August 24, 2007

UK egg producers hail Tesco's move to pay higher prices

UK's National Farmers Union (NFU) has hailed a move by supermarket chain Tesco to pay higher egg prices to producers.

Tesco is increasing the price it pays its egg suppliers - by an average of 4p/dozen.

Higher grain prices have caused feed prices to rise by 25 percent in recent months, bringing pressure to bear on producers.

The days of cheap food are rapidly coming to an end everywhere, said NFU president Peter Kendall.

Praising Tesco as a responsible retailer, Kendall said he hopes other retailers would follow its lead.

NFU poultry board chairman Charles Bourns added that Tesco's initiative sent out the right signals.