Great Britain: gas shortage threatens meat supply | tagesschau.de

Status: 09/20/2021 3:10 p.m.

British slaughterhouses threaten to run out of carbon dioxide to stunning the animals – with consequences for the food supply. Many energy suppliers in the country also have problems because of the high prices.

By Gabi Biesinger, ARD-Studio London

Carbon dioxide is actually frowned upon as a climate killer, but in the food industry the gas is an important substance, for example for producing soda or canned beer, processing baked goods, transporting refrigerated goods or sealing meat packs in a vacuum-tight manner. In abattoirs, CO2 is also used for stunning purposes. There will be severe CO2 shortages in the coming days and weeks, and Andrew Saunders, Director of the market-leading pork producer Pilgrim’s Pride and also on the board of the BMPA, sees major problems for the meat industry.

Factories closed in Northern England

“80 percent of the pigs in Great Britain are processed in ten slaughterhouses, all of which use CO2 technology. We have had to contend with labor shortages in the past few months. says Saunders. “And we cannot hold back the animals for long because the industry is built for quick turnover. We are facing great challenges.”

The background to the CO2 shortage is that the US operator CF Industries has temporarily closed two of its fertilizer companies in northern England due to the sharp rise in energy prices. The production is currently not profitable. The carbon dioxide that the food industry so urgently needs is a by-product of this very fertilizer production.

Risk of bankruptcy due to high energy prices

Richard Walker of the Iceland frozen food chain is shocked that the UK food industry is so dependent on a foreign operator. “The fact that 60 percent of our supply of CO2 depends on a company that simply makes market-based decisions is a national security risk,” says Walker. “Because it’s not just about the food industry, but also about the health sector, for example. The Ministry of the Environment has not yet spoken to us, but they urgently need to plug the bottleneck.”

Economics Minister Kwasi Kwarteng has signaled that he is in talks with the US operators of the fertilizer companies – with the aim of restarting production as soon as possible. But another trouble spot seems more urgent for the government: the looming bankruptcy of energy suppliers. Because in view of the sharp rise in energy prices – caused by the recovery of the global economy after the corona crisis – a number of companies will not survive.

Vendors don’t want customers

A year ago there were around 70 electricity suppliers on the market in Great Britain, at the moment it is expected that only about ten large ones could remain. Normally, OfGem’s energy market regulator would distribute customers to surviving firms. But in the current situation, customers don’t want that at all, says Dale Vince, founder of the “green” energy company Ecotricity.

“There are two types of companies: those who bought energy early and get through the winter with supplies. And the others who go bankrupt and nobody wants their customers, who OfGem has guaranteed low prices with a price cap,” says Vince . “We have to deal with the increased prices ourselves.”

Talks about a rescue package

The government is already negotiating a rescue package for failing companies with the energy companies. In view of rising costs for consumers and high inflation, it is questionable whether they will dare to cap energy prices for households.

Prime Minister Boris Johnson, who is on his way to talks in the US today, tried to spread optimism. “We have a number of short-term problems that are not just affecting our country. We need to fix this as soon as possible, make sure the supply is reliable,” said Johnson. “The situation will improve once the markets have sorted themselves out again.”

Food supplies in the UK threatened by soaring gas prices

Gabi Biesinger, ARD London, September 20, 2021 2:42 p.m.

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