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Tesco (TSCO.L), Britain's biggest supermarket group, and German discounter Aldi will provide an additional 26.4 million pounds ($32 million) in support to the country's struggling egg industry.
The UK egg industry is currently in crisis resulting in
ration shortages by major supermarkets including Tesco, Asda and Lidl.
Retailers blamed the shortage on Britain's biggest outbreak
of Avian flu, which killed some birds and contributed to panic buying.
However, producers say the main reason for this is that they are not being paid enough for their rising feed and energy costs for eggs, which has forced some out of the industry, reducing capacity.
Tesco said its commitment to provide a further 13.9 million
pounds of support until March 2023 takes its total support to 27.5 million
pounds since March this year.
Aldi said it was contributing another 12.5 million pounds by
March, taking its total support to 38 million for the year.
Tesco said the support will be paid to suppliers to cover
the cost of handling, processing and egg production, including any increases in
feed prices for farmers.
"Tesco will continue to work with its suppliers to
ensure the additional investment gets passed to farmers as quickly as
possible," it said in a statement.
($1 = 0.8280 pounds)
Source:
Online/SZK
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