Tesco commits an additional £10 million to support UK egg farmers, signaling industry recovery.
- Buying restrictions on eggs, imposed during the cost-of-living crisis, have been lifted.
- Tesco has previously invested £27.5 million, upholding its commitment to British-produced eggs.
- The retailer aims for 100% cage-free eggs by 2025, maintaining high welfare standards.
- Tesco’s feed model offers cost protection to farmers, vital for stable egg production.
In a significant move to bolster the UK egg industry, Tesco has announced an additional £10 million in support, highlighting the first signs of sector recovery since the onset of the cost-of-living crisis. This financial aid is part of Tesco’s ongoing efforts to stabilize the industry, which faced substantial challenges due to price hikes and avian flu. Previously, purchasing restrictions limited customers to three packs of eggs, but these have now been relaxed as conditions improve.
Over the 2022-2023 period, Tesco invested £27.5 million into the egg sector, demonstrating a strong commitment to sourcing all eggs from UK producers. This initiative aligns with the company’s broader objectives of supporting domestic agriculture and ensuring high welfare standards. Tesco’s vision extends to achieving 100% cage-free eggs by 2025, reflecting its dedication to ethical sourcing.
The latest £10 million support package will be distributed to suppliers over the course of several months, ending in March 2024. The funds are earmarked to assist with handling, processing, and production costs, which have escalated due to increased feed prices. Feed costs represent a significant portion of production expenses, and Tesco’s adjustable feed model provides a safety net for producers, adapting to market price fluctuations.
Earlier this year, the National Farmers Union called for urgent measures as egg shortages led to supermarket rationing and the importation of Italian eggs. In response, Tesco has worked diligently with its suppliers to ensure the resilience of the UK egg supply chain. The company reassures customers of its commitment to maintaining 100% British shell eggs, reinforced through five-year contracts with suppliers.
Dominic Morrey, Tesco’s Commercial Director for Fresh, expressed optimism about the easing of supply chain difficulties, saying, “We’re really pleased to be able to provide a further package of financial support to our UK egg suppliers and producers. The sector has faced some very tough conditions over the past 18 months.” His statement underscores Tesco’s continuous efforts to tackle the challenges faced by the egg farming community.
Tesco’s strategic financial support underscores its commitment to sustaining UK egg production and ensuring supply chain resilience.
