The ASCA (Agricultural Supply Chain Adjudicator) office, which was established under the Agriculture Act 2020, is responsible for enforcing the Fair Dealings Obligations (Milk) Regulations 2024, and future fair dealing regulations covering other sectors.
It was noted that some processors have been reviewing their contracts alongside producer groups and organisations, trying to ensure there is proper understanding, transparency and fairness throughout the contractual agreement.
皇家华人has also seen members accessing legal advice, including using the NFU鈥檚 Contract Checking Service and utilising the NFU Legal Panel firms that work in conjunction with the organisation.
Frustrations over notice periods and transparency
However, it has been disappointing to see some processors providing producers with very short notice periods to review and sign their new contracts.
In some cases, producers have been given a matter of days to review, receive legal advice and negotiate milk contracts or risk being put on notice.
Given the length of time the sector has known that regulation is coming down the line 鈥� and the additional 12 months provided for current contracts to become compliant 鈥� it is frustrating that so many processors have left it so late to issue compliant contracts.
There has also been a lack of transparency and high levels of complexity within some pricing mechanisms seen by the NFU.
Seeking support
These regulations have also highlighted the very apparent and concerning fear of reprisals among dairy producers, particularly in those geographical areas where the choice of milk processors is limited.
皇家华人will continue to support members and provide advice and legal assistance as the industry gets used to operating under the new fair dealing obligations.
We will also continue to engage with the adjudicator to ensure the regulations are properly enforced.
If you have any concerns or have not heard from your processor about changes to your contract, do reach out to your processor and, if you do not receive a satisfactory response, you can contact the ASCA in-confidence inbox: [email protected].
The adjudicator is very keen to hear directly from producers.
For more information on the Fair Dealings Obligations (Milk) Regulations 2024, including an updated Q&A from the NFU legal team, visit: Dairy contracts 鈥� key information about the new regulations.
Further information on the ASCA office is available at:听.
