Starbuck Institutes Two Year Study Using Blockchain Technology

Starbucks has devised a pilot program that uses blockchain technology to track the coffee growers supply chain. Blockchain technology is digital database of information that records financial information, sales figures, distribution figures and more. It is a public database of information about Starbucks coffee growers that eventually consumers will access.

This pilot program will use select coffee producers in Costa Rica, Columbia, and Rwanda, and track them over a two year time period. This was announced by the company before their Annual Meeting of Shareholders in Seattle. The company wants to show how technology, and databases can give coffee companies financial power, said Starbucks CEO Kevin Johnston.

Arthur Karuletwa, the Director of Traceability, says Starbucks knows all the names of their coffee farmers and has the technology to connect the thousands of producers that grow their coffee. They practice sustainability by knowing who their growers are and how they grow their coffee.

This technology could produce a change in the way coffee is moved across oceans and borders, said Arthur Karuletwa. A company called Conservation International will study the effect of block chain technology on bean to cup traceability factors. Starbucks wants to help their growers achieve more financial independence using this technology.

Starbucks wants to create a connection between the consumer and the farmers that grow the products. This technology allows the public to access information and learn about the coffee growers for Starbucks. Blockchain technology is connected to cryptocurrency a trend reported on by Daily Coffee News in the coffee industry.

Starbucks did not get into specific ways the new technology would be implemented. Ronald Peters of the Costa Rican Coffee Institute says that for many years everything was done on paper and now coffee growers and producers are talking about block chain technology.

A brick and mortar company like Starbucks is needed for consumers to learn to trust blockchain technology which is what Starbucks is trying to achieve with the pilot study.

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