Lidl has announced the establishment of a new free-range egg producer group along with a £1bn investment into its suppliers' businesses.

This new initiative builds on the retailer's existing financial incentives designed to address the shortage of British free-range egg farms.

The £1bn investment, spread over five years, aims to ‘support farmers and ensure a consistent supply of high-quality, 100% British eggs.’

The producer group will apply long-term cost-of-production contracts and guarantee minimum volumes.

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Additionally, it will assist producers in securing financing from banks and provide funding for the construction of new free-range sheds.

This move comes in response to challenges in the egg sector, including avian influenza outbreaks, rising costs, and low prices.

Richard Bourns, chief commercial officer at Lidl GB, stated: "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, owner of a small family-run farm and member of the producer group, noted that in less than a year, the farm had already experienced the benefits of joining.

She commented: “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”.