Proposals for Fair Dealings Regulations in the Fresh Produce Sector - FEEDBACK REQUIRED

Following the launch of Fair Dealing Regulations being launched in other agri-food sectors, such as milk, Defra are looking to introduce similar regulations in the fresh produce sector. There is a call for feedback on the proposed draft Regulations, details of which are included below.

The FPC have met twice with Defra to discuss the first and second drafts of the Regulations to determine how these could affect our industry beyond grower to multiple retailers, such a food service and wholesale markets.

You can find the draft Regulations here: Proposals for Fair Dealings Regulations in the Fresh Produce Sector v1 1

Fresh produce refers broadly to edible fruits and vegetables, including potatoes and excluding ornamentals.

The proposed Regulations will apply to all UK business purchasers who purchase fresh produce from a seller (a primary producer, a recognised producer organisation or a recognised association of producer organisations, including those located outside the UK)

The proposals encompass the following measures:

• Introduce obligations for any business purchasing fresh produce from a seller, ( growers, packers, or Producer Organisations (POs) buying from other growers.

• Require mandatory written contracts to include minimum standard terms.

• Specify the required duration of the contract.

• Mandate inclusion of volume commitments, with provisions allowing both parties to agree on mechanisms for managing periods of over- or under-supply.

• Set out stipulations regarding pricing and the pricing mechanism, including transparency in price determination, payment methods, and frequency.

• Require contracts to detail product specifications and pre-agreed tolerances, along with clarity on charges and deductions.

• Include a force majeure clause.

• Provide for a cooling-off period.

• Include a termination clause.

• Establish obligations for managing variations to the agreement.

• Require a clearly defined dispute resolution process within the contract.

• Ensure mechanisms for enforcement of the regulation.

1. Would these regulations tackle the issues of unfairness that you are aware of in the supply chain?
2. Would any further measures help promote fairness and transparency in the supply chain? Have we missed anything substantive or impactful?
3. Could any of the measures here create issues or unintended consequences that may not have been considered?
4. At what stage of the growing timeline (OR from a purchasing perspective how close to the delivery of the fresh produce) is optimal for purchase agreements to be initiated and finalised?
5. What are the impacts on your business from purchase agreements being finalised outside of this optimal period?
6. How does the ‘fresh buyers / spot purchase’ market currently operate? How might be the impacts of these current proposals on this market?
7. Would taking the ‘notice to disapply’ approach taken in the Pigs sector impact this ‘fresh buyers’ market? Would this approach have any broader impacts on how these regulations apply to agreements outside the ‘fresh buyers’ market?
8. Should there be any limitations on when a notice to disapply can be issued? For instance, should it only be permitted when goods can be delivered within a short timeframe?

We encourage our members to be aware of the draft Regulations and provide feedback, either to the FPC or directly to Defra. Feedback should be provided by 1 May 2025.

Members can provide feedback to the FPC to kshields@freshproduce.org.uk or directly to Defra at freshproducecontractconsultation@defra.gov.uk