Grain and Feed Trade Association (GAFTA)

Contracts That Feed the World

The Grain and Feed Trade Association (GAFTA) is a non-profit international trade body based in London, representing over 1,900 members across 100+ countries. Founded in 1878, GAFTA supports the global agricultural commodities sector, focusing on grain, animal feed, pulses, spices, and rice – much of which is shipped by sea.

Its main mission is to promote international trade in grains and feed materials, offering legal, technical, and training services.

Why GAFTA Matters for Maritime Trade

The majority of grain and feed exports – such as wheat, maize, and soy – are transported via bulk carriers. GAFTA plays a crucial role in:

• Standardising contracts for buyers, sellers, and shippers
• Providing dispute resolution through arbitration
• Offering technical and regulatory advice on grain quality, fumigation, and shipping procedures

Its work helps reduce risks and misunderstandings in maritime trade, especially in long-distance, high-volume agricultural transactions.

What GAFTA Offers

1. Standard Trade Contracts

• Used widely in CIF and FOB grain shipments
• Address everything from sampling and shipment periods to demurrage and contamination

2. GAFTA Arbitration Rules

• Neutral and private arbitration system for settling disputes in agricultural trade
• Trusted in shipping disputes over cargo quality, weight, or delivery

3. Training & Certification

• Courses on contract use, shipping procedures, grain handling, and trade law

4. Regulatory Representation

• Advocates for fair and science-based trade rules on GMOs, pesticides, and sanitary measures – especially relevant to port authorities and customs regulations

Maritime Trade Focus

In the maritime context, GAFTA is widely used by:

• Exporters and importers of grains
• Shipping companies carrying dry bulk cargo
• Chartering agents and commodity brokers

Its rules offer clarity on responsibility – for example, who pays demurrage if a ship waits too long at port, or what happens if grain is damaged due to moisture during transit.

Global Importance

• Headquartered in London, UK
• Members range from multinational grain traders to port agents and inspection companies
• Recognised in global legal systems and by maritime lawyers

Its tools are essential in ensuring that food security is not compromised by contract disputes or procedural ambiguity.

A Quiet Pillar of Trade Stability

Grain may seem simple – but it fuels nations. GAFTA ensures that the rules behind the shipments are fair, tested, and respected.
By providing predictability, GAFTA helps maritime trade feed the world – one contract, one vessel at a time.

Reflection Question

Why are standard contracts like those from GAFTA especially important in maritime shipments of bulk agricultural goods?