Written by Steve McLean, Head of Agriculture & Fisheries, M&S Food

I have been in farming all my life and have worked in agriculture at M&S for the past 14 years, and if, like me, you have been going to work on an egg for that length of time, then you will doubtless have been concerned by the recent headlines about egg shortages, rationing and price rises. All at a time when the cost-of-living crisis is feeling very real.

There are clearly issues in the egg supply chain and many farmers are struggling with the significant headwinds they face, which are having an impact, so at M&S we’ve been working hard to support our egg producers and make sure our customers aren’t disappointed by a shortage of eggs in our stores.

We are long standing, committed supporters of British farming and this year we have provided multi-million pound support to help suppliers manage rising costs – in particular recognising the inflationary pressures in animal feed as a result of the Ukraine Crisis and associated hikes in energy charges, which have reduced the supply of feed and driven up prices globally.

Our payments to egg suppliers mirror the price of feed – when that price goes up, so does the amount we pay our suppliers – and we are already talking about better, more stable, long-term ways to deal with security of supply.

Whilst at least one retailer has chosen to buy eggs from Italy, M&S will only sell British, free range shell eggs and we remain proud to have been the first retailer to move to 100% free range eggs 20 years ago.

So why is the industry finding things so challenging?

Firstly, the number of egg-laying hens in the UK has fallen by around 12% in recent years and is predicted to fall further in 2023 – a trend mirrored across the EU. This is driven by inflation forcing up the cost of feed as well as the price of energy, which alongside a rise in interest rates has made it harder for many farmers to borrow and re-invest in their businesses, so they are farming fewer birds.

Secondly, the poultry industry is now experiencing the biggest Avian flu epidemic on record, with case rates in October across the UK & EU more than ten times that of the previous year. Millions of birds have been culled this year to prevent the spread of avian flu, which means fewer hens laying eggs.

Managing the impact of avian flu creates a lot of work for farmers - with birds being forced to move indoors they need to introduce tougher measures to keep avian flu out and buy more feed for birds, that eat more when not allowed to roam.

At M&S, our commitment to high welfare means that we only work with a small number of Select British Farmers, many of whom we have worked with for decades, so we are acutely aware of the challenges they face and are able to work in partnership and support them.

Last month, when some retailers struggled with supply, the history and strength of our egg supply chain meant that initially M&S was not affected by the overall reduction in eggs across the market. But as others buckled under the strain and introduced buying limits, more customers came to M&S and our overall egg sales increased significantly, forcing us to introduce limits to protect as many M&S customers as possible.

So, what’s the answer – how can retailers, suppliers, farmers and the Government come together to find long term solutions to protect UK egg supply?

• Firstly, farmers need support to help manage the volatile cost pressures the industry is facing and the impact of managing Bird flu. This could be in the form of grants that are linked directly to sudden cost increases, whether that is because of inflation, energy bills or managing avian flu.
• Secondly, with avian flu now a global issue and cases increasing every year, we need the Government to decide what its position is on vaccinating hens and how quickly that can happen so we can protect flocks on an ongoing basis.

And finally, financial help to build more modern farms that will help reduce the spread of avian flu and create better environments for our hens when they are forced to be kept indoors to help avian flu spreading.

These are the conversations I hope to have with industry and the Government this week so that we can build the foundations for a long-term future for UK egg production and in partnership we can avoid shortages and rationing in the years to come.