Confusion over fairness rules for egg producers who also pack

Published on : 23 Jan 2026

Defra’s proposed Fair Dealings Regulations for the egg sector are intended to improve transparency and tackle unfairness in producer contracts, but one area of the draft proposals risks creating confusion and a potentially serious unintended loophole. That is the position of egg producers who supply a packer while also being registered as a packer themselves, often to pack some or all of their own eggs. The Ranger estimates that more than 550 egg producers now hold packer registration alongside production, underlining just how widespread this issue has become.

On the face of it, the regulations are designed to apply wherever a business purchaser buys shell eggs from a seller under a purchase agreement. The seller is defined as a primary producer, while the purchaser is the business buying eggs in the course of its trade. In most traditional producer to packer relationships, that distinction is clear. However, the modern egg sector is far less clear cut. Many producers have invested heavily in grading and packing facilities as a way of improving resilience, accessing local or direct markets, or future proofing their businesses. In practice, those same producers may still sell a proportion of their eggs to a third party, such as a local retailer, wholesaler or restaurant, under a contract that looks, feels and functions exactly like any other producer agreement.

The difficulty arises because the regulations are built around roles rather than reality. If a producer supplies eggs they have produced to a third party buyer, logic would suggest they should be covered by the fairness rules in exactly the same way as when supplying their main packer. Yet the draft definitions open the door to arguments about capacity. A buyer could potentially claim they are not purchasing from a primary producer at all, but from another packer. Equally, clarity is needed for those producers who sell via an agent who acts on the producer’s behalf to negotiate terms with a variety of packers. This is an increasingly common route to market and one that does not sit neatly within the current drafting.

The concern is not theoretical. The regulations are meant to address imbalances of power and risk, yet under the current drafting a producer who has taken proactive steps to add value or reduce reliance on a single outlet could find themselves excluded from protection altogether. That would be a perverse outcome. Vertical integration does not automatically remove vulnerability, and in many cases the underlying commercial relationship with a large buyer remains unchanged. Prices are still set one sidedly, deductions still apply, and termination risk still sits largely with the producer.

This is exactly the type of unintended consequence Defra has asked consultees to highlight. With more than 550 producers potentially affected, this is not a niche technicality but a structural issue that cuts across a significant part of the sector. Without clearer wording, there is a real risk that registration status rather than economic reality determines whether a producer is protected.

For many producers reading the proposals, the takeaway is simple. The intention behind the regulations is welcome, but the detail matters. Unless Defra explicitly confirms that producers remain covered when selling eggs they have produced, regardless of whether they also hold packer registration, uncertainty will persist. In a sector already grappling with volatility, rising costs and tight margins, clarity is not a luxury. It is essential.

Defra, who are leading on this workstream, have been made aware of the nuances and the possible unintended consequences of this situation and have responded that they will work with industry over the next few weeks to make sure that the final language used does not exclude any egg producers that are intended to be covered by these Regulations.

A fundamental aspect of the proposed Regulations is that they will apply to all UK business purchasers who directly purchase shell eggs, not liquid, powdered or fertile eggs, from a seller. That seller is defined as a primary producer that is not also a registered egg packing centre with APHA, a recognised producer organisation or a recognised association of producer organisations, including those located outside the UK.

Defra have also confirmed that the Regulations will only apply to producers and packers and that retail will not be in scope, given that retail is covered by a different set of regulations.

Industry is currently being consulted on the third and final draft version of the proposed Regulations, with the Defra team attending the next BFREPA Board meeting on 10 February. Defra have asked for responses by 20 February.

Gary Ford commented: ‘This is the last chance to feed into Defra our comments and any concerns that we may have regarding the fairness in the supply chain Regulations. BFREPA have been lobbying for fairness in contracts for many years and so it is imperative that we do not miss this final opportunity to help shape these Regulations and ensure that they deliver for members when they come into law later this year.’

Comments can be fed back to gary.ford@bfrepa.co.uk