(Bloomberg) — Archer-Daniels-Midland Co. and Cargill Inc. sold their technology venture GrainBridge to startup firm Bushel Inc., which seeks to deepen digital trading connections for the U.S. and Canadian grain industry.
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ADM joins Cargill in becoming a Bushel client, giving what the Fargo, North Dakota-based firm bets will be an edge in the crowded space of digital agriculture trading platforms. Bushel, which currently handles about $22 billion in grain contracts a year, is counting on the deal to cement its claim of being the largest digital network for U.S. grain growers and buyers. Terms of the deal, announced Tuesday by Bushel, weren’t disclosed.
“ADM and Cargill’s commitment to the Bushel platform is a big signal we believe for the market,” Jake Joraanstad, Bushel’s co-founder and chief executive officer, said in an interview. “There needs to be some clarity at some point as to what are the right platforms.”
GrainBridge was formed three years ago to give farmers secure access to ADM and Cargill transactions and allow them to execute grain deals on their own schedule. Bushel said it will continue ensuring that both farmers and grain buyers have control on how their data is shared throughout the supply chain.
As more agriculture cooperatives fall victim to cyber attacks, Bushel wants to help overhaul the industry’s cyber defenses, which are now largely stuck in the “last century,” Joraanstad said.
GrainBridge employees will remain based in Omaha, Nebraska, according to Joraanstad. Bushel has raised about $75 million since 2017 from investors including Cargill, Continental Grain Co. and Scoular Co.
ADM shares fell 1% at 9:35 a.m. trading in New York.
(Adds ADM shares in last paragraph.)
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