Small egg producers claim their sales to Tesco have plummeted by nearly 50pc in recent weeks due to pricing changes employed by the retail giant.
The producers supply branded eggs to the chain from the west and south of the country. They said that the shelf price charged by Tesco has increased by approximately 40c per dozen in the last month, but that the retailer had not passed on any of the price increase to suppliers.
They alleged that Tesco had held the price of its own-brand eggs. As a result, the sales of the branded eggs were collapsing.
When contacted, a statement from Tesco said that it would not comment on the commercial terms that it agreed with its suppliers.