Lidl offers help to egg farmers and issues plea to other retailers to also offer help

Lidl GB is offering financial incentives for farmers and is also calling on other retailers to find ways to encourage them into the sector.

Following considerable pressure on the egg industry over the past year, Lidl GB is calling on other retailers to take bigger steps to encourage farmers back into the egg sector.

The update comes as Lidl GB confirms it’s taking a bold new approach to boosting British egg production, by offering farmers financial incentives to move into egg farming. 

Existing and new farmers are being offered an extra investment on top of market rates, supported by long term contracts as part of a guaranteed pay back deal. Through these contracts, farmers will then be given the security and confidence required to invest in and expand their existing businesses, helping to provide greater returns in the longer term.

Whilst other supermarkets in recent months have chosen to import eggs from oversees, Lidl GB has held firm on its commitment to source 100% British fresh shell eggs and has focused efforts on supporting the sector.

Said Martin Kottbauer, who is Chief Trading Officer at Lidl GB: “The last year's been particularly  difficult and challenging for the British egg industry, and it’s had an impact on everyone. The easy option would certainly have been for us to source from elsewhere, but we are firmly committed to the long-standing relationships we have with our British suppliers, and our commitment to sourcing 100% fresh shell British eggs.

“As an industry we must be doing more to ensure the long-term sustainability of the British egg sector, which is why we've taken steps to offer incentives and security for farmers to expand into egg production. 

"This approach, supported by long term contracts, is giving our suppliers much needed confidence to invest in their businesses and further secure their futures. We would urge other retailers to do the same.”

Not only is Lidl investing in new producers, the retailer is also supporting existing suppliers and is set to invest an additional £40m compared to last year.

Speaking about their partnership with Lidl, Robert Chapman, of Farmlay Eggs said: “Farmlay and its 25 contract producers are obviously very grateful to Lidl for its support during a very challenging time with Avian Influenza a constant threat. 

"The security Lidl has given us with long term contracts and a cost of production model ensures a good return, back to the primary producer. This security has enabled Farmlay to expand its own production base and also to encourage existing and new producers, like Bob and Kay Adam to invest. The Adam’s first birds were housed at the end of July and we know they’re incredibly excited ahead of their eggs going into Lidl stores. Lidl’s support for the whole British farming sector is second to none; just look at the amount of British and regional products displayed in their stores.”

Farmlay:

Following discussions with packer Farmlay Eggs, Bob and Kay Adam, who are renowned cattle breeders, recently started working with Lidl as part of a five-year contract linked to a cost of production model. This long-term partnership with Lidl gave them the confidence they needed to diversify their business and invest in a 32,000 bird Free Range egg laying henhouse. They will see their first eggs land in Lidl stores within the next two weeks.

Duncan Farms:

Lidl GB is also working closely with its suppliers to support more sustainable farming practices. At the beginning of September, Lidl will launch a new 6 pack of Free Range eggs that have a carbon footprint reduction of almost 60%. Working with its Scottish based egg supplier Duncan’s, the businesses have achieved a significant emissions reduction by removing soy from animal feed, replacing it with feed made of home-grown British beans, whilst significantly increasing biodiversity, amongst other developments. The RSPCA Assured eggs also promote hyper transparency, with the packs featuring a QR code enabling customer to get more information on the five steps of climate action.

Working with Lidl

Suppliers can find out more here - https://corporate.lidl.co.uk/supplier-information

www.lidl.co.uk

Sainsbury’s invests an additional £6m annually in its dairy farmers

Dairy farmers supplying Sainsbury’s with milk will be paid more from next month thanks to a £6m annual investment made by the company to support dairy farms for the future.

Recent reports have indicated that due to factors like rising costs nearly 5% of dairy farmers left the industry last year and one in 10 believe they will have left the sector by 2053.  

Acknowledging the increasing volatility of input costs and high levels of capital investment required by dairy farmers, Sainsbury’s undertook a year-long review, with the support of its Dairy Development Group (SDDG) farmer steering group, into how it pays farmers for milk.

Over the last year Sainsbury’s have paid over £66m of support to British farmers, including increased pay for milk. 

Coming into effect from October First, this latest investment in dairy pay is on top of an £8.9m booster payment given to SDDG farmers in April 2022. 

Since introducing the Cost of Production model to the SDDG back in 2012, Sainsbury’s has paid farmers, on average, 2.45p per litre more compared to the rest of the market, delivering a benefit of £114m.

£4.3m of this new investment will go towards giving farmers an additional fixed 1p per litre for milk on top of the independently calculated Cost of Production price Sainsburys the currently pays farmers.

 With the typical volume of milk produced per year, per farm being roughly 2.7m litres, this means the average farm could receive around £27,000 extra per year. 

Alongside the investment in the new price model, the retailer has also committed £1.7m for sustainability bonuses. Farmers will be rewarded for helping Sainsbury’s achieve its Plan for Better targets, specifically carbon reduction, through activities such as using sustainably sourced feed and using the correct amount of fertiliser, in the proper way. 

The retailer previously committed a sum of £2.6m in bonuses for dairy farmers but is expanding the investment as it shifts the focus towards sustainability.

With new compliance legislation for dairy farmers it’s expected many will need to make expensive updates to their farms, like upgrading and improving feed stores and increasing the size of slurry storage. 

This additional support from Sainsbury’s aims to give farmers the confidence and desire to invest in these long-term changes so they can continue production for years to come.

Gavin Hodgson, Director of Agriculture, Aquaculture and Horticulture at Sainsbury’s, said: “The dairy farming industry is increasingly challenging for farmers and we recognise the responsibility we have as a retailer to support farmers and the need for continuous investment in this sector. 

“We are justifiably proud of our continued investment into the Sainsbury’s Dairy Development Group and we're fully confident our £6m annual investment will help farmers plan for a long-term, sustainable future. In turn, we hope this will also provide surety of supply for our customers as we continue to champion British milk now and for the future.”

The SDDG was founded back in 2007 to provide more support to farmers. It includes over 260 farms who supply Sainsbury’s with its own brand milk. The group includes. For more information visit: Meet our milk farmers – Sainsbury's (sainsburys.co.uk)

Morrisons launches new support package for British farmers to cover rising costs of growing crops

What with rising energy prices, increased fertiliser costs and other price rises, our farmers have certainly being feeling the pinch lately. 

As a result, Morrisons has taken the decision to launch a new support package for British farmers to cover the costs of growing crops.

In fact, Morrisons has become the first UK supermarket to launch a support package that underwrites 100% of the costs associated with growing crops.

The retailer, which has over 1,200 branches throughout England, Scotland and Wales, has invested £2 million in a year-long trial and potato and carrot farmers are the first to benefit under the scheme.

The trial will help British farmers mitigate the cost and weather pressures coming from the peaks and troughs of the seasons, including field rent and fertiliser costs and gives farmers greater financial security with Morrisons shouldering all the risks.

Crops are currently being grown on three potato farms and one carrot farm with the first produce from these farms due to hit the shelves before year's end and into 2024. If successful, Morrisons hopes to roll out this scheme to more farms later next year. 

Morrisons already supports farmers by buying whole crops and picking out any fruit or veg that's perfectly fine to eat but has a quirky shape or a surprising size for its Naturally Wonky range.

Launched back in 2015, Morrisons Naturally Wonky fruit and veg helps reduce food waste in the field and offers affordable produce to its customers. It also provides farmers an alternative route to market. The range includes 24 wonky varieties, and 27,000 tonnes of fruit and vegetables were sold this way last year alone.

Gareth Cosford, who is Morrisons' Senior Buying Manager for Root Vegetables said: “As British farming’s biggest direct customer we understand the impact higher costs are continuing to have on Britain's farmers. As a result, our trial scheme allows us to take all the risks that are associated with growing the crop away from our farmers and continue to grow the best quality British produce our customers know, love and have come to expect.” 

Participating farms so far include Naish Farms Ltd. which grow potatoes for Morrisons.

Andrew Nash, who is a Director at Naish Farms Ltd. said: “Morrisons already buy our whole crop of potatoes from us, taking the top-quality and also the misshapen or the oversized ones and making them available to customers as part of their naturally wonky range. This not only maximises our return, it also offers the best value to their customers.

“In farming there are ups and downs throughout the seasons. For us we are seeing greater weather challenges which could impact our crops and by being part of this new Morrisons trial, they’re underwriting our growing costs to cushion us from the associated risks and provide supply security so  we can focus on growing the very best potatoes for their customers.”

Interestingly, Morrisons is British farming’s biggest direct supermarket customer and works directly with over 2,700 farmers and growers all year round to ensure customers can purchase products of the highest quality. 

This week Morrisons is continuing to support the industry by sponsoring Farm 24, farming's biggest event which highlights the pride of the nation’s food producers. For more information, please visit: https://www.morrisons-farming.com/backing-british/farm24

Some shoppers believe that the Morisons Naturally Wonky fruits and vegetables actually taste better, as they remind them of the "real" fruit and vegetables their parents and grandparents used to be able to buy before the authorities decided that all fruits and vegetables should have uniform size, weight and appearance.

What do you think? Wonky or not? 

'Eggstra' help from Tesco for UK egg farmers

Tesco has revealed it is providing a further £10 million in extra backing for the UK egg industry as it continues its commitment to sourcing all its shell eggs from the UK. 

£6 million of the support will be provided from this month, August, until March 2024. This is on the heels of Tesco’s investment of £27.5m in the sector across 2022/23.

In a further boost to producers and customers, Tesco is lifting its buying restrictions on shell eggs. The restrictions, which mean customers can only buy three packs of eggs at a time, were introduced in November 2022 to ease pressure on a supply chain adversely impacted by price increases in key inputs like feedstuff and energy prices, further impacted by the avian flu outbreak. 

The support package will be paid to suppliers to cover the cost of handling, processing and egg production, including increases in feed for farmers. Tesco will continue to work with suppliers to ensure the extra investment will be passed on to farmers as soon as possible.

Tesco will also continue operating its industry-topping poultry feed model. Poultry feed represents up to 70% of the cost of production on egg and poultry farms. 

The model adjusts to price changes in the market, providing producers with the cost protection and security they require when they are purchasing feedstuffs.

Dominic Morrey, who is the Tesco Commercial Director for Fresh said: “We’re obviously very pleased to be able to provide a further package of financial support to our UK egg suppliers and producers.

"Over the past 18 months the sector has faced some very tough conditions, including increases to inputs like energy and feed, plus the avian flu outbreak, so we hope this support will alleviate some of these challenges.

“As conditions begin to ease, we’re also now able to remove the buying restrictions we’ve had in place on shell eggs since November last year. Customers can be reassured we also remain 100% British on all our shell eggs, with our five-year contracts with our suppliers now well underway.”

Tesco and its suppliers are committed to high welfare standards and together are working towards the retailer’s aim of 100% cage free eggs by 2025. It is hoped the new long-term contracts will help achieve the commitment.

www.tesco.com