Lidl has today (September 24) announced a prospective injection of one billion euro into the British egg industry over the next five years.
This financial boost is set to build on the success of free-range eggs sales, which according to the supermarket chain, have grown by over a third (34%) in the last year, despite sector-wide shortages.
This surge in demand for free-range eggs indicates consumers’ growing preference for ethically and locally-grown produce which prioritises animal welfare.
It serves to reaffirm Lidl’s commitment to British farmers, ensuring a consistent supply of high quality, 100% British eggs which it aspires to eventually exclusively stock it’s shelves with.
The retailer also established a producer group of British free range egg farmers designed to encourage greater admittance into the sector in a bid to address the shortages characterising it presently.
Members of the producer group benefit from long-term cost of production contracts, guaranteed minimum volumes, assistance in securing finance from banks, as well as additional funding to build new free-range sheds.
Lidl
Chief commercial officer at Lidl GB, Richard Bourns, said: “We are proud to support British farmers – they are critical to our business, and we wouldn’t be where we are today without them.
“Together with our producer groups, we’ve developed long-term cost of production contracts, providing farmers with the confidence and security they need to invest in their business.
“This commitment ensures a sustainable future for the industry and guarantees high-quality, affordable British eggs for our customers.”
One of the farmers availing of the producer group’s advantages is Julia Brewster, a small family-run farm owner who shared her experience: “In less than a year, we’ve already seen the benefits of joining the producer group.
“Lidl has invested over £5 million into our business and with its support and commitment to buying all our eggs, we’ve gained the confidence to invest further. We’re expanding rapidly, quadrupling our output, and building multiple new sheds – setting us up for the future.”
The retail behemoth, which has its origins in Germany, became one of the first retailers to roll out white eggs across all stores in the UK helping to reduce the environmental impact of the sector.
White eggs are produced by a more sustainable and productive breed of hen which lays longer and consumes less feed than the tradition brown hen, without compromising on the taste or nutritional value of the produce.
Lidl is owned by the Schwarz Group, which operates worldwide as a retail chain and generated a revenue of €167.2 billion in the 2023 financial year.
Managing director at Eggsell, a cooperative of free range egg producers based in East Yorkshire, Tom Elliott, said:
“We’ve partnered with Lidl for over a decade, and it’s exciting to see the way they have stepped up to support the industry in recent years.
“The creation of the producer group and the investments made both into my business and local farms will make the industry more sustainable for years to come.
“The move to long-term open book cost of production-based contracts has meant that I have the confidence to invest in my business and producers have the same.
“We are ramping up capacity in our packing centre to deal with the incredible growth Lidl is seeing,” he added.
