COFCO joins initiative to develop automated oilseed trade execution
January 10, 2019
China’s COFCO International is partnering with Archer Daniels Midland Company (ADM), Bunge, Cargill and Louis Dreyfus Company (LDC) to standardise data and digitise global agricultural shipping transactions.
“We are pleased to join this initiative as a founding member,” said COFCO International chairman and CEO Johnny Chi in a press release on 20 December. “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.”
The plans, first announced in October, are focused on the development of automated grain and oilseed post-trade execution processes which would significantly reduce costs and resources that are usually needed to move documents around the globe.
COFCO said the companies involved were engaging industry stakeholders around the world to achieve 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.
“Immediate next steps include identifying suitable technology solutions and engaging partners that can deliver the efficiencies of automated grain and oilseed trade execution.”
COFCO International sources, handles, processes, trades and transports grains, oilseeds and sugar around the world, with an annual revenue of some US$34bn. It is the overseas agriculture business platform of COFCO Corporation, China’s largest food and agriculture company