Egg famers in the U.K. that supply the country’s second-largest supermarket chain Sainsbury’s will be able to look forward to a more stable future following the launch of a scheme to increase producers’ resilience and improve bird welfare.
The Egg Group, as the initiative has been called by the grocer and which launches this September, will see it collaborate with its three main egg packers and will include over 100 egg farmers from across the U.K.
An end to losses?
The grocer says that it will take a leadership position on pay for egg famers by making a commitment to always pay the cost of production or above for eggs. This should help to provide financial reassurance in a volatile market, giving egg producers the confidence to invest in their businesses, the retailer says.
The Egg Group will also lay the ground for improved communication and alignment on decisions, which should lead to improvements for both farmers and customers, the retailer has said.
Welfare, sustainability commitments
The group will also drive continuous improvement in animal welfare, and an example of this will be through the sharing of data and insights between farms. The retailer has worked in a similar way with its Dairy Development Group for over 15 years.
To participate in the group, egg producers will have to make a commitment to carbon reduction their production and submit to an annual carbon footprint assessment.
Establishing the Egg Group comes on top a shift from one-year to five-year contracts implemented by the retailer last year and, on its launch a Sainsbury’s spokesperson commented that the company was aware of the challenges facing egg farmers, such as increased production costs and sustainability targets.
Welcome move after difficult times
Sainsbury’s initiative will be welcomed by the country’s egg producers, who, not so very long ago, were particularly unhappy with the retailer.
In March 2022, the British Free Range Egg Producers Association (BFREPA) warned that its members were losing money on every egg laid, and in November that year, called for an urgent meeting with Sainsbury’s after discovering that the retailer was selling imported eggs.
Robert Gooch, then BFREPA chief executive, commented that he was not surprised by the development, having warned that the U.K would run short of eggs and having repeatedly called for retailers to pay more for eggs. Increases had occurred, he noted, but not enough to cover costs
In May last year, it was announced that a parliamentary committee would investigate how profitability and risk are shared in the food supply chain. While in February this year, a survey from industry body the National Farmers’ Union (NFU) found that 24% of egg producers were either unlikely or unsure if they would still be producing beyond 2025.
