Bunge and Cargill, the world’s largest grains and oilseeds companies, have created a joint venture named Covantis. Through this joint venture, the firms are aiming to use the blockchain technology in Brazil’s agricultural sector.
In this project, there will be an exchange of information between the members of this joint venture and there will be participants from other agribusinesses as well. Both Bunge and Cargill deals around 550 million tons of oilseeds and grains every single year. This is the reason why they are known as the largest grains and oilseeds companies.
Bunge and Cargill Will Launch This Platform in 2021
As per the reports, both Bunge and Cargill are aiming to launch this joint venture by the next year. They will be working to facilitate communication between all the participants, along with improving the logistics process as well. All these things will be made possible using blockchain technology.
Accordingly, Bunge and Cargill to negotiate around 500 thousand contracts each year for the purchase and sale in Brazil’s agriculture industry. The complex Brazilian agricultural market is the reason behind its selection by Covantis.
Petya Sechanova, CEO at Covantis, said:
“Covantis should become the leader of operations in our sector and will be able to streamline processes, modernize, and digitize them.”
The Flow of Information will be Smooth and Secure
Mostly, trading companies have a quite complicated and messy workflow. Also, everything is managed through emails, phone calls, and WhatsApp. Bunge and Cargill’s joint venture Covantis will help the companies to circulate information using blockchain technology. The flow of information will become quite smooth as well as secure through blockchain. This is going to be a huge step towards development for the grains and oilseeds industry of Brazil.