Fair dealing rules must prove their worth as farmgate prices fall
The NFU has welcomed evidence that intervention by the Agricultural Supply Chain Adjudicator is improving supply contracts but says stronger action is needed to give producers confidence that the regulations will protect them when market conditions deteriorate.
The NFU has called for the fair dealing regulations covering agricultural supply contracts to demonstrate their power as falling farmgate prices place renewed pressure on farming businesses.
The call follows the publication of the Agricultural Supply Chain Adjudicator’s second annual report, covering its work in the dairy and pig sectors between 1 July 2025 and 30 June 2026.
During that period, the ASCA received one formal complaint and handled 15 referrals through its confidential reporting channel. The report also includes examples of the adjudicator’s intervention leading to changes in contractual practices.
The NFU welcomes constructive engagement established between the ASCA, producers, processors and representative organisations.
However, the very small number of formal complaints cannot be viewed in isolation from the continuing fear of commercial reprisals among producers.
Fear of reprisals remains a major barrier
Nearly 70% of producers surveyed said concerns about reputational damage would prevent them from making a complaint, while more than 75% were concerned about the effect on future contracts.
These findings reinforce concerns previously raised by the NFU, particularly in areas where dairy farmers have little or no choice of milk buyer. Producers should not have to choose between challenging an unfair contractual practice and protecting the future of their business.
Recent falls in milk prices provide a critical test of the regulations. While confidential engagement can resolve problems, the ASCA must be ready to use its formal enforcement powers where there is evidence of non-compliance or repeated unfair behaviour.
Price falls put regulations to the test
The NFU is also renewing its call for recognised producer and representative organisations to be allowed to make formal complaints on farmers’ behalf.
These organisations can currently share intelligence with the ASCA, but formal complaints must come from individual producers. Allowing representative complaints would help protect farmers from reprisals, bring together evidence from several businesses and expose systemic problems.
The NFU has previously raised concerns with the ASCA about short periods given to dairy farmers to review contracts, complex pricing mechanisms and a lack of transparency.
The report shows that intervention can secure meaningful improvements. The next step is to ensure those improvements are felt consistently across the sector.
Farmers must have confidence that speaking up will not cost them their buyer or their future contract. The regulations will ultimately be judged on whether they prevent unfairness and protect producers when market conditions are at their most challenging.
