Tesco is providing a further £10m to support the country’s struggling egg industry.
The sector has been impacted by an outbreak of Avian flu and increases to input costs such as feed and energy, which have led to egg shortages in some supermarkets over the last year.
Tesco stated that the support package would be paid to suppliers to cover the cost of handling, processing and egg production, including any increases in feed for farmers.
The £10m covers the period from April 2023 to March 2024, and comes on top of an initial contribution of £27.5m in the previous financial year.
Tesco also noted that easing supply conditions meant it could lift restrictions which had previously limited customers to purchasing three packs of eggs at a time. The limit was imposed in November last year to protect the supply chain, with other supermarkets also rationing eggs.
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.”
NAM Implications:
- Every little helps…
- Seriously, farmers need all the help they can get.
- And the largest retailer has to gain from being a contributor.
- Leaving their rivals to follow suit…
- …or surrender some competitive advantage.
