Lidl has announced the creation of a new free range egg producer group as well as £1 billion worth of investments into its suppliers' businesses.
The retailer's new announcement builds on existing financial incentives aimed at addressing the shortage of British free-range egg farms.
The new £1 billion investment, to be made over five years, would "support farmers and ensure a consistent supply of high-quality, 100% British eggs".
The producer group will enact long-term cost of production contracts and guarantee minimum volumes.
It will also assist in helping producers secure finance from banks and issue funding to build new free-range sheds.
It follows egg sector pressures including avian influenza outbreaks, surging costs and low prices.
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 that, in less than a year, the farm had 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”.
