Tesco announces £10 million support for UK egg farmers.
- Egg buying restrictions introduced in 2022 have been lifted.
- £6 million will be allocated to suppliers from August 2023 to March 2024.
- The investment follows a previous £27.5 million contribution for UK egg sourcing.
- Tesco aims for 100% cage-free eggs by 2025, focusing on high welfare standards.
Tesco has revealed a new financial package amounting to £10 million aimed at aiding UK egg farmers, marking a step towards recovery for the sector after facing significant challenges over the past 18 months. The initiative aims to stabilise the industry which was impacted by rising costs and the avian flu outbreak.
The previous restriction allowing customers to purchase only three packs of eggs was imposed in response to the national egg shortage, exacerbated by external pressures. Now, with conditions improving, this restriction has been lifted.
As part of its continued commitment to the UK egg supply chain, Tesco is providing £6 million from August 2023 until March 2024. This funding will assist suppliers in managing handling, processing, and production costs, including fluctuations in farmers’ feed prices. Poultry feed costs, representing 70% of production expenses, are supported by an adaptable pricing model offering cost protection and market security.
This recent £10 million support follows Tesco’s previously invested £27.5 million from 2022 to 2023, reinforcing its pledge to source all eggs from within the UK. In partnership with suppliers, Tesco is steadfast in achieving its goal of 100% cage-free eggs by 2025, upholding high welfare standards throughout its supply network.
Dominic Morrey, Tesco’s commercial director for Fresh, stated, “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, 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.”
The financial aid by Tesco highlights a strategic move to bolster the UK’s egg sector, promoting sustainability and recovery.
