Food security ‘under threat' from CO2 price hike
The founder of one of Britain's biggest food producers has warned that food security in the UK is under threat and reported an eye-watering CO2 price hike of up to 20 times current levels.
Ranjit Singh Boparan, the owner of 2 Sisters Food Group and Bernard Matthews, said: "This is a very serious situation we are facing. Once again, UK food security is under threat and the shopper ultimately loses – we simply have no choice other than to pay to keep supply. CO2 suppliers are saying these increases happen immediately. They say it's a take it or leave it situation.
"When poultry cannot be processed, it means birds must be kept on farms where there is a potential implication for animal welfare. The overall effect is welfare is compromised, and there is a reduced supply. My businesses are resilient, and we will navigate our way through this current CO2 crisis in partnership with our customers and suppliers. But make no mistake – negotiation is not an option here with the suppliers."
He has urged the government to take the crisis seriously, describing it as a national security issue that "has to be dealt with as a matter of urgency", calling for the government to regulate the CO2 market or at least consider price capping.
According to 2 Sisters analysis, the UK uses approximately 2,000 tonnes of CO2 a day. The group said that with plants in Billingham and Wilton due for imminent closure, accounting for 1,300 tonnes, and the current import capacity from Europe at around 600 tonnes, this could result in a huge supply squeeze and a cost increase of £1m a week.
CO2 is used in the despatch of poultry and in packaging to extend shelf life, as well as in cooling systems for refrigeration purposes.
Last year CF Industries, which provides 60% of the UK's food-grade CO2, briefly stopped production at two plants following a rise in global gas prices, which prompted warnings over the supply of poultry for Christmas. The government helped broker a deal to ensure supply was maintained.
This year, the company has announced plans to close its manufacturing facility near Chester, as well as temporarily halting production of ammonia at its Billingham site, which will also impact its CO2 supply.
