In a significant move, Tesco has allocated £10 million to support the recovering UK egg industry, following severe challenges faced over the past year.
- Buying restrictions on eggs, implemented in November 2022 due to supply chain strains, have now been lifted.
- The investment follows a prior £27.5 million backing by Tesco to source eggs from the UK and ensure high welfare standards.
- From August 2023 until March 2024, £6 million will be allocated to cover increased costs in egg handling, processing, and production.
- Tesco’s commitment includes maintaining their leading poultry feed model, offering financial protection against fluctuating feed prices.
Tesco has announced the provision of a further £10 million to aid the UK’s egg sector, marking a positive stride amidst the industry’s recovery phase. This move comes after restrictions were applied in November 2022, limiting customers to buying three egg packs at a time due to supply chain pressures from rising prices and an avian flu outbreak.
Earlier investments by Tesco, totalling £27.5 million over 2022-2023, reflect the retailer’s ongoing commitment to sourcing eggs domestically. This initiative also aims to uphold stringent welfare standards, with a target for 100% cage-free eggs by 2025.
A substantial portion of this new investment, amounting to £6 million from August 2023 to March 2024, is directed towards reimbursing suppliers for costs associated with egg handling, processing, and production. This funding aims to alleviate the financial burdens posed by rising feed prices for farmers.
Central to Tesco’s strategy is the continuation of its acclaimed poultry feed model. This model adapts to market shifts, ensuring producers receive the necessary financial cushion to manage feed costs, a component that constitutes up to 70% of egg and poultry production expenses.
The relaxation of purchasing restrictions on shell eggs signals a recovery in conditions. Dominic Morrey, Tesco’s commercial director for Fresh, expressed optimism about this development, reaffirming Tesco’s dedication to supplying 100% British eggs under long-term supplier contracts.
This initiative underscores Tesco’s strategic efforts to stabilise and support the resilient UK egg industry.
