Food shortages loom as lack of CO2 hits meat and vegetable producers

CO2 is used across the industry, including the food sector where it is used to stun livestock before slaughter, in the production of some bakery products, in carbonated drinks and in transporting chilled food. 

Skyrocketing gas prices led to the closure of two of the UK’s biggest fertiliser factories, which play a large role in CO2 production, at Billingham in Stockton-on-Tees and Ince in Cheshire on Thursday.

Both factories are owned by US company CF Industries, which had crisis talks with business secretary Kwasi Kwarteng on Sunday. 

The Department for Environment, Food and Rural Affairs (Defra) has also prioritised talks with stakeholders in the UK food supply chain, which is already being stretched by added global issues, Brexit red tape and a shortage of HGV drivers. 

Managing director of Iceland, Richard Walker, has warned that customers could see availability issues on supermarket shelves in the coming days and weeks.

“This is no longer about whether or not Christmas will be okay, it’s about keeping the wheels turning and the lights on so we can actually get to Christmas,” he told BBC Radio 4’s Today programme.

“This could become a problem over the coming days and weeks, so this is this is not an issue that’s months away.”

In an open letter to MPs, retailers and food service groups, secretary of the Cucumber Growers’ Association (CGA) Joe Shepherdson warned that the challenge facing his industry was “more severe than ever” and threatened the “viability” of many businesses. 

Shepherdson noted that the cost of CO2 gas, which already accounted for 30% on average of CGA members’ annual costs, had increased 300% on a pre-pandemic base level. 

The shortages are also affecting meat production facilities around the UK. Chief executive of the British Meat Producers Association Nick Allen warned of massive disruptions to the supply chain when the nation’s reserves of CO2 run out in two weeks.

“This crisis highlights the fact that the British food supply chain is at the mercy of a small number of major fertiliser producers (four or five companies) spread across northern Europe. We rely on a by-product from their production process to keep Britain’s food chain moving,” he said.

The owner of the UK’s biggest poultry supplier warned that the shortage of gas, combined with labour shortages, would affect the supply of turkeys at Christmas. 

“There are less than 100 days left until Christmas and Bernard Matthews and my other poultry businesses are working harder than ever before to try to recruit people to maintain food supplies,” said Ranjit Singh Boparan, owner of Bernard Matthews and 2 Sisters Food Group. 

“The supply of Bernard Matthews turkeys this Christmas was already compromised as I need to find 1,000 extra workers to process supplies. Now, with no CO2 supply, Christmas will be cancelled.

“The CO2 issue is a massive body blow and puts us at breaking point – it really does… with our sector already compromised with lack of labour, this potentially tips us over the edge.”

British Retail Consortium director of food and sustainability Andrew Opie said: “This could not come at a worse time, with the shortfall of 90,000 HGV drivers already putting severe pressure on food production and distribution.

“Retailers are working with their suppliers to resolve this issue, but government must investigate this issue as soon as possible and work with industry to ensure a solution is found quickly and problems don’t escalate further.”