Kolionovo Farm Reports on the First Effects of Blockchainization

News and Analysis

Just about a month ago a Russia-based farm Kolionovo has partially integrated blockchain technology in its operations. The farm’s head and founder Mikhail Shlyapnikov told ForkLog about the first results of their work.

According to Shlyapnikov, all involved parties are currently satisfied with the integration of the technology. Below is what the farm has achieved over the last month’s time.

  • A new form of real cooperation between consumers and producers is shaping out, which, though lacking any regulatory framework, looks very promising and already works.
  • Nearly all shares for open subscription and sale have been reserved with most of them paid for.
  • The incoming assets are being purposefully spent on expanding production capacities, replacing equipment and technologies, increasing product quality and production rate, and mitigation of risks.
  • A base for long-term implementation of a long-forgotten scheme of direct supplies without intermediaries is being gradually prepared.
  • New options of applying Emercoin services and related processes are being considered.
  • Kolions (the farms own tokens) now have new functions and an option of free convertibility.
  • The farm has tested the system for operation under emergency and warfare situations to prove that theoretically it is capable of withstanding all external threats.
  • The farm regularly receives private offers, including those from abroad, regarding a franchise for both farms and other economy sectors.

Mikhail  Shlyapnikov says he is not quite ready to unveil the exact numbers, however, he stresses they are “radically different from those crisis-struck ones, to say the least.”

He also said that consumers, customers and shareholders are gradually installing and acquiring Emercoin wallets learning more about cryptocurrencies and blockchain technology in the process.

“People come to Kolionovo in person to see the results of their investment, some of the participate in related events. Later this month the investors will start receiving the first product baskets at special prices. We’re going to go ahead of time here, so we won’t be waiting for the results of the shareholders’ investments, as they are pretty long-term in agriculture. We want to accelerate things with our own resources. This will bring mutual benefits to all parties and can be seen as a gesture of trust for everyone”, Shlyapnikov added.

Speaking about the drawbacks, Shlyapnikov recalled troubles in communicating with other producers and temporary suspension of fundraising.

“There are different reasons for this. It’s either insignificant volumes that require long time to extend and pay off, or self-sustainability that can implement a scheme like that on its own; or remoteness from Moscow, which results in higher pricing due to delivery cost, or too high expectations from our project. But we’re working and making arrangements.”

Temporary suspension of fundraising, according to Shlyapnikov, is related to such issues as choosing priorities, quality, reliability, availability and enhancement of processes instead of prospective expansion of this area.

“Initially, our humble model was planned as a pilot project to study the options of applying blockchain technologies in survival and development of modern-day farming. We also wanted to provide each participant with high-quality and inexpensive goods, commercial issues were not on top of our list.”

Summarizing it all, Shlyapnikov notes that the idea of Kolionovo blockchainization has been put to practice in real time, as it was “simple, profitable, open, easily replicable and inexpensive”.


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