Mid-February marks less than six months to go until all purchasers of pigs will be required to provide a written contract with clear terms. But what does this mean for the Scottish Pork sector?
Following in the footsteps of the Fair Dealing Obligations (Milk) Regulations 2024, the Fair Dealing Obligations (Pigs) Regulations 2025 officially fired the staring gun in August 2025. While the ambition to bring farm to fork fairness for the pork sector is clear, the change is not immediate: there is a 12-month grace period for any existing contracts to become compliant with the final deadline of 13 August 2026.
At our AGM and Conference, I highlighted the numerous challenges facing our sector, not least the threat of ASF, competition with cheap imports, the ripple effect of plant breakdowns causing chaos on farm. I thought it was extremely sad to hear UK Government Minister Kirsty McNeill MP infer that the Government is prioritising our supply of “cheap food” over our national herd biosecurity. I think it prudent to warn that this will not just be a pig sector issue and is clearly a government policy.
It felt appropriate to ask the Agricultural Supply Chain Adjudicator directly how the new regulations can support primary producers through the current crisis, particularly given that our sector has sometimes operated on verbal contracts.
The Adjudicator, who has the authority to investigate breaches and impose a civil penalty, underlined the critical point: any change to previously agreed terms, either verbal or written, would legally constitute a new contract, therefore, immediately should comply with the regulations.
But, what do the regulations actually mean in practice?
- Written, transparent contracts by August 2026: All pig purchase contracts must be written, signed, and include clear terms for price, quantity of pigs, duration, variation, termination, and dispute resolution.
- Contracts must use fixed, variable, or mixed pricing with clear rules on how prices are set and reviewed.
- Contracts can be fixed term or evergreen, but changes must be mutually agreed.
- There must be explanation and notice of any contract changes, to protect producers from unfair trading practices, and give farmers greater clarity and control.
There is a recognition within the regulations that there needs to be some flexibility, however the core principle is clear: changes to the contract must follow a specified process set out clearly within the contract.
So, what now?
These regulations won’t immediately resolve every problem for the sector. To be clear, they do not have any scope over setting of price, and they do not force processors to take all pigs that are offered to them out of agreed contract numbers. What it can do is ensure that contract changes are handled in a transparent and fair way and creates a formal mechanism for a producer to raise concerns about unfair practises.
We continue to work with the Adjudicator and Defra to highlight the realities for the Scottish pig sector. We can support members if they have concerns about unfair trading practises. However, it is important that we, the Producers, familiarise ourselves with our current written contract and consider if it is aligned with the new regulations, if you are unsure, seek legal advice. Our member helpline, Gillespie MacAndrew, offer a contract checking service or if you sell through a marketing group you can always speak to your relevant contact.
These regulations aren’t a fix-all, but they are a meaningful step in the right direction. We will continue to represent Scottish pork producers, seeking fairness in the supply chain, immediate action on our biosecurity, and import controls to ensure a viable and secure future.