Jose Marcos Magalhaes, the president of Minasul announces that the Brazilian coffee farming cooperative is planning to issue a coffee-backed token, as reported by Bloomberg on July 11.
As per the report, Magalhaes declared at the Global Coffee Forum in Campinas about the token launch this month. The token will enable farmers to buy fertilizer, machinery and other non-farm products such as cars and food via a digital marketplace. Farmers could aquire the said token in exchange for current and future coffee beans production.
30% of the current harvest, 20% of the next crop, and 10% of the following season are eligible for exchange. Magalhaes elaborated that this financing mechanism will reduce operating costs both the cooperative and the farmers as registration through a notary’s office is elemented.
As part of a broader digitization effort by the Minasul cooperative, this initiative would allow farmers to sell their harvest directly from their smartphones. The report further claims that based in the state of Minas Gerais, Minasul is one of Brazil’s largest arabica-coffee cooperatives, Brazil being the world’s single largest coffee exporter.
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