Major Agriculture Companies Eyeing Blockchain
The 4 biggest companies in agriculture have announced through a joint press statement that they have major plans to employ digital technology like AI and blockchain into the international trading of grain.
Bunge, Louis Dreyfus, Archer Daniels Midland Co., and Cargill all are eyeing new applications in the modern digital market and have plans to apply them in their shipping transactions to improve the overall agricultural industry.
The companies will go about the project by first focusing on the automation of grain and oilseed processes after trading takes place, which are still currently done manually making them a very costly part of the supply chain. The next step would be digitizing other paper-based, manual operations that involve contracts, payments, and bills.
One of the main issues the firms are looking forward to solving is the large number of emails, which reaches 275 M, that are being sent by asset traders to handle just 11,000 total grain shipments via sea transportation.
The group aims at having the new technologies help in decreasing processing time for documents, improving supply chain visibility to become more transparent, and also helping the overall system become more efficient.
Previous Work with Blockchain Tech
Specific details of the planned implementation were not disclosed; however, some companies within the group already have experience with blockchain technology. Louis Dreyfus finished its first agricultural transaction using blockchain last January, as per Ian McIntosh, the company’s Chief Executive Officer. He shared that the experiment really showed the capacity of the tech to improve efficiency and decrease processing time.
Furthermore, Cargill partnered up with HSBC and also ING last May to test a trade finance Tx for a shipment of soybeans using one blockchain system only, which was claimed as the first ever to take place in the world as well. The companies are seeking participation from more industries to take this step into the digital world. The CEO of Bunge, Soren Schroder, explained how the group expects the initiative to attract attention from other industries to improve management of data and also business operations by introducing automation to agriculture trading systems.