Increasing demand for cereals on the global market is seriously impacting on the price of animal feed and cost pressures for poultry farmers are set to increase. Latest figures from the NFU show the price of feed has risen by 25 per cent over the last year. Free-range poultry producers currently pay £160 per tonne compared to £127 per tonne this time last year.

NFU President Peter Kendall said: “The days of cheap food are rapidly coming to an end everywhere.

“Tesco’s initiative on eggs is exactly what we would expect from a responsible retailer and we expect others now to follow their lead.”

NFU poultry board chairman Charles Bourns added: “This increase by Tesco is welcome. The cost of production is going up for poultry producers everywhere and this sends out the right signals.”