Driven by opportunities to increase transparency and efficiency
for customers, global agribusinesses are turning to emerging
digital technologies – including blockchain and artificial
intelligence options – to reduce resource- and time-intensive
processes associated with the global agricultural commodity value
chain.
Archer Daniels Midland Company (NYSE: ADM) (“ADM”), Bunge
Limited (NYSE: BG) (“Bunge”), Cargill, Incorporated (“Cargill”),
and Louis Dreyfus Company (“LDC”) are investigating ways to
standardize and digitize global agricultural shipping transactions
for the benefit of the entire industry. The companies also seek
broad-based industry participation to promote global access and
adoption.
Initially, ADM, Bunge, Cargill and LDC are focused on
technologies to automate grain and oilseed post-trade execution
processes, as they represent a highly manual and costly part of the
supply chain, with the industry spending significant amounts of
money every year moving documents around the globe. Eliminating
inefficiencies would lead to shorter document-processing times,
reduced wait times and better end-to-end contracting
visibility.
Longer term, the companies want to drive greater reliability,
efficiency and transparency by replacing other manual, paper-based
processes tied to contracts, invoices and payments, with a more
modern, digitally based approach. Specific benefits would
include:
- Improved quality and reliability of
documents and data, with reduced review time and seamless transfer
of transaction data to customers;
- Greater visibility across supply-chain
movements underpinning transactions, leading to reduced costs
associated with shipping, storage and wait times;
- Standardized data using technologies
accessible to all players, driving further efficiencies;
- Compatibility with other applications
supporting electronic and digital solutions, providing an
end-to-end experience for users; and
- Increased efficiency and transparency,
enabling the industry to better serve its customers and
consumers.
“We’re pleased to join the effort to foster modernization and
standardization of data and documents in the global agribusiness
value chain. By working together to design and implement a digital
transformation, we will bring hundreds of years of collective
knowledge and experience to simplify processes and reduce errors
for the benefit of the entire industry,” said Juan Luciano, ADM’s
Chairman and CEO.
Soren Schroder, Bunge’s CEO, said, “We expect an industry-wide
initiative of this nature to be able to accelerate improvements in
data management and business processes, and bring much-needed
automation to the industry. Promising technologies will not only
provide synergies and efficiencies for ourselves, we believe they
will prove vitally important to serving customers better by laying
the foundation to enable greater transparency.”
David MacLennan, Cargill’s Chairman and CEO, said, “Agriculture
has always been a technology industry. Farmers and our customers
expect us to deliver innovations that make them more efficient,
effective and profitable. We embrace this as an opportunity to
better serve the industry and ignite innovation through new
products, processes and partnerships.”
Ian McIntosh, LDC’s CEO, said, “In January this year, LDC
completed the first agricultural commodity transaction through
blockchain, which showed the technology’s capacity to generate
efficiencies and reduce the time usually spent on manual document
and data processing. 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.”
About Archer Daniel Midlands Company
For more than a century, the people of Archer Daniels Midland
Company (NYSE: ADM) have transformed crops into products that serve
the vital needs of a growing world. Today, we’re one of the world’s
largest agricultural processors and food ingredient providers, with
approximately 31,000 employees serving customers in more than 170
countries. With a global value chain that includes approximately
500 crop procurement locations, 270 food and feed ingredient
manufacturing facilities, 44 innovation centers and the world’s
premier crop transportation network, we connect the harvest to the
home, making products for food, animal feed, industrial and energy
uses. Learn more at www.adm.com.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global
agribusiness and food company operating in over 40 countries with
approximately 32,000 employees. Bunge buys, sells, stores and
transports oilseeds and grains to serve customers worldwide;
processes oilseeds to make protein meal for animal feed; produces
edible oil products for consumers and commercial customers in the
food processing, industrial and artisanal bakery, confectionery,
human nutrition and food service categories; produces sugar and
ethanol from sugarcane; mills wheat, corn and rice to make
ingredients used by food companies; and sells fertilizer in South
America. Founded in 1818, the company is headquartered in White
Plains, New York.
About Cargill
Cargill’s 155,000 employees across 70 countries work
relentlessly to achieve our purpose of nourishing the world in a
safe, responsible and sustainable way. Every day, we connect
farmers with markets, customers with ingredients, and people and
animals with the food they need to thrive. We combine 153 years of
experience with new technologies and insights to serve as a trusted
partner for food, agriculture, financial and industrial customers
in more than 125 countries. Side-by-side, we are building a
stronger, sustainable future for agriculture.
About Louis Dreyfus Company
Louis Dreyfus Company is a leading merchant and processor of
agricultural goods. We leverage our global reach and extensive
asset network to serve our customers around the world, delivering
the right products to the right location, at the right time –
safely, responsibly and reliably. Our activities span the entire
value chain from farm to fork, across a broad range of business
lines (platforms). Since 1851 our portfolio has grown to include
Oilseeds, Grains, Freight, Global Markets, Coffee, Cotton, Sugar,
Rice, Dairy and Juice. We help feed and clothe some 500 million
people every year by originating, processing and transporting
approximately 81 million tons of products. Structured as a matrix
organization of 6 geographical regions and 10 platforms, Louis
Dreyfus Company is active in over 100 countries and employs
approximately 17,000 people globally. For more information, visit
www.ldc.com and follow us on Twitter and LinkedIn.
Note on Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of U.S. federal securities laws, including statements
regarding the anticipated development, success and benefits of the
proposed digital platform. These statements are made under the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will" and "expect" and similar
statements. Forward-looking statements are not historical facts and
involve inherent risks and uncertainties. Several factors could
cause actual results to differ materially from those contained in
any forward-looking statement, including in this case the risk that
the platform may not be successful or fully achieve the objectives
of the participants. Further information regarding risks associated
with forward-looking statements is included in Bunge Limited's and
Archer Daniels Midland Company's filings with the U.S. Securities
and Exchange Commission. All statements herein are made as of the
date of this press release, and the participants undertake no
obligation to publicly update or revise any forward-looking
statement, whether because of new information, future events or
otherwise, except as required under applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20181025005420/en/
ADMJackie Anderson
(USA)media@adm.comorBungeSusan Burns
(USA)susan.burns@bunge.comorCargillApril Nelson
(USA)April_Nelson@cargill.comorLDCKaren Saddler
(Switzerland)media@ldc.com
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