Ant Financial, a unit of Chinese behemoth Alibaba Group, and Bayer Crop Sciences are collaborating on a blockchain-based agriculture platform.

Ant Financial and Bayer Crop have signed an LOI to develop a blockchain-powered platform to monitor agricultural production jointly.

The new system will boost efficiencies in agricultural production. It will also ensure that consumers receive high quality and safe food, at the same time enhancing farmers’ income.

Ant Financial and Bayer to develop both blockchain and value chain

The two giants will combine their respective strengths in the new venture.

Bayer’s agri-portfolio, digital farming planting and agronomic technology, and supply chain resources will be of crucial importance in the “value chain” aspect. On the other hand, Ant’s leading blockchain technology, advanced marketing techniques, and logistical and financial strengths will power the digital side of the partnership.

“Entering into this strategic agricultural cooperation with Ant Financial makes Bayer the first agricultural company to combine the construction of agricultural blockchain and value chain,” said Weidong Huang, Bayer Crop Science Country Head of Greater China at the signing ceremony.

Geoff Jiang, vice president, and general manager of Ant Financial’s Intelligent Technology Group noted: “Together with Bayer, our exploration of blockchain in agriculture will improve the transparency and responsiveness of its supply chain, and bring more value to consumers, farmers and the society.”

How blockchain is transforming agriculture

On a general note, there are several applications of the blockchain in agriculture.

In procurement tracking, the participants in the agriculture supply chain have a single view of the process through the distributed ledger (DLT). So tracking shipments, payments and origin are easy, cheaper and more efficient through the blockchain.

In crop management, especially smart farming, IoT sensors in the ground could record important physical data into the blockchain. These include temperature of the soil, water level, fertilizer details and more. Smart contracts in the DLT can take further action.

The blockchain can also be used in tracking crops through weather conditions. Agricultural finance through the blockchain helps the smooth flow of funds and transparency of prices.

Given the potential, the tie-up between giants Ant Financial and Bayer  could prove to be a digital boon for agriculture.