Search our website enhanced by Google.
Contracts must comply to the new FDOM regulations by 9 July this year
Thursday, 1 May 2025
All milk buyers in the UK will be legally required to adhere to Fair Dealing Obligations Milk (FDOM) regulations.
The FDOM regulations were designed to improve fairness and transparency of milk contracts between purchasers and producers. DEFRA guidance lists the minimum requirements:
- Clear terms around pricing
- The prohibition of unilateral changes
- Clear terms on the length of milk purchase contracts and the process of termination
- A dispute resolution mechanism
- An ‘express term’ that requires the purchaser to act in good faith in relation to the contract
For an exclusive agreement, the farmer must sell all their milk to one buyer. Tiered pricing (A & B pricing) is not permitted here, protecting the farmer from lower surplus milk volume prices. The exception are Co-ops which are allowed A&B pricing for exclusive contracts.
For a non-exclusive agreement, the farmer may sell milk to multiple buyers. Tiered pricing is allowed here, thus giving farmer more flexibility to seek better prices.
Please note that farmers must have a 21 day cooling off period before committing to a new milk supply agreement (insuring farmers aren’t pressured into signing straight away and have time to seek legal advice).
The Agriculture Supply Chain Adjudicator (ASCA) are the body which has been set up to police the new milk purchase contract rules and have set up a mailbox to raise concerns about milk contracts.
Contact ASCA: asca@defra.gov.uk
Additionally, the complaints email address mailbox is: ASCA-in-confidence@defra.gov.uk
Keep up to date with the latest dairy contracts with the NFU
Sign up to receive the latest information from AHDB.
While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.
All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk © Agriculture and Horticulture Development Board. All rights reserved.
