Draft legislation intended to bring about a fairer pig supply chain received cross-party backing, as it passed the Commons last week, moving a big step closer to becoming law.
Food security minister Daniel Zeichner told MPs during the Committee Stage debate on the Fair Dealing Obligations (Pigs) Regulations 2025 that the ‘practical and proportionate’ Statutory Instrument had been shaped in close consultation with industry.
He said the legislation would establish a framework for ‘fair and balanced’ supply contracts, with ‘preserved flexibility to reflect how businesses operate, provided practices are clearly agreed and set out in writing’.
“To support transparency, contracts should be in writing and include all terms relating to the purchase,” he said. “However, a fully compliant contract is not always appropriate, in particular in spot market trades, so the regulations include an option for producers to issue a notice to disapply and to step outside the framework for particular purchases when that suits both parties.”
He explained that, where the regulations apply, written contracts must specify expected supply volumes and remedies if those volumes are not met. “That was a major point of failure in the recent crisis, and the new requirement will give producers and processors greater certainty and stability,” he said.
The draft regulations promote pricing transparency through models in which prices are based on factors that farmers can verify themselves, such as market indices or shared cost of production data.
“The core principle throughout this is that contract terms cannot be changed unilaterally. Any changes must be agreed in writing by both parties, ensuring transparency and fairness, while allowing flexibility,” he said.
He outlined the ‘clear dispute resolution procedure’ that will apply. Oversight will be provided by the Agricultural Supply Chain Adjudicator (ASCA), which can investigate alleged breaches that have not been resolved through dispute resolution. It has the authority to impose fines, order compensation, or both.
Safeguards
Conservative MP Neil Hudson (Epping Forest) said the Opposition was supporting these ‘very important’ draft regulations for the pig sector.
He sought assurance that the Government will commit to keeping the regulations under regular review and to making amendments, where necessary, to ensure that they remain robust and effective, which he subsequently received from the minister.
Fellow Conservative MP Charlie Dewhirst (Bridlington and The Wolds), who lobbied for the regulations in his previous role with the NPA, said the regulations were not perfect, with more work to do, particularly to ensure that the new Agricultural Supply Chain Adjudicator is effective, but described them as a ‘huge step forward’.
Liberal democrat Tim Farron said he was also ‘very supportive of the draft regulations’. “Without safety, security and fairness in the sector, we stand the chance of losing it all together,” he said.
But he urged the minister to increase the powers of the Groceries Code Adjudicator, so it can accept referrals regarding deals between farmers and processors, not just farmers and supermarkets.
Mr Zeichner said he was ‘encouraged’ to hear the support for the draft regulations. “I am confident that they will deliver the protections needed to ensure a stronger and fairer future for the sector,” he said.
What happens next?
The draft legislation moves to the House of Lords for scrutiny and debate by peers on May 12 and could reach the statute book soon after, coming into force 12 weeks later, potentially early-August, according to NPA senior policy adviser Tom Haynes.
There would then be a one-year transition before the new contracts become a requirement in August 2026.