What is Gafta? An Essential Guide to Grain and Feed Trade Association

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Gafta, the Grain and Feed Trade Association, is the London-based trade body whose standard contracts govern most of the world’s international grain and feed trade. It also runs the arbitration system that settles disputes under those contracts.

This guide is written for commodity traders, ship’s officers, cargo surveyors and students of shipping. It covers what Gafta does, what its contract numbers mean, how Gafta arbitration works, and how Gafta terms affect the ship that carries the cargo.

What Is Gafta?

Gafta is an international trade association for the grain, feed, pulses, rice and general produce trades. It has over 1,900 members in about 100 countries and is based at 9 Lincoln’s Inn Fields, London.

What is Gafta: the Grain and Feed Trade Association, which sets standard contracts and arbitration for the international grain trade

Its members are traders, brokers, superintendents, analysts, fumigators, arbitrators and lawyers. Gafta is a private association, not a government body or a regulator.

An estimated 80% of world trade in grain is done on Gafta terms. Its sister body for vegetable oils and oilseeds is FOSFA, known at sea for its lists of acceptable previous cargoes.

What Does Gafta Stand For?

Gafta stands for the Grain and Feed Trade Association. It should not be confused with GAFTA, the Greater Arab Free Trade Area, a separate free trade agreement between Arab League states.

How Did Gafta Begin?

Gafta traces its origins to 1878, when London corn traders formed the London Corn Trade Association. The modern Grain and Feed Trade Association was created in 1971 by a merger.

  • 1878: the London Corn Trade Association (LCTA) is formed. It uses standard contracts with disputes settled by arbitration in London.
  • 1906: traders in animal feed form the London Cattle Food Trade Association.
  • 1969: the two associations open merger talks.
  • 1971: the Grain and Feed Trade Association is formed.
  • 2008: the International General Produce Association joins Gafta, adding spices, nuts and dried fruit.

What Does Gafta Do?

Gafta writes standard contracts, runs arbitration and mediation, keeps registers of approved service providers, lobbies on trade policy, and trains people in the trade. Contracts and arbitration are its core work.

  • Standard contracts: about 90 contracts and rules forms, published on the Gafta contracts page.
  • Dispute resolution: arbitration, expedited arbitration and mediation under its own rules.
  • Approved registers: superintendents, analysts and fumigators who meet Gafta standards.
  • Trade policy: representing members on tariffs, sanctions, food safety and sustainability rules.
  • Training: courses and exams on contracts, arbitration and the trade, including the Agribility online platform and Gafta Professional Development (GPD) courses.

Which Commodities Does Gafta Cover?

Gafta contracts cover grains, oilseed meals and other feedingstuffs, pulses, rice and general produce. Its contract list also includes fertiliser, molasses and biomass.

  • Grains: wheat, maize, barley and other grains, with origin contracts for the Americas, Europe, the Black Sea region, Australia and South Africa.
  • Feedingstuffs: soyabean meal, fishmeal, meat and bone meal, tapioca and other animal feed.
  • Pulses and rice: for human consumption and for feed.
  • General produce: spices, nuts, dried fruit and seeds, added when the International General Produce Association joined.

What Are Gafta Contracts?

Gafta contracts are standard forms of sale contract for agricultural goods, each with a number. Parties agree a few variables, such as price, quantity and shipment period, and adopt the standard terms for the rest.

Every Gafta contract is governed by English law and refers disputes to Gafta arbitration in London. Each one also includes standard clauses on payment, default, force majeure, prohibition, insurance, weighing and sampling.

Gafta revises its contracts regularly. The 2025 refresh applies to contracts made from 1 October 2025. It made a seller’s letter of indemnity optional and added Optional Clause 131 for sampling per hold.

Current editions on the Gafta website are dated July 2026. Always check which edition a contract refers to.

Which Gafta Contract Numbers Are Most Used?

Contract numbers are grouped by commodity, origin and delivery terms. The table lists the numbers traders and surveyors search for most often, with their current Gafta titles.

No.TitleType
30Canadian & USA GrainContract
39Feedingstuffs from ArgentinaContract
40Grain from Argentina/UruguayContract
45Goods from BrazilContract
48 / 49Central & Eastern EuropeContract
64General GrainContract
72Insurance RulesRules
78Goods by RailContract
80EU GrainContract
81 / 82General – GoodsContract
88 – 90Container TermsContract
100FeedingstuffsContract (CIF)
119Feedingstuffs – GeneralContract
123Weighing RulesRules
124Sampling RulesRules
125Arbitration RulesRules
126Expedited Arbitration Procedure RulesRules
128Mediation RulesRules
130Register of Analysis MethodsRules
131Optional ClausesClauses
132Fumigation RulesRules
200General Supply TermsContract

Most origin contracts come in pairs: one for buying on shipment terms such as FOB, and one for cost and freight or CIF delivery. The delivery basis is set in each contract’s own text.

What Is the Difference Between FOB and CIF Gafta Contracts?

Under FOB terms, the buyer charters the ship and nominates it to the seller, and risk passes when the goods are loaded. Under CIF terms, the seller arranges the ship, freight and insurance, and the buyer pays against shipping documents.

The choice decides who deals with the shipowner at the loading port. On FOB terms, delays in loading are settled between seller and buyer under the sale contract, while the buyer answers to the owner.

What Do the Gafta Rules Forms Cover?

The rules forms are incorporated into every trade contract. They set how goods are weighed, sampled, analysed, insured and fumigated, and how disputes are handled.

  • Gafta 123, Weighing Rules: how the contractual weight is established at loading or discharge.
  • Gafta 124, Sampling Rules: how, when and by whom contractual samples are drawn, sealed and kept.
  • Gafta 130, Register of Analysis Methods: the test methods used to analyse contractual samples.
  • Gafta 132, Fumigation Rules: how fumigation is carried out and certified.
  • Gafta 72, Insurance Rules: insurance cover under CIF-type contracts.

How Does Gafta Arbitration Work?

Gafta arbitration has two tiers. A sole arbitrator or a tribunal of three decides first. Either party can then appeal to a Gafta Board of Appeal, which rehears the whole case.

  • First tier: a sole arbitrator or three arbitrators, drawn from Gafta Qualified Arbitrators with long trade experience.
  • Appeal: a Board of Appeal of three or five members gives a full rehearing; no legal grounds are needed to appeal.
  • Seat and law: London, under English law.
  • Time limits: Rules No. 125 set strict deadlines, generally one year from the bill of lading date or the end of the delivery period.
  • Privacy: hearings and awards are private and confidential, unlike court cases.
  • Deposit: the claimant pays a deposit on filing, lower for Gafta members than for non-members.

Most disputes are decided on written submissions, without a hearing. Simple disputes can go under Rules No. 126, an expedited procedure. Parties can also try mediation under Rules No. 128 before or alongside arbitration.

Gafta awards are final and binding. They can be enforced in most trading countries under the New York Convention on the recognition of foreign arbitral awards.

What Is the Gafta Approved Register?

Gafta keeps registers of approved superintendents, analysts and fumigators under its trade assurance scheme. Gafta contracts usually require these services to be carried out by firms on those registers.

Service providerWhat they doGafta standard
SuperintendentSupervises loading and discharge, draws samples and checks weightGafta Standard for Supervision, Sampling and Check Weighing, an alternative to ISO/IEC 17020
AnalystTests contractual samples in the laboratoryCategory F membership, Gafta Standard for Analysis and Testing, Ring Test Scheme; methods in Gafta 130
FumigatorFumigates cargo against insects and pestsGafta Standard for Fumigation; rules in Gafta 132

Firms reach the register by passing an audit by an independent certification body approved by Gafta. The resulting certificate is often what traders mean by a “Gafta certificate”.

How Do Gafta Contracts Affect the Ship and Crew?

A Gafta contract is a sale contract between buyer and seller, not a charter party. But its terms on loading, weight, quality and fumigation decide what happens in the ship’s holds and on deck.

  • Hold condition: superintendents inspect holds before loading. Holds that are not clean, dry and free from insects and odour can delay loading, so hold cleaning matters commercially.
  • Weight: the contractual weight may come from shore scales or a draft survey under Gafta 123. Officers should expect independent checks of the ship’s draft and ballast.
  • Sampling: superintendents draw samples during loading under Gafta 124, sometimes per hold under Optional Clause 131.
  • Fumigation in transit: grain is often fumigated in the holds. IMO guidance, MSC.1/Circ.1264, sets the safety rules for the crew, including gas monitoring and entry restrictions.
  • Cargo care: grain is hygroscopic, so ventilation decisions affect cargo and ship sweat and later quality claims.
  • Documents: payment under CIF-type contracts depends on clean bills of lading and the appropriation notice naming the ship.

Grain cargoes also carry a stability risk from cargo shift. Ships loading grain in bulk must meet the International Grain Code under SOLAS Chapter VI, alongside the IS Code intact stability criteria.

Laytime and demurrage between seller and buyer are often set in the sale contract, separate from the charter party between shipowner and charterer. When the two do not match, one party ends up paying for the ship’s waiting time.

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Frequently Asked Questions

What does Gafta stand for?

Grain and Feed Trade Association. It is an international trade body based in London, founded in its current form in 1971.

Is Gafta a government organization?

No. Gafta is a private trade association owned by its members. Its contracts apply only when buyer and seller agree to use them.

Which countries are members of Gafta?

Gafta members are companies and individuals, not countries, from about 100 countries. GAFTA, the Greater Arab Free Trade Area, is a different organization made up of Arab states.

What is Gafta 100?

Gafta 100 is the standard contract for feedingstuffs, commonly used on CIF terms. It is one of the most widely used Gafta contracts.

What is the difference between Gafta 123 and Gafta 124?

Gafta 123 sets the Weighing Rules for establishing contractual weight. Gafta 124 sets the Sampling Rules for drawing and keeping contractual samples.

What is Gafta 125?

Gafta 125 contains the Arbitration Rules. It sets the procedure, time limits and appeal process for disputes under Gafta contracts.

What does a Gafta approved superintendent do?

A superintendent supervises loading or discharge, inspects holds, draws contractual samples and checks the weight of the cargo for one of the parties.

Are Gafta arbitration awards binding?

Yes. Awards are final and binding, subject to appeal to the Gafta Board of Appeal, and can be enforced abroad under the New York Convention.

Dmitry

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