New rules on pig supply chain contracts welcomed by NPA

The National Pig Association (NPA) has welcomed the introduction of Defra’s new Fair Dealing Obligations (Pigs) Regulations, which came into force on all new contracts from 13 August.

Defra proposes that the new regulations will ensure pig producers receive fairer and more transparent contracts.

This includes clear terms in the contracts on the pricing mechanism, the number of pigs being supplied, force majeure clauses related to the collection or delivery of pigs, and a dispute resolution procedure.

The legislation has been developed over the past three years in response to major supply chain disruption during 2021 and 2022, when a nationwide backlog of pigs on farms left many producers facing severe financial losses.

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Meat processors and farming bodies, such as the NPA, were able to help shape the regulation by feeding into industry consultations.

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.

“We believe the regulations have achieved that balance.”

The NPA has warned that while the regulations are welcomed, they should still be kept under review to make sure they continue to be fit for purpose.

Ms Wilson said: “We will be keeping a close eye on how the new rules play out in practice – and will make representations, if needed.”

A 12-month window has been confirmed for existing pig supply contracts to become compliant, with all contracts due by 13 August 2026.

NPA public affairs manager Tom Haynes added that the regulations should be relatively easy for all parties to comply with, but it would be essential that everyone knows exactly what is required of them.

Richard Thompson, the Agricultural Supply Chain Adjudicator, will enforce the regulations on behalf of Defra, and look into any issues being raised.