In a recent development, the managing director of Al Khaleej Sugar, Jamal Al Ghurair organized a gathering with the aim to bring blockchain technology into sugar manufacturing. This sugar refining stalwart managed to bring together stockholders to do some research to solve the problems in the sugar industry and include digital technology.
The blockchain technology is already being implemented in several different sectors including agriculture. Following the footsteps of the world’s high ranked agricultural merchants, sugar dealers are looking to make use of blockchain technology in to smoothly run their trading and shipping deals.
The gathering was attended by around 50 distinguished people some of which included loan officers from Societe Generale SA and ABN Amro Bank NV, ConsenSys, a blockchain startup incubator as well.
It is the belief of people who trade commodities that when the distributed ledger system is used to support the platforms, they will be able to make profits even when the margin they are getting on the product is very less. This belief is making them think about implementing blockchain technology in their industry. Some of the largest commodity brands like BP, Shell, Mercuria, and Gunvor are getting attracted to blockchain technology.
The prevailing issues like inefficiency, complicated transactions usually consisting of more than one counterparty can be resolved by this distributed ledger system. All the transactions that happen are recorded transparently, reducing the risk of cheating with a proper tracking method to identify what commodity traders are looking for.
When there is planning being done to implement the latest technology within any industry, it cannot be done by just one person or one company. As said by Jamal Al Ghurair, “Nobody can do this job alone, it has to be done together.” Therefore, an unrivaled step is being taken by the Dubai Blockchain Declaration where agricultural business firms that have been rivals from a long time will join hands to make trading standardized and digital. There will be four agricultural firms, Archer-Daniels-Midland Co., Bunge Ltd., Cargill Inc., and Louis Dreyfus Co., and calling themselves as ‘ABCDSs of the industry.’ To help the industry in reducing costs and increasing transparency in 2018 this group drafted a plan to take a look at artificial intelligence as well as blockchain.