MAJOR food producers warned last night of meat running out in two weeks — as Business Secretary Kwasi Kwarteng was locked in crisis talks with energy bosses.
Whitehall hosted high-level talks as rising gas prices threatened to have a major knock-on effect on the supply and production of food.
3
3
One of the country’s biggest meat firms said Christmas dinners could be off. And Ocado said it was unable to deliver frozen goods due to a shortage of dry ice produced by carbon dioxide (CO2).
A shutdown of two fertiliser plants in the north of England — which produces CO2 as a by-product — has triggered big issues in meat supply and other foods. After providing 60% of the country’s commercial CO2 production, the factories were forced to shut down.
It is used to stun livestock before they are slaughtered and to pack foods for longer shelf life.
Nick Allen, British Meat Processors Association boss, warned that businesses in the sector can continue for less than two weeks until CO2 stocks run dry and no meat will become available. He said: “Everyone is outraged these fertiliser plants can shut down without warning and take something so essential to the supply chain off-stream just like that.”
The country’s biggest poultry supplier even claimed last night that Christmas dinners could be “cancelled” due to the shortage.
Ranjit Singh, owner of Bernard Matthews, and 2 Sisters Food Group says the shortage of gas, combined with a shortage, will greatly impact the supply. He said: “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.”
One meat industry figure said getting hold of CO2 was “hand to mouth” and that the public should expect to see price rises in shops in the coming weeks and months.
Mr Kwarteng held crisis meetings yesterday with energy bosses including Centrica and EDF where the “impact” of high global prices was discussed but there were no current supply concerns. Industry figures said there was already a “perfect storm” over the Christmas run-up and a shortage of haulage drivers.
Last night, fears arose that four smaller energy companies might go out of business next week. Larger companies are ready to take on one million customers.
Comparison site Compare The Market, which offers energy quotes online, has stopped offering them due to lack of market tariffs.
Last night, the Environment Department said: “We have had extensive meetings with representatives from the meat production and processing sectors, and are continuing those conversations this weekend.”
3
Q&A: THREAT TO UK’S WINTER
WHY have prices soared?
There are many factors that contribute to the rise in prices: high global demand, lower supply, maintenance problems, and lower levels of wind and solar power.
What does this mean for food and drink supply?
Two large carbon dioxide factories have shut down. It is used in the preparation of stunning animals, as well as for packaging meat.
Is Britain likely to run out of gas soon?
According to the Government, there are many gas supply options that can meet customer demand.
Will home prices rise again?
Experts believe that those who are on variable tariffs could see their bills rise as there are less affordable rates.