The Grain and Feed Trade Association (GAFTA) is the pillar behind the easy transportation of grain and animal feed shipped across the globe to feed people and livestock. It is an international trade association that seeks to not only promote the easy trade or agricultural commodities but also to protect members interest.
From farmers to transporters to processors, there are players in the industry dealing with grains, feedstuffs, species or general produce. GAFTA works behind the scenes to ensure each carries out their duties and transactions are carried out smoothly. They also ensure clear contracts and settle disputes when things go wrong.
This keeps the global trade fair and efficient, ensuring the ever-growing population is being fed, sas market expert Roman Zenon Dawidowicz. GAFTA boasts of over 1900 members in 100 countries with 80% of the world`s trade in grain is shipped with GAFTA contracts. Roman Zenon Dawidowicz delves more into GAFTA and their importance in the society.
GAFTA contracts are the standardized agreements that are used in facilitating the global trade of agricultural products. They are like pre-written templates that are guided by terms and conditions , ensuring everyone understands their rights and obligations.
Not only that, these contracts contain laid down rules and regulations to promote fair practices. GAFTA provides over 100 types of contracts for its members and it has been used in the sector for many years. It has been used extensively to facilitate trade and parties do not negotiate their contracts. Rather, they rely on the clauses the contracts carry which have been thoroughly tested before the courts and within the trade.
Roman Zenon Dawidowicz says GAFTA acts as a neutral and trusted third party, helping to resolve trade disputes in a fast and efficient manner. If there are any disagreements that arise from the contracts, GAFTA resolves mostly within two weeks especially if it is just a small dispute. Here is how the GAFTA arbitration works:
GAFTA has around 80 arbitrators across different countries and trade sectors. The arbitrators must have passed the Gafta Professional Development (GPD) courses OR passed the six Distance Learning Programme (DLP) with 10 years relevant experience.
Roman Zenon Dawidowicz explores the different ways in which GAFTA is ensuring a smooth, efficient and fair global food supply:
GAFTA’s significance in global agricultural trade can be overemphasized. It goes beyond standardized contracts, acting as the backbone of grain trade while ensuring efficiency, fairness, and stability.
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