Tesco has announced an additional £10 million support package for UK egg farmers, marking progression in industry recovery.
- The egg industry previously faced restrictions due to supply chain pressures from price hikes and avian flu.
- Tesco’s earlier investment of £27.5 million in 2022-2023 underscored its commitment to UK-sourced eggs.
- The support aims to alleviate costs associated with handling, processing, and production, including feed expenses.
- With easing conditions, Tesco has removed purchasing limitations on shell eggs, ensuring customers access to British products.
Tesco has declared an additional £10 million support for British egg farmers. This funding reflects encouraging signs of recovery within the egg industry following the challenges that arose from the cost-of-living crisis.
Restrictions that previously limited customers to purchasing three packs of eggs, introduced in November 2022, have been revoked. This measure was a response to supply chain difficulties exacerbated by rising prices and avian influenza.
In the past year, Tesco invested £27.5 million to support the sector, reinforcing its dedication to sourcing eggs from the UK. The retailer aims to achieve 100% cage-free eggs by 2025, working closely with suppliers to maintain high welfare standards.
The payment scheme will operate from August 2023 to March 2024, focusing on the costs of handling, processing, and production. This includes addressing the rise in feed prices, which can account for up to 70% of production expenses.
Tesco continues to employ its market-leading poultry feed model, which adapts to market price fluctuations, providing financial security for producers. This system aims to safeguard farmers from volatile feed costs, thus stabilising production expenses.
Dominic Morrey, Tesco’s commercial director for Fresh, expressed satisfaction with the additional financial support for suppliers, noting the difficult conditions of the past 18 months. He reassured customers that all shell eggs would remain 100% British, underpinned by five-year supplier contracts.
Tesco’s continued financial support highlights its dedication to strengthening the UK egg industry amidst ongoing challenges.
