Following the Brexit debacle, U.K. egg producers and especially those operating free-range systems were faced with escalation in the costs of feed, labor and energy. A number of supermarket chains including Aldi adjusted prices and provided cash supplements to farmers.  In contrast, Sainsbury’s were reluctant to increase payments and as their supplying farmers ceased production, their supply chain was constrained. A February survey conducted by the National Farmers Union showed that nearly a quarter of egg producers were unsure of whether they would continue producing eggs in 2025.

In response to representations by the British Free Range Egg Producers Association and possibly informal government intervention, Sainsbury’s has reversed course and has established the Egg Group.  This arrangement involves three major egg packers and over 100 independent supply farms. The previous Conservative government established a Parliamentary Committee to evaluate the stability of the U.K. food chain including farm income that representing the potential for publicizing unfair sourcing policies by Sainsbury’s.

Sainsbury’s has now agreed to pay farmers more than the cost of production for eggs supplied.  Peripheral considerations include exchange of information on production practices and welfare.  The supermarket is, however, imposing requirements on carbon emission and farmers will have to submit to audits.  It is presumed that additional costs involved in compliance with Sainsbury’s standards will be renumerated.