The Fair Dealing Obligations (Pigs) Regulations 2025 (“Pig Regulations”)
Following on from the implementation of The Fair Dealing Obligations (Milk) Regulations (“Dairy Regulations”) last year, new regulations to promote fairness and transparency in the UK pig sector were laid before Parliament last week. The need for intervention in the sector was highlighted following a public consultation in 2022.
The Pig Regulations take a very similar line to the Dairy Regulations and will:
- Provide clearer pricing terms. Contracts will now set out the factors which will generate the price payable under the pig purchase contract, whether this be a fixed or variable price or a combination of the two. The Pig Regulations introduce transparency provisions, granting producers the right to request a written explanation of price determination when the price is not primarily based on factors that are quantifiable and freely accessible to both parties.
- Prevent unilateral changes to the contracts without both parties’ consent. This will encourage the parties to discuss required changes and agree how the changes are to be implemented.
- A key element of the Pig Regulations is in relation to the supply of contracted pig numbers. This includes provision as to remedies available to a purchaser when pig numbers fall below the minimum quantity specified in the contract.
- All pig purchase contracts will need to include a straightforward way to raise concerns about their contracts, promoting accountability and timely issue resolution.
- Set out clear rules on notice periods and exclusivity. This will protect the rights of both parties and remove any ambiguity from contracts which have in the past lead to disputes.
There is an opt-out provision, allowing a farmer to provide a notice to disapply the Pig Regulations and exempt sales of pigs from the requirements in the regulations. This is to continue to allow the popular practice of farmers selling on the ‘spot market’ within the sector.
The Pig Regulations also include a provision for the Secretary of State to review the regulations and publish a report within five years. This includes an assessment of whether the provisions remain appropriate or need to be changed.
For new contracts, the Pig Regulations will come into force on the day after the expiry of 12 weeks beginning with the day on which the Pig Regulations are made (the “Commencement Date”). For pre-existing contracts that were made before the Pig Regulations come into force, there is a twelve-month transition period before the requirements contained in the regulations apply.
We will provide further guidance on the regulations once they have been passed and provide guidance on the changes required to pig purchase contracts to ensure compliance.
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