Gas prices in the UK could lead to food shortages during the week

Based in Illinois CF Industries (CF) He announced last week that he would suspend operations at the two British factories indefinitely because of the high cost of natural gas.

Those Plants warned on Friday that the UK’s food grade CO2 is 60% fertilizer, and that current CO2 levels could lead to food shortages in 14 days at a time. Gas ran out.

The gas is used to prevent the slaughter of animals and to extend the shelf life of fresh, frozen and baked goods and to pack in carbonated beverages.

BMPA chief executive Nick Allen told the BBC on Saturday that the factories had been flooded with calls since the closure. “Retailers are really worried,” he added.

“This crisis is at the mercy of a few major fertilizer manufacturers (four or five companies) in northern Europe,” Allen said in a statement.

Highlighting the pressure on the industry, another European fertilizer producer, Norway Yara (Yaria)He said on Friday that he was reducing his ammonia production by about 40%, including in a British factory, due to “high natural gas prices.”

Yven General Manager Sven Torre Holstein told CNN Business: “Ammonia production is not profitable in Europe at the moment. He said the company, which monitors the situation on a daily basis, temporarily relied on ammonia production in other parts of the world. Yara’s whole plant does not produce CO2.

The British Retail Consortium on Monday called on the British government to ensure adequate CO2 supply to food producers and to “avoid significant disruption to food supplies”.

On Sunday, British business secretary Kwasi Quarting discussed the crisis with CF Industries CEO Tony Will. We discussed the challenges facing the business and explored possible ways to protect our supplies, including our food and energy industries. Kwarteng revealed on Twitter.

A British government official was due to meet with energy industry officials on Monday amid growing fears that many gas and energy suppliers could lose out due to rising prices and a lack of reliable supply for commercial and retail customers.

A government spokesman told CNN Business on Monday that authorities were monitoring the situation closely and maintaining normal contact with food and agricultural companies.

The approaching CO2 shortage is very serious A time for British food producers already struggling with a shortage of heavy truck drivers and chaotic supply chains. The British Poultry Council warned on Friday that Christmas production is not supported by the government.

“With less than 100 days to go and the growing shortage of labor, the demand for British poultry production is pushing harder,” said Richard Griffis, executive director of the British Poultry Council.

“It’s not about Christmas. It’s about turning the wheels and keeping the lights on so we can get to Christmas.” Richard Walker, managing director of Iceland Foods Supermarket Chain, told the BBC. This is not a matter for months to come.

UK natural gas prices jumped 420% year-on-year in September, according to S&P Global Platts. Gas prices in Europe are also rising sharply, with stock depletion, competition with Asia for liquefied natural gas and low supply from Russia.

But the problem is with S&P Global Platts, especially in the UK, where supply congestion has been exacerbated by a shortage of large storage facilities and a significant slowdown in planned maintenance and new projects. In a study note last week.

– Julia Horoitz contributed to the report.


Leave a Comment