Tesco is set to invest £13.9 million into supporting British egg suppliers and producers as the industry struggles with price increases and the avian flu outbreak.
Following continued challenging market conditions, this figure comes on top of the £13.6 million of support already provided by the leading retailer since March.
Earlier this year, Tesco launched contracts with its five main British shell egg suppliers which includes Anglia Free Range Eggs, Glenrath Farms, Griffiths Family Farms, Noble Foods and Skea Eggs.
As a result, the supermarket giant will continue to stock 100% British eggs in its stores, alongside the current support package which is set to last until March 2023.
The support package will be paid to suppliers to cover handling, processing and egg production costs, while the Big 4 grocer has said it will continue to work with its suppliers to ensure additional investment gets passed on as quickly as possible.
Tesco is also continuing its poultry feed model which adjusts to price changes in the market and provides producers with cost protection and security when buying feed, as poultry feed represents up to 70% of the cost of production on egg and poultry farms.
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“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,” Tesco commercial director for fresh, Dominic Morrey said.
“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.”
British Egg Industry Council chief executive, Mark Williams added: “We are delighted that Tesco is investing in its supply chain to support British egg producers. We know that consumers want and expect the eggs on retailers’ shelves to be British and it is great to see Tesco publicly reinforcing its commitment to stock British Lion eggs.
“The Lion is not only recognised by consumers as a sign of quality, but it also shows that the eggs are approved by the Food Standards Agency to be eaten runny by everyone, including vulnerable groups.”
This comes as Waitrose has invested £2.6 million in its egg farmers as it remains one of the few supermarkets to not impose purchase limits.
