The UK meat and farming industry is in urgent talks after the UK’s biggest CO2 supplier announced it is closing its Billingham plant.
CF Industries, the US fertiliser group that is the UK’s largest producer of carbon dioxide, said it will close its factory in the northeast of England.
It is planning to temporarily halt ammonia production at Billingham as the price of the key feedstock natural gas has more than doubled to record levels, making it uneconomical to continue.
CO2, which is used in soft drinks and beer and by meat suppliers to stun animals before slaughter, is a byproduct of the ammonia production process.
CF Industries said that it now plans to import ammonia to be used as fertiliser as natural gas prices will continue to rise in the months ahead amid the continued war in Ukraine.
The company previously said it would shutter its Ince fertiliser facility in Cheshire earlier this year after gas prices soared.
The UK government is in talks with both the meat and drinks sectors to understand the impacts of the CO2 shortage.
British Meat Processors Association boss Nick Allen said the closure of the Ince plant meant the industry knew CO2 supplies would be more vulnerable.
He said: “While we are in a much better position than we were a year ago, if CF industries follows through on the threat to close Billingham, the British meat industry will have serious concerns.
“Without sufficient CO2 supplies, the UK will potentially face an animal welfare issue with a mounting number of pigs and poultry unable to be sent for processing.”
- Get the latest grocery news and analysis straight to your inbox – sign up for our weekly newsletter
No comments yet