A practical guide for producers, processors, cooperatives, traders, and insurers.
Summary
Arbitration fits agribusiness because it is private, fast, flexible, and enforceable across borders. It allows decision‑makers with sector expertise to resolve disputes online without disrupting harvests, shipments, or cashflow. This page explains when and how to use arbitration for agribusiness matters and provides an online‑ready model clause.
Why arbitration suits agribusiness
- Specialist decision‑makers. Appoint arbitrators with experience in farming, commodities, logistics, biosecurity, veterinary science, or food processing.
- Speed and seasonality. Procedural timetables can track crop cycles, slaughter windows, or sailing schedules.
- Confidentiality. Protect pricing, supply programs, IP, formulations, and farm‑gate relationships.
- Cross‑border enforcement. Arbitral awards are enforceable in most trading nations under the New York Convention.
- Online by default. Remote case management and hearings reduce travel and downtime, and keep evidence moving.
Typical agribusiness disputes
- Sale of goods (grading, weight/quantity, moisture or oil content, contaminants, aflatoxins, residues)
- Growing and supply contracts; forward and futures‑linked pricing; minimum‑quantity commitments
- Livestock and dairy supply; share‑milking; animal health and welfare; traceability and NAIT‑type records
- Horticulture and viticulture: orchard‑gate quality, cool‑storage, pack‑out percentages, MRL and export compliance
- Inputs: seed, genetics, fertiliser, agrichemicals, feed; product performance and label claims
- Processing, storage, and logistics: demurrage, temperature excursions, chain of custody, cross‑contamination
- Water access, irrigation services, drainage, farm‑infrastructure projects, energy for pumping
- Biosecurity events, disease outbreaks, quarantine restrictions, force majeure
- Co‑op, JV, and grower‑group governance; distribution and exclusivity; agency and commission
- Insurance coverage for crop or livestock loss and business interruption
When arbitration may not fit
- Need for immediate third‑party relief against non‑signatories that courts can grant more easily
- Insolvency processes or test‑case issues requiring court precedent
- Very small claims where a simple adjudication or ombuds process is cheaper
Key choices at the contract stage
- Seat and governing law. Choose a neutral, arbitration‑friendly seat with reliable courts. Align governing law with commodity, trade, and regulatory expectations.
- Rules. Pick institutional rules suited to trade disputes and remote proceedings. Options include national institutions, international institutions, and trade‑association rules for commodities. Ensure the rules allow emergency relief and consolidation.
- Tribunal. Use a sole arbitrator for speed and cost unless stakes are high or issues are novel. Require demonstrable sector expertise.
- Language and place of hearings. Specify English (or another language) and state that hearings will be online by default.
- Time limits. Use award deadlines and streamlined procedures for seasonal matters.
Online‑ready model arbitration clause (customise in bolded brackets)
Arbitration. Any dispute arising out of or in connection with this Contract, including any question regarding its existence, validity, performance, or termination, shall be referred to and finally resolved by arbitration administered by [Institution] under its [Arbitration Rules], which Rules are deemed incorporated by reference into this clause.
Seat and law. The seat (legal place) of arbitration shall be [City, Country]. The governing law of this Contract shall be [Jurisdiction].
Tribunal. The tribunal shall consist of [one / three] arbitrator(s). The parties shall seek to appoint an arbitrator with experience in [agribusiness / commodities / logistics].
Language. The language of the arbitration shall be [English/…].
Online proceedings. All case management conferences and hearings will be conducted online by default unless the tribunal orders otherwise. Electronic filing and e‑bundles are the default. Parties shall use a secure data room designated by the administrator or tribunal.
Urgent relief. The parties agree to the emergency arbitrator provisions in the Rules. The tribunal may order interim measures for preservation, inspection, or supervised delivery of perishable goods.
Sampling and testing. Where quality or contamination is in issue, the parties shall follow any agreed sampling protocol or, failing agreement, a protocol directed by the tribunal including sealed retains and testing at a neutral ISO‑accredited laboratory.
Consolidation/joinder. The administrator or tribunal may consolidate related arbitrations and permit joinder of consenting third parties with materially similar arbitration agreements.
Expedited/amount in dispute. Claims not exceeding [currency and threshold] shall proceed on a documents‑only or expedited basis unless the tribunal directs otherwise.
Confidentiality. The parties, tribunal, and administrator shall keep the arbitration confidential except to the extent disclosure is required for protection of legal rights or enforcement of an award.
Time limit. The tribunal shall render its award within [six] months of constitution, subject to extension for good cause.
Martin Dillon | Technology Arbitrator 