Tesco has today (Friday, November 25) announced that it will provide £13.9 million in additional support for its British egg suppliers and producers.
The announcement comes as the egg industry continues to experience challenging market conditions brought on by price increases for feed and energy and the ongoing avian influenza (bird flu) outbreak.
The funds are part of an investment into the UK egg sector that saw £13.6 million allocated already in March of this year.
Tesco said the £13.9 million of additional support announced today would last until March 2023, but that its support for the industry would continue after that date.
Earlier this year, Tesco announced five-year contracts with its five main British shell egg suppliers – Anglia Free Range Eggs, Glenrath Farms, Griffiths Family Farms, Noble Foods and Skea Eggs.
The contracts, which began in October, mean Tesco will continue to stock 100% British shell eggs in its stores as part of its commitment to British suppliers.
Dominic Morrey, Tesco commercial director for Fresh, said: “We know the British egg sector continues to face acute market conditions with input costs continuing to increase, and avian flu causing disruption and adding complexities to farming conditions and the supply chain.
“We’re pleased to continue our support for UK suppliers and producers, as well as provide reassurance to our customers that we will remain 100% British on all our shell eggs.
“With five-year contracts with our suppliers now underway and our well-established feed model in place, we hope the support we’re providing alleviates some of the pressure being felt and provides the industry with confidence and protection during these uncertain times.”
The retailer also confirmed the continuation of its poultry feed model.
Retailer support for egg sector
Earlier this week (Tuesday, November 22) Sainsbury’s announced that it has increased the price it pays for eggs by 20% in its latest effort to help egg farmers during this current period of supply chain problems.
According to the retailer, this brings the total increase in pay for its producers to around 40% in the past 12 months.
Richard Crampton, director of fresh food at Sainsbury’s, said: “In response to high levels of inflation in June, we accelerated our support, making a meaningful 20% increase in the amount we pay for eggs and last week, we further doubled this investment, paying an additional 20%.
“We have always believed in close collaboration with our farmers and in paying them fairly and, as inflationary pressures rise, we continue to do everything we can to help all our suppliers and communities.”
The supermarket has also increased the amount it pays its egg packers over the past 12 months.
“We understand that farmers who supply our own-brand egg packers are also facing significant challenges and it is clear that this is impacting the number of eggs they are able to produce,” Crampton continued.
“I firmly believe that right now prioritising financial support to our farmers is the right thing to do,” he added.
“It will ensure they have the confidence and resources to be able to invest in ensuring supply for customers both now and in the future.”
