Meat industry warns production could be hit by CO2 shortage
Britain’s meat industry is warning of a shortage of carbon dioxide gas without which the food manufacturing process could grind to a halt.
Representatives of the industry have been in emergency talks with the government over the crisis which is a knock-on effect of the Europe-wide surge in natural gas prices.
CO2 is used to stun animals before slaughter as well as for vacuum-packing meat products – but that CO2 is the by-product of the production of fertiliser.
The problem threatens to create a logjam of animals on farms
The spike in gas prices has prompted UK fertiliser factories to suspend or cut production.
That means there is now a 60% shortfall in Britain’s supply of CO2 – and the meat industry fears similar stoppages may be affecting plants in Europe that they would normally have turned to in an emergency.
The British Meat Processors Association (BMPA) said in a statement that the crisis looked set to be “a lot worse” than a previous CO2 shortage experienced in 2018.
“CO2 gas plays a critical and irreplaceable role in the food and drink manufacturing process and businesses can grind to a halt if they cannot secure an adequate supply,” the BMPA said.
“This means that, once their current stocks of the gas run out (estimated to be in less than 14 days) some companies will have to stop taking animals and close production lines, leading to a logjam of animals back to the farms.”
It adds to problems already being seen in the pig industry where farms have tens of thousands of surplus swine because of a shortage of workers at abattoirs – after many of them went home to eastern Europe.
Tighter CO2 supplies could mean production slowing down, the poultry industry said
A shortage in the vacuum-packing process, which adds up to five days’ shelf life to red meat and 14 days’ shelf life for poultry, threatens to pose additional problems – especially given that supply chains are already being gummed up by the shortage of HGV drivers.
Richard Griffiths, chief executive of the British Poultry Council, said: “With fewer than 100 days to go until Christmas, and already facing mounting labour shortages, the last thing British poultry production needs is more pressure.
“If CO2 supplies become tighter and more unpredictable then supply chains will have to slow down.
“Ultimately, no CO2 means no throughput.”
The crisis comes after the closures of fertiliser plants in Cheshire and Teesside owned by US company CF Industries as well as production cuts at ammonia factories across Europe operated by Norwegian company Yara including one in Hull.
BMPA chief executive Nick Allen said: “We’ve had zero warning of the planned closure of the fertiliser plants… and as a result, it’s plunged the industry into chaos.”
The BMPA said it had held talks with the government late on Thursday and they were ongoing.
A government spokesperson said: “We are monitoring this situation closely and are in regular contact with the food and farming organisations and industry, to help them manage the current situation.
“The UK benefits from having access to highly diverse sources of gas supply to ensure households, businesses and heavy industry get the energy they need at a fair price.”
Business
Donald Trump tells UK to ‘get rid of windmills’ and says raising windfall tax on North Sea oil is ‘big mistake’
Donald Trump has said the UK is making “a very big mistake” in its fossil fuel policy – and should “get rid of windmills”.
In a post on Friday on his social media platform, Truth Social, Mr Trump shared news from November of a US oil producer pulling out of the North Sea, a major oil-producing region off the Scottish coast.
“The UK is making a very big mistake. Open up the North Sea. Get rid of windmills!”, the US president-elect wrote.
The Texan oil producer Apache said at the time it was withdrawing from the North Sea by 2029 in part due to the increase in windfall tax on fossil fuel producers.
North Sea oil rig. Pic: Reuters
The head of Apache’s parent company APA Corporation said in early November it had concluded the investment required to comply with UK regulations, “coupled with the onerous financial impact of the energy profits levy [windfall tax] makes production of hydrocarbons beyond the year 2029 uneconomic”.
Chief executive John Christmann added that “substantial investment” will be necessary to comply with regulatory requirements.
Mr Trump used a three-word campaign pledge “drill, baby, drill” during his successful election campaign, claiming he will increase oil and gas production during his second administration.
In the October budget announcement, UK Chancellor Rachel Reeves raised the windfall tax levied on profits of energy producers to 38%.
Called the energy price levy, it is a rise from the 25% introduced by Rishi Sunak in 2022 as energy prices soared following Russia’s invasion of Ukraine.
Many oil and gas businesses reported record profits in the wake of the price hike.
The tax was intended to support households struggling with high gas and electricity bills amid a broader cost of living crisis.
Apache is just one of a glut of firms that made decisions to alter their North Sea extraction due to the Labour policy.
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