Tesco is providing a further £10m in additional financial support to its egg suppliers between April 2023 and March 2024.
In an announcement today, it also reaffirmed its commitment to sourcing all of its shell eggs from the UK. Some retailers, such as Sainsbury’s, have been forced to source eggs from the EU in a bid to maintain volumes amid the sector’s long-running supply crisis.
The move follows Tesco’s investment of £27.5m in the sector across 2022/23. The retailer said it would work with its suppliers to ensure the financial support reaches farmers as quickly as possible.
The package will be paid to suppliers to cover the cost of handling, processing and egg production, including covering feed price increases.
“We’re really pleased to be able to provide a further package of financial support to our UK egg suppliers and producers,” said Dominic Morrey, Tesco commercial director for fresh.
“The sector has faced some very tough conditions over the past 18 months, including increases to inputs such as feed and energy, as well as the avian flu outbreak, so we hope this support alleviates some of these challenges.”
Tesco has also lifted buying restrictions on shell eggs, which previously limited customers to buying three packs of eggs at a time.
The restrictions were introduced in November to ease pressure on the supply chain at the height of the sector’s supply crisis.
The retailer will also continue operating its poultry feed model, which adjusts to price changes in the market and provides producers with “cost protection and security” when buying feed. It said the additional financial backing would help it achieve its commitment ending its dependence on caged hen eggs by 2025.
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