A group of the most important agriculture companies in the world will be using blockchain technology to digitize international grain trading. The information was released by Reuters on Thursday 25.
The companies that are going to leverage blockchain technology are Archer Daniels Midland Co, Bunge Ltd., Cargill Inc., and Louis Dreyfus Co., which are usually known as ABCD. By using blockchain technology and artificial intelligence (AI) they will be reducing costs and digitize the system to make it more efficient and faster.
As in the shipping industry, agriculture trades require paper filings, contracts invoice and other manual payments that make the whole system very inefficient.
As reported by World-Grain.com, these technologies that are going to be implemented will be used to automate grain and oilseed post-trade execution processes. In the supply chain, these are very costly and tedious processes.
At the same time, the ABCD group would use the technology to improve shipping, storage and customer experience. However, this would be implemented in the future rather than in the short term.
Ian McIntosh, CEO of Louis Dreyfus Co., explained that the implementation of these technologies could improve the whole system.
At the moment, there are several companies that decided to use blockchain technology to improve different products and services. For example, the Chinese retail giant JD.com has implemented a blockchain system to track from where certain products are produced. This has a positive impact on the market since it is possible to reduce intoxication cases and other issues.
Carrefour has also decided to use blockchain technology to track all fresh products by the year 2022. The company has already implemented a similar system for free-range Carrefour Quality Line Auvergne chickens.