The UK’s largest retailer has pledged to continue to source all its shell eggs from the UK as part of a new 5-year contract with its key egg suppliers.
With input costs still soaring, Tesco said it would continue to source all of its shell eggs from British firms, including Noble Foods, Anglia Free Range Eggs, Glenrath Farms, Griffith Family Farms and Skea Eggs. The UK retailer will also continue using its poultry feed tracker model, which has been in use for the past 10 years and helps tackle fluctuations in prices for producers.
Dominic Morrey, Tesco director for fresh food, acknowledged that more needed to be done to help egg farmers challenged by higher feed, energy, labour, packaging and production costs: “That’s why I’m pleased to announce long-term contracts with all our UK shell egg producers. Taken together with our well-established feed model, we hope we can provide the industry with some confidence and protection during these uncertain times.”
Mark Williams, British Egg Industry Council chief executive, welcomed the news: “It is encouraging to see that Tesco is taking a long-term and sustainable approach to its egg supplier relationships at a very challenging time when costs are running so high, while the industry continues to balance its commitment to providing consumers with the highest quality eggs at affordable prices for all.
“British Lion eggs are an integral part of the nation’s diet, offering a highly nutritious and affordable everyday meal solution, so ensuring British farmers can keep Tesco’s shelves stocked with eggs produced to British Lion’s world-leading safety standards, is vital now and for the future.”
“The current economic climate is the most challenging it has ever been…in particular for the poultry sector…”
Clair Bullen, Anglia Free Range Eggs sales and marketing director, said the company had worked alongside Tesco for 10 years: “The current economic climate is the most challenging it has ever been in all of that time – in particular for the poultry sector – feed, energy and inflation costs are all at new levels and this follows a further worst scenario experienced so far for avian influenza.”
Ian Campbell, Glenrath Farms MD, added: “Ten years ago, Tesco introduced a cost of products and feed model to make supplier costs transparent and fair to both supplier and buyer. These models have given Glenrath a fair and up-to-date price for their product. This, in turn, has given the company the confidence to invest in the future.”
Jonathan Griffiths, Griffiths Family Farms MD, said it was clear that the Tesco feed-linked model was providing security for farmers “today and for the future”.
And Noble Foods added: “We look forward to continuing to collaborate with Tesco to design further measures to help alleviate market conditions. This will ensure British egg supply is maintained so that consumers have access to an affordable and healthy diet.”