New regulations designed to ensure a fairer pig supply chain have moved a big step closer to coming into force, after The Fair Dealing Obligations (Pigs) Regulations 2025 were laid in parliament.
The regulations will require buyers of pigs to use a written contract from a qualifying seller, with both parties required to comply with various provisions that have been set out in the Statutory Instrument (SI).
The previous government set the legislative process in motion, after the pig crisis of 2021 and 2022 exposed the flaws in supply relations and the lack of meaningful contractual relations, as processors were to refuse to take contracted pig numbers, without any penalty.
The regulations were laid in parliament on March 13, and, according to NPA senior policy adviser Tom Haynes, could take up to just over two months to pass into law, following scrutiny in parliament. They will then come into force 12 weeks later, potentially in mid-August.
“With a one-year transition period, this should mean everyone will be under the new contracts by August 2026, although the timings are, of course, uncertain at this stage,” he said.
The legislation has been drafted with a view to ensuring there is sufficient flexibility, so neither side is penalised when they fail to adhere to the requirements set out, for reasons out of their control.
NPA chief executive Lizzie Wilson added: “Crucially, there is also scope to review and amend the regulations, once they are in operation, to provide them with more teeth, if needed.”
What is in the regulation?
Key elements of the regulation include:
- The pig purchaser must use a written ‘pig purchase contract’ that complies with these Regulations when purchasing pigs from a qualifying seller.
- The duration of the pig purchase contract must either be fixed or evergreen, ie it will continue until one of the parties terminates it.
- Pig purchase contracts must use either a fixed or variable price, or a combination of both. The SI sets out in detail how these should be set.
- There is a provision to review the price in ‘exceptional market conditions’.
- A key element of the regulation is in relation to the supply of contracted pig numbers for both buyers and sellers. This includes provision as to remedies available to the purchaser when pig numbers fall below the minimum quantity specified in the contract.
- There is a requirement for pig purchase contracts to contain force majeure clauses in relation to the collection or delivery of pigs for purchasers and sellers.
- Another important provision requires pig purchase contracts to contain a dispute resolution procedure and the SI sets out how this will work.
- A qualifying seller may refer a complaint relating to the compliance of the pig purchase contract to the Secretary of State, who has powers to impose a civil penalty on a purchaser found to have failed to comply with their obligations, and to require the payment of compensation.
- The SI also sets out the process for appeals.
- Importantly, there is a provision for the Secretary of State to review these regulations and publish a report within five years. This includes an assessment of whether the provisions reman appropriate or need to be changed.
Important legislation
The NPA has been closely involved in the drafting of this regulation and has regularly consulted with members on the details, in the process.
Mrs Wilson said: “We are pleased to see this important piece of legislation laid in Parliament.
“We believe it will add a much-needed further layer of protection for producers by ensuring buyers cannot renege on the details of agreements, as has happened too often in the past.
“There will, of course, be requirements on producers, too, and it was important for us to ensure that, while the regulations must be strong enough to make a difference, there is also enough flexibility to ensure market functionality is not impacted and so that no-one is penalised for circumstances out of their control.
“We have also been determined to ensure that there is the ability to strengthen the regulations, if the need becomes apparent.”
Mr Haynes added: “While this is an important milestone, there is still some way to go before the regulations come into force, and, then, take effect. As we have done throughout, we will keep a very close eye on the process and continue to engage with the relevant parties to get the best outcome for our members.”