ADM, Cargill Create GrainBridge LLC
ADM (Archer Daniels Midland Company) and Cargill, Inc., are joining forces to develop GrainBridge, LLC. The technology joint venture will provide grain marketing decision support, e-commerce and account management software for farmers. This will include developing digital tools designed to help farmers, in the U.S. as well as Canada, consolidate production economics and grain marketing activities into a single digital platform. . . free of charge.
“Farmers can more effectively market grain and improve their profitability using technology and data analytics,” says 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.”
“Farmers deserve the convenience of technology that gives them the power to make quick, effective and fact-based grain marketing decisions,” says Wes Uhlmeyer, president, ADM Grain. “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. We’re particularly excited to work with Cargill on this joint venture to offer an unparalleled array of tools that provide farmers across the country access to powerful decision support, business intelligence and transactional efficiency. While remaining strong competitors, we recognize the need to advance technology for farmers and believe that together we can accomplish that common goal.”
Launching Tools in Stages
Giving farmers access to their combined ADM and Cargill transactions, including contracts, scale tickets and payment information, will be one of the first tools to be developed by GrainBridge. This dashboard will provide farmers with insights on their current grain position and real-time opportunities.
Not long after, the platform will add a simple and easy way for farmers to executive grain transactions on their own schedule. This tool will give farmers access to automated intelligence, which illustrates changing breakeven 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 is embracing an open approach and invites other grain companies, grain buyers, technology and data providers to be a part of the platform. By welcoming others, it will enhance the information available on the platform, which gives farmers a complete, seamless 360-degree view of their business without having to consolidate the myriad information sources on their own.
Because strong protections have been built into the system, customer data will be safeguarded and privacy is a priority. In addition, data will not be on the platform unless it is approved by the farmer, and his data will not be shared between participating companies.
“We are often asked by our farmer customers to provide technology solutions that provide them relief to a problem they are experiencing—and we can sense the underlying need to solve a variety of problems that go unmentioned,” says Uhlmeyer. “This new platform will be a tool they’ve long needed that solves many of those known and suspected pain points we hear about each day. We’re excited to bring these types of innovative and progressive solutions to the industry.”
“The ultimate goal is to help farmers make better, smarter decisions, using the data that is already existing in their operations. We are simply putting that data and related insights at their fingertips, allowing them to more effectively adapt to changing market conditions,” says Watchorn. “Both Cargill and ADM are committed to helping farmers succeed. It’s why we’re in this business, and why we’ll continue to invest in these tools well into the future.”
The joint venture is subject to regulatory approval. It is expected to close in the next few months. The terms of the transaction are not being disclosed.
Learn more by visiting abettergrainfuture.com.