Aldi is ploughing an additional £12.5m in financial support into its egg supply chain, in the wake of growing egg shortages across the mults.
The retailer said the support package would bring the total amount of financial support Aldi has provided to the beleaguered sector to £38m, having invested some £25.5m since April 2022 alone.
The package follows growing unrest from egg producers, who have been campaigning since the spring for better returns for their produce in the face of soaring input costs in areas such as feed, fuel and energy.
But despite the British Free Range Egg Producers Association calling for a 40p per dozen increase in farmgate prices, the true figure going back to producers is less than half this figure – despite soaring retail prices – prompting many to either halt production or rein it back, leading to egg shortages across the major supermarkets.
In addition to its financial commitment to producers, Aldi added it would continue stocking only 100% British eggs in all its 980 stores nationwide – in an apparent reference to how other supermarkets, such as Sainsbury’s, had been forced to source imported shell eggs to make up the shortfall.
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“We have always believed in maintaining strong, long-term relationships with our suppliers, which is why we have already invested more than £25m in supporting our egg processors and producers this year, to help them meet the rising costs they are facing,” said Aldi MD for buying Julie Ashfield.
“Unfortunately, those challenges have not gone away, which is why we are pledging a further £12.5m now to support the egg industry. We will continue to work with our suppliers to make sure that investment gets passed to those who need it most as quickly as possible.”
Aldi’s move represents the latest attempt by the mults to shore up their egg supplies. The Co-op announced on Friday it would introduce a “new multimillion-pound support package to bolster our help, which will see our total additional investment top £5.6m [this year]”.
“We are all aware of the challenges farmers are facing and the last 12 months have been some of the most turbulent suppliers have experienced,” said Co-op Food MD Matt Hood.
“Co-op has pledged to continue backing British egg suppliers,” he added. “We continue to work with our suppliers and farmers to build an efficient, effective and sustainable British egg supply chain for now and the future.”
Friday also saw Tesco announce £13.9m in support for its egg suppliers and producers until next March, which followed £13.6m in extra funding already provided by Tesco since March this year.
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, Tesco said. It added it would work with its suppliers to ensure the additional investment got passed on to producers as quickly as possible.
“We know the British egg sector continues to face acute market conditions with input costs continuing to increase, and avian flu causing disruption and adding complexities to farming conditions and the supply chain,” said Dominic Morrey, Tesco commercial director for fresh.
“We’re pleased to continue our support for UK suppliers and producers, as well as provide reassurance to our customers that we will remain 100% British on all our shell eggs.”
In response, Mark Williams, CEO of the British Egg Industry Council, said the trade body was “delighted that Tesco is investing in its supply chain to support British egg producers. We know consumers want and expect the eggs on retailers’ shelves to be British and it is great to see Tesco publicly reinforcing its commitment to stock British Lion eggs.”
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