CHICAGO, Oct 25 (Reuters) - The world’s four largest agribusinesses are working together to standardize and digitize international grain trades using technologies such as blockchain and artificial intelligence, the companies announced on Thursday.
Archer Daniels Midland Co, Bunge Ltd, Cargill Inc and Louis Dreyfus Co, known collectively as the ABCDs of global grain trading, said the effort would make international commodities trades more efficient and transparent and reduce costs.
The aim is to replace a system that relies on paper contracts and invoices and manual payments with an automated electronic system, the companies said in a joint press release.
The companies did not disclose further details of the effort or how soon a new system would be rolled out.
The effort mirrors moves by other companies and industries to make supply chains more traceable by using technologies such as blockchain, which is a shared record of data maintained by a network of computers, rather than a trusted third party.
Louis Dreyfus completed the first agricultural commodity transaction using blockchain in January, CEO Ian McIntosh said in the release.
ADM, Bunge, Cargill and Louis Dreyfus did not immediately respond to requests for additional comment. (Reporting by Karl Plume in Chicago; Editing by David Gregorio)