Glencore joins initiative to modernise agricultural commodity trade

Dutch company Glencore Agriculture has announced that it has joined a global initiative to modernise worldwide agricultural commodity trade operations.

Glencore joins companies, including ADM, Bunge, Cargill, COFCO International and LDC in participating in the initiative.

Glencore Agriculture CEO David Mattiske said: “We’ve been interested in the initiative from the very early days and we’re excited now to join as a full partner.

“The digital platform this group intends to develop will leverage the newest technologies and has the potential to revolutionise our industry, making contract execution processes more efficient, more accurate and more transparent.

“These advances are necessary for our industry to continue serving our critical global role efficiently and effectively, and the benefits will be felt by companies of all sizes along the post-trade value chain.”

The initiative will see companies focus on new technologies such as blockchain and artificial intelligence (AI) to create a digital solution to automate grain and oilseed post-trade execution processes, reducing costs of agricultural and food products across the globe.

Subject to regulatory approval, the group of companies aim to launch the new application in the second half of next year.

The project was first announced in October 2018 and the group has since collaborated with industry stakeholders including shippers, charterers, buyers, service providers, financial institutions, trade associations, industry standards and regulatory authorities.

The initiative participants said in a joint statement: “This effort is growing and the reason is clear, we’re offering clear and tangible benefits for the industry, created by the industry.

“Customers, partners and other industry participants appreciate both the potential that our platform offers, and the fact that we are partnering with them early in the process to ensure the entire industry’s needs are met.”

The group will also focus on international bulk shipments of soybeans from Brazil to China.