The “Big 4” of agricultural corporations have plans to use blockchain to help advance the global grain trade.
The Big 4 says Blockchain will Benefit the Entire Agriculture Industry
Those companies are Archer Daniels Midland Company, Bunge, Cargill, and Louis Dreyfus. And they’re looking to digitize international agricultural shipping transactions “for the benefit of the entire industry.”
Driven by opportunities to increase transparency and efficiency for customers, global agribusinesses are turning to emerging digital technologies – including blockchain and artificial intelligence options – to reduce resource- and time-intensive processes associated with the global agricultural commodity value chain, says the latest press release.
The Initial Goal for the Agriculture Industry
For example, the goal is to replace a system that relies on paper contracts with an automated electronic system.
Longer term, each is looking to improve upon quality and reliability of documents and data. In addition, they want great visibility across supply-chain movements, leading to lower costs. Also, they want increased efficiency and transparency that would allow to to better serve customers and consumers.
In fact, 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.”
One of the Biggest Problems — 275 Million e-Mails
At the moment, one of the biggest issues each company is facing are the 275 million e-mails. That’s how many are sent each year by traders to process 11,000 shipments of grain. “Many aspects of agricultural trading are highly manual and costly: paper documents, facsimiles, manual retyping of data, and so on,” the companies said. “And many transactions still utilize hard copy transfers of documents.”
While none of the companies announced any further details, or how soon we’ll see a rollout, it should be a successful venture.
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