AUTHORS: R Heath; T Fox; S Admassu; K McRobert
Trust is an essential enabling factor for the smooth and efficient operation of agricultural value chains (AVCs). It is critical in ensuring coordinated supply and demand management of safe and legitimate food and fibre products and underpins financial transaction confidence and security.
New digital platforms (including blockchain) are being applied to AVCs specifically to address and improve trust between stakeholders and participants. The number of digital technology solutions available in the market is rapidly increasing. Different technologies claim to address various areas of the value chain, creating confusion for stakeholders in ensuring the most appropriate solution is selected for their needs.
Before being able to analyse the need for a technology solution, AVC actors must first gain a thorough understanding of the value of having trust present in the chain, and alternatively the costs incurred when it breaks down. By understanding and potentially quantifying this value, a decision regarding the best technology solution to address this trust issue can be made. Without this understanding of the value and trust, the value proposition for the application of digital technology solutions is relatively unknown.