USA – World’s largest agribusiness companies Archer Daniels Midland Company, Bunge Limited, Cargill Incorporated and Louis Dreyfus Company are looking for a platform to increase transparency and efficiency in global grain trading using blockchain technology.
The companies referred to as the ABCDs of global grain trading, are investigating ways to standardize and digitize global agricultural shipping transactions for the benefit of the entire industry.
The initiative by global agribusiness to include emerging digital technologies such as blockchain and artificial intelligence options aims to improve global agricultural commodity value chain through proper resource and time management in various processes.
The new platform which is yet to be identified will focus on technologies that may include automation of the after-trade grain and oilseed exchange processes, which are currently manual and costly.
“We’re pleased to join the effort to foster modernization and standardization of data and documents in the global agribusiness value chain,” said Juan Luciano, ADM’s chairman and chief executive officer (CEO)
“By working together to design and implement a digital transformation, we will bring hundreds of years of collective knowledge and experience to simplify processes and reduce errors for the benefit of the entire industry.”
According to the press release, the industry spends significant amounts of money every year moving documents around the globe.
Thus, eliminating the inefficiencies would lead to shorter document-processing times, reduced wait times and better end-to-end contracting visibility.
The partnership looks to replace other manual, paper-based processes tied to contracts, invoices and payments, with a more modern, digitally based approach in the longer term.
Soren Schroder, Bunge’s CEO, said: “We expect an industry-wide initiative of this nature to be able to accelerate improvements in data management and business processes, and bring much-needed automation to the industry.
Promising technologies will not only provide synergies and efficiencies for ourselves, we believe they will prove vitally important to serving customers better by laying the foundation to enable greater transparency.”
The four will build synergies in improved quality and reliability of documents and data, with reduced review time and seamless transfer of transaction data to customers.
“In January this year, LDC completed the first agricultural commodity transaction through blockchain, which showed the technology’s capacity to generate efficiencies and reduce the time usually spent on manual document and data processing.
By working with the industry to adopt standardized data and processes, we can truly harness the full potential of emerging technologies to improve global trade,” said Ian McIntosh, LDC’s CEO.