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