'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