The boss of the UK’s biggest chicken processor has warned that a carbon dioxide shortage means UK food security is “under threat.”
The manager of 2 Sisters Food Group, Ranjit Singh Boparan, said a CO2 supplier has threatened to increase prices up to 20 times current levels after a rival said it will halt production.
Last week the UK’s largest producer of carbon dioxide, CF Fertilisers said it is stopping production at its remaining UK ammonia plant in Billingham after soaring energy costs made production “uneconomical”.
The company is one of the UK’s biggest producers of CO2, which is a by-product from the production of ammonia.
CO2 is also used in the food production industry, within packaging to extend shelf-life, and in refrigeration.
It is used for pig and poultry production, as well as in brewing and making carbonated drinks.
The boss of 2 Sisters, which supplies supermarkets like M&S and Tesco, said the latest shutdown is leading to a reduction in supply which therefore leads to higher prices for customers.
Mr Boparan said the business, which processes more than 10 million chickens a week, faces a £1 million-a-week increase in the cost of CO2 used to stun chickens for slaughter.
“This is a price shock just like we’ve seen with energy and all companies and households are feeling the pain right now,” he said. What is very sad is that it’s the UK shopper who will ultimately pay the price and CO2 suppliers are, in effect, holding consumers hostage.”
Boporan added: “I’d like to see an acknowledgement of the problem and action to regulate the CO2 market, or at least consider price capping.
“It really beggars belief when such a key infrastructure operation can arbitrarily decide to switch off the taps because of price inflation. “It is irresponsible and catastrophic for our sector.”
