The National Pig Association (NPA) is welcoming the government’s newly introduced Fair Dealing regulations for the pig supply chain.
The regulations, which officially came in to effect on August 13, aim to improve fairness, consistency, and transparency through new contracts.
The Department for Environment, Food and Rural Affairs (Defra) explained that these regulations apply to pig purchase contracts between purchasers and qualifying sellers.
This includes pig processors and abattoirs as purchasers, while sellers consist of producers, including pig farmers and those who buy pigs without processing them.
The regulations will be similar to legislation already in place in the dairy industry, while the NPA confirmed a similar process is also ongoing for the fresh produce and egg sectors.
However, Defra did confirm some exemptions may apply to these new pig rules.
NPA
The NPA highlighted that these regulations are a direct result of the pig crisis of 2021 and 2022, which exposed serious imbalances of power in the supply chain.
Over the last three years, the NPA has participated in consultations with other industry members and different governments to develop these new regulations.
The association stressed that the new regulations will be continuously under review to ensure flexibility.
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 so that no-one is penalised for circumstances out of their control and the market can continue to function normally.”
Wilson explained how the new regulations will allow for a fair balance for all parties.
Regulations
The regulations, much like the dairy regulations, will be implemented over a 12-month period.
As of August 13, all new pig supply contracts will need to be in writing, while any existing contracts will need to be changed by August 13, 2026.
This should prevent the lack of credible contractual relations in place between pig sellers and buyers.
Under the new regulations, contracts will need to include the duration of the agreement, the pricing mechanism used, and the supply of contracted pig numbers.
As well as this, clauses in relation to the collection or delivery of pigs for producers and processors, clauses for unforeseen circumstances, and a dispute resolution procedure must be agreed upon.
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.”
Wilson added that there is a requirement for the Secretary of State to review the regulations and publish a report based on the assessment every five years.
