Ranjit Boparan, the owner of the 2 Sisters Food Group, has warned that the meat industry is at breaking point due to the gas crisis now threatening food production across the UK.
The troubles stem from a shortage of carbon dioxide (CO2) after surging gas prices prompted two large fertiliser plants in the UK to suspend production. The factories account for around 60% of the country’s commercial supply of CO2 as a by-product of fertiliser manufacturing.
CO2 is used to stun animals before slaughter, as well as in controlled atmosphere packaging, which extends shelf life. In dry ice form, it keeps food fresh during storage and transport, whilst it is also used in fizzy drinks.
2 Sisters Food is the UK’s biggest poultry supplier, whilst Boparan also owns turkey processor Bernard Matthews. Pointing to the risk to turkey supply, he urged the government to step in and support the two shuttered plants, otherwise “Christmas will be cancelled”.
Boparan said: “There are less than 100 days left until Christmas and Bernard Matthews and my other poultry businesses are working harder than ever before to try and recruit people to maintain food supplies.
“Nothing has fundamentally changed since I spoke about this issue in July. In fact, I take no pleasure in pointing out that the gaps on the shelves I warned about then are getting bigger by the day.”
He added: “The CO2 issue is a massive body blow and puts us at breaking point, it really does – that’s poultry, beef, pork, as well as the wider food industry. Without CO2, the bottom line is there is less throughput and with our sector already compromised with lack of labour, this potentially tips us over the edge.”
The government’s Business Secretary Kwasi Kwarteng, who has been meeting with industry leaders over the CO2 shortage, said during the weekend that there is no “cause for immediate concern” over the supply of gas in the UK.
The fertiliser plants at the centre of the crisis are owned by US firm CF Industries. Its Chief Executive Tony Will is reported to have flown into the UK in recent days to hold talks with the government over the CO2 shortages.
Officials from the Department for Business, Energy and Industrial Strategy are said to have been “working with” the company, although CF Industries said it did not “have an estimate for when production will resume”.
Several other food producers and supermarkets have warned of the impact the CO2 shortages are having on the industry.
Adam Couch, the boss of pork producer Cranswick said the industry was “already at tipping point ahead of the demanding Christmas period”.
He added: “We have worked tirelessly throughout the pandemic to keep food on the shelves, but there is a real risk of product shortages across the country if the government does not act immediately to address these issues.”
Iceland’s Managing Director, Richard Walker, highlighted that the problem could affect UK supermarkets shelves much sooner than Christmas.
“This is no longer about whether or not Christmas will be okay, it’s about keeping the wheels turning and the lights on so we can actually get to Christmas,” Walker told BBC Radio 4’s Today programme.
“This could become a problem over the coming days and weeks, so this is this is not an issue that’s months away.”
Ocado said it had “limited stock” of some frozen items due to the shortage, whilst an unnamed supermarket executive told the BBC the situation was “escalating quickly” and was causing a “big supply issue”.
They said: “The big meat suppliers are saying they have two to three days’ supply and are now having to prioritise how they use what they have.”
He stated that the problem “compounds” the supply issues food producers and supermarkets are already facing due to shortages of HGV drivers in the UK, caused partly by the pandemic and Brexit.
Ian Wright, Chief Executive of the Food and Drink Federation, stressed that the UK was not going to run out of food, but said there would be “major concerns” over supply to supermarkets and other food outlets.
He suggested the government would need to take an “innovative” approach to dealing with the shortage of CO2, such as potentially subsidising companies who produce the gas over the next four or five weeks.
“Or the knock-on effects of this may well be felt right the way through to the end of the year and particularly over the key Christmas trading period,” Wright said.
