitra.io

Empowering Ethiopian Coffee Farmers – Dimitra Capital Newspaper

Dimitra Capital Newspaper – Dimitra, a prominent AgTech enterprise system based on blockchain technology, is partnering closely with the Limu Inara Multipurpose Cooperatives Union in Ethiopia. This union consists of approximately 51,000 farmers and together they aim to enhance farmers’ livelihoods and revolutionize agricultural practices in the region.

Through this partnership, Ethiopian coffee farmers affiliated with the Limu Inara Cooperative Union will have access to Dimitra’s cutting-edge technology. Enabling them to modernize and digitize various agricultural processes. Specifically, they will leverage Dimitra’s Connected Coffee Platform and Deforestation Compliance Module.

Recently European Union coffee importers are reducing purchases from small Ethiopian farmers in anticipation of a groundbreaking EU law. That will prohibit the sale of goods associated with deforestation. Dimitra’s Connected Coffee Platform and Deforestation Compliance Module offer a solution to ease the challenges and costs of complying with the EU Deforestation Regulation (EUDR).

Jon Trask is CEO and Founder of Dimitra and has been working with blockchain since 2017. Prior to founding Dimitra, Jon had an extensive career building. And developing enterprise software solutions to revolutionize supply chain processes and improve immutable traceability. A recognized expert in his field, Jon is also Founder and CEO of Blockchain Guru. And a Partner with the Blockchain Training Alliance. His extensive career in the tech industry has seen him awarded a vast array of accreditations. Jon’s mission now is to increase farming connectivity. Particularly with those disenfranchised across the globe, and to leverage the power of innovative technologies to bridge farming and technology. 

Capital’s Groum Abate caught up with Jon Trask to talk about the new collaboration with Limu Inara. And how his company’s technology help the small holder farmers in Ethiopia in regards to EUDR. Excerpts;

Capital: What is Dimitra, and what is its role in the AgTech industry?

Jon Trask: Dimitra is a  blockchain-based enterprise system for AgTech driving productive, intelligent and inclusive farming. By removing data silos, we empower farmers to improve their farming processes through real-time insights.  Each of Dimitra’s tailored platforms facilitate access to specific, affordable technology solutions to help increase crop outputs (across 50 crops). Reduce their expenses, and mitigate any risks. 

Dimitra has 5 market-leading platforms that empower farmers to implement better ways of working through real, tangible insights. These platforms include: 

  • Connected Farmer – an app which allows farmers to track finances, manage crops. Access weather predictions, and stay in compliance with local government regulations. 
  • Livestock Guru – supplies data into insights about cattle and farm animals that help reduce record-keeping time and bolster data-driven decisions.
  • Connected Coffee – Actionable insights for coffee farmers to increase the quality and quantity of their coffee beans.
  • Deforestation platform – This platform produces deforestation certification for farmers, traders, operators and consumer packaged goods companies to ensure every shipment is compliant and meets the regulatory demands.
  • Connected Cacao – This application allows farmers to optimize each stage of the cacao farming process, from cultivation, harvesting, fermentation, drying, storage, and marketing, reducing resource waste and increasing productivity.

All of Dimitra’s tech is accessible on mobile, meaning farmers have complete functionality. And insights on the go, all in real time. Using data collected from each farm, Dimitra builds a full picture for each farmer. Presenting them with simple actions they can implement to truly improve their processes and maximize efficiency. Dimitra also builds custom software for features that farmers and customers require specific to their industries or farms. At Dimitra we believe, every farmer across the world should benefit from data-driven. Effective farming technologies regardless of their economic standing. Ensuring those that need it most have access.

Capital: What is the collaboration with Limu Inara Multipurpose Cooperatives Union?

Jon Trask: Through the collaboration, the Ethiopian coffee farmers affiliated with the Limu Inara Cooperative Union will gain access to Dimitra’s industry-leading technology. Enabling farmers to modernize and digitize various agricultural processes. In particular, they will deploy Dimitra’s Connected Coffee Platform and Deforestation Compliance Module. Dimitra Capital Newspaper

Capital: How many farmers are part of the Limu Inara Multipurpose Cooperatives Union? – Dimitra Capital Newspaper

Jon Trask: LIFMCU is an umbrella union for four district farmers namely Limu Kosa, Limu Seka, Chora Bottor and Nono Benja. The Union was established in 2006 by 11 primary cooperatives. And 3083 member farmers with an initial capital of 158,000 Ethiopian Birr. The union is located in the western part of Ethiopia in Oromia Regional State. Currently, the number of member cooperatives has increased to 95 primary cooperatives and its members have reached 34,687 farmers. Out of the mentioned primary cooperatives 37 of them or 15,483 members are in the coffee production area. 5,360 coffee farmers from 10 primary cooperatives are Fairtrade certified and sell their product on Fairtrade terms. 

Capital: What are the challenges faced by smallholder farmers in the region?

Jon Trask: Smallholder farmers are an invaluable asset to the global food economy. Despite their size, they produce more than a third (around 35 per cent) of the world’s food and contribute up to 80 per cent of the food supply in sub-Saharan Africa. These growers play a key role in providing nutritious food to their local communities, maintaining ecosystems, and promoting sustainable agriculture.

However, smallholder farmers in Ethiopia face significant challenges. They often lack sufficient funds, work with inadequate infrastructure, and are vulnerable to the whims of supply chains that tend to favor large-scale farmers. Climate change also plays a role in making it difficult for smallholder farmers to sustain their agricultural operations. Severe weather events and changes in weather patterns have damaged land, creating unpredictable conditions for harvesting crops.

In particular, insufficient finances are a major challenge. Most smallholders do not qualify for bank loans due to a lack of collateral assets like land titles and limited access to technology. Additionally, smallholder farmers often lack access to modern farming technologies, such as irrigation systems and smart fertilizing methods.

Capital: What is the EUDR law, and how does it impact the sale of goods linked to forest destruction?

Jon Trask: The EUDR law imposes a ban on the sale of products from deforested areas within its borders, set to take effect on December 30, 2024. This regulation implements a tiered system of inspections and penalties based on the perceived risk level of the country of origin. While designed to ensure compliance, this structure inadvertently places a burden on smaller farming entities. Dimitra Capital Newspaper

The regulation encompasses timber, soy, coffee, cocoa, beef, palm oil, and related products, imposing obligatory due diligence responsibilities on both consumers and producers situated along the supply chain. This means that these products do not have access to the European market if they are not certified. Dimitra’s technology facilitates transparency and tracking throughout the supply chain, making it easier to comply with these regulations. Dimitra has developed blockchain-based solutions to assess deforestation and ensure compliance for producers, traders, and consumer goods firms.

Capital: What efforts has the Ethiopian government made to combat deforestation and promote sustainable coffee production?

Jon Trask: The Ethiopian government in collaboration with the UNDP and GEF, inaugurated the FOLUR project to combat deforestation and promote sustainable coffee practices. With a budget of USD 20.8 million, the initiative spans 22 regions, aiming to avoid 7 million tons of CO2 emissions, improve livelihoods for 440,000 people, and restore unproductive coffee gardens and Afromontane Forest. The project aligns with Ethiopia’s Green Legacy Initiative and climate strategies, emphasizing the need for effective collaboration among stakeholders for successful implementation.

Capital: What are the objectives of the project between Dimitra and the Limu Inara Multipurpose Cooperatives Union?

Jon Trask: Importers of coffee to the European Union are starting to scale back purchases from small farmers in Ethiopia – where some 5 million farming families rely on the crop — as they prepare for a landmark EU law that will ban the sale of goods linked to the destruction of forests.

Dimitra’s Connected Coffee Platform and Deforestation Compliance Module solution is poised to alleviate the cost and difficulty of complying with the EU Deforestation Regulation (EUDR).

Capital: How will the project improve the livelihoods of farmers in the region? – Dimitra Capital Newspaper

Jon Trask: The ability to supply traceability for products and prove compliance with regulations adds significant value to the coffee produced by Ethiopian farmers in the region. This not only safeguards their market access within the EU but also opens up opportunities to reach new markets that prioritize sustainably sourced products. By providing an efficient and technologically advanced way to trace and prove the origins of coffee beans, Dimitra’s technology not only supports compliance but also empowers farmers in the face of evolving market demands. The ability to safeguard local produce from market exclusion ensures that the livelihoods of these farmers will not be compromised due to regulatory decisions that lie out of their control. 

Capital: How will the project help farmers remain competitive in the commodity market?

Jon Trask: Proving compliance with regulation with traceability and immutable data regarding the farming practices of these farmers adds significant value to the coffee produced by Ethiopian farmers. This not only safeguards their market access within the EU but also opens up opportunities to reach new markets that prioritize sustainably sourced products. By providing an efficient and technologically advanced way to trace and prove the origins of coffee beans, Dimitra’s technology not only supports compliance but also empowers farmers in the face of evolving market demands.

Capital: Will you partner with other Cooperatives?

Jon Trask: Yes, we have partnered with 3 other cooperatives and are in discussions with a few more.

Capital: Will your project be on time for application of the EUDR law?

Jon Trask: Dimitra’s application already delivers end-to-end functionality for coffee supply chain as well as deforestation assessment with two Ethiopian languages already added to the platform.

The biggest challenge will be training the farmers – Dimitra trains their trainers who then go to the field for onboarding. Initial training is taking place in January, training 50,000 farmers will take many rounds of training.

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