Cerealia SA Officially Launches the Blockchain Platform to Streamline Agric Trading

After carrying out a pilot test for two years, Swiss developer Cerealia SA launches blockchain Grain to tap into the Russian market.

The launch is coming after a long pre-launch trial implementation with companies from Ukraine, Japan, Dubai, Brazil, as well as Algeria.

In November 2018, there was a report on the first use of the blockchain-based agricultural financing platform to carry out pilot testing of Black Sea Wheat from the Novorossiysk port in Russia.

Providing a transparent and reliable trade execution platform

According to the chief executive officer of Cerealia, Andrei Grigorov, the idea was to provide a good trading avenue for a fast trading platform in the global Russian wheat market. It also wants to combine the platform with a more technologically sophisticated, transparent, and reliable execution program.

“Traders can now be 100% certain they did the trade, versus traditional over-the-phone brokerage, he said.

Russia is the largest producer of wheat, and its market includes other items like barley, corn, as well as some vegetable oil trades. Cerealia said the first week of the launch yielded about 20.000 metric tons of grain.

And earlier in the years, the world-leading agribusiness firms from the Netherlands, China, France, and the United States established a joint venture that will utilize blockchain technology. The new technology simplifies logistics in the agricultural sector in Brazil. The partnership has enabled the movement of more than 5000 million tons of grains and oilseeds between the partnering countries each year.

The report reveals Cerealia wants to concentrate on Russia’s international market by facilitating the trading and supply of physical grains.

According to Swiss-based firm Pully, this will be the first time the company will be using an efficient trading platform to deal with the needs of the international Russian wheat market. According to the firm, the new platform offers a thoroughly tested traceable execution platform for traders.

More interest in blockchain technology in the Agric sector

In recent times, both agricultural heavyweights and startups have been considering the use of a blockchain trading platform to facilitate the growth of the industry.

Companies like Prime Shipping Foundation started using blockchain technology to pilot bulk commodities payments. The firm shipped bulk agric products mainly from Russia to Turkey.

Others like Glencore Agric, Louis Dreyfus Co, Cofco Group, Cargill, Bunge Ltd, and Archer-Daniels-Midland Co collaborated to streamline trading.

Many agri-based industries have seen the importance of blockchain technology in the facilitation of trades in the industry. Some have already adopted the technology while others are collaborating to do so.