CashNews.co
Free-range egg producers supplying the U.K.’s seventh largest supermarket chain Lidl are to receive an extra GPB1 billion (US$1.3 billion) over the next five years. The funding builds on existing incentives from the supermarket and comes after a period of shortages of free range eggs in the country.
The retailer has also established a producer group for free-range egg farmers. Members will benefit from long-term cost of production contracts, guaranteed minimum volumes, assistance in securing finance from banks and additional funding to build new free-range sheds.
Move to free range only
The measures should, Lidl believes, help to ensure the long-term success of farms as it moves to stocking only British free-range eggs in all of its 960 stores. In late 2022, the retailer committed to selling only free-range eggs by the end of this year, saying that it would work with producers to phase out the sale of eggs from caged hens.
Richard Bourns, chief commercial officer at Lidl GB, commented: “Together with our producer groups, we’ve developed long-term cost of production contracts, providing farmers with the confidence and security they need to invest in their business.
“This commitment ensures a sustainable future for the industry and guarantees high-quality, affordable British eggs for our consumers.”
The company has also announced that it has become one of the first retailers to roll out white eggs across all of its U.K. stores, supporting farmers in adopting more productive and environmentally friendly birds.
Improving outlook for UK egg producers
Lidl’s commitment to egg producers follows an announcement from Sainsbury’s, the U.K.’s second largest supermarket chain, detailing the formation of The Egg Group, established to ensure the ongoing viability of its egg suppliers, and follows a period of difficulty in the U.K. free-range supply.
Earlier this year, the U.K. government announced that it was committed to ending unfair practices in the egg supply chain. Key amongst the changes would be written agreements between producers and buyers with the Department for Environment, Food and Rural Affairs (DEFRA) saying that it would work with industry “at pace.”