Traders Of Sugar Seek To Apply Blockchain Technology To Trading And Shipping Transactions
Sugar Traders Seek To Apply Blockchain Technology To Trading And Shipping Transactions
Blockchain technology has been applied to multiple supply chain trials and systems in the agriculture industry, which has been most popular recently with a shipment of Mandarin oranges. However, all of this good publicity has led sugar traders to become interested in using the distributed ledger technology for themselves as well, according to a recent Bloomberg report.
The purpose of using blockchain technology for sugar trading would be “to help streamline trading and shipping transactions,” says Bloomberg. Jamal Al Ghurair, managing director of Al Khaleej Sugar, called a meeting to speak with stakeholders about their stance on studying blockchain as an option for their industry. With 50 attendees, the meeting consisted of a range of people, including bankers from ABN Amro Bank NV and Société Generale SA, and associates from ConsenSys.
The Dubai Blockchain Declaration, as the working group is called, is made up of four rivals in the agriculture business that decided to digitize trade for a new standard. The rivals include Archer-Daniels-Midland Co., Bunge Ltd., Cargill Inc., and Louis Dreyfus Co., and they are affectionately known as the ABCDs of the industry. They rolled out a plan in 2018 to examine both blockchain and artificial intelligence, ultimately aimed at reducing costs and improving transparency throughout the process.
In an interview, Al Ghurair said, “Nobody can do this job alone; it has to be done together. For us, first of all, it’s transparency, security, and speed.”
As the sugar group works towards this effort, it is likely that it will be led by several veterans of the industry. Bloomberg reports that the likely lead will be Jacob Robbins, the CEO of Emeterra and former sugar buyer for Coca-Cola. The report alleges that further help will come from Jeff Bauml of Phillip Brothers and Nigel Durham of the Sugar Association of London.
In two weeks, the industry will need to provide feedback to the Dubai Blockchain Declaration, according to Al Ghurair. If the platform ultimately is created, the time, money, and resources saved would improve trading exponentially. It would also improve speed and make the entire process more efficient.
Al Ghurair added, “Speed is very important today. You don’t want to have too many people in the back office doing the job.”