Integration of blockchain technology into Azerbaijan’s agricultural sector: Prospects and challenges
Abstract
The purpose of this study was to explore the potential of integrating blockchain technologies into the agricultural sector of Azerbaijan to increase transparency, traceability, and automation of processes, and to build confidence in products in domestic and international markets. The paper included an analysis of the international experience of countries such as the USA, China, the Netherlands, and Australia, which allowed assessing the benefits of blockchain and the impact on key aspects of agriculture. The focus was on transparency and quality control at all stages of the supply chain, automation of financial settlements between market participants, and the economic benefits of using smart contracts. The results of the study showed that blockchain can radically improve the transparency of supply chains. Based on the technology, it is possible to record and track every stage of product movement from the manufacturer to the end user, which enables quality control and quick identification of problems. This is especially important in Azerbaijan, as the country is striving to strengthen its export potential, and consumers in international markets place high demands on transparency and safety of agricultural products. The study also showed that blockchain can automate financial calculations using smart contracts, which simplifies transactions between farmers and suppliers. This leads to lower transaction costs, eliminating the need for intermediaries, and improving the liquidity of agricultural enterprises, especially small farmers. This approach solves a number of financial problems faced by farmers, including delayed payments and limited access to capital. The findings emphasised that, despite the existing obstacles, blockchain can become an important tool for increasing the competitiveness of Azerbaijan's agricultural sector. For successful implementation, it is necessary to attract government support, training programmes and financial assistance for the adaptation and dissemination of technology among farmers. Thus, the integration of blockchain can provide economic and operational advantages that will help to improve the quality, transparency, and credibility of Azerbaijani agricultural products
Keywords
crop management; supply chains; farms; food systems; product safety management
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