Graph Blockchain (GBLC.C) just finished building a blockchain solution for farmers to optimize their yields.
The Vancouver-based company also moved to implement its proprietary technology by signing a memorandum of understanding (MOU) with Ezfarm.
Ezfarm is a big data solution provider for the agricultural sector, assisting farmers in the field with software, IT services, R&D and e-commerce.
Under the agreement, Ezfarm with utilize Graph’s blockchain solution for the collection and processing of data from the agricultural field.
Agriculture needs to change
Since we have less than a year’s worth of food for the planet at any one moment, it has become imperative that agribusiness evolve sustainably in the face of climate change.
International efforts are already afoot with the Food and Agriculture Organization (FAO) of the United Nations announcing the eighth World Congress on Conservation Agriculture (8WCCA) in 2020.
Conservation agriculture is meant to address sustainability issues through ecological and regenerative practices such as cover cropping, no-till methodologies and mechanization.
Blockchain naturally complements these efforts by adding a layer of trust to data collection and processing from the growing number of complex IoT sensor networks in agriculture.
Farmers have a lot on their plate, not only does their crop have to compete with approximately 30,000 species of weeds, its also getting hammered by weather volatility, water scarcity and land degradation.
As such, they need to grow more using less with the chilling prospect that in order to meet the expected food demand by 2050, the sector must increase output by approximately 70% over the next three decades.
Graph’s developmental efforts combined with holistic farming methodologies could very well help to bridge this desperate gap.
“We have previously stated that we see a fantastic opportunity for blockchain technology and specifically Graph’s technology to improve the safety, efficiency and transparency in the global food industry.” – Jeff Stevens, Graph Blockchain CEO.
Getting the nod from Ezfarm indicates that agribusiness is taking notice of blockchain’s potential benefits to cultivation as well as supply chain management and distribution.
This partnership also represents Graph’s second foray into food-related blockchain applications following an MOU with Korean conglomerate, LOTTE Data Communications, entered into through the company’s largest shareholder, Datametrex AI (DM.V).
The LOTTE transaction will see Graph assist in developing a blockchain-based solution for the importation of Canadian beef into Korea.
How big is this opportunity?
Animal husbandry aside, a 2015 report by the American Chemical Society valued Global agribusiness at USD$78 billion with crop protection amounting to $56.7 billion of that total.
If Graph is able to continue building and implementing blockchain solutions with partners like LOTTE and Ezfarm, it might just secure a sustainable slice of this necessary multi-billion-dollar food production market.
With the blockchain sector sailing the trough of disillusionment, investors have a good opportunity to capitalize on the future potential of an industry destined to rise while the paper is still dirt cheap.
Speaking of which, Graph shares remained unperturbed at CAD$0.04 during trading today.
The company currently has approximately 138 million issued and outstanding shares with a market cap of $5.5 million.
Full disclosure: Graph Blockchain is an Equity.Guru marketing client.