World Grain - September 2021 - 38

SOSLAND PUBLISHING
years
on grain trading companies and agribusinesses in general.
" If there's going to be any disruptors, I think perhaps
there might be some type of technology that could expedite
the process of bringing the farmer and consumer
closer together, " he said. " What does that look like? I
don't know. We're going to innovate those technologies
to make it easier to capture that value up the value chain.
" When you're talking about the realm of trading platforms,
you never know what it will look like. You saw
blockchain come but it didn't end up being the disruptor
yet that people thought it would be. So you always have
to have an open mind in terms of trading commodities. "
Recently, multiple new companies have formed to provide
electronic direct connections between farmers and
end users, making it easier for farmers to market their own
products and incorporating blockchain for transparency.
Dubai
Multi Commodities
Centre (DMCC) and
CropData Technology launched in 2020 the Agriota
E-Marketplace, a blockchain-based e-marketplace that
acts as an agricultural commodity trading and sourcing
platform. Through the platform, bulk buyers from the
United Arab Emirates (UAE) are connected directly to
farmers in India.
The marketplace has a range of services for contract, bid
and money management, entity management, accounting,
billing, reconciliation, analytics, fraud, risk and regulatory
compliance management. Initially, it is handling cereals,
pulses, oilseeds, fruits, vegetables, spices and condiments.
Farmers can connect directly to customers like food processing
companies, traders and wholesalers. This cuts back
on the number of intermediaries in a transaction, making
the supply chain and traceability more efficient. The contract
trading system will be powered by blockchain.
" This type of aggregation has the potential to empower
local communities, deliver better quality farm-to-shelf
products and expand the UAE's long-term food security, "
the DMCC said.
In October 2018, the world's top agribusinesses announced
plans to work together on an industry-wide initiative
to modernize global trade operations. Archer Daniels
Midland Co., Bunge, Cargill, COFCO, Louis Dreyfus and
Viterra formed Covantis, a global agri post-trade platform
for the execution of bulk shipments.
" In the history of the industry there has never been an
initiative like this, " said Sorin Albeanu, head of commercial,
Covantis. " This being achieved shows the industry
agrees on the change that needs to happen and the challenges
that need to be tackled. "
Existing post-trade execution processes are highly inefficient
and there is hidden risk in how manual the processes
are when it comes to exchanging contractual notices,
passing through critical vessel information and identifying
all the parties involved in buying and selling cargo.
Document workflow includes double data entry, slow
38
communication and many last-minute changes, Albeanu
said. In addition, documents are traded in a paper format
and are transferred between many buyers and sellers,
leading to delays, penalties and costs for having to issue
letters of indemnity.
The Covantis platform, launched this February, covering
soybeans and corn shipped and chartered out of Brazil,
solves many of these issues. Soybean meal was added in
August and there are plans for Covantis to expand into
the United States and Canada in the first quarter of 2022.
Argentina and the Black Sea region are also not far back
on the list. Additional commodities such as wheat, sorghum,
barley, oils and more will be added.
So far, 20 agriculture groups have signed up and more
than 80 different legal entities active across the world
were set up on the platform.
" Initially we focused on onboarding companies that act
as shippers, FOB traders and charterers, allowing them to
speed up the exchange of contractual notices, messages
and documents, " Albeanu said. " With new functionalities
being delivered, we have started to onboard CFR buyers,
therefore covering the supply chain from port to port. "
The use of blockchain enables secure, real-time exchange
of data, while increasing efficiency, reducing risk
and costs.
" The platform is geared around creating visibility of
long FOB and CFR strings of buyers and sellers that trade
with each other the same cargo, the exchange of standardized
contractual notices, messages and other vessel-related
information, and improving the documents exchange
workflow, " he said.
Through these capabilities Covantis is looking to
improve efficiency and reduce errors, speed up communication
and documents presentation, payments and therefore
decreasing working capital and the risk for penalties.
Additionally, by digitizing the post-trade execution processes
Covantis creates an audit trail for the actions and
data exchanged between parties, a single source of truth
in case of disputes and enhanced security for how data is
exchanged, therefore reducing the risk of forgery.
Many times new technology meets with resistance,
which slows its acceptance. Albeanu said Covantis has the
backing of its shareholders not only in terms of investment
but also in terms of data exchange and platform usage.
" Considering this support and the global agri firms that
have already joined the platform, we are confident that we
will achieve our objectives in terms of adoption. Even if
we are live for only 6 months we have already seen over
60% of the Brazil flows, executed by charterers, being
captured in the Covantis platform "" he said. " The time for
change to happen is now. "
We want to hear from you - Send comments and inquiries
to worldgrain@sosland.com. For reprints of WG articles,
e-mail reprints@sosland.com.
September 2021 / World Grain / World-Grain.com
http://www.World-Grain.com

World Grain - September 2021

Table of Contents for the Digital Edition of World Grain - September 2021

World Grain - September 2021 - Intro
World Grain - September 2021 - 1
World Grain - September 2021 - 2
World Grain - September 2021 - 3
World Grain - September 2021 - 4
World Grain - September 2021 - 5
World Grain - September 2021 - 6
World Grain - September 2021 - 7
World Grain - September 2021 - 8
World Grain - September 2021 - 9
World Grain - September 2021 - 10
World Grain - September 2021 - 11
World Grain - September 2021 - 12
World Grain - September 2021 - 13
World Grain - September 2021 - 14
World Grain - September 2021 - 15
World Grain - September 2021 - 16
World Grain - September 2021 - 17
World Grain - September 2021 - 18
World Grain - September 2021 - 19
World Grain - September 2021 - 20
World Grain - September 2021 - 21
World Grain - September 2021 - 22
World Grain - September 2021 - 23
World Grain - September 2021 - 24
World Grain - September 2021 - 25
World Grain - September 2021 - 26
World Grain - September 2021 - 27
World Grain - September 2021 - 28
World Grain - September 2021 - 29
World Grain - September 2021 - 30
World Grain - September 2021 - 31
World Grain - September 2021 - 32
World Grain - September 2021 - 33
World Grain - September 2021 - 34
World Grain - September 2021 - 35
World Grain - September 2021 - 36
World Grain - September 2021 - 37
World Grain - September 2021 - 38
World Grain - September 2021 - 39
World Grain - September 2021 - 40
World Grain - September 2021 - 41
World Grain - September 2021 - 42
World Grain - September 2021 - 43
World Grain - September 2021 - 44
World Grain - September 2021 - 45
World Grain - September 2021 - 46
World Grain - September 2021 - 47
World Grain - September 2021 - 48
World Grain - September 2021 - 49
World Grain - September 2021 - 50
World Grain - September 2021 - 51
World Grain - September 2021 - 52
World Grain - September 2021 - 53
World Grain - September 2021 - 54
World Grain - September 2021 - 55
World Grain - September 2021 - 56
World Grain - September 2021 - 57
World Grain - September 2021 - 58
World Grain - September 2021 - 59
World Grain - September 2021 - 60
World Grain - September 2021 - 61
World Grain - September 2021 - 62
World Grain - September 2021 - 63
World Grain - September 2021 - 64
World Grain - September 2021 - 65
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World Grain - September 2021 - 67
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World Grain - September 2021 - 70
World Grain - September 2021 - 71
World Grain - September 2021 - 72
World Grain - September 2021 - 73
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World Grain - September 2021 - 75
World Grain - September 2021 - 76
World Grain - September 2021 - 77
World Grain - September 2021 - 78
World Grain - September 2021 - 79
World Grain - September 2021 - 80
World Grain - September 2021 - 81
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World Grain - September 2021 - 84
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World Grain - September 2021 - 100
https://digital.world-grain.com/sosland/wg/world-grain-september-2021
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https://digital.world-grain.com/sosland/wg/world-grain-june-2021
https://digital.world-grain.com/sosland/wg/world-grain-may-2021
https://digital.world-grain.com/sosland/wg/world-grain-april-2021
https://digital.world-grain.com/sosland/wg/world-grain-march-2021
https://digital.world-grain.com/sosland/wg/world-grain-february-2021
https://digital.world-grain.com/sosland/wg/2021_01_01
https://digital.world-grain.com/sosland/wg/2020_12_01
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https://digital.world-grain.com/sosland/wg/2019_12_01
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https://digital.world-grain.com/sosland/wg/2019_10_01
https://digital.world-grain.com/sosland/wg/2019_09_01
https://digital.world-grain.com/sosland/wg/2019_08_01
https://digital.world-grain.com/sosland/wg/2019_07_01
https://digital.world-grain.com/sosland/wg/2019_06_01
https://digital.world-grain.com/sosland/wg/2019_05_01
https://digital.world-grain.com/sosland/wg/2019_04_01
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http://digital.world-grain.com/sosland/wg/2018_07_01
http://digital.world-grain.com/sosland/wg/2018_06_01
http://digital.world-grain.com/sosland/wg/2018_05_01
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https://www.nxtbook.com/sosland/wg/2015_12_01
https://www.nxtbook.com/sosland/wg/2015_11_01
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http://digital.world-grain.com/sosland/wg/2015_08_01
http://digital.world-grain.com/sosland/wg/2015_07_01
http://digital.world-grain.com/sosland/wg/2015_06_01
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https://www.nxtbook.com/sosland/wg/2015_04_01
https://www.nxtbook.com/sosland/wg/2015_03_01
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https://www.nxtbook.com/sosland/wg/2011_10_01
https://www.nxtbook.com/sosland/wg/20111_09_01
https://www.nxtbook.com/sosland/wg/2011_08_01
https://www.nxtbook.com/sosland/wg/2011_07_01
https://www.nxtbook.com/sosland/wg/2011_06_01
https://www.nxtbook.com/sosland/wg/2011_05_01
https://www.nxtbook.com/sosland/wg/2011_04_01
https://www.nxtbook.com/sosland/wg/2011_03_01
http://digital.world-grain.com/sosland/wg/2011_02_01
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