In the case of Cargill and Louis Dreyfus, both have been involved in high profile blockchain pilots with banks. Cargill was involved in the Voltron letter of credit pilot, and Louis Dreyfus Company (LDC) as part of the ING Easy Trading Connect commodity trade finance project which has since morphed into komgo.
In January 2018, LDC completed the first agricultural commodity transaction through blockchain. By working with the industry to adopt standardized data and processes, we can truly harness the full potential of emerging technologies to improve global trade.”
The initial phase will focus on automating the post-trade execution of grain and oilseed transactions. This area was chosen because it’s a paper intensive area which wastes time and money. The aim is to process documents faster and achieve improved contracting visibility.
Longer term they aim to tackle other paper-based processes including contracts, invoices, and payments. Benefits include better quality documents and communication with customers and greater supply chain visibility. Standardisation will help to drive efficiencies and also allow better integration with other platforms such as trade finance. Improved efficiency and transparency will mean the companies can better serve their customers, by for example enabling them to see the status of shipments.
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