Skip to content
Search
AI Powered
Latest Stories

CO2 shortage to threaten food security, bring 'price shock': Boparan

Food security could be under threat and shoppers will be exposed to a “price shock” after a more than threefold surge in the price of carbon dioxide (CO2), one of the UK’s biggest chicken producers has warned.

Ranjit Singh Boparan, who owns 2 Sisters Food Group and the turkey processor Bernard Matthews, called on the government to take rapid action and consider price capping the CO2 market to ensure supply as the price rise would add £1million a week to his businesses’ costs.


“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,” Boparan said.

“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.”

“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,” he added.

UK required 2,000 tonnes of CO2 a day, with CF Industries’ fertiliser plant in Billingham and the Ensus ethanol plant in Wilton, both of which are temporarily closing, accounting for 1,300 tonnes while just 600 tonnes could be imported.

CF said it was closing its plant because the price of natural gas, which is used to make fertiliser, was now twice as high as a year ago making it uneconomic to produce ammonia, the fertiliser which has food-grade CO2 as a by-product. The Ensus plant is closing for maintenance.

Industry insiders said prices had risen to as much as £4,500 a tonne, up from about £1,000 last week and just £200 last year as two major suppliers temporarily close their facilities maintenance. That comes after a third site prepares for permanent closure having temporarily shut in September last year.

Pig farmers, soft drink producers, brewers and bakeries are also being hit by the increase in the cost of the gas, which is used to stun animals before slaughter, as well as in packaging and as an ingredient.

Nick Allen, the chief executive of the British Meat Processors Association, said his members were “looking at a difficult month to six weeks” while the plants producing CO2 were closed. “Price increases on this scale will really hit them hard,” he said.

Gavin Partington, director general of the British Soft Drinks Association, said the price rise was a “cause for concern” although CO2 made up only a small percentage of costs for drinks makers. He said the industry required “more than a temporary fix”.

“It can’t be right that a company whose products are critical to the food and drink supply chain can be allowed to close a key plant without adequate warning or apparent consideration of the wider impacts including another primary supplier of CO2 closing for maintenance at the same time.”

More for you

Carlsberg Zero
Competition watchdog begins Carlsberg, Britvic merger probe
Competition watchdog begins Carlsberg, Britvic merger probe

Carlsberg shifts marketing focus as drinkers choose cheaper beer

Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.

The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.

Keep ReadingShow less
sustainability, zero waste store, refil lzone
Photo: iStock
Photo: iStock

Consumers value ethics though 'sustainability needs to be competitively priced'

Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.

According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.

Keep ReadingShow less
Sugro-Wn-News.png
Sugro UK
Sugro UK

Sugro UK unveils new B2B digital enhancements to empower members, retailers

Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.

The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.

Keep ReadingShow less
Paulig acquires Panesar Foods

iStock image

Paulig acquires Panesar Foods

Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.

Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.

Keep ReadingShow less
Mary Glindon

Mary Glindon

Labour MP cautions proposed vaping tax could hinder smoking cessation efforts

Labour MP Mary Glindon has cautioned that a new excise tax on vaping could discourage smokers from switching to less harmful alternatives.

Glindon, who also chairs the All-Party Parliamentary Group for Responsible Vaping, said the chancellor’s proposed tax, which will add £2.20 per 10ml of vaping liquid when it goes into effect on October 1, 2026, will “hurt working people”, who rely on vapes to quit smoking.

Keep ReadingShow less