The Fair Dealing Obligations (Pigs) Regulations 2025
Monday 24th March 2025
Since the inception of the Groceries Supply Code of Practice (GSCOP) in 2009, the Government has been slow to introduce further regulations. However, it has recently started establishing more specific regulations on different areas of agricultural products, the first of which are the Fair Dealing Obligations (Milk) Regulations 2024.
It is now set to introduce the Fair Dealing Obligations (Pigs) Regulations 2025 (the ‘Regulations’) during this parliament, soon to be followed by regulations on eggs and produce.
When do they come into force?
The Regulations were laid before Parliament on 13 March 2025 and are likely to be approved within the next two months. They will come into force 12 weeks after they are enacted, so most likely in late August or early September.
Who do the Regulations apply to?
The Regulations will apply to ‘Business Purchasers’. This would be someone purchasing pigs in the course of their trade from a ‘qualifying seller’, these being:
a) A pig farmer;
b) An organisation made up of pig farmers which has been recognised by the Secretary of State for DEFRA;
c) An association of organisations of pig farmers which has been recognised by the Secretary of State for DEFRA or
d) Producer aggregators, being someone who purchases pigs from more than one pig farmer and sells the pigs on behalf of the pig farmers.
The Regulations can be disapplied
Regulation 4 states a qualifying seller can opt out of the Regulations and the protection offered under them. This is aimed at the spot market.
What are the requirements?
Where a seller does not ‘opt-out’, any contract to purchase pigs will have to:
Basic Formalities
1. Be in writing.
2. Be signed by all partners.
3. Confirm that business purchasers will act in good faith.
Duration
4. Be for a fixed period or an ‘evergreen’ contract that rolls on until termination. The contract must state which of the options it is.
Pricing
5. State whether prices are fixed, variable or a mixture. Fixed prices can vary during any fixed term.
6. Have a price review mechanism built into the agreement for ‘exceptional circumstances’.
7. For variable contracts, set out the factors which determine the prices.
8. In the event of a dispute/disagreement on the price payable, offer the qualifying seller a contractual right to refer the matter to an independent expert to determine the price.
Payment Terms
9. Set out payment terms in the contract.
Collection/Delivery
10. Set out if pigs are to be delivered or collected and what remedy each party has in the event of one party’s failure to collect/deliver.
Termination
11. For contracts that last 12 months or more, notice must be given, and the contract must set out how much notice is to be provided.
Adjudicator
12. Allow qualifying sellers to complain to the Agricultural Supply Chain Adjudicator if the contract doesn’t comply with the Regulations or a business purchaser is not complying with the contract terms.
Fines
Under the Regulations, the Adjudicator will have the power to fine business purchasers 1% of their turnover and compensate sellers where there is a breach of the Regulations.
