Photo of Divyesh Modi, Barclays and David O’Rourke, Ornua Co-operative Ltd.
This relates to a pilot transaction in September 2016; a letter of credit which guaranteed the export of €110k worth of dairy products from Ireland to the Seychelles using distributed ledger/ blockchain technology.
Group Trade Finance Manager
Ornua is an agri-food commercial co-operative which markets and sells dairy products on behalf of their members, Ireland’s dairy processors and Irish dairy farmers. Headquartered in Dublin, they employ some 3,000 people globally and are responsible for circa 60% of Ireland’s dairy exports to over 100 countries, with annualised sales of over €1.7bn.
in partnership with
Distributed ledger technology pilot in UK, Ireland and the Seychelles is one to watch
Trade finance, and some documentary trade products in particular, involve a large number of labour and documentation intensive steps which result in lengthy processes, high costs and incremental risks for the parties involved in such trade transactions.
These inefficiencies are well known within the industry and there have been numerous attempts to encourage wider adoption of dematerialised/electronic documents in trade finance, with limited success so far.
Barclays partnered with Wave, one of 11 companies that went through the Barclays Accelerator programme (New York 2015). The company aims to reduce the costs associated with supply chain management through the use and transfer of title of an electronic bill of lading and ancillary documents by digitally transferring it across the network using DLT/blockchain technology.
Blockchain is a decentralised, distributed, peer-to-peer network allowing all parties in the trade transaction to have much better visibility over an asset and enables an electronic transfer of ownership. The technology enables the records of disparate parties to be synchronised and an asset to be transferred from one party to another while reducing the number of steps in the transaction, alongside other benefits.