The Agricultural Supply Chain Adjudicator, Richard Thompson, urged farmers on Tuesday to raise concerns about their supply contracts as he published his second annual report, which covers progress in the dairy and pig sectors.
The Adjudicator’s office, known as the ASCA, said it has been working with farmers and businesses across the UK’s milk and pig sectors to promote fair dealing and improve understanding of contract obligations.
In one case, it helped a dairy farmer secure clearer terms after concerns that they could be prevented from selling surplus milk to other buyers.
The office raised the issue with the processor while protecting the farmer’s identity, and the changes confirmed that farmers could sell surplus milk elsewhere.
Thompson said early action pays off: “We’ve seen how raising concerns early can lead to better contracts and resolve problems before they escalate.” Producers do not need to make a formal complaint to contact the office, he said, and can seek advice and raise concerns in confidence.
Farming Minister Stephen Morgan said farmers deserve “a fair deal, clear contracts and a level playing field”. He said the Adjudicator’s team was helping by working with farmers and processors to resolve concerns.
The report also describes work with producers, processors and industry representatives on understanding the Fair Dealing Obligations Regulations and spotting emerging concerns.
Survey found 84 per cent feared losing future contracts
The first annual report, published in December 2025, covered 1 July 2024 to 30 June 2025 and recorded no formal complaints.
It put that down largely to a transitional period, during which the new milk rules applied only to new contracts, with existing contracts covered from July 2025.
The same report recorded nine in-confidence issues and more than 60 meetings, events and visits across all four nations.
A survey of more than 80 respondents in March 2025 found barriers to complaining: 84 per cent of respondents feared recrimination or loss of future contracts, 78 per cent feared reputational damage and 65 per cent lacked confidence that their complaint was relevant.
Awareness was lower among producers than among respondents as a whole.
Some 63 per cent of producers knew of the ASCA before the survey, against 78 per cent of all respondents, and 31 per cent of producers had met the Adjudicator, against 42 per cent overall.
The confidential mailbox was set up in response. The report said a formal complaint is still needed to open a formal investigation, but the channel helps the Adjudicator understand the issues producers face and identify trends.
Penalties of up to 1 per cent of turnover
The ASCA was established to enforce the Fair Dealing Obligations (Milk) Regulations 2024. The dairy sector has about 9,500 farmers employing around 50,000 people on farms, according to the first report.
Pig rules followed under the Fair Dealing Obligations (Pigs) Regulations 2025, which came into force on 13 August 2025 with a 12-month transition for existing agreements.
They bar a business purchaser from buying pigs from a qualifying seller except under a compliant written pig purchase contract.
Where a purchaser is found to have failed to comply, the penalty can be up to 1 per cent of its turnover, and compensation can also be required. Penalties are recoverable as debts and paid into the consolidated fund.
Over the coming year the Adjudicator will continue working with the dairy and pig sectors. The office will also prepare to support the development and potential implementation of fair dealing regulations in the egg sector.