Black Sea Wheat Blockchain Pilot Complete for Transoil International and Solaris Commodities
Black Sea wheat was recently the subject of a blockchain pilot, hosted by Transoil International and Solaris Commodities, based on a report from S&P Global on November 12th. Both of these companies are known for their work within the trading sector, focusing on commodities like flour, vegetable oil, and milling wheat.
The collaboration set off the decision to form a pilot, which was completed with the help of Cerealia. Cerealia is a Swiss platform for agri-commodities trading and financing. As part of the trial, both Transoil and Solaris were involved in a sale of a 25,000 metric ton shipment, consisting of 11.5% protein Black Sea wheat. The FOB-loading port basis came from Novorossiysk, which is a port city in Russia.
Presently, this blockchain trial transaction is the first trade deal of its kind, particularly involving Black Sea wheat. Thus far, there has been no press release regarding the monetary investment involved. However, by using a platform that thrives on blockchain technology, the two companies want to reduce the issues that come up in trading, while resolving dispute settlements and tracking the transaction.
Cerealia commented, “An independent auditor has reviewed all the important details of the trade from the blockchain and validated the smart contract, digital signatures, signed document and timestamps. [The auditor] also confirmed that data has been encrypted, that no other data has been stored and that all data is up to date.”
So far, around the world, the agricultural and food products sector has been open and welcoming to the blockchain technology. The four biggest companies of the sector, known as ABCD, collaborated in an effort to digitize international grain trading, which used both artificial intelligence and blockchain technology. At the start of the project, these two technologies will be combined to first automate grain and oilseed processes after the trade. Usually, these processes are incredibly inefficient and require that the work be manually completed.
The Dairy Farmers of America (DFA) launched a project in September with ripe.io, which is a food fintech startup. Their project was primarily targeting the food supply chain, though the DFA is working on evaluating the technology to see if it will be helpful to them.
Albert Heijn, the biggest supermarket chain in Holland, also made an annoucement in September, saying that they had decided to use the blockchain to track their production chain for orange juice. Blockchain made the process more transparent, and the new system will keep records of both quality and sustainability with the participating produce growers. There will also be documentation about the fruits.