Top Four Agro Firms Collaborate to Use Blockchain in Grain Trading
According to Reuters, the world’s top four agro-based companies, commonly referred to as ABCD, have joint together to digitize global grain trading through the use of blockchain and artificial intelligence (AI) technologies.
ABCD, which refers to Archer Daniels Midland Co., Bunge Ltd., Cargill Inc., and Louis Dreyfus Co., has mentioned that blockchain implementation could make trading more efficient and transparent, as well as reduce costs. The conglomerate aims to digitize the system that has previously relied on paper contracts, invoices, and manual payments.
Per grain industry news magazine World-Grain.com, blockchain and AI will be first of all used to mechanize post-trade execution processes of grain and oil seed as it is largely manual and costly portion of the supply chain.
Over a long time frame, ABCD aims to integrate blockchain technology on several stages of the supply chain, including storage, shipping and customer experience. As quoted by World-Grain.com, CEO of Louis Dreyfus Co. Ian McIntosh clarified how blockchain could assist growing the agriculture industry, noting the technology’s “capacity to generate efficiencies and reduce the time usually spent on manual document and data processing.”
Top agro and food related firms around the world have been trialing blockchain to enhance the efficiency of the supply chain. Louis Dreyfus Co., in addition to four other parties, trialed its first blockchain-based shipment back in January 2018, transporting soybeans from America to China utilizing the Easy Trading Connect (ETC) blockchain platform.
U.S. national milk marketing cooperative Dairy Farmers of America also tested blockchain solutions between its farmer-members in 48 states. Likewise, major Dutch supermarket chain Albert Heijn employed blockchain to monitor orange juice production. According to a recent study by Reportlinker, blockchain application in agriculture and food supply chains market will value more than $400 million in the next five years.