Blockchain Technology to be Adopted by the Agriculture Giants to Track Grains
Two giant American companies Bunge and Cargill from the agriculture sector have recently made an announcement. In the announcement, it was revealed that both companies will be setting upon a joint venture that is named Covantis.
Bunge and Cargill are currently the world’s largest oilseeds and grains companies. Recently, both the companies made an agreement and revealed that both companies will be adopting the blockchain technology. They will be using the blockchain technology in the Brazilian agriculture sector.
After the initiation of the Covantis project in the Brazilian agriculture sector, both companies will be sharing useful data/information with each other. The project will also have the contribution of other major agricultural companies in information sharing.
Other major companies in the project include the Dutch multinational Glencore Agriculture, the French Louis Dreyfus Company (LDC), and the Chinese state-owned company known as Cofco International.
With the joint efforts of the companies involved in the Covantis Project, they will be able to move around 550 million tons of oilseeds and grains every year.
Both major companies released a statement that they are hoping to set up a new course with this partnership. This platform will allow all the major agriculture companies to interact with each other on more common grounds. They will be able to share useful information, unify the sector’s data, improve logistics processes through all ports, and build up strong communications among all participants.
Bunge and Cargill are planning to perform all of the above in the Covantis project with the use of the blockchain technology. They have also revealed that they plan for the project to be launched at the beginning of the next year.
It has been revealed that around half a million sales and purchase contracts are signed between the agriculture companies. These half a million contracts are signed between companies only in Brazil.
The Covantis project has already undergone a testing phase and the first tests were made at the Port of Santos. These tests were carried out between July and August of the running year. Around eleven agriculture companies participated in the test including grain producers, originators, and trading companies.