LIDL has said it will offer farmers financial incentives to move into egg farming.
The supermarket said both new and existing producers would be offered an additional investment “on top of market rates”, supported by long term contracts as part of a “guaranteed pay back deal”.
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It added this additional investment amounted to £40m and that it remained committed to selling only British fresh shell eggs.
Martin Kottbauer, chief trading officer at Lidl GB, said: “The last year has been particularly challenging for the British egg industry, and it’s had an impact on everyone.
“The easy option would certainly have been for us to source elsewhere, but we are firmly committed to the long-standing relationships we have with our British suppliers and our commitment to sourcing 100% fresh shell British eggs.”
Lidl supplier Robert Chapman, of Farmlay Eggs, said: “Farmlay and its 25 contract producers are very grateful to Lidl for its support during a very challenging time with Avian Influenza a constant threat.
“The security that Lidl has given us with long-term contracts and a cost-of-production model ensures a good return back to the primary producer.
“This security has enabled Farmlay to expand its own production base and also to encourage existing and new producers, like Bob and Kay Adam to invest.
“The Adam’s first birds were housed at the end of July and we know they’re incredibly excited ahead of their eggs going into Lidl stores.”