Lidl injects £1 billion in British egg sector
Lidl says it has strengthened its commitment to the British egg industry by injecting £1 billion over five years, with free-range sales boosting category growth.
The investment, the retailer said, underscores its dedication to supporting British farmers and ensuring a consistent supply of high-quality, 100 per cent British eggs.
Building on existing financial incentives, aimed at addressing the shortage of British free-range egg farms, Lidl has also established a producer group of British free range egg farmers.
This follows its free-range egg sales jumping by over a third (34 per cent) in the last year, highlighting the growing consumer preference for higher welfare, locally produced eggs.
Members of the producer group benefit from long-term cost of production contracts, guaranteed minimum volumes, assistance in securing finance from banks, and additional funding to build new free-range sheds. This helps ensure the long-term success of farms, as Lidl works towards exclusively stocking British free-range eggs in all its stores.
Lidl has also supported the industry further by becoming one of the first retailers to roll out white eggs across all stores in the UK, helping producers by utilising more productive and environmentally friendly birds. These white eggs are produced by white-feathered hens. They lay eggs for longer and consume less feed, whilst offering customers the same quality and nutritional value as traditional brown eggs.
Richard Bourns, Chief Commercial Officer at Lidl GB, said: "We are proud to support British farmers – they are critical to our business, and we wouldn’t be where we are today without them. Together with our producer groups, we’ve developed long-term cost of production contracts, providing farmers with the confidence and security they need to invest in their business. This commitment ensures a sustainable future for the industry and guarantees high-quality, affordable British eggs for our customers."
Julia Brewster, a small family-run farm owner and producer group member, said: “In less than a year, we’ve already seen the benefits of joining the producer group. Lidl has invested over £5 million into our business and with its support and commitment to buying all our eggs, we’ve gained the confidence to invest further. We’re expanding rapidly, quadrupling our output, and building multiple new sheds – setting us up for the future”.
Tom Elliott, Managing Director at Eggsell, added: “We’ve partnered with Lidl for over a decade, and it’s exciting to see the way they have stepped up to support the industry in recent years. The creation of the producer group and the investments made both into my business and local farms will make the industry more sustainable for years to come. The move to long-term open book cost of production-based contracts has meant that I have the confidence to invest in my business and producers have the same. We are ramping up capacity in our packing centre to deal with the incredible growth Lidl is seeing.”
