Cargill is forming a technology joint venture with food processor Archer Daniels Midland Company (ADM) to help support farmers in North America.
The joint venture – entitled Grainbridge – includes the development of digital tools designed to help farmers across the US and Canada consolidate information on production economics and grain marketing activities into a single digital platform, at no cost to them.
“Farmers can more effectively market grain and improve their profitability using technology and data analytics,” said Roger Watchorn, President of Cargill’s North American agricultural supply chain.
“They need digital tools that seamlessly connect their production and cost-of-production data from a variety of sources already used on their farms—but those tools simply aren’t available today.
“Together, Cargill and ADM’s unique technology capabilities, grain handling operations and years of farm consulting experience allow us to more quickly create the digital tools that will drive efficiency and profitability for farmers.”
Wes Uhlmeyer, president, ADM Grain, added: “Farmers deserve the convenience of technology that gives them the power to make quick, effective and fact-based grain marketing decisions.
“This new joint venture will provide for these needs with a single, powerful, easy-to-use platform for farmers to manage their accounts, make grain marketing decisions and execute transactions.”
One of the first tools being developed by Grainbridge will give farmers secure access to their combined ADM and Cargill transactions – including contracts, scale tickets and payment information. This dashboard is being designed to provide farmers with insights into their current grain position and real-time opportunities.
Soon after, the new venture intends to introduce a simple and easy way for farmers to execute grain transactions on their own schedule.
With this platform, farmers will have access to automated intelligence that illustrates changing break-even levels (updated based on current crop conditions), margin price targets, total current grain and risk management positions, revenue at risk and access to benchmark and historical insights.
Grainbridge said that it “welcomes other grain companies, grain buyers, technology and data providers to participate on the platform”.