Blockchain-enabled commodity traceability for smallholder value chains

Thesis Abstract

Blockchain-enabled traceability promises enhanced transparency, efficiency, and trust across smallholder value chains, addressing persistent information asymmetry, fraud, and limited access to premium markets in developing-country agrarian economies. This study investigates how blockchain-enabled commodity traceability systems influence value chain coordination, farmer empowerment, and product differentiation for smallholder farmers in maize and cassava networks within a sub-Saharan African context. The aim is to evaluate the extent to which distributed ledger technology (DLT) platforms improve traceability, reduce transaction costs, and enable premium pricing through trust-based incentives. Specific objectives are (i) to assess the impact of blockchain traceability on information quality, transaction costs, and governance mechanisms along the value chain; (ii) to examine effects on smallholder market access, bargaining power, and productivity; (iii) to identify facilitators and barriers to adoption, including technical literacy, infrastructure readiness, and policy environment; (iv) to model the relationship between traceability adoption and product differentiation/price premia; and (v) to develop a practical implementation framework for scalable deployment in mixed farming systems. The methodology adopts a mixed-methods design, combining a quasi-experimental impact evaluation with qualitative insights. The population comprises smallholder farmers, intermediary traders, cooperative managers, and retailer partners engaged in maize and cassava supply chains in three agro-ecological zones. A stratified random sample of 420 farmers (140 per zone) participating in a blockchain pilot and 180 non-participating farmers matched on farm size and output will be selected. Data collection instruments include structured surveys to capture information quality, transaction costs, trust, adoption determinants, and output performance; semi-structured interviews with 40 key informants (cooperative leaders, processors, and retailers); and platform usage logs from the pilot system. Validity and reliability will be ensured through pre-testing, Cronbach’s alpha assessments for multi-item scales, and triangulation across survey, interview, and platform data. The study uses a difference-in-differences approach to identify causal effects, complemented by propensity score matching to address selection bias. Multivariate regression models, including fixed effects, will quantify impacts on information quality, transaction costs, access to markets, and price premia. A matching-augmented DID framework will be employed to strengthen causal inference. Qualitative data will be analyzed thematically, informed by structuration theory and technology acceptance models, to elucidate adoption dynamics, governance changes, and perceived legitimacy of the traceability system. Expected findings indicate that blockchain traceability improves data veracity, provenance visibility, and contract enforceability, resulting in lower information asymmetry and reduced transaction costs by 12–18%. The study anticipates modest but meaningful gains in farmer access to formal markets and premium prices, with price premia ranging from 5–15% for traceable lots, moderated by quality attributes and trust in the platform. Adoption is expected to correlate positively with perceived usefulness, ease of use, network externalities, and supportive policy and infrastructural conditions, while barriers include digital illiteracy, intermittent electricity, and initial onboarding costs. Interaction effects may reveal greater benefits in cooperative-led supply chains and in zones with established storage and processing facilities. The contribution to knowledge encompasses (i) empirical evidence on the economic and governance impacts of blockchain-enabled traceability in smallholder contexts, (ii) an analytically rigorous assessment combining DID with matching in a real-world pilot, (iii), insights into the mediating role of information quality and trust in achieving price premia and market access, and (iv) a practical, scalable implementation framework detailing governance structures, data standards, interoperability considerations, and capacity-building requirements for policymakers, extension services, and private-sector partners. The study concludes that, when paired with adequate infrastructure, training, and supportive regulatory environments, blockchain-enabled traceability can meaningfully enhance efficiency, transparency, and value capture in smallholder value chains. Recommendations include (i) prioritizing interoperable data standards and farmer-centric onboarding programs, (ii) enabling public-private partnerships to extend digital infrastructure to underserved regions, (iii) integrating traceability pilots with extension services to strengthen governance, and (iv) developing policy instruments that incentivize data stewardship, fair contract practices, and equitable access to markets.