UK supermarket chain Morrisons has confirmed that it is now sourcing a significant number of eggs from farmers in Northern Ireland on a daily basis.
The initiative by the supermarket to expand the geographic footprint of its egg supply base got underway in March of this year.
Co. Tyrone egg producer Alfie Shaw is leading Morrisons’ supply chain development work in Northern Ireland.
“This is a long-term commitment on the part of Morrisons to develop sustainable supply relations with flock-owners in Northern Ireland,” Shaw said.
“The retailer is removing a great deal of financial risk from egg producers with these contracts.
“This is absolutely transformational, especially for new producers who are exposed to rises in the cost of production.
“The new contracts are designed to ensure stability of supply by giving producers a fair deal while building long-term commitments,” he added.
Shaw has said that Morrisons guarantees a percentage over and above independently assessed cost of production figures, along with producer-friendly terms.
“I have been working very hard with new and existing egg producers across Northern Ireland to explore the benefits that this exciting new supply opportunity presents,” he added.
Northern Ireland egg industry
March saw the first consignment of eggs from Northern Ireland to Morrisons, and supply is growing week-on-week as new producers come on board.
The supermarket chain is looking to increase its supply base and position itself at the forefront of the market with Northern Irish producers.
This move is part of its strategic plan for expansion, with the goal of ensuring a stable and sustainable supply chain for eggs across the UK.
The contracts entered into with egg producers in Northern Ireland are designed to instil stability for new and existing egg producers, financially de-risking egg production, while building long-term, mutually beneficial supply partnerships.
Northern Ireland has been identified by the retailer as a supply priority region for eggs.
This is in recognition of the quality and expertise within the region’s poultry sector. The move also widens Morrisons’ base to help mitigate the risk posed by avian influenza (bird flu).
Packing for Morrisons
Morrisons’ eggs are packed, graded and distributed through Chippindale Foods.
The Yorkshire-based wholesaler is now owned entirely by Morrisons and supplies the supermarket with around 350 million free-range and organic shell eggs each year.
Claire Anderson, commercial manager for eggs at Chippindale, said: “Since Morrisons bought Chippindale five years ago, the business has invested in significant automation and introduced liquid egg production.
“It is a natural step for us to grow our producer base in new areas as we continue on our journey of growth.
“The quality of production in Northern Ireland is very strong, and we want to grow our supply base here by offering long-term contracts that work for both parties.”