Government assures food and drink firms over CO2 supplies as deal ends

Government has said it is now up to CO2 firms to ensure continued supplies while food firms raised fears over shortages as a deal that secured vital carbon dioxide (CO2) supplies ends today (31), without an extension.

"We are continuing to work closely with both the hospitality and food and drink industries, and do not expect any significant disruption to essential food supplies," a spokesperson from the Department for Business, Energy and Industrial Strategy told the BBC.

The Food and Drink Federation says that issues may arise as a result of CO2 supplies, which is used in processes such as packing fresh food and slaughtering animals.

The government had to step in to protect CO2 supplies last year, as energy prices began to rocket, by offering a subsidy to CF Industries.

As the subsidy ends today (31), CF Industries says that it is continuing to negotiate over prices, reports BBC.

British Poultry Council (BPC), which represents producers of half the meat eaten in the UK, said it was "imperative" that the government continued to "honour its commitment" to food security by ensuring "little to no disruption" to supply chains in the event of a CO2 shortage.

"If CO2 continues to be actively prioritised by the government for the livestock sector (along with nuclear and healthcare) on the grounds of maintaining food supply and avoiding bird welfare issues, industry can continue to keep food moving," BBC quoted a BPC spokesperson.

Around 60 percent of the UK's food-grade CO2 comes from two plants operated by CF Industries, both of which temporarily shut its facilities in September last year due to rising prices of natural gas.

This resulted in an acute shortage of CO2. Supermarkets began reporting limited stocks of some food items, while the pig industry warned that if slaughterhouses could not process animals, then farmers would have to cull their stocks.