UK meat industry warns of looming threat to supplies due to CO2 crisis

LONDON, Sept. 20 (Reuters) – Some UK meat processors will run out of carbon dioxide (CO2) within five days, forcing them to shut down production and affecting the supply of food retailers, the head of the food retailer warned on Monday. industry lobby group.

A rise in gas prices has forced several domestic energy suppliers into bankruptcy and closed fertilizer factories which also make CO2 a by-product of their production process. Read more

CO2 gas is used to stun animals before slaughter, in the vacuum packaging of food products to extend their shelf life, and to add fizzy to beer, cider and soft drinks. The solid form of CO2 is dry ice, which is used in food deliveries.

The CO2 crisis has exacerbated a severe shortage of truck drivers in the UK, which has been blamed on the impact of COVID-19 and Brexit.

“My members say anything between five, 10 and 15 days of supply (rest),” Nick Allen of the British Meat Processors Association told Sky News.

Without CO2, a meat processor cannot operate, he said.

“Animals have to stay on the farm. They will cause huge animal welfare problems for farmers and British pork and poultry will disappear from the shelves,” Allen said.

“We are two weeks away from seeing real impacts on the shelves,” he said, adding that poultry could start to disappear even sooner.

RETAILERS AFFECTED

Allen said the government was working hard to try to fix the problem and may be able to persuade a UK fertilizer producer to restart its plant.

The crisis is also having a more immediate impact.

Online supermarket group Ocado (OCDO.L) said it has temporarily reduced the number of lines it is able to deliver from its frozen range. Dry ice is used to keep items frozen during delivery. Ocado stock was down 2.7% at 11:05 a.m. GMT.

Shares of processor Cranswick (CWK.L), whose products include fresh pork and chicken and gourmet sausages, fell 2.7% after CEO Adam Couch said production could be halted.

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The British Retail Consortium (BRC), which represents retailers including major supermarket groups, said the CO2 shortage had exacerbated existing pressures on production and distribution.

“… it is essential that the government take immediate action to prioritize suppliers and avoid a significant disruption of food supplies,” said Andrew Opie, director of food and sustainability at BRC.

The UK’s National Farmers Union has expressed concern about fertilizer and CO2 shortages.

“We are aware of the additional pressure this places on a food supply chain already under significant pressure due to lack of manpower,” said NFU Vice President Tom Bradshaw.

Foreign Minister James Cleverly said the government was looking to address shortages in the short term.

“We’ll make sure we can get food on the table, obviously that’s a real priority,” he told Sky News.

Britain’s four major supermarket groups – market leader Tesco (TSCO.L), Sainsbury’s (SBRY.L), Asda and Morrisons (MRW.L) – did not immediately comment.

Reporting by James Davey; edited by Guy Faulconbridge, Jason Neely and Gareth Jones

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