Two American companies – Bunge and Cargill – two of the biggest grains and oilseed corporations in the world, have announced a joint venture called Covantis. It will test and utilize the potential of the blockchain technology in the agricultural sector of Brazil.
The project focuses on the effective and quick exchange of information between the participants in Covantis. They also include other giants in the agricultural business like Cafco International (a company owned by the Chinese government), the French company Louis Dreyfus Company, and Glencore Agriculture – a Dutch multinational company.
These companies combined are responsible for the manufacture and distribution of more than 550 million tons of grains and oilseeds every single year. The goal of the partnership project is to facilitate communication between the participating giants and bring together the sector`s data. The intended result is a digitization of the logistics processes at ports with the help of the blockchain technology. It is expected the platform to be launched sometime next year.
Covantis will help manage the flow of data, prevent fraudulent practices and ensure the secure transfer of information and documents. If the testing phase in Brazil proves to be a success, Covantis will move on to Argentina and potentially the US itself.
