Lidl is to invest £1bn into the British egg industry over the next five years as free-range sales boost category growth.

Building on existing financial incentives aimed at addressing the shortage of British free-range egg farms, the discount grocer has established a producer group of farmers in this sector.

It comes as its free-range egg sales jumped by over a third (34%) in the last year, which it said highlighted the growing consumer preference for higher welfare, locally produced eggs.

Members of the producer group benefit from long-term cost of production contracts, guaranteed minimum volumes, assistance in securing finance from banks, and additional funding to build new free-range sheds.

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Lidl said this helps to ensure the long-term success of farms as it works towards selling exclusively British free-range eggs in all of its stores.

The discounter has also supported the industry further by becoming one of the first retailers to roll out white eggs across all stores in the UK, helping producers by utilising more productive and environmentally friendly birds.

These white eggs are produced by white-feathered hens which lay eggs for longer and consume less feed, while offering customers the same quality and nutritional value as traditional brown eggs.

Lidl GB chief commercial officer 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.”