Following the turmoil in the egg industry over the past year, Lidl is calling on other retailers to take more significant steps to encourage farmers back into the sector.
The statement came as Lidl GB confirmed that it is taking a new approach to boosting British egg production by offering farmers financial incentives to move into egg production.
Existing and new farmers are being offered an additional investment on top of market rates, supported by long-term contracts as part of a guaranteed pay back deal. The discounter stated that through these contracts, farmers will be given the security and confidence needed to invest in and expand their existing businesses, helping to provide greater returns in the long term.
Whilst some other supermarkets have been importing eggs from overseas to make up for local shortages, Lidl held firm on its commitment to source only British eggs and has focused efforts on supporting the sector.
Martin Kottbauer, Chief Trading Officer at Lidl GB, commented: “The last year has been particularly 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 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 need to be doing more to ensure the long-term sustainability of the British egg sector, which is why we have taken steps to offer incentives and security for farmers to expand into egg production. This approach, which is 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.”
As well as investing in new producers, the retailer is also supporting existing suppliers and is set to invest an additional £40m compared to last year.
NAM Implications:
- A need too great to be left to Lidl.
- i.e. a pointer for all retailers.
- (Why wait for the government to discover there is a problem?)
