HEN welfare is at the heart of a £500,000 investment by a North Yorkshire egg producer as supermarket supply contracts lead to increasing demand.

James Potter Yorkshire Free Range Eggs, based near Thirsk, has invested the six figured sum in a new poultry shed and equipment to maintain its officially recognised welfare levels of its hens.

The shed, which is set to be in operation from tomorrow, will encompass the latest developments in poultry housing.

This includes a multi-tier structure which has been developed by observation of bird behaviour, and will allow the hens to express the same natural behaviour they would in the wild.

Company director James Potter said: "Consumers’ demand for food from high welfare and trusted sources is increasing year on year and we have always prided ourselves on adhering to these principles in our farming.

"This investment ensures that we stay ahead of the game in terms of hen welfare and continue leading the way in free range egg production."

The business has seen 250 per cent increase in production over the last five years to become the UK's second largest producer of free-range-only eggs, turning over more than £18 million a year with a team of 20 staff.

When the hens are not inside the new sheds, they will be able to access a range offering acres of stimulating environment, with specially planted trees and vegetation to encourage natural foraging.

The investment is the latest example of the company’s commitment to ensuring high standards of welfare for its birds. In 2013, James Potter Yorkshire Free Range Eggs was awarded a Good Farm Animal Welfare Award by Compassion in World Farming, in recognition of its continuing dedication to farm animal welfare.

The company has also previously invested in a state of the art crack detection system which can monitor 130,000 eggs and hour.

The business is run by Susan and Rodger Potter and their sons James and Adrian, and daughter Rebecca. Founded more than 30 years ago, the Potter family has been farming hens in Yorkshire for three generations.

Eggs are collected and packed daily so can be in the shop within 24 hours of being laid.

James Potter Yorkshire Free Range Eggs also donates 1p for every dozen eggs sold to the Yorkshire Air Ambulance.

The company's eggs are available to buy in Asda, Tesco, Tesco Express and Sainsbury’s stores across Yorkshire.