A Scottish egg producer has picked up the gauntlet thrown down by Somerfield and Morrisons' move to import free-range eggs.

Peeblesshire-based Glenrath Farms has submitted plans to invest £8m in enough free-range birds and sheds to produce an extra 100 million eggs a year. One new shed is already going up, and will allow the company to supply Tesco and Asda with an extra 12.5 million free-range eggs a year.

The move comes after free-range egg producers complained they weren't being paid enough by retailers to justify increasing supplies. But Glenrath owner John Campbell said that was about to change.

"Prices are about to go up. There's a huge shortage of free-range eggs in the country and for the first time, we're short as well."

Glenrath's eggs won't be available until spring. In the meantime Morrisons has started importing free-range eggs from Holland. "These are clearly labelled and are approved to KAT standards," said a spokeswoman.