Lidl GB has confirmed that it is offering farmers financial incentives to move into egg farming.
The retailers is offering new and existing farmers an additional investment on top of market rate, supported by long-term contracts as part of a guaranteed pay back deal. Further details have yet to be announced.
It hopes that these long-term contracts will provide its suppliers with security, and in turn confidence, to invest in their futures.
It is also calling on other retailers to follow suit, and find ways to “encourage farmers back into the egg sector”.
“As an industry we need to be doing more to ensure the long-term sustainability of the British egg sector, which is why we have taken steps to offer incentives and security for farmers to expand into egg production,” Martin Kottbauer, chief trading officer at Lidl GB commented.
“We would urge other retailers to do the same.”
Lidl GB is also supporting its existing suppliers with additional £40 million investment compared to last year.
These measures follow what Kottbauer acknowledges has been a “particularly challenging” year for the British egg industry, with particular pressure coming from avian influenza (bird flu) outbreaks and the cost-of-living crisis.
A government-issued review to help establish fairer supply chains in the egg sector is due to take place this autumn.
