COFCO International Ltd is partnering with Archer Daniels Midland Company (ADM), Bunge Limited, Cargill Incorporated and Louis Dreyfus Company (LDC) to standardise data and digitise global agricultural shipping transactions. Together, the companies are looking to increase transparency and efficiency for customers through digital technologies, such as blockchain and artificial intelligence.
“We are pleased to join this initiative as a founding member,” said Johnny Chi, Chairman and CEO of COFCO International. “Emerging technologies like blockchain give us the opportunity to create a transparent, secure and efficient platform and transform global agricultural trade operations. Our shared vision is to develop a new standard available to everyone, bringing industry-wide benefits.”
Announced in October, the partnership is initially focused on developing technologies to automate grain and oilseed post-trade execution processes, significantly reducing costs and resources needed to move documents around the globe. Longer-term, the initiative will drive greater security, reliability, efficiency and transparency by digitising manual, paper-based processes tied to contracts, invoices and payments, with a more modern, digitally based approach.
The companies are actively engaging industry stakeholders around the world, with a focus on global access and adoption. This includes the participation of businesses of all sizes to gather the input and collaboration necessary to design a solution that increases competitiveness, reduces barriers to entry and provides value to the entire industry.
With a focus on making functionality available as early as possible, immediate next steps include identifying suitable technology solutions and engaging partners that can deliver the efficiencies of automated grain and oilseed trade execution.