Online exchange for sustainable raw and waste materials
Today conventional raw materials are traded on so-called commodities exchanges, making them a target of international speculation. Global institutional investors buy commodity options and/or futures, which distorts the supply and demand and leads to price distortions. A sustainable economic system, including the area of agriculture, is a key part of Germany’s bio-economic strategy, both at the federal and state (Bavaria) level.
What has been lacking to date is an efficient link between farming – or initial production – and utilization (product manufacture); In other words, the opportunity to bring together farmers and manufacturers from all parts of industry to a single platform and negotiate a competitive price in accordance the principle of supply and demand. The most reasonable way to fill this gap is through a digital commodities exchange based on the latest IT technology and which is designed specifically for sustainable raw materials. These types of “unconventional” bio-commodities accrue only in irregular intervals or too-small quantities, or the demand for them is so low that they are of significance for certain manufacturers only. These factors make it difficult to sell such commodities, which in many cases puts farmers and manufacturers at an economic disadvantage.
With this in mind, the goal of the project is to develop a commodities exchange that quickly and easily connects the producers and processors of sustainable raw and waste materials via innovative IT tools. Searching, buying and selling raw materials is carried out on a digital platform using a PC, tablet or smartphone. The current daily prices can be displayed by employing and utilizing digital technologies, while visual price charts simplify planning. The digital exchange for sustainable commodities, which bundles economic and ecological interests, is a trading platform modeled after the stock exchange system and is designed to promote the development of a sustainable agriculture, food and forestry economy.