Tesco has announced it is providing a further £10 million of additional support for the UK egg sector and has said it will continue to sourcing all of its shell eggs from the UK. £6 million of the support will be provided from August this year until March 2024. The move comes after Tesco’s investment of £27.5m in the sector across 2022/23.
Tesco is also 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 that was adversely affected by price increases in key inputs such as feed and energy, as well as the avian flu outbreak.
The support package will be paid to suppliers to cover the cost of handling, processing and egg production, including any increases in feed for farmers. Tesco said it would continue to work with its suppliers to ensure the additional investment gets passed to farmers as quickly as possible.
Tesco will also continue operating its 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 need when buying feed.
Dominic Morrey, Tesco commercial director for fresh said: “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.
“As conditions begin to ease, we’re also 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.”