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DBS, Agrocorp set up blockchain platform enabling real-time updates on commodity trade

Original article from the Straits Times published on 1st Nov 2018 by Seow Bei Yi.

SINGAPORE – A new blockchain platform is set to help farmers receive payments for their goods more quickly, enabling parties in the supply chain to look into the sources of their commodities and making it easier for them to learn more details of their trade as well.

For a start, the electronic platform connects about 4,500 farmers in Australia to global end-customers such as supermarkets and restaurants.

This means parties in the supply chain can check pricing and supply information in real-time, carry out transactions, as well as track the delivery of orders on the go. The transactions can be in any currency.

The platform is a collaboration between Singapore’s DBS Bank, commodity trading company Agrocorp International and blockchain provider Distributed Ledger Technologies.

It is expected to expand its reach beyond Australia over the next year or so to other origin markets such as Canada, Myanmar and Ukraine.

Speaking to The Straits Times ahead of the platform’s launch on Thursday (Nov 1), Agrocorp’s head of business development Vishal Vijay said the practice has been for parties in the supply chain to wait for physical documents to be generated and passed from one party to another before a transfer of ownership of goods occurs.

It typically takes five to 10 days, he added, for such documents to be ready and presented to a counter-party to verify that the goods have indeed changed hands.

“There are two age-old processes that we are trying to revolutionise with this platform,” he said.

“One, you will be able to see a faster, more efficient generation and transfer of documents and, as a result, we will also be able to make and receive payments more efficiently.”

The time savings allow goods to be shipped out more quickly as well, reducing detention charges at storage centres, as well as the amount of interest parties pay to the banks which fund their trade flows, he noted.

“The second thing is that we are able to provide a better degree of transparency to our end-customers with regard to where a product is coming from,” he said.

With the platform, farmers can access commodity prices and register a sale. These sales and purchase agreements are stored digitally on the same system.

Upon certain “trigger events”, such as confirmation that goods have been shipped, the system prompts DBS Bank to take action, which includes releasing payment to a farmer.

Parties along the supply chain can upload and view related documents on the platform, and their trading partners will need to validate changes to contractual terms before any trade can be made.

DBS said in a statement on Thursday that transparency is heightened with details of each trade and the sources of commodities now stored on the platform, and buyers can easily trace such information to achieve sustainability objectives.

Mr Raof Latiff, DBS’ group head of product management for global transaction services, said banks presently do not get “full visibility” of, among other things, “what happens in the farm, what is produced in a farm, and what is given to a trading company in Australia, and how that particular commodity is sold to a commodity house in Singapore”.

But the knowledge is important, he said, especially with Singapore hosting major trading hubs and procuring agricultural products not just for local consumption but also for international use.

Bringing the players together “gives the bank complete transparency of where the physical supply chain is” and allows the bank “to understand what obligations are due from these transactions, such as what payments need to be made”, he added.

Enterprise Singapore figures show trade in commodities, including agricultural products, contributed over $28 billion in local business spending and hired about 15,300 professionals over the past five years.

The plan is to get more users on board the platform.

“The only way this will be successful is for wider adoption… You can’t have each bank and each company in our industry using their own platform,” said Mr Vijay, who noted that it took over US$100,000 (S$138,000) in terms of time and resources for the company to set up the platform.

“We are committed to not keeping this as something that is strictly owned and operated by Agrocorp, but rather something that is open-source, shared, and get more of our suppliers and customers to come on board,” he added.

“Banks like DBS can also start using it for its own transactions as well with more of its clients, not just Agrocorp.” awarded Best Blockchain App for Supply Chain by CXOHonour

Yesterday night at the 3rd edition of CXO Honour’s enterprise IT industry leading premier event – Red Carpet HONOUR 2018, held at The St Regis Singapore, was awarded the Best Blockchain App for Supply Chain.

This gala event celebrated the CXOHONOUR® AWARDS 2018, an industry recognition program that honours innovative tech providers from the enterprise IT industry. The Top Honours were endorsed by an independent Advisory Council of eminent CXOs comprising of CIOs, CFOs and CISOs based on the results from an industry wide CXOHONOUR® PULSE Poll that solicited opinions from 500+ end user CXOs and Senior IT decision makers in Singapore. These Top Honours was shared with the wider industry at the Red Carpet HONOUR event. is very honoured to receive this award. at DXOHonour

Blockchain your trades – an update

A lot has been written about how blockchain would transform the international trade. So, this is not yet another blog on the same lines, but I intend to throw some light on its adoption & traction we are seeing with International traders and what International traders are doing to stay relevant to drive the competitive differentiation using our purpose built DLTLEDGERS trusted Trade Platform.

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Guess what we have several traders who are live using our DLTLEDGERS Platform and doing their real blockchain trade every day with a fraction of the cost. We truly believe that we are doing our bit to democratize and provide trader of all sizes access to this disruptive technology to push their competitive advantage.

Some of the benefits that traders have seen in our DLTLEDGERS Platform relates to platform

-Save money in your trade process  (up to 2000 dollars saving in your trade)

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With DLTLEDGERS Traders are able to connect your next International Trade with all parties in a private secured fashion taking advantage of digital issuance of LC, digitizing BL, Quality and other certification documents, ability to trace from source to target and take advantage of better deals to finance your trade and working capital.

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Blockchain Your Future

Whether you have a general question on distributed ledgers or block chain or you have a specific questions with regards to how our technology can help your business. Simply drop us a message here and we will get back to you.

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