UK supply chain adjudicator urges farmers to raise contract concerns

Traders Union
All News
Geopolitics & Trade
UK supply chain farm contracts

Highlights

UK Agricultural Supply Chain Adjudicator Richard Thompson's second annual report urges farmers to raise supply contract concerns confidentially without formal complaints.
The adjudicator helped a dairy farmer secure contract changes allowing surplus milk sales to other buyers after addressing concerns while protecting the farmer's identity.
The office will continue focusing on fair contracts in the dairy and pig sectors in 2025 and prepare to extend fair dealing rules to the egg sector.

Annual report highlights contract oversight

As reported by GOV.UK, Agricultural Supply Chain Adjudicator Richard Thompson publishes his second annual report on Tuesday 3 November, setting out progress in promoting fairer trading practices in the milk and pig sectors.

The adjudicator is working with farmers and businesses across the UK to improve understanding of supply contract obligations, encourage better trading practices and address concerns before they escalate. Thompson says producers do not need to make a formal complaint to seek advice and can raise issues in confidence.

One case in the report shows the office helping a dairy farmer obtain clearer contract terms after concerns that they could be stopped from selling surplus milk to other buyers. After the issue was raised with the processor while the farmer's identity was protected, the contract was changed to confirm that surplus milk could be sold elsewhere.

Broader push for fair dealing in agriculture

Thompson says fairer supply chains depend on clear contracts, honest communication and a shared understanding of rights and responsibilities. He adds that raising concerns early can lead to better contracts and resolve problems before they worsen.

Farming Minister Stephen Morgan says farmers deserve a fair deal, clear contracts and a level playing field to help their businesses thrive. He says the government is also strengthening protections for dairy farmers, with fair contracts and transparent supply chains seen as important to a productive, profitable and sustainable sector.

The report also points to work with producers, processors and industry representatives to improve understanding of the Fair Dealing Obligations Regulations and identify emerging concerns across agricultural supply chains. Over the coming year, the adjudicator continues working with the dairy and pig sectors while preparing to support the development and possible implementation of fair dealing rules in the egg sector.

In our earlier article on Richemont’s talks to join a consortium bidding for De Beers, we looked at how the Cartier owner could deepen its involvement in the diamond supply chain by gaining more direct access to a key raw-material source. We also noted that such a move could strengthen Richemont’s position by improving control over diamond supply for brands like Cartier and Van Cleef & Arpels as deal activity returns after an industry downturn.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.