To deal with the food crisis: cofco cooperated with 5 international grain merchants to reconstruct the supply chain with block chain

| caijing reporter's health & misery; & have spent & have spent

Editor | wang yanchun

Original title:"To deal with the food crisis: cofco cooperated with 5 international grain merchants to reconstruct the supply chain with block chain"

The world is facing a potential economic and social crisis caused by the coronavirus, with the food industry bearing the brunt. Recently, major agricultural countries such as Vietnam, Thailand and Russia have suspended grain exports, which has brought a huge impact on the international food supply chain. Against this backdrop, the world's food giants have taken emergency measures and will work together to improve the global agricultural supply chain by taking advantage of the new blockchain electronic technology.

Caijing learned from cofco that cofco, China's largest grain, oil and food company, recently joined ADM (nyse code: ADM) and bunge (nyse code: ADM). BG), cargill, Louis Dreyfus group (Louis Dreyfus Company), Glencore Agriculture (Glencore Agriculture) five international food dealer, was established in Geneva, Switzerland, called Covantis S.A (novartis S.A) of a digital Agriculture international trade Company, mainly engaged in international trade of agricultural commodities standardization, digitization and modernization, instead of relying on paper contract, invoice and payment transaction process, making the global agricultural trade becomes simple, safe and efficient.

The newly established Covantis S.A will focus on the electronic automation of the post-trade execution of grains and oils and seeds, starting with the soybean trade from the Brazilian port of santos to China in the third quarter of 2020.

According to statistics, China imported 85.511 million tons of soybeans in 2019, of which 58 million tons came from Brazil, accounting for up to 67 percent. Brazil exported about 16 million tons of soybeans to China in the first three months of 2020, up 17% from a year earlier.

A declined to be named cofco executives to caijing reporter said, China is the world's largest importer of agricultural products, cofco joint ADM, bunge, cargill and so on five big international food giant, jointly set up a modern international agricultural trading platform, it also makes Chinese imports from all over the world will be more convenient and efficient, but also reduce the international public opinion on China's food security concerns and questions.

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To raise the voice of China's food security

Cofco, internal management, as early as October 2018, ADM, bunge, cargill, Louis dreyfus four international food dealer will jointly launch a plan, in the name of Covantis block chain with more than a year of time, the development of global shipping trade standardization of agricultural products, new technology of digital in 2020 and built a Covantis S.A international trading company in the name of modernized agriculture.

Cofco and glencore agricultural group joined the Covantis program in the second half of 2019, which made cofco a co-founder of Covantis. The new Covantis S.A board is composed of one member from each of the six co-founders to oversee and help guide the company's development. The six board members will rotate as chairman once a year. The current first chairman of the board of directors of Covantis S.A is a representative of the Louis dreyfus group.

Covantis S.A is based in Geneva, the second largest city in the Swiss federation. The cofco official told caijing that Switzerland is internationally recognized as a "country of scientific and technological innovation." the country spends more than 3 percent of its gross domestic product on research and development each year, among the highest in the world. In the annual ranking of the global innovation index published by the world intellectual property organization (wipo), Switzerland has ranked first in the world for nine consecutive years, surpassing other developed countries such as the United States and Japan. Switzerland is also the world's largest offshore financial centre. Cofco, ADM, bunge, cargill and other six international grain traders decided to set up Covantis S.A in Switzerland, which is beneficial to the company's future development.

In terms of blockchain technology, Switzerland has a large number of talents and profound professional knowledge. There is a common saying among professionals that "blockchain has penetrated the whole Swiss economy". The cofco internal manager said that currently, in the entire process of international trade in agricultural products, mainly rely on paper contracts, invoices and manual payment procedures to complete a series of transactions, which is cumbersome, time-consuming and expensive. As a next step, Covantis S.A is expected to improve transaction speed by about 70% while also reducing error rates by replacing manual processes with electronic automation. Both parties make the contract execution process more efficient, accurate and transparent.

China is the world's largest importer of agricultural products, with soyabeans accounting for about 80 per cent. According to the cofco insider, Covantis will conduct electronic automation tests on China's soybean imports from the Brazilian port of santos in the third quarter of 2020, which will undoubtedly stabilize the price of imported soybeans from China in the next step.

With the continuous escalation of covid-19 epidemic, major agricultural countries such as Vietnam, Thailand and Russia have announced the suspension of food exports, and the global food supply chain has been partially cut off. The food security crisis has aroused great concern from the food and agriculture organization of the United Nations, the world health organization and the world trade organization. Chinese food netease to institute court telephoto good wei, ma wenfeng, an analyst at Orient agribusiness consulting co., LTD industry insiders agree that under this big background, cofco joint ADM, bunge, cargill and so on six big international food dealer set up Covantis S.A, will enhance China's international food security as well as the status and power in the whole trade of agricultural products, but also reduces the international public opinion on China's food security concerns and questions.

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Cofco to build an international grain trader

In 1994, Lester brown, then President of the worldwatch institute, published an article in worldwatch magazine entitled "who will feed China?" "Directly expressed concerns about China's food supply problems. He believes that in the future, global food production will not be able to meet China's huge food demand, followed by the world wide repercussions and controversy.

China has responded to Mr Brown's question of "who will feed China?" with concrete action and annual figures on total food production. In the 41-year period from 1978 to 2019, China's total grain output rose from 305 million tons to 664 million tons, an increase of more than 100 percent, more than the population growth in the same period.

By 2019, China's grain production has maintained a bumper harvest for 16 consecutive years. According to jiao shanwei, at present, China's grain reserves are sufficient, wheat, rice, corn three main grain varieties inventory at the highest level in history, the total grain inventory consumption ratio of more than 40%, far higher than the international alert level of 17%.

China is self-sufficient in three major grains: rice, wheat and corn. Cofco is the largest grain, oil and food company in China and the largest agricultural product importer in China. At present, cofco has 13 listed companies, with a total asset of 560.6 billion yuan and an annual operating income of 471.1 billion yuan. Cofco operates about 160 million tons of cereals, oils and foodstuffs annually, with a global storage capacity of 31 million tons, an annual processing capacity of 90 million tons and an annual port transfer capacity of 65 million tons. Cofco international, a subsidiary of cofco, was established in 2015 and is the only overseas unified procurement, deployment, investment and development platform for cofco's agri-food business. At present, cofco group deputy party secretary, President yu xubo and cofco international chairman.

In recent years, cofco international market expand rapidly abroad, overseas assets and business covering more than 50 countries and regions, overseas more than 100 million tons, produce JingYingLiang overseas revenues of more than 230 billion yuan, accounting for about 50% of the whole revenue in the cofco, the international major soybean producing countries such as Brazil, Argentina, cofco international ports, warehousing, logistics, processing facilities, etc have layout, intensifying strategic investment. Cofco group party secretary, chairman lu jun said publicly that cofco in the global food industry assets first, revenue second, has the strength of the international grain business.

Brazil, known as the "granary of the world", is one of the countries where cofco invests most overseas. Cofco international has a large grain source control and transit logistics capacity in Brazil, with two soybean crushing plants, four sugar mills, one transfer station, two terminals and 12 silos, with a total investment of nearly $5 billion, the cofco insider told caijing. Cofco international operates more than 8 million tons of grain oilseeds in Brazil, with a total grain source of 7.4 million tons and storage capacity of 1.81 million tons. The port of santos in Brazil is one of the most important distributing centers of global food trade, forming an important flow of global agricultural products between the east and west hemispheres. It is reported, at santos port, cofco international acquisition T12A and Cerealsul two terminals, cofco is transit in Brazil, soybean, corn, wheat, sugar, important port logistics of agricultural products, through the two terminals, cofco to China, Europe and the Middle East and other food ZhuXiao District export agricultural products, the transfer of agricultural products in more than 570 reach ten thousand tons.

According to the cofco insider, Covantis is mainly engaged in the automated management of the grain and oil seed trading process, and the scale of digital transformation of global trade in the food and agriculture industry will continue to expand in the future. Cofco, ADM, bunge, cargill and other six international grain traders will build a more scientific and efficient global supply chain for agricultural products, benefiting the entire international agricultural trade industry.

原文链接： https://mp.weixin.qq.com/s?__biz=MjM5NDU5NTM4MQ==&mid=2653358362&idx=4&sn=de3a47277f5edd9b3b2b30cf3508c8f0&chksm=bd56fe408a21775667d254d7e243c49d31c45a77bbbfe5d0158334d2cfff1467f329d2e85a59&scene=0&xtrack=1

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