The egg sector has welcomed Tesco’s increase in the price it pays its suppliers, but more is needed to cover the recent increases in production costs, especially feed.

The supermarket chain has agreed to pay its suppliers an average extra 4p/doz to meet the rising cost faced by the industry.

Finn Cottle, marketing director for egg packer Noble Foods, said: “As the largest UK egg packer, we fully support the increase. The majority of other retailers are supporting the need. We are working together to ensure the increase is 100% across all retailers.

“Its very good news for now and a positive step.

“However, farmers’ expectations are high and they anticipate further increased costs. There is a continuing need to improve their returns to compensate.”

Duncan Priestner, NFU vice chairman for eggs, added: “It’s good news to increase the prices, as we obviously need it but it’s disappointing as we need an awful lot more money. Feeds and pullet prices are going up every day and it’s not going to be enough.

“These are genuine price increases that people will have to cope with and supermarkets need to move more to meet the cost rises.”

However, prices on supermarket shelves went up by 20p/doz for free range. Barn and value eggs also increased in recent weeks.