Covantis is a startup for exporting grains such as soy.
Covantis, a blockchain startup for companies linked to grain exports to exchange data on shipments, is significantly expanding its operation. Now, in addition to Brazil, there are also the United States (USA) and Canada on the route, as well as data on more products. The startup’s goal is to reduce paperwork, emails, time and, therefore, give greater efficiency to an industry known for being archaic in its processes.
The project pilot started in 2020 with the six founding traders moving soybeans and corn from the port of Santos (SP) to China. The startup’s goal is to reduce paperwork, emails, time and, therefore, give greater efficiency to an industry known for being archaic in its processes.
The export of soybeans and corn from Brazil alone, which was initially on the blockchain, generates more than 25,000 emails for each maritime shipment in a year. That’s over 275 million emails a year. In 2021, the platform officially entered the market. And soy meal shipments also entered.
In addition to the USA and Canada on the route, wheat, canola, sorghum, barley, rice, corn flour and beet pulp also enter. Just like dreche, or DDGS, which is a cereal residue and a by-product of the brewing industry. The startup uses Consensys’ Ethereum solution.
According to Sorin Albeanu, commercial director at Covantis, by including new flows, the platform will give greater efficiency and significantly increase the volumes that half of the clients execute. “Most of the big exporters and traders are already on the platform and we cover the biggest markets by volume. Therefore, we expect more buyers to join Covantis in the coming months.”
Covantis uses blockchain for sensitive data
Covantis allows data recording and exchange, for example, of contracts, instructions, certificates, location and day and time of cargo shipments. That means sensitive information. As it is on blockchain, there is security in the registration and exchange of information between companies in the segment’s supply chain.
The user group includes participants such as exporters, traders, shipping companies, ports and cargo storage. The platform has 50 companies from 16 agribusiness groups ready to use the platform for new commodities, according to Covantis. But in total, it has 24 customers and more than 80 user companies, says the company’s CEO, Petya Sechanova. The six founders were the giants ADM, Bunge, Cargill, LDC, Viterra – a Glencore company – and the Chinese food company Cofco International.
Last December, Covantis announced that the Japanese Marubeni decided to invest and buy shares in the startup. “We bring a wealth of knowledge in supply chain management with a strong foundation in bidding, distribution and warehousing in Japan,” according to Akira Terakawa, the company’s Chief Executive Officer.