Today, 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.
The FDOP regulations became law in August 2025, initially covering only new pig purchase contracts. From today, 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.
The regulations 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 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
Greater certainty
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.
Mr Thompson said that, based on intelligence received from from the pig sector, his office was ‘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.”
“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,” he said.
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.
NPA chief executive Lizzie 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.
- You can read more on the potential impact of the FDOP regulations HERE.