Energy crisis spreads to UK food supply chain, already battered by labor shortage amid Brexit and Covid-19 – RT Business News



[ad_1]

British meat processors have become the latest victim in the growing energy crisis that threatens to lead to a severe shortage of carbon dioxide, which is widely used in the food and drink industry.

Carbon dioxide is a by-product of the production of fertilizer which is used to stun animals before slaughter as well as for the packaging process which extends the shelf life of all meat, as well as in beverages carbonated and beer.

However, soaring gas prices have led to a slowdown in some chemical plants in Europe that produce fertilizers, as a large US producer is forced to shut down operations at two manufacturing complexes in the UK for an uncertain period.



Also on rt.com
Soaring energy prices in Europe are forcing UK factories to close


“This crisis highlights the fact that the UK food supply chain is at the mercy of a small number of large fertilizer producers – four or five companies – spread across northern Europe. We are relying on a by-product of their production process to keep the UK food chain moving ”, Nick Allen, chief executive of the British Meat Processors Association (BMPA) told the BBC after emergency talks with the Department of Environment, Food and Rural Affairs (Defra).

According to the managing director of the British Poultry Council, Richard Griffiths, some 20 million birds per week are culled, but slaughterhouses lack carbon dioxide.

“If CO2 supplies become tighter and more unpredictable, supply chains will have to slow down. Ultimately, no CO2 means no flow ”, Griffiths said, noting that the sector is already facing growing labor shortages.

In addition, the Cucumber Growers Association has expressed deep concern about the effects of high natural gas prices on crops.



Also on rt.com
European natural gas price hits all-time high as EU debates restraining Russian imports


The gas is commonly used for heating greenhouses and, along with carbon dioxide, “Are both critical factors for growth and obtaining the returns necessary to survive in modern industry”, said the association.

The UK food industry has been battling for full shelves and stocked menus in recent months amid a shortage of workers which is in part attributed to Brexit and the Covid-19 pandemic. Meat processors, in particular, have reportedly faced a shortage of truck drivers as well as recruitment problems at slaughterhouses.

Some grocery stores across the country are running out of items such as bacon, milk, and bread. Meanwhile, McDonalds said it ran out of milkshakes last month, and other farmers have warned of a backlog of pigs due to lack of manpower.

For more articles on economics and finance, visit the business section of RT

[ad_2]

Source link