The AgriUT Ambition
What is being done right now to fulfil the roadmap goals?
Pilot projects are being funded and started with partner organisations in the NGO and commercial banking sectors to tangibly prove the technology and service design of the AgriUT end-to-end solutions in the following areas:
Commercial coffee company embedding AgriUT QR codes for customer scanning to provide direct farmer rewarding – project details in draft now, expected run-time until 2022 Q2 for further scale-out to other coffee companies.
Retail commercial bank in Papua New Guinea supporting non-cash payment fulfilment for the purchase of both Cocoa and Vanilla – project budget approved by aid organisation and regional development bank, expected run-time until 2022 Q3 for further scale-out to the local region (22,000 farmers targeted), with option for nation-wide expansion nearing end of 2022.
Licensed microfinance lender in Kenya integration into digital marketplace with the support of US-based academic initiative (Purdue and Virginia Tech Universities) – scale-up deployment study for a USD ~$50M regional development project, with option for nation-wide expansion towards 2023 Q2.
Major petrochemical company (Forbes 100) sponsorship of carbon credit market development to deliver 150,000 hectares of proven carbon credits for audit validation 2024, with option for massive expansion to meet well in excess of USB $1B credit demand.
rewarding farmers by way of F&F round to Ethiopia (Agriwards live)
onboarding PNG Madang to Agriwards
start of AgriUT QR codes on retail-facing coffee
commodity purchase of Cocoa and banking integration
commodity purchase of Vanilla with retail bank integration
establishing Kenya microfinance access and marketplace for buying/selling goods backed by AgriUT
early pilots of carbon credit microincentivisation for farmers to establish basis of carbon market participation.
Carbon Credits Next Step
There is growing demand for voluntary carbon credits to meet the offset demands of companies and other entities with net-zero and carbon neutral commitments. This should see a significant increase in prices as supply struggles to meet demand over the immediate and long term towards 2050. However, carbon markets are fragmented and non-standard causing market friction which delays adoption.
Smallholders have an opportunity to include a carbon crop into their farming outputs that will increase and diversify their incomes and contribute to climate action. Various challenges face smallholders from participating in carbon projects such as the high costs of project administration and verification, uncertain land tenure, small land parcels that must be conglomerated into large projects and the initial lead time to generate project income.
The AgUnity – AgriUT combination is positioned well to incentivising smallholder participation in carbon projects, address many of the difficulties of carbon project operation and by stimulating carbon credit demand through tokenization. Purchase of AgriUT as a means of rewarding farmers to participate in carbon credit farming projects whilst also incentivising project developers to collaborate with AgUnity farmers in carbon projects. Such a loyalty program for companies to engage with farmers and their climate action through carbon credits will provide a mechanism for individuals to directly reward farmers for their climate action and to support farmers in improving income and combatting climate changes.
AgUnity/AgriUT intend to engage in carbon farming initiatives (tree planting, manure management, generally CO2 emission abatement and avoidance initiatives) with the farmers in targeted projects. To date there are discussions with Washington-based GEF (Global Environment Facility), the investment arm of the World Bank, the largest carbon investor in Africa.
For more detailed information on the AgriUT Foundation position on Carbon Credits, please refer to the concept note.
AgriUT after Pre-Sales
After the pre-sales tokens are all in the community, the community itself with then determine the correct pricing structure according to the utility value that the token actually delivers in the real world, as measured by the total market value that it underpins. For example, if the total transaction value of commodities being bought and sold within the ecosystem reaches into the many millions or even billions of dollars (cacao is over $8.6B, coffee well over $100B), with many of the tokens being effectively “locked up” within ongoing transactions… the fixed limit of tokens means that the supply/demand dynamic will apply for acquisition of tokens as it does for any type of commodity of value.