25th March 2025 ❘ Legal News and Commentary
The Fair Dealing Obligations (Milk) Regulations 2024 (FDOM24): What they mean for farmers…
The Fair Dealing Obligations (Milk) Regulations 2024 (FDOM24): What they mean for farmers…
The Fair Dealing Obligations (Milk) Regulations 2024 (FDOM24) are a set of regulations which have been introduced to address long-standing concerns about the power imbalance between dairy farmers and milk processors. These regulations are designed to ensure that dairy farmers are treated fairly in their dealings with milk processors. The regulations state that by the 9th of July 2025, all milk contracts (new or existing) must be compliant with these regulations.
The key provisions of the regulations are:
- Fair Milk Pricing
Milk processors are required to offer farmers a fair price for their milk, the regulations stipulate that prices must be agreed upon in advance and reviewed regularly.
- Written Contracts
All milk contracts between farmers and milk processors must be in writing and signed by all parties. They must include key terms including clear terms, fair termination clauses and minimum notice periods for any significant changes to be made by the milk processors.
- Protection Against Penalties
Historically, some farmers have faced penalties or price reductions for speaking out about unfair treatment or attempting to negotiate better terms. FDOM24 seeks to prevent these practices by ensuring that farmers will not face reprisals for raising concerns about pricing or contractual issues. This includes legal protections for whistleblowers who report unfair practices.
The key benefits of FDOM24 for farmers are:
- Increased Financial Stability
By ensuring fair and predictable pricing, FDOM24 offers farmers greater financial stability. The regulations ensure that farmers are paid a price that should reflect the true cost of production.
- Improved Negotiating Power
FDOM24 levels the playing field between farmers and milk processors by requiring written contracts and promoting transparency. With clear terms in place, farmers will be in a better position to negotiate terms that work for their farming businesses.
- Reduced Risk of Exploitation
With better protections against unfair practices, farmers will face less risk of exploitation by milk processors. The new regulations help prevent practices such as price gouging, last-minute contract changes, or unduly harsh termination clauses that have historically left farmers vulnerable.
If you have any questions in relation to your milk contracts or require any advice as to whether your contract is in line with FDOM24, please do contact us to discuss this further – our Agribusiness team will be happy to help.