Dimitra helps small producers comply with EU deforestation rules – The Brazilian Report
Dimitra Incorporated
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City
info@dimitra.io
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City
info@dimitra.io
New Horizon Building, 3-1/2 Miles Philip S.W. Goldson Highway, Belize City
info@dimitra.io
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.”
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
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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;
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:
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.
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
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.
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.
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.
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.
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).
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.
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.
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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Chocolate is one of the most popular sweets in the world, having evolved from a luxury to a widely consumed product. According to the Center for the Promotion of Imports from Developing Countries (CBI), around 7.3 million tons of chocolate are consumed annually worldwide.
Despite the global demand and popularity of chocolate, the farmers growing cacao beans face poverty and struggle to make a living, earning only an average of 6% of the final price of a chocolate bar.
Many cacao farmers struggle to find fair prices for their crops due to a lack of access to direct market channels. They often depend on intermediaries, resulting in lower incomes. Because cacao farmers work on small and fragmented farms, they lack the bargaining power to pool their resources and secure fair prices for their high-quality produce.
To address these challenges head-on and empower farmers with the tools and knowledge they need to manage their production processes, Dimitra, a leading agriculture technology (AgTech) company, has launched the Connected Cacao app.
To bring its innovative app to farmers in the region, Dimitra is working on projects with a variety of new partners, such as the Peruvian Association of Cocoa Producers (APPCACAO), Helvetas, Open Food Chain, ABRAFRUTAS and the Brazilian Micro and Small Business Support Service (SEBRAE/RR). These partnerships aim to utilize blockchain technology to help cacao farmers improve efficiency, traceability, and sustainability in their operations.
The Connected Cacao platform utilizes a combination of blockchain, artificial intelligence (AI) and machine learning (ML) to provide a centralized platform for farmers to manage their farms, from crop planning and cultivation to harvesting, fermentation and drying. This system helps to optimize resource allocation, reduces waste and increases productivity.
Furthermore, the app’s traceability feature generates tamper-proof records of each cacao bean’s journey from farm to consumer. This transparency instills confidence in buyers, opening doors to premium markets and fair pricing.
The EU’s recent deforestation-free regulation, which requires cacao producers to demonstrate their beans are not sourced from deforestation, has also significantly burdened farmers, who now face strict environmental standards. Dimitra addresses this challenge by seamlessly integrating its new app with the company’s Deforestation Compliance Module, enabling farmers to easily track and document their land-use practices.
According to Diego Costa, Dimitra’s director of Latin America, this digital record serves as evidence of compliance:
“Connected Cacao is a pioneering platform, as cacao producers, unlike other crops, don’t have many platform options to help them in their operations. It is a chain of mostly smallholders and family farmers who need help to continue their production and export to the European Union, which was previously threatened by the EU’s new deforestation laws.”
The platform’s analytics tools also allow farmers to track their performance and make informed decisions about their operations. In addition, the app provides a knowledge hub with educational materials on cacao farming, pest management and market trends. It also encourages farmers to adopt a range of sustainable practices, including water conservation and organic farming — in line with the growing interest in buying fair trade products.
Several cooperatives and organizations in Latin America are already using the Connected Cacao app, including, Helvetas, CEPROAA, APROCAM, PANGOA, Manasaba, La Divisoria, Cacao Alto Huallaga, CAI Apasc and Satipo. All of these cooperatives are working to improve the livelihoods of their members and promote the sustainable production of cacao.
Dimitra continuously innovates its products to meet the specific needs of farmers worldwide. The company partners with governments, NGOs, farmer collectives and cooperatives to reach thousands of smallholder farmers across the globe. Dimitra works within various farming communities to identify opportunities where new technologies like blockchain and AI can make a difference.
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Dimitra Confectionery News – As many know, the cocoa industry is sometimes opaque and complex. Still, confessed chocolate-lover Jon Trask, who is also CEO of Dimitra, says his company’s recently developed Blockchain Deforestation Platform could provide a solution to help farmers continue exporting their beans into the European Union – the world’s largest chocolate market.
“We use a lot of technology, artificial intelligence, satellite sensors, and blockchain, and we’re really focused on applying technology to help smallholder farmers worldwide,” Trask tells Confectinery News in our latest podcast interview.
Dimitra Incorporated is a global Agtech company with a mission to help smallholder farmers worldwide. It works with governments, government agencies. NGO’s, and for-profit organizations, and its platform is built on blockchain technology, incorporating mobile technology, machine learning, IoT devices, satellite and drone imagery, genomics, and advanced farming research.
Dimitra’s data driven approach helps farmers increase yields, reduce expenses, and mitigate risk. Still, it believes that every smallholder farmer, regardless of economic standing, ‘should benefit from simple, beautiful, and useful technology.’
Trask says that the platform integrates advanced technologies, including artificial intelligence, blockchain, satellite, drones, and IoT sensors, that provide farmers with actionable data that fundamentally improves their operations across several financial and sustainability metrics.
Its platform could become invaluable in helping farmers and governments from cocoa-origin-growing countries make their cocoa beans fully traceable and compliant with the European Union Deforestation Regulations (EUDR) that will become law at the end of 2024.
“We have built five applications, and those individual applications serve different areas of the agriculture industry,” Trask says. “We start with agronomy and work on track and trace to see the provenance of our goods and ensure that we comply with different regulations. And then we work in financing activities until finally; we have regulatory approval around deforestation. And other regulations related to exporting goods.”
Trask explains that Dimitra’s platform can help the cocoa sector specifically by first identifying the irrefutable source of the cocoa, helping the farmer to create a geofence around their farm so they can determine its boundaries and use the application every time they pick cocoa so they can report it back to their local collection point or buying station.
Dimitra sells its software to cooperatives, governments, and NGOs and then offers training to the farmers. It also provides boots on the ground to ensure the data is correct before uploading it onto the platform. Dimitra Confectionery News
The technology is sophisticated, Trask explains. “We take that geofence and analyze the trees and understand what trees existed in 2020, which is the cut off for [EU] deforestation regulations, and what trees exist today, and identify any differences between those. And there are also regulations in the EU around canopy cover and density of the forest.”
Trask says the technology has a predictive algorithm that says if a tree is under 5 meters today, it may not be involved in the deforestation regulations, “but if it had the potential to be more than 5 meters, we have to consider it a full grown tree, so we’ve built a lot of that technology over the past few years to help farmers adapt to our satellite system to pick up all of the rules that the EUDR is putting on a farmer.”
The outcome says Trask, is a blockchain certificate informing the farmer they have no been involved in deforestation.
Trask firmly believes that the industry has to work together to solve its sustainability problems. And it should not be the responsibility of the farmers, many of whom are struggling to earn a living income.
He also issues a warning to the cocoa sector, which has been complacent in the past regarding transparency. “It’s an important topic, and we’ve got to keep the flow of chocolate going. But make an impact environmentally around the world, and using this platform is one of the core steps to that.”
“The deadline is still a year away. But the pick-up in demand for us as a software company is going through the roof. Everybody’s signing 2025 contracts now. Those 2025 contracts need to be 100% compliant. So there’s a bit of urgency coming to some of these organizations to get the processes in place.” https://dimitra.io https://www.confectionerynews.com/Article/2023/12/15/How-a-blockchain-platform-could-help-small-holder-cocoa-farmers-become-compliant-with-the-EU-s-deforestation-laws-LISTEN?
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Dimitra Nasdaq – In recent years, the European Union (EU) has taken a significant stride in combating deforestation by imposing a ban on the sale of products from deforested areas within its borders, set to take effect on December 30, 2024. Europe stands as one of the largest consumers of commodities associated with deforestation, encompassing 50% of the world’s coffee and 60% of all cocoa—contributing to over 25% of the world’s tree cover loss from 2001 to 2015.
While this move demonstrates the EU’s dedication to environmental sustainability and ethical sourcing, the repercussions of these new regulations are anticipated to weigh heavily on farmers in the Global South. The European Union Deforestation Regulation (EUDR) 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.
The EU’s 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. Compliance necessitates robust due diligence processes and risk assessments, which can be financially and technologically challenging for numerous smallholders. In countries such as Indonesia, for example, 1% of smallholder farmers are certified under the current regulations. This means that, with the addition of the EU Deforestation Regulation (EUDR) measures. The majority of small farmers in the country will no longer have access to the EU market.
17 countries from the Global South have expressed their exasperation around this new anti-deforestation legislation. And the impact it could have on their exports of commodities. The group argues that the law disregards ongoing efforts to balance nature conservation with protecting livelihoods. While at the same time providing farmers with adequate access to expertise and assistance.
Additionally, the regulation introduces an unintended consequence: a potential relocation of deforested produce to markets with less stringent regulations, such as India and China. This raises apprehensions regarding the effectiveness of the EU regulation in achieving its intended objective of mitigating deforestation globally. Moreover, there are concerns that these measures might be viewed as protectionist, potentially conflicting with World Trade Organization (WTO) principles.
Given these challenges and the reaction to such, it is evident that a collaborative approach to deforestation regulation on a global scale is imperative.
AgTech and blockchain-based solutions are poised to play a crucial role in promoting sustainability. And combating deforestation across all scales of agriculture, from small farms to large conglomerates. These technologies hold the potential to address critical environmental challenges and contribute to a more sustainable future.
One example from the EU deforestation regulation is a benchmarking system. Requiring the geolocation and traceability for each plot of land. Where the raw material was produced, determining a cut-off date for this due diligence rules to be implemented. This is an example of where Blockchain and Distributed Ledger Technology (DLT) can be of use. This technology facilitates transparency and tracking throughout the supply chain, making it easier to comply with these regulations. Companies like Dimitra have developed blockchain-based solutions to assess deforestation and ensure compliance for producers, traders, and consumer goods firms.
A different approach is necessary in order to align the objectives of Global North and South and bridge the gap in ensuring a unified front against deforestation, thus preserving both the environment and trade relationships. Europe, being a major importer of commodities associated with deforestation, holds a substantial role in fostering this collaboration.
In creating a robust global food supply chain that is inclusive of smallholder producers. Agtech lies at the heart of this process. However, there is an array of Agtech solutions that can help smallholder farmers in adjusting to new regulations. Precision agriculture tools like sensor networks and drones aid farmers in making informed decisions. Leading to higher crop yields, lower production costs, and reduced environmental impact. Furthermore, advanced AgTech solutions leverage artificial intelligence and satellite imaging to enhance sustainability and supply chain transparency. These tools also support sustainable farming practices like crop rotation and agroforestry, improving soil health and reducing land erosion. Ultimately, these innovations reduce the demand for deforestation-linked products and promote sustainability.
The issue of price remains, however, specifically in relation to the size of the farm in question: a report by McKinsey and Co. cited that across all markets, only 36% of small farms are using or planning to use these technologies in the future. While these technological solutions are often costly, adoption is slowly increasing across the world, and according to this report, farmers are open to these innovation avenues. It’s noteworthy that new regulation, such as the EUDR, is playing an increasingly important role in accelerating growth in certain Agtech submarkets.
The critiques raised by those from the Global South highlight a broader concern within global environmental policy. This concern relates to the disparity in influence, with the major contributors to climate change instructing on the course of action for those who are disproportionately affected by its consequences. Given the introduction of these new regulatory obstacles, there is a growing need for reform, particularly in the adoption of blockchain and distributed ledger technology (DLT), alongside the other agricultural technology solutions.
Although many smallholder farmers may find these advancements financially unattainable. There is a consistent emergence of cost-effective farming platforms and accessible technologies. Offering hope that the EUDR will ultimately benefit all consumers and producers. This, in turn, aligns with the overarching objectives of environmental and food sustainability.
Collaborative efforts and alignment of objectives across the Global North and South can bridge the gap in ensuring a unified front against deforestation. Thus preserving both the environment and trade relationships. Europe, being a major importer of commodities associated with deforestation, holds a substantial role in fostering this collaboration.
In the pursuit of balancing the environmental imperative with the demands of food production. A holistic approach like balanced farming is indispensable. Through collaboration and the adoption of these cutting-edge technologies, we can strike a delicate balance between fostering a sustainable global food trade while preserving our invaluable natural resources. – Dimitra Nasdaq
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Nonfungible tokens (NFTs) have traditionally been associated with digital art, profile pictures and other digital collectibles. Capable of preserving uniqueness, these tokens are still popular, but there is another type of NFTs that goes one step further — NFTs. They offer tangible and real-world benefits to holders.
Utility NFTs offer immediate value upon purchase by granting access to certain privileges or exclusive experiences. For example, they can unlock premium content, provide memberships, or allow holders to redeem rewards or items.
The value of the utility NFT most often derives from the value of the real-world item or experience it represents. However, it can also have intrinsic value based on rarity and popularity.
Technically, utility NFTs are no different than regular NFTs — they leverage blockchain technology to ensure uniqueness, ownership and authenticity. The only difference is that they are directly linked to specific items or experiences. They are minted on decentralized networks using smart contract standards explicitly developed for NFTs. Dimitra NFT
Utility NFTs are industry-agnostic, meaning they do not specialize in a specific industry and can transform many sectors and experiences, from gaming and fashion to live concerts and real estate. While it may be surprising, agriculture can also integrate these NFTs for various use cases to bring efficiency and transparency.
NFTs can revolutionize the agricultural industry by providing a more transparent, efficient, and secure way to manage the supply chain. They, like digital crop certificates, can track ownership and authenticity throughout the supply chain, from farm to consumer, and can be used to digitize and manage physical assets relating to crops, livestock, and land. This can enhance transparency, improve efficiency, and unlock new possibilities for financing, trading, and insurance in the agricultural sector.
One area where NFTs can have a huge impact is supply-chain management. NFTs and their underlying blockchain technology can certify the ownership and authenticity of assets, which makes these tokens suitable for the tracking of agricultural products.
An ecosystem can mint NFTs for every stage of the supply chain, from the farm to the store. This would enable stakeholders and end users to verify where a food product came from and how it reached the market’s shelf. Utility NFTs, in this case, can grant stakeholders ownership rights over certain food products. These rights are essential for a more equitable, transparent, and sustainable food system. They empower farmers by granting them ownership of their produce, leading to fairer profits and improved livelihoods. This transparency extends to consumers, who can make informed choices about their food. Moreover, stakeholder ownership incentivizes farmers to produce high-quality food and reduces food waste by enabling direct sales to consumers.
NFTs and blockchains are all about decentralization, transparency, proof of ownership and security. These features come to address several challenges in agriculture, an industry that still uses many old-school methods to grow and distribute food and goods. This reflects on the quality, efficiency and costs of production, eventually affecting the profitability of farmers and other stakeholders.
Thanks to NFTs, stakeholders can create a secure, immutable record on the blockchain, enabling access to real-time data related to the entire supply chain of agricultural products.
This unmatched level of transparency helps prevent fraud, ensures food safety and improves the implementation of sustainability practices. By bringing efficiency to all supply chain stages, NFT implementation can cut costs and have a positive impact on profitability.
The integration of utility NFTs into supply-chain processes. And other use cases can be a win-win for both farmers and consumers.
One example of how NFTs can help the agricultural sector is illustrated by Dimitra, a leading blockchain-based enterprise system for AgTech driving productive, intelligent and inclusive farming. Dimitra helps farmers reduce efforts and improve efficiency by integrating its technology stack, including blockchain, mobile, artificial intelligence (AI), Internet of Things (IoT), drones and satellites.
Dimitra’s utility NFTs offer innovative solutions for the agricultural sector, enabling farmers to secure financing, establish direct consumer connections, and monetize valuable data to make smarter decisions. This approach aims to streamline financing processes, promote transparency and fair pricing, and provide farmers with additional revenue opportunities.
Despite their benefits and potential, farmers and consumers. Should be aware of certain limitations of NFTs and blockchain technology in general.
To begin with, blockchains are closed systems without access to real-world data. Therefore, connecting an on-chain NFT with a physical or digital off-chain asset requires additional effort. This can be achieved with the help of so-called oracles or other conditions embedded into the smart contract itself.
Eventually, stakeholders must ensure that the tokens accurately represent the underlying products, be it crops, livestock or bonds. For example, Dimitra has developed its Land Suitability Oracle that evaluates each farm. Based on its potential to grow a particular crop. Moreover, Dimitra already has an application that assesses farmer performance. The combination of these tools provides a significant capability for agricultural lenders compared to the available tools.
NFTs can be used independently or with other blockchain applications to improve supply-chain management at all stages.
For example, Dimitra is revolutionizing farming with utility NFTs, starting with avocados. The company has recently launched an NFT series in collaboration with One Million Avocados, a Kenya-based startup. These NFTs enable individuals to sponsor avocado trees for $50, providing farmers with essential resources like seedlings and fertilizers as well as digital platform access and sensors. Dimitra is also developing a Crop Certificate program where, through a Web3 interface, investors provide a loan through a regulated crowdfunding process and get premiums repaid from the proceeds of the crop harvest.
This unique approach improves security, combating avocado theft in Africa. Unlike traditional loans, which are challenging for avocado farmers due to the crop’s long maturation period.
As the trees grow, investors share in the rewards. In the second year, an avocado tree may produce one fruit, but by the tenth, it can yield 300 to 400 kg (661–881 lbs), and considering today’s export prices, farmers can earn three times more than the domestic markets. What’s more, they don’t need to pay premiums on loans before generating revenue.
Dimitra’s NFT launch begins with 1,000 avocado trees as a pilot in the fall of 2023, with plans to expand into mangoes, cocoa and other crops. By implementing blockchain and NFTs, Dimitra empowers farmers, investors and philanthropic sponsors in AgTech, demonstrating the transformative potential of this technology in agriculture.
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Dimitra Fintech – Addressing climate change and achieving net zero targets has become increasingly critical in the fintech sector. Corporations are being held responsible by regulators, stakeholders, and clients to actively work towards sustainability. And be transparent in the environmental impact of their operations. With the advent of artificial intelligence (AI) and data analytics technology, new modalities and solutions are emerging with which institutions can monitor and measure carbon emissions and log sustainable data. Among these new solutions is satellite and geo-spatial data.
As climate change persists and the planet is plunges further into disaster, advancements in climate science and the availability of new data from space and satellites can address the climate issues and spur the climate finance industry to action. The new mines of data made available through space and satellite data can inform and guide future sustainable initiatives. Whilst monitoring how we are currently impacting the world around us and learning how to limit that impact. Dimitra Fintech
Recognising the potential that space technology has to inform climate action, the UK government announced in September 2021 that they would be working with the UN Office for Outer Space Affairs to engage more climate action informed by space data.
A recent investment report shows that earth observation is a key area of investment in the UK. The report details a rise in space investors since 2015, and predicts that the space sector will see 11% of growth in the next year. As the market for investment in space is on the rise, the research indicates that more movement in the space industry will facilitate further technology-driven initiatives to enable sustainability and decarbonise economies.
Data collected from satellites can be used to create climate models in numerous ways, the European Space Agency (ESA) reported that climate observations can be made to make predictions for the future environmental status and provide guidance on actions to reduce carbon emissions. The ESA has currently put into place an initiative, the Climate Modelling User Group, that will focus on bolstering Earth observation to fully embrace the potential of satellite data in the fight against climate change.
There are over 5000 satellites orbiting the globe as of 2022, able to monitor illegal mining and fishing and record the impact of greenhouse gases. Satellites launched by the ESA such as Copernicus contain imaging monitors that survey air pollutants all over the globe and report findings every day. Scientists that have assessed this data have made it available to policymakers, allowing companies to track how methane emissions are also damaging the planet.
Satellite data can provide industries and businesses with climate risk assessments that analyse the emissions and impact of their operations. Trisha Saxena, investor at Seraphim Space. Points out that satellite data can offer crucial information to inform company climate risk portfolios.
She states: “Satellite data can also be used to enhance risk disclosures such as the Task Force on Climate-Related Financial Disclosures (TCFD) – which aim to make firms’ climate-related disclosures more consistent. For example, Moody’s, a credit rating agency, uses satellite data analytics to assess companies’ impact on the climate and biodiversity, thus allowing them to assign ESG ratings to these companies and inform investors about which companies are most exposed to natural capital risk. Satellites can provide reliable, frequent data about the world, which can help such institutions understand their climate risks better.” Dimitra Fintech
Mario Cozzi, CEO and co-founder of Emitwise, highlights how financial institutions can use satellite data in their climate-related reporting which they are required to submit by the TCFD. Cozzi cites that businesses can identify exposure to nature-related risk such as weather conditions and changes in the geographical terrain. Dimitra Fintech
By cross-referencing reported figures with observable data from space, for instance. In relation to methane emissions, they can ensure compliance and accuracy in emission reporting.”
Innovation in space can reveal previously hidden risks and inform decision-making processes. When it comes to investment, insurance, sustainable reporting, and net zero goals.
Saxena observes that space data has already encouraged sustainable operations in the agricultural sector, allowing farmers to work sustainably and protect their farm using data collected by space technology.
Citing Immarsat, a satellite communications company, Saxena explains that satellite technology could accelerate the net zero transition by ten years and reduce global emissions by 18%. She adds that the use of GPS and imagery data can reduce emissions in measures of tonnes by planning out aviation and maritime to keep clear of congested ports and enhance air traffic control.
She furthers: “Another way satellite technology can help solve climate change is through the Internet of Things (IoT), whereby a series of monitoring devices are connected to satellites to provide real-time information. For example, if there is an irrigation issue on a farm – detected through a satellite-connected sensor – the water could be turned off remotely while the problem is resolved. Furthermore, satellites used to monitor crops and farmland can be used to reduce the use of chemicals, inform optimal harvesting timings, and thus increase yield, ensuring the world can be fed sustainably.”
Jon Trask, CEO of Dimitra, a blockchain-based enterprise system for AgTech, described how geospatial data is being used to support farmers in working sustainably, speaking specifically on how the team is supporting female cocoa farmers in Honduras with the local organization Red Departamental de Mujeres Chiquimultecas (REDMUCH).
“Our mission is to help small farmers in Honduras, and around the world, with technology,” says Trask, ”and we use revolutionary technologies in order to do that, such as blockchain and AI, satellites and drones, and mobile devices. We have built four applications, each serving a unique purpose. Regarding REDMUCH, we are using an application that we created called Connected Farmer, which is a mobile app that essentially reads real-time farm-input data. Forming a geofence around the farm, we run satellite reports to help us assess farming conditions and performance. We can look back 15 years of how the farm’s performed, at different crops they have developed, moisture management, and the impact of climate and weather.
“Farmers then input real-time data from crops on their farms into the Connected Farmer app. Alongside info such as how they fertilize their land and about their soil. As they grow their crop, we make recommendations throughout the growing season on how they can better farm the land. We also advise farmers after harvest so they can prepare for the next season. Post-harvest, we also use blockchain in order to provide documentation to farmers. So that they can get a premium price for their product on export. And to track-and-trace their products easily and hassle-free.
“We use our Deforestation Platform extensively in relevant countries such as Brazil to help farmers comply with new EU regulation. The regulation, which will take effect in 2024, means farmers globally now face strict frameworks. If they wish to export to the EU’s lucrative market.
Space data can also identify the most efficient. And impactful actions that can reduce carbon emissions and enable businesses to meet their net zero targets.
Discussing how space data can contribute to solving climate change, Giancarlo Raschio, senior manager for sustainable finance and innovation at Gold Standard comments on the emergence of new technologies that collect spatial data – multi-spectral and hyper-spectral satellites, radar, drones, and proximal sensors: “These techs are the inputs for algorithms that generate information about data. As such, better and more detailed data can enable better decisions and greater understanding of the impacts of an intervention.
Space data provides ample opportunity for data collection. As financial services becomes more digitised, personalised, efficient – it also holds the responsibility to become more sustainable. Fintech plays a role in planning how to process satellite data, analyse, and share it through different methods. Using data collected through space, financial institutions can strategise on how to finance sustainable initiatives and the net zero transition.
Nicola Anderson, CEO of Fintech Scotland cites a few fintechs that are focusing on space technology. “Space intelligence is using AI and Earth observational data to expand understanding of lesser developed green initiatives. Such as the carbon market and carbon offsets. And is looking to invest in satellite technology to advise that.”
She continues that there is an increase in space tech investment coming from the UK and Scotland in particular. And that Fintech Scotland has recently launched an accelerator programme. To gain more insight into the intersection of the space sector and financial services sector.
Anderson explains: “We are seeing Earth observational data present opportunity for the financial services sector to deepen their understanding around emissions, the net zero agenda, the investment market, and the housing market. The financial services industry is starting to really embrace the regulatory requirements that they now need to meet from a reporting perspective on ESG. The data that space innovation can offer will give them confidence in some of the things that they need to report against.”
Cozzi outlines how satellite data can make a significant difference in addressing climate change in several ways. Detecting greenhouse gas emissions which can inform carbon reduction protocols, detecting physical nature-related risks such as rising sea levels. Extreme weather, droughts and wildfires, and how geographical terrain will need to be adapted when exposed. Imaging systems and geo-spatial data acquired by satellites can enable speedy responses to natural emergencies and mitigation efforts.
Cozzi concludes: “There is a strong prediction for growth in both the space tech industry and investments in space data. As awareness of the importance of climate change mitigation and sustainable practices continues to rise. There will be an increasing demand for space data and satellite technologies that contribute valuable insights to address climate challenges. This demand will likely drive innovation in the space tech sector and attract more investment. Leading to advancements in space data analytics, satellite technologies, and applications related to climate and sustainability initiatives.” Dimitra outbound
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Dimitra AI Climate Change – As the world plummets further into climate disaster and ecological crisis, every organisation has an obligation to actively work towards becoming more a sustainable and ethical institution.
Within the financial services sector, corporations have an influence on how sustainability is being addressed, to what extent they are working towards net zero targets and decarbonisation, and how new innovations can drive sustainable action. This power cannot be taken lightly, as more and more consumers and regulators are demanding that companies be held accountable for their environmental impact.
As companies undergo digital transformation and embrace cloud platforms which dial-in sustainable and ESG efforts to the frameworks of a business, artificial intelligence (AI) is the next grand frontier for which financial institutions are embarking on – and sustainability is an unavoidable path on this journey.
As AI has become a key aspect in new innovations across many industries including financial services, new questions arise: how we can leverage AI to form more sustainable decisions and translate them into action? How do we hold ourselves accountable and use this new technology ethically and strategically to cultivate the best outcome for our planet and our surroundings? The following chapter will examine AI’s role in the sustainable finance industry and the complexities that arise with AI integration and an abundance of data.
Greenwashing is a prevalent issue in the financial services industries, with banking giants such as HSBC, Citi, and JP Morgan Chase having faced green washing accusations in the attempt to appear sustainable and ESGoriented while not putting any real effort or action beyond a statement. With many ESG considerations, companies self report, which is proves problematic as there is a risk that they omit the negative aspects of their operations and highlight what they are doing right.
Additionally, sustainable reporting is complex and requires a multitude of details – from scopes 1 to 3 of carbon emissions, environmental impact, energy consumption. And more – often companies are not aware of the correct reporting criteria. These situations can generate inaccurate reports, making it more difficult for stakeholders and regulators to make informed decisions. AI can solve a major part of the reporting issue in ensuring transparency. By bringing together various complex datasets within a company and form a solid and accurate report.
Tools such as Natural Language Processing (NLP) through software such as RepRisk and Truvalue Labs can monitor a variety of sources to screen companies’ ESG policies, allowing regulators and governmental bodies to hold them accountable.
Organisations such as the Task Force on Climate-Related Financial Disclosures (TCFD) used machine learning in annual AI Reviews of over one thousand global firms to identify disclosures concerning five different types of climate-related risks in company annual reports. The use of AI is expanding in the regulatory space to assess risk and compliance with data.
Satellite, sensor, and geospatial data has also been on the rise in reporting on carbon emissions and environmental impact on biodiversity. Monitoring pollution, groundwater quality, deforestation, waste, and more through geographical coverage. The key advantages of geospatial data are that it is high resolution and is difficult to manipulate.
Laimonas Noreika, CEO and co-founder of HeavyFinance, commented. “AI plays a pivotal role in sustainable finance, particularly when integrating satellite-based geospatial data into city design. The convergence of AI and geospatial data offers transformative potential in understanding and advancing sustainable practices in urban environments.”
Jon Trask, CEO of Dimitra, a blockchain-based enterprise system for AgTech. Explained how geospatial satellite technology and AI is being used to support sustainable farming:
“We use geospatial imagery gathered by drones. We ran a project earlier this year to use drones to analyse corn in Papua New Guinea. And essentially built an AI system that will identify where the pests are on the corn. So that farmers can precision spray versus using pesticide completely across the field. In this area, this farming organisation has 11,000 hectares. And lost almost 50% of their crop in 2019 due to fall armyworm. And fall armyworm wasn’t an issue before that. Farmers had to change their farming practices to work with their environment and modify their strategies. Farmers always need to make decisions regarding pests and sustainability and create that balance. So, through our app we help farmers with recommendations and making decisions around sustainability.”
Trask explained that in Brazil, Dimitra’s technology uses geospatial data to measure crop health and report on moisture, nutrients, chlorophyll, and with making carbon estimates. Gathering a wide net of data. Dimitra can inform farmers on how to adjust their strategies according to what their environment needs. Providing farmers with easily-implementable actions so they can farm as sustainably as possible.
Similarly, geospatial data can be used to map out widespread spaces for the objective of sustainable urban planning. By being able to detect specific the state of the landscape. Geospatial data can be used to better understand how to integrate architecture with the needs of the land. And create a sustainable city.
On the advent of AI, Noreika stated: “The vast volumes of asynchronous data from shareholder disclosures, satellites, and social media present both challenges and opportunities. AI enables the processing of this data at an unprecedented scale and speed. Uncovering valuable insights regarding environmental, social, and governance factors that impact investments. By analysing this data, we can gauge the sustainability performance of companies, identify trends, and inform investment decisions effectively. Dimitra AI Climate Change
“However, inferring meaning and making decisions based on this data requires careful consideration. AI-driven algorithms must be transparent, interpretable, and unbiased to ensure equitable decision-making.
While AI technology could open up new avenues for growth and development in the sector. Especially when it comes to monitoring sustainable efforts. And holding corporations accountable for their emissions and environmental impact. To avoid AI becoming a black box technology.
Noreika also commented on ethical concerns of using AI capabilities in the sector: “It is possible for AI to create issues, such as an over-reliance on automation, which could lead to a lack of human oversight and accountability. Ethical concerns regarding privacy and data security must be addressed to maintain trust in AI-driven sustainable finance practices. It is crucial to strike a balance between the opportunities AI presents and the ethical and transparency challenges it poses. Ensuring that sustainable finance remains responsible and equitable.”
As datasets vary based on the structure of their collection, biases can emerge within the data. To ensure that new AI technologies are without bias. There needs to be a collaborative effort in generating AI and producing explainable AI platforms that maintain transparency.
AI offers numerous benefits and multiple paths towards growth, efficiency, and action within the sustainable finance sector. However, there are downfalls to the endless data available and a likelihood of bias within data collection. Moving forward, financial institutions must consider the risks of integrating AI capabilities into their sustainable finance agendas. Dimitra AI Climate Change
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