Miller Magazine Issue: 118 October 2019

36 NEWS MILLER / OCTOBER 2019 Glencore joins agribusiness blockchain project The industry-wide initiative to modernize global agricultural commodity trade operations announced that another major partner, Glen- core Agriculture Limited, has joined the effort. “We’ve been interested in the initiative from the very early days and we’re excited now to join as a full partner,” said Glencore Agricul- ture Limited CEO David Mattiske. “The digi- tal platform this group intends to develop will leverage the newest technologies and has the potential to revolutionize our industry, making contract execution processes more efficient, more accurate and more transparent. These advances are necessary for our industry to con- tinue serving our critical global role efficiently and effectively, and the benefits will be felt by companies of all sizes along the post-trade val- ue chain.” The initiative, which now includes Glencore Agriculture Limited as well as Archer Daniels Midland Company (ADM), Bunge, Cargill, COFCO International and Louis Dreyfus Com- pany is initially looking at new technologies – such as blockchain and artificial intelligence – to create digital solutions to automate grain and oilseed post-trade execution processes, re- ducing costs needed to move agricultural and food products around the globe. The group is projecting launch of the new platform in the second half of 2020 subject to regulatory ap- proval. “This effort is growing, and the reason is clear: we’re offering clear and tangible benefits for the industry, created by the industry,” the initiative participants said in a joint statement. “Customers, partners and other industry par- ticipants appreciate both the potential that our platform offers, and the fact that we are part- nering with them early in the process to ensure the entire industry’s needs are met.” Since announcing the project in October 2018, the group has held workshops and roundtable discussions with a broad range of industry stakeholders, including shippers, char- terers, buyers, service providers, financial insti- tutions, trade associations, industry standards and regulatory authorities. By collaborating on critical issues such as security and data privacy, technology choices, business model, adoption strategy, and functionalities and capabilities, the group is ensuring that the new platform will meet the needs of the entire industry. Next steps include development and exe- cution, focusing on a pilot that will cover in- ternational bulk shipments of soybeans from Brazil to China. The group is also finalizing the selection of technology solutions providers and partners. Glencore Agriculture Limited, a global leader in the orig- ination, handling, processing and marketing of agri- cultural commodities and products, has become the latest trading house to join an initiative to mod- ernize the way grain and oilseed transac- tions are handled.