The Impact of FDOM Regulations on UK Dairy Farmers

Following AHBD’s recent dairy market forecast, UK dairy farmers must now incorporate market trends into their business strategies. The FDOM (Fair Dealings Obligations (Milk)) Regulations, fully enacted in July 2025, enhance transparency in farm gate milk prices without setting the prices themselves, which remain market-driven. These regulations make it mandatory for all milk contracts to clearly outline the pricing factors used by buyers, enabling farmers to comprehend and forecast their milk prices more accurately. If clarity is lacking, there is an enforcement regime designed to assist farmers in resolving such issues with their milk buyers.

Changes to pricing mechanisms also require the agreement of the farmers or their DPOs (Dairy Producer Organisations). DPOs now have the authority to collectively negotiate for fair contract terms on behalf of farmers, though they cannot control global commodity prices. This collective bargaining is critical in periods of market volatility, where the regulations ensure greater price transparency. The NFU (National Farmers' Union) continues to monitor these impacts and advocates for compliance, encouraging UK dairy producers to use available resources like the NFU’s Contract Checking Service and Legal Assistance Scheme to ensure fair and transparent contracts.