After two years of testing, blockchain developer, Cerealia SA has been able to commercially deploy a blockchain trading and funding network. The purpose of this network is for effective global agricultural trade. The launch follows a detailed pre-start test with companies from Algeria, Brazil, Dubai, Japan and Ukraine.
In November 2018, Cointelegraph reported early use of the platform by the Russian port of Novorosiysk. The platform was used to carry out a pilot transaction on Black Sea wheat. Cerealia addressed the need for a rapid trading platform in the Russian wheat global market. As a result, such platform will create more efficient, open and high-technology implementation programme.
CEO Andrei Grigorov said:
“Traders can now be 100% certain they really did the trade, versus traditional over-the phone brokerage. Instantly, they have digitally signed contracts and Blockchain-registered records forever”.
As the world’s leading wheat manufacturer, maize, barley and other grains and vegetable oil are part of Russian transactions. Cerealia claims that transaction volumes exceed up to 20,000 metric tons of grain within the first week of launch.
Earlier this year, world-leading agri-business companies, launched a common enterprise using blockchain technology to streamline agricultural logistics processes in Brazil. For instance, commercial partners transport about 550 million tons of grain and oil seeds annually.
Blockchain in the Agricultural Sector
The position of the blockchain is important for agricultural supply chains. Hence, roles range from creating richer food sources to the tracking of raw materials and other related roles. This is because Blockchain also provides a more effective real-time machine, crop tracking, and other transactions. For instance blockchain networks minimize transaction costs for agricultural suppliers and inventory costs.
There is additional value for agricultural products in the use of means of a separate, decentralized blockchain ledger by connecting farm shipping and tracking processes. For example, farmers monitor the receiver for quality and ethics and therefore value assignments by machines, crops and livestock.