New regulations have been signed into law promising to revolutionise fairness and transparency across the UK pig supply chain.
The regulations dictate that all new pig supply contracts must be put in writing and contain clear terms regarding pricing, volumes, and dispute resolution.
Importantly, any changes to the terms of a contract must be mutually agreed by both parties.
The legislation is expected to come into effect by mid-August 2025, at which point it will apply to all new contracts.
Existing agreements will benefit from a 12-month transition period until August 2026, after which all contracts must comply with the new regulations.
The National Pig Association (NPA), which played a significant role in shaping the law change, said it was pleased to see it roll out.
NPA chief executive Lizzie Wilson said: “We believe it will add a much-needed further layer of protection for producers by ensuring buyers cannot renege on the details of agreements, as has happened too often in the past.”
Key provision include the requirement for pig purchasers to use a written ‘pig purchase contract’ that adheres to the rules when buying from qualifying sellers.
Contracts must be either fixed-term or evergreen, continuing until terminated by one of the parties. Pricing may be fixed, variable, or a combination of both, with detailed guidance set out in the statutory instrument.
The regulations also provide for price reviews in ‘exceptional market conditions’. They address the supply of contracted pig numbers, including remedies available to purchasers if numbers fall below the minimum specified in the contract.
Furthermore, force majeure clauses relating to the collection or delivery of pigs must be included. The regulations mandate that contracts contain dispute resolution procedures, with clear guidance on how these are to operate.
Significantly, there is a provision for the Defra Secretary to review the regulations and publish a report within five years, assessing whether they remain fit for purpose or require amendment.
Defra has emphasised that the new legislation aims to foster stronger relationships between buyers and producers, enhancing consistency, predictability, and resilience across the supply chain.
Farming Minister Daniel Zeichner said: “Pig farmers work incredibly hard to supply high-quality British food and it’s only right they can do so on clear fair terms.
“These rules will give producers more confidence and help secure smoother, more constructive supply chain relationships.
“This is a major win for farmers, supported by industry and aligned with our Plan for Change, to strengthen food security and drive rural growth.”
The pig sector regulations are the second phase in a series of fair dealing reforms under the Agriculture Act 2020, following similar improvements to milk contracts in 2024.
The government is also working on tailored legislation for the egg and fresh produce sectors.
