The Fair Dealing Obligations (Pigs) Regulations 2025
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Change 1
9 Use of a variable price
(1) Where a pig purchase contract uses a variable price (whether or not in combination with a fixed price), it must do so in accordance with this regulation. (2) A “variable price” is a price per quantity of pigs that is not fixed at the point that the pig purchase contract is made but is determined— (a) in accordance with; or (b) by the business purchaser with reference to, factors set out in the pig purchase contract. (3) Where the pig purchase contract makes provision in accordance with paragraph (2)(b), it must provide that the business purchaser must have due regard, as far as it is reasonably practicable to do so, to only the factors set out in the pig purchase contract when determining the price per quantity of pigs. (4) The pig purchase contract may provide for the price per quantity of pigs to be determined by reference to more than one set of factors within the duration of the contract. (5) Where the pig purchase contract accords with paragraph (4), it must specify— (a) the period within the duration of the contract to which each set of factors relates; and (b) the date on which each period begins and ends. (6) The pig purchase contract must provide how often the price per quantity of pigs is to be determined. (7) After the price per quantity of pigs is determined under the pig purchase contract, the qualifying seller may by written notice request that the business purchaser give them a written explanation as to— (a) how the price was determined; and (b) where the price per quantity of pigs is to be determined by the business purchaser, how the factors to which the business purchaser is to have due regard influenced the price. (8) The notice described in paragraph (7) may be given once each time the price is determined. (9) The business purchaser must give the explanation requested in the notice within 7 days beginning with the date on which the notice described in paragraph (7) was given. (10) Paragraphs (7) to (9) do not apply if at least 97.5% of the price per quantity of pigs is determined in accordance with a formula set out in the contract using only objective factors that are— (a) able to be expressed as a numerical value; and (b) available to both of the parties.
9 Use of a variable price
(1) Where a pig purchase contract uses a variable price (whether or not in combination with a fixed price), it must do so in accordance with this regulation. (2) A “variable price” is a price per quantity of pigs that is not fixed at the point that the pig purchase contract is made but is determined— (a) in accordance with; or (b) by the business purchaser with reference to, factors set out in the pig purchase contract. (3) Where the pig purchase contract makes provision in accordance with paragraph (2)(b), it must provide that the business purchaser must have due regard, as far as it is reasonably practicable to do so, to only the factors set out in the pig purchase contract when determining the price per quantity of pigs. (4) The pig purchase contract may provide for the price per quantity of pigs to be determined by reference to more than one set of factors within the duration of the contract. (5) Where the pig purchase contract accords with paragraph (4), it must specify— (a) the period within the duration of the contract to which each set of factors relates; and (b) the date on which each period begins and ends. (6) The pig purchase contract must provide how often the price per quantity of pigs is to be determined. (7) After the price per quantity of pigs is determined under the pig purchase contract, the qualifying seller may by written notice request that the business purchaser give them a written explanation as to— (a) how the price was determined; and (b) where the price per quantity of pigs is to be determined by the business purchaser, how the factors to which the business purchaser is to have due regard influenced the price. (8) The notice described in paragraph (7) may be given once each time the price is determined. (9) The business purchaser must give the explanation requested in the notice within 7 days beginning with the date on which the notice described in paragraph (7) was given. (10) Paragraphs (7) to (9) do not apply if at least 97.5% of the price per quantity of pigs is determined in accordance with a formula set out in the contract using only objective factors that are— (a) able to be expressed as a numerical value; and (b) available to both of the parties.
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