Agribusinesses Launch Plan to Revamp Commodities Trading

October 25, 2018

2 Min Read
Agribusinesses Launch Plan to Revamp Commodities Trading
Agribusinesses Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus are teaming up to digitize and improve agricultural commodities trading. Image courtesy of Pixabay

The ABCDs of Agribusiness – Archer Daniels Midland (ADM), Bunge Limited, Cargill, and Louis Dreyfus Company (LDC) – are teaming up in a new effort to revamp the way agricultural commodities are traded through the use of advanced digital technologies including blockchain and artificial intelligence, the four firms announced in a joint press release Thursday.

The firms said they plan to investigate methods of standardizing and digitalizing global agricultural shipping transactions that can be adopted by the commodities industry as a whole in the years to come. 

“We expect an industry-wide initiative of this nature to be able to accelerate improvements in data management and business processes, and bring much-needed automation to the industry,” the chief executive officer of Bunge, Soren Schroder, said in a statement. “Promising technologies will not only provide synergies and efficiencies for ourselves, we believe they will prove vitally important to serving customers better by laying the foundation to enable greater transparency.” 

ADM, Bunge, Cargill, and Dreyfus will initially work on examining automation solutions for grain and oilseed post-trade execution processes to reduce the amount of manual labor and costs and increase efficiency. The companies also intend to seek out digital alternatives to other paper-based processes related to contracts, invoices, and payments. 

“We’re pleased to join the effort to foster modernization and standardization of data and documents in the global agribusiness value chain. By working together to design and implement a digital transformation, we will bring hundreds of years of collective knowledge and experience to simplify processes and reduce errors for the benefit of the entire industry,” Juan Luciano, chairman and chief executive officer of ADM, said in the release. 

In January, Dreyfus used blockchain for the first time to conduct a commodity transaction, paving the way for greater use of the technology within the industry. 

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