August 13 marks a landmark day for the UK pig sector, as the Fair Dealing Obligations (Pigs) (FDOP) regulations will apply, for the first time, to all pig contracts.
The aim of the regulations, conceived in the midst of the last pig crisis, is to bring about more fairness and transparency in the supply chain, while retaining all-important flexibility for both sides.
With the build-up to the implementation date dominated by more turmoil within the pig supply chain, questions are already being asked about levels of compliance with the regulations and whether, in their current form, they can provide the level of protection for producers originally intended.
The regulations
The FDOP regulations became law in August 2025, initially covering only new pig purchase contracts. From August 13, 2026, unless producers opt out, all pig contracts, both new and pre-existing, will need to be in writing, signed and include clearly defined terms on, among other things:
- The duration of the agreement
- The pricing mechanism used
- The supply of contracted pig numbers for both buyers and sellers
- Force majeure clauses in relation to the collection or delivery of pigs for producers and processors
- A dispute resolution procedure.
Fair dealing regulations have now been introduced for the pig and dairy supply chains and are being formulated for other sectors, including eggs and horticulture.
The regulations are then overseen and enforced by the Agriculture Supply Chain Adjudicator (ASCA), Richard Thompson, and his office. ASCA has powers to issue civil penalties of up to 1% of pig buyers’ turnover and/or require compensation to be paid to the producer in response to breaches.
Mr Thompson said FDOP will give pig producers greater certainty over the terms of their contracts. “The new rules will help ensure things are fairer, consistent and more transparent by improving how contracts work, protecting producers from unfair practices and giving them more control over how they sell their pigs,” he said.
Pig sector compliance
The picture on industry compliance was not entirely clear in the run-up to the deadline. Mr Thompson said: “We have been carrying out a wide range of engagement across the pig sector, with both producers and processors, to raise awareness of the regulations and the coming-into-force date.
“Based on this, and intelligence we have been hearing from the sector, we are confident producers should be on compliant contracts, if they were not already, by August 13.”
John Powell, chief executive of the British Meat Processors Association, said: “From what we’re seeing, processors have engaged positively with the new requirements and are working constructively with their producer-suppliers to have the necessary arrangements in place ahead of the August deadline.”
However, according to an NPA survey of members, weeks before the implementation date some producers were reporting that they had heard very little from their buyer about the contracts and were concerned about the lack of activity.
Commenting at the British Pig & Poultry Fair in May, Fabio Brancher, Pilgrim’s Europe operations director for agriculture, said the company was working hard to ensure all contracts are compliant by the deadline, with ‘92-93%’ of the company’s third-party farmers having signed a new contract.
A Cranswick spokesperson said: “Some of our supplying farmers have chosen to opt out of the policy, but where they are remaining ‘in’, we will be fully compliant.”
A Sofina spokesperson said: “We are on track to ensure compliance with FDOP regulations.”
Raising concerns
Mr Thompson said producers should contact ASCA if they have any concerns or questions, for example:
- They don’t have a written pig purchase contract and haven’t opted out of the regulations.
- Their contract is missing something the regulations require.
- Their contract includes something that goes against the regulations.
- They have failed to receive clarification on the variable pricing used in their contract, despite requesting it.
- They are unsure about their general situation and the requirements of the regulations.
Producers can contact ASCA by emailing asca@defra.gov.uk
Mr Thompson said his office ‘appreciates the sensitivities around a producer raising concerns about their processor and any possible impacts this may have’. They have, therefore, also set up an in-confidence email channel: asca-in-confidence@defra.gov.uk
“Producers don’t need to fill out lengthy forms or get legal advice before coming to us – just send us an email and a member of the office will get back to you to discuss. Our service is completely free,” he said.
He said his office was keen to encourage good engagement and communication across the sector to help resolve problems and misunderstandings before they turn into bigger issues, and he urged anyone with questions to reach out to the ASCA office. “We have had several successes in the milk sector with this approach,” he said.
Calls for a review
The events of the past few months have already raised questions about whether the FDOP regulations have sufficient teeth to protect pig producers.
During a debate on pig industry support in the House of Commons in July, a number of MPs from various parties called on Defra to review the regulations.
Terry Jermy, Labour MP for South-West Norfolk, urged the minister to review ‘whether the fair dealing obligations are being upheld and whether they are robust enough’. “There is a huge power imbalance in the supply chain and a lack of credible contractual relations between far too many pig sellers and buyers,” he said.
Robbie Moore, Conservative shadow food security minister, called for an ‘urgent assessment’ of whether the regulations are fit for purpose and are doing what parliament originally intended, with producers ‘still seeing contracts terminated early in record numbers and our farmers still losing money on every pig they sell’.
Food security minister Stephen Morgan said the regulations were designed to end unfair contract practices and give British pig farmers greater transparency and certainty in their commercial relationships. He added that the government’s understanding was that notices being served on producers were being issued by processors ‘in line with contractual provisions’.
Mr Morgan promised to ‘reflect’ on MPs’ calls to assess whether they are robust enough, but pointed out that the regulations ‘will be subject to statutory review processes that will assess their effectiveness and whether any changes may be required in future’.
Mr Thompson said the government will undertake this review ‘at an appropriate time, recognising that the regulations will only fully come into force on August 13 and require sufficient time to bed in before their impact can be properly assessed’.
“The government will continue to monitor market conditions and the implementation of the regulations closely,” he said.
While acknowledging that the regulations will need to bed in before being formally reviewed, NPA chief executive Lizzie Wilson said, in terms of specific measures, the NPA will be urging the government to assess whether rules should be tightened around processors’ ‘shout price’ so it cannot be manipulated to keep prices artificially low.
On the advice of its Pig Industry Group, the NPA has already changed its guidance on FDOP to specify contract terms of a minimum of 12 months to give producers time to make decisions on pig production after notice is given.
Step forward
Mrs Wilson described the FDOP regulations, which the NPA helped to draft, as a ‘positive step towards delivering fairness in the pig supply chain’. “I hope it will help us to manage supply more effectively in future by providing far more certainty around contracted pig numbers,” she said.
“The first test will be the level of compliance from August 13. We will then have a period to assess the effectiveness of FDOP and determine what further changes are required.”
Mr Powell also described the regulations as a ‘positive step for the pig sector’. “Formalising supply agreements should help reduce the peaks and troughs in pricing and supply that have characterised the industry in the past,” he said.
“FDOP is about ensuring both parties have clear, transparent agreements, so early engagement and open communication are the best way to make the transition as smooth as possible.
“A major positive is that the legislation has been designed with enough flexibility for Defra to review and adapt it as market conditions evolve. We need to let the new arrangements bed in and see how they operate in practice before rushing to judgement.”