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CO2 Shortage In UK Causes Panic For Food And Drink Industries

The UK is experiencing a shortage of carbon dioxide due to closures of the factories which produce the gas as a by-product, creating production problems for the food and beverage industries.

The UK is experiencing a shortage of carbon dioxide due to closures of the factories which produce the gas as a by-product, creating production problems for the food and beverage industries.

Producers of beer, soft drinks, and meat will be hit the hardest by the shortage, as they rely heavily on CO2 in their operations. The carbon dioxide deficiency will also likely affect the usual distribution of poultry products throughout Britain—including restaurants like Nando’s, McDonald’s, and KFC.

The CO2 deficiency has been felt by both big beverage companies and small bottling firms alike. Heineken said its John Smith's Extra Smooth and Amstel were hit, while Coca-Cola production was interrupted until fresh CO2 supplies arrived. In the West Midlands, Holden's, a small UK bottling firm with 80 customers, shut down last Friday until further notice.

At least five carbon dioxide producers in northern Europe are shutting down due to a combination of technical failures and planned repairs. Three of UK’s largest CO2 plants are currently closed, and only one of their major factories is operating.

“Supply issues here in the UK are being further complicated by a combination of planned plant shutdowns and unexpected equipment failure, in particular in connection with one of the two major national producers of bulk CO2,” said a spokesman from the British Beer and Pubs Association.

Industrial carbon dioxide is created as a by-product from ammonia production that is used in the fertilizer industry. The process of manufacturing ammonia releases CO2, which is then captured and sold commercially to food and drink industries.

The gas is expensive and difficult to import, so food and beverage producers tend to rely on local suppliers. However, the high price of natural gas—a key raw material in ammonia production—has limited production in Europe.

Because farmers need less fertilizer over the summer, ammonia plants often close down for essential maintenance. The current crisis has been caused by too many plants shutting down at the same time across Europe, partnered with the increased demand for beer and fizzy drinks as the summer heats up and fans gather to watch the World Cup.

CO2 is widely used in the food processing and beverage industries. It puts the fizz into beer and soft drinks and is used in food packaging to extend the shelf life of meat and poultry. Slaughterhouses also use carbon dioxide to stun pigs and chickens before slaughter.

Outside of the food and drink sectors, CO2 is needed for certain medical procedures, and is used in the manufacturing of semiconductor devices and by oil companies to improve the extraction of crude oil. The British government prioritizes carbon dioxide for use in hospitals, so companies that use the gas for manufacturing are being supplied with less.

As a result, the food and beverage industry could see production shortages. The British Poultry Council said the shortage could have a “potentially huge effect" on food production, while the British Soft Drinks Association said it was "impacting a wide range of businesses across the food and drink sector.”

The meat industry hopes that it will be given priority when more CO2 supplies come onto the market, viewing the shortage as a threat to animal welfare. Scotland's biggest abattoir—which handles 6,000 pigs a week—has temporarily closed, with animals being sent to England for slaughter. But that is only a temporary solution, as these UK-based abattoirs, too, are also low on carbon dioxide.

Manufacturers had been reportedly relying on emergency reserves of carbon dioxide over the past few days.

The Department for Environment, Food & Rural Affairs (Defra) says it "is aware that there are reports of a CO2 shortage,” and is in contact with the industry and gas suppliers "to understand the implications of the situation.” However, there is very little the government can do to force CO2 suppliers to ramp up production.

Trade journal Gas World has reported that the shortage appears to be likely to continue for the remainder of June “at least.”

(Sources: Associated Press, BBC News, The Telegraph)

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