The Global Commodity Technology Association (GCTA) is an international trade association whose
mission is to serve as an impartial catalyst for the digitization and modernization efforts for the physical
commodities supply chain worldwide. The GCTA strives to build consensus on harmonized best practices
and procedures so that it can realistically evaluate and implement evolving technologies that drive
efficiency, reduce costs and create opportunity.
Membership to the GCTA is open only to commodities supply chain executives involved in ocean bound- agricultural trade. At this time, it is limited to large commercial players, and large and medium-sized trade houses, as well as observers who are poised to help the industry expand the efficiencies of digitization. This foundational group will establish the procedures of the organization, drive execution priorities and create a technical roadmap for implementation.
Sample issues to be considered include:
- Which commodities can be addressed as a group? That is, do the challenges of digitizing bills of lading for palm oil or raw and refined sugar match those of shipping grains on a Panamax? Can certificates of origin be addressed for all grains and softs? What level of standardization is required to group these sectors?
- Determining and prioritizing which “pain points” to address. These could include bills of lading, certificates of origin and quality, and where is the highest inefficiency with the swiftest and simplest digital solution?
- Industry back-office integration – What issues do industry players face with legacy systems and new commodity trading, transaction, and risk management (CTRM) builds? What are the opportunities and challenges with APIs?
- Agri business in 2030 – what’s possible and achievable as an industry?
Implementation of the technical roadmap established in Phase One begins. Membership now opens to ancillary services providers and physical commodity participants of any size.
- Promote practices, procedures and other technical standards as defined by the original working group farther down the supply chain – both vertically (country elevators, port facilities, rail) and horizontally (hedging and derivative trading, energy & metals by demand).
- Continue efforts toward more standardization from source to sink
- Convene monthly or bi-monthly (as needed) web-based meetings and regional working groups to monitor progress and to continue to address new threats and opportunities. This includes potential vendor presentations, guest speakers on successes and failures (for example, blockchain in financial markets)
The GCTA will remain focused on further efficiencies to be gained from digitization for true straight-through-processing from online negotiation to post-trade documentation, to exchange connectivity for pricing and hedging, financial institutions for structured finance and payments, as well as traceability and food security procedures.