EMURGO Revolutionizes Coffee Supply Chain with Cardano Blockchain in Indonesia

We consulted with various industry partners to identify the most pressing needs where blockchain-based solutions could deliver significant value to their existing operations. We discovered a clear demand from enterprises dealing in premium consumer and B2B products, such as Arabica coffee beans, for a straightforward and cost-effective method to verify product quality from farm to customer. They also wanted to shed light on the entire supply chain process to build consumer trust and promote fair trade practices. This need was especially acute in emerging markets and industries with multiple stakeholders, where reliably proving the origin and authenticity of premium products is notoriously difficult.

Traditional supply chain methods are often opaque and inefficient, plagued by the complexities of globalization, diverse company sizes, fragmented locations, and a lack of a secure, unified administrative system.

We see numerous issues across industries that stem from poor traceability: counterfeit consumer goods, misleadingly relabeled products, the sale of illicit food items, and the presence of unethically sourced materials in everyday goods. Blockchain's inherent features—immutability, transparency, and security—are perfectly suited to address these challenges effectively.

The EMURGO Traceability Solution is designed to directly tackle these issues. It authenticates a product's origin, provides relevant data on supply chain practices, and tracks the complete journey of a good from producer to consumer. This builds consumer trust and enhances brand value for all stakeholders who adopt our blockchain-powered traceability platform.

We believe Cardano is a natural foundation for this solution. Its research-driven approach, scalability, and growing adoption by global brands like New Balance for traceability make it a robust and credible choice.

For context, Indonesia ranks as the world's fourth-largest coffee producer. A World Bank report notes that around 10 million Indonesians are economically tied to the coffee industry. Furthermore, the U.S. Department of Agriculture has identified "a booming coffee-drinking culture" in Indonesia, with demand soaring due to the rise of specialty coffee shops.

The next Indonesian unicorn is very likely to emerge from this thriving domestic coffee market, which shows the immense consumer interest in the product.

However, 96% of Indonesia's coffee is produced by smallholder farmers—more than 2 million people—who often lack resources and receive very low prices, preventing them from fully capitalizing on this boom.The local coffee industry involves a complex web of farmers, roasters, processors, logistics companies, and cafes. There is a critical need for a shared IT system to streamline data management while ensuring data integrity for all stakeholders. This lack of a unified system leads to difficulties in verification and trust, both between stakeholders and between companies and consumers.

The EMURGO Traceability Solution is an end-to-end platform built to be flexible and is designed to run on the Cardano blockchain. Each transaction or handoff in the supply chain is recorded and validated on-site using a unique QR code.

For example, when a shipment of coffee beans is delivered from a roaster to a café, the recipient scans the QR code on the batch to validate its arrival. This data is securely entered, verified, and made transparent to all stakeholders using the EMURGO Traceability Solution.

Every industry and use case has unique requirements. Therefore, a major challenge is understanding the distinct needs of all stakeholders and designing a comprehensive solution that meets them all. This requires extensive consultation with clients to deeply understand their business processes and engineer the most effective system.

Another challenge is the general lack of awareness about blockchain's benefits for businesses and consumers. Some perceive it as a complex technology with a steep learning curve. To counter this, EMURGO designs turnkey solutions where blockchain functions as a secure backend, with a simple and intuitive user-facing interface that requires no prior knowledge of how blockchain works.

Our approach is to first engage with potential clients, understand their business challenges, and then clearly explain how blockchain can solve these problems before co-developing a customized solution.

Currently, it's nearly impossible for a coffee consumer to know the detailed story behind their purchase. They lack access to information like how long the beans were stored or the precise farm where their coffee originated.

With the EMURGO Traceability Solution, tracking this information is simple and, most importantly, tamper-proof. Customers get access to granular data about the specific journey of their coffee beans. They also contribute to more ethical sourcing practices and sustainability by choosing brands that use this system.

For consumers who prefer premium or specialty coffees, this solution provides a powerful way to verify the quality and authenticity of their chosen brew.

As a flexible platform, the EMURGO Traceability Solution can be adapted for clients in various industries that deal in specialty or high-value products. In sectors where consumer trust is paramount—such as luxury goods, pharmaceuticals, and organic food—using verified traceability to prove product quality is a critical competitive advantage.

For more information on the EMURGO Traceability Solution and how it can add value to your business, please contact us at [email protected]