UK plans to bring transparency to the pig sector supply chain
Photo is illustrative in nature. From open sources.
The move follows a public consultation last year that received almost 400 responses from growers, processors and other supply chain participants. In this sector, it was found that legally required written contracts would remove uncertainty and ambiguity, with a majority of respondents supporting the government's approach to implementing this through legislation.
The rules will be developed using the regulatory authority in Section 29 of the Agriculture Act 2020 with further engagement with industry to ensure that the needs of the sector are met and that the challenges faced by the sector are properly addressed.
In addition to regulating written contracts, the government plans to develop rules for the collection and sharing of supply chain data, especially with regard to wholesale price transparency and national slaughter rates. Increasing the availability of this kind of data in the supply chain will help cover the entire UK pork market and therefore help further reduce ambiguity for all actors along the supply chain.
The consultation also highlighted the concerns of pig producers about market consolidation in the processing sector and the impact this has had on producers. In response to this, the government intends to refer the results of consultations regarding the alleged negative effects of market consolidation to the Competition and Markets Authority (CMA).
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