Supporting The UK Egg Sector


Tesco has announced it is providing a further £10 million additional support for the UK egg sector as it continues its commitment to sourcing all its shell eggs from the UK. £6 million of support will be provided from August until March 2024. The move comes after Tesco invested £27.5 million in the sector from 2022 to 2023.

To further boost producers and customers, Tesco is 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 and 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 will 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 industry-leading poultry feed model. Poultry feed represents up to 70 percent 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 the supermarket chains were happy to provide further financial support to its UK egg suppliers and producers. Continued that the sector had faced some very tough conditions over the past 18 months, including increases to inputs such as feed and energy and the avian flu outbreak, so we hope this support alleviates some of these challenges.

“As conditions begin to ease, we can also remove the buying restrictions we’ve had in place on shell eggs since November last year. Customers can be reassured we also remain 100 percent British on all our shell eggs, with our five-year contracts with our suppliers now well underway,” said Morrey.

Tesco and its suppliers are committed to high welfare standards and are working towards the retailer’s aim of 100 percent cage-free eggs by 2025. It is hoped the new long-term contracts will help achieve the commitment.