Waitrose has reached an agreement with its egg-packing company, Stonegate, which will ensure relatively steady margins for the farmers who supply the supermarket chain with eggs, fwi.co.uk reports.
The arrangement applies to Waitrose's two egg suppliers – Blacktail and Essential. The deal means that the prices the supermarket chain pays for eggs will fluctuate in accordance with the prices of raw materials needed for the welfare of hens.
Stonegate wrote, “During the last 18 months, the situation has improved, with average feed prices falling. These falls have been experienced at a time of relatively stable egg prices, resulting in most producers benefiting from the situation.
“Currently, feed prices remain relatively low and it is more likely that prices will rise rather than fall. At the moment, if prices rise, this would happen in an environment that does not guarantee egg prices will follow or compensate.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
