Blockchain technology facilitates the entire price discovery transaction between buyer and seller - escrow, trade settlement, provenance and overall security. Now, everyone in the supply chain can immediately see the transactional flow, leading to faster payments, reduced risk, greater transparency and trust.
Grain Discovery is just one node on a global agricultural blockchain ecosystem. Many other organisations (seed, chemical, insurance, financial, buyers and government regulators) will join as equals, offering their services to all members. Every new participant adds value to themselves and the wider ecosystem.
Blockchain is about collaboration for mutual benefit, with a unified marketplace for goods and services. This enables greater efficiencies, true price discovery and transparency.
Increasingly, consumers are becoming engaged with where their food originated, and want to know the story how it was produced and the journey undertaken to their plate. Source verification is set to reshape the industry as it increasingly becomes a necessity for modern food production.
Grain Discovery is poised to capitalise on these shifts as blockchain has the benefit of “farm to fork” traceability, with smart contracts embedded in the immutable ledger. This enables the commodity to have a digital passport, tracking its authenticity and source of origin as it moves through the supply chain. This enables sellers to power to decommoditise their product and extract a premium.
CONNECTING THE FARM
To further strengthen the accountability of the supply chain, Grain Discovery will provide clients with the latest storage and handling technology to streamline “on farm” and elevator transactions. Now, buyers can purchase with confidence knowing the quality and quantity on offer. This technology also allows ‘mark to market’ stock reconciliation accounting on their unsold grain.
Both buyers and sellers along the supply chain depend on the ability to capture margins and limit price exposure. Clients will have all the expert information and resources they need to capitalise on their position and set informed bids and offers. Grain Discovery will collate all “price discovery” information that impacts basis and futures prices and present it in a clear, concise and user-friendly way.