Will blockchain technology simplify and make the global wheat market more efficient?
After two years of testing, the Swiss company Cerealia SA has launched a blockchain platform for global agricultural trade.
The launch follows an extensive test phase, conducted with companies from Algeria, Brazil, Dubai, Japan and Ukraine. In November 2018, Cointelegraph reported that the platform had been used to make a pilot purchase of Black Sea wheat from the Russian port city of Novorossiysk.
Cerealia told journalists that its intention was to respond to the need for a fast trading platform in the global Russian wheat market, and to combine it with a more reliable, transparent and technologically sophisticated transaction execution program.
CEO Andrei Grigorov said:
„Traders can now be 100% sure that they have actually finalised their purchase, compared to the uncertainty of traditional brokerage over the phone. Contracts and registers are signed digitally, in an instant, and will remain on blockchain ‚forever'“.
Russia is one of the world’s leading producers of wheat, and maize, barley, other cereals and vegetable oil are also widely grown in the country. According to Cerealia, the volume of wheat transactions in the launch week almost reached 20,000 tons.
During the autumn, some of the world’s leading agrifood companies launched a joint venture that will use blockchain technology to optimise logistics processes in the agricultural sector in Brazil. The business partners involved handle a total of around 550 million tonnes of cereals and oilseeds per year.