Aldi invests £1bn in British egg sector

Discount supermarket Aldi has announced a £1.1bn investment in British egg production over the next five years, as it looks to strengthen supply chains and provide greater certainty for UK poultry farmers.

The supermarket, now the UK’s fourth largest, sells about 2.5m boxes of British eggs each week, sourced from farms across the country.

Central to the commitment are new five-year, long-term agreements with egg suppliers, running until 2030.

See also: M&S offers farmers decade-long contracts for beef and sheep

These contracts are intended to provide producers with greater financial stability, allowing them to plan and invest in areas such as efficiency, infrastructure and animal welfare.

Aldi UK’s chief commercial officer, Julie Ashfield, said: “Our egg supply depends on British farmers, and we want to give them the certainty they need to plan ahead.

“By working closely with our suppliers through long-term agreements, we’re able to provide the stability and confidence they need to continue investing in their farms, while ensuring our customers have access to high-quality, British eggs every day.”

Planning ahead

Aldi is currently the UK’s second-largest retailer for free-range egg sales by volume, reflecting its reliance on domestic, higher welfare production systems.

Producers say the longer-term agreements offer a more stable footing in a sector that has faced volatility in recent years.

Daniel Fairbun, chief executive at egg supplier L J Fairbun & Son, said: “The long-term nature of Aldi’s agreements gives us the certainty to invest and keep improving how we produce British eggs.

“That confidence also helps us plan year after year to meet customer demand.”

The move builds on Aldi’s wider strategy to increase the use of long-term agreements across its UK supply base.

Earlier this year, the retailer expanded similar arrangements with UK produce and horticulture suppliers, aiming to secure at least half of its domestic produce through such agreements by 2027.