Transparent Traceability of Forest and Agricultural Commodities
Sector: Primary sector · Industry: Forestry · Organisation: AgriDigital · Maturity level: Pilot
AgriDigital uses a blockchain solution based on a distributed ledger to digitally map processes in the agricultural and commodity supply chain. In pilots and proofs of concept, transactions along the supply chain are documented traceably to improve transparency, settlement, and verification. The model is generally transferable to related commodity sectors such as forestry, though AgriDigital has not yet verifiably implemented it there.
Documentation status
- Project status: Pilot
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 12 July 2026
Description
AgriDigital is a digital platform that uses blockchain technology to automate, make transparent, and trace transactions in commodity supply chains. The approach was first tested in 2016 in a globally recognised pilot for grain trading, where a smart contract evaluated delivery, secured payments, and automatically transferred ownership titles. Although AgriDigital has not published a verified forestry use case, the model demonstrates how similar principles could be applied to forestry to provide seamless proof of timber and forest products.
AgriDigital was founded in 2015 with the aim of building digital trust in agricultural supply chains and has relied on a private Ethereum blockchain as its technical foundation from the start. In 2016, the company reportedly conducted the world's first blockchain-based farmer-buyer settlement in grain trading: a smart contract automatically checked the buyer's creditworthiness, secured the producer's funds until physical delivery, and triggered payment simultaneously with the transfer of ownership. In another project for the traceability of soybeans in North Dakota, AgriDigital works with partner Geora, whose blockchain platform captures data collected in the field and carries it along the supply chain. The platform is designed as an open system for all supply chain participants, allowing site operators, logistics providers, and inspection services to be included. To the best of current knowledge, a dedicated, publicly documented use case specifically for forestry products does not exist for AgriDigital; however, the technology and business model are fundamentally transferable to raw material sectors such as forestry.
Perspectives
B2B — organisations perspective
For companies in the agricultural and raw materials sectors, AgriDigital's platform offers automated processing of trade transactions, replacing manual processes and reducing the risk of payment defaults or fraud. Buyers and traders benefit from automatic inventory reconciliation and the ability to use real-time financing options along the supply chain.
Employees perspective
Employees in the supply chain and trade experience a shift from manual documentation and billing tasks to digitised, largely automated processes through the platform. This requires the development of new digital skills but can simultaneously reduce routine effort and make work more transparent and traceable.
Benefits
General
- Seamless, tamper-proof documentation of goods flows along the entire supply chain
- Automated processing of payments and ownership transfers through smart contracts
- Increased trust between trading partners through transparent and immutable records
- Basis for real-time financing options for producers and traders
B2B — organisations
- Reduction of administrative costs and risks through automatic inventory reconciliation
- Faster and more secure processing of trade transactions between producers and buyers
- Better basis for compliance evidence and certifications in regulated markets
Employees
- Less manual effort in documentation, billing, and inventory management
- Greater transparency and traceability of one's own work processes
Challenges
General
- Involving all relevant supply chain participants in a shared platform requires significant coordination and persuasion efforts
- Digital recording of quantities and qualities of goods directly at the production or handover point requires suitable hardware and infrastructure
- Legal and regulatory frameworks for digital ownership transfers are not clarified in all markets
B2B — organisations
- Integrating the blockchain platform into existing ERP and inventory management systems can be complex and costly
- Trust in the new technology must first be built among conservative market participants
Employees
- Employees need training and support in handling the new digital platform
Technology foundation
AgriDigital relies on a private Ethereum blockchain in a multi-node configuration, using smart contracts to automate the processing of supply chain transactions. The private setup allows control over the circle of participants and protects sensitive trade and delivery data, while ensuring the immutability and traceability of all entries. Additionally, the partner Geora's platform is used for traceability applications to transfer field data along the supply chain into the blockchain. This combination of smart contracts and distributed ledger is suitable for commodity supply chains as it can automate and securely document ownership transfers, payment triggers, and inventory reconciliation.
Implementation examples
World's first blockchain-based farmer-buyer settlement in grain trading
In traditional agricultural trading, producers bear a significant risk of payment default, as payments often occur only after physical delivery and manual reconciliation processes are time-consuming and error-prone. AgriDigital aimed to demonstrate with the pilot that smart contracts can eliminate this risk and accelerate the entire process.
According to its own statements, AgriDigital conducted the world's first blockchain-based settlement between a grain producer and a buyer in 2016, where a smart contract on a private Ethereum blockchain automated the entire transaction. The pilot demonstrated how delivery, payment security, and ownership transfer can be realised without manual intermediate steps and without payment default risk for the producer.
In a live pilot in 2016, AgriDigital deployed a private, multi-node Ethereum blockchain on which a smart contract fully automated the settlement between producer and buyer. The smart contract first checked whether the buyer had sufficient funds, then secured the funds on behalf of the producer and automatically transferred the ownership title upon physical delivery, while simultaneously triggering the payment. AgriDigital acted in this pilot as platform operator, buyer, and regulatory authority simultaneously. Qualitative results highlighted workflow automation, automatic inventory reconciliation, and enabling flexible real-time supply chain financing. Specific figures on cost savings or time gains were not mentioned in publicly available sources.
The pilot addressed the problem of lack of trust between producers and buyers as well as the high manual effort in inventory reconciliation and payment processing. The smart contract ensured that payments were only released upon verified delivery, minimising fraud risk for both parties.
Tags
Supply chain, Smart contract, Traceability, Raw materials, Transparency, Automation, Traceability