Farming News - NPA welcomes new Fair Dealing regulations for pig supply chain

NPA welcomes new Fair Dealing regulations for pig supply chain

The NPA has warmly welcomed the introduction of the new regulations today intended to bring about a fairer pig supply chain.

 

The Fair Dealing Obligations (Pigs) regulations 2025 are the direct result of the pig crisis of 2021 and 2022 that exposed serious imbalances of power in the supply chain and the lack of credible contractual relations in place between pig sellers and buyers.

The new pig sector regulations, developed in consultation with industry over the last three years, follow similar legislation already in place in the dairy industry, with the process also ongoing for the fresh produce and egg sectors.

The NPA has played a big part in drafting the pig regulations over the past three years, taking on board comments from members and working closely with the previous and current governments.

However, the association has stressed that the regulations, while welcome, are not necessarily the finished article and should be kept under continuous review.

NPA chief executive Lizzie Wilson said: “We have worked hard to ensure these regulations provide the protection and clarity pig producers need in their contractual relations with buyers.

“At the same time, we have made sure they retain the necessary flexibility for both sides to that no-one is penalised for circumstances out of their control and the market can continue to function normally. We believe the regulations have achieved that balance.”

 

What the regulations mean

The regulations are being phased in over 12 months. From today, August 13, all new pig supply contracts will need to be in writing by default. This will also apply to existing agreements from August 13, 2026.

The contracts will need to include, among other things, clear terms on:

  • 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 NPA has developed detailed guidance for members. NPA public affairs manager Tom Haynes said: “The regulations should be relatively easy for all parties to comply with, but it is essential that everyone knows exactly what is required of them.

“That is why we have published this guidance in the Members’ Area of the website, setting out all the necessary details and background. We urge our members to take advantage of it.”

 

Reviewing the regulations

During its discussions with Defra, the NPA was adamant that the ability to review and alter the regulations should be included within the regulation.

“We were pleased that Defra has listened to us on this,” Lizzie said. “There is a requirement for the Secretary of State to review these regulations and publish a report at least every five years, including an assessment of whether the provisions need to be changed.

“That is really important, as, while we are happy that, as drafted, the regulations will achieve their purpose, nothing is perfect and circumstances change. We will be keeping a close eye on how the new rules play out in practice – and will make representations, if needed.

“Furthermore, the new Agricultural Supply Chain Adjudicator is keen to hear of instances where the regulations might not be delivering as, if a common theme is emerging, it is his duty to raise the issue and find a resolution.”