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Kicker: 'Market solution' needed as energy prices rocket

By Abi Kay

THE Government has been accused of playing a dangerous game with CO2 supply, as the current deal brokered between industry only runs to the end of January.

In October last year, businesses supplying carbon dioxide to the food and drink industry agreed to pay CF Fertilisers a price for the CO2 it produces as a by-product, in order to stop the company from halting fertiliser production in light of high natural gas prices.

Prior to the deal being struck, the Government was forced to provide a multi-million pound bailout to the US-owned firm which provides 60 per cent of the UKs CO2, in order to keep supply chains running.

CF operates plants in Teesside and Cheshire.

Carbon dioxide is used by abattoirs to stun pigs and poultry, as well as in food packaging to maximise products shelf-life and for the brewing of beer.

But in answer to a recent Parliamentary question from Shadow Farming Minister Daniel Zeichner about what the Government was doing to secure future CO2 supply as the deal comes to an end, Farming Minister Victoria Prentis said it was now up to the parties to the current agreement to negotiate a further market solution.

Mr Zeichner said: The Government is playing a dangerous game. At a time of rising energy prices and inflation, it should be prioritising the resilience of the food supply chain.

We saw before Christmas the wide-ranging impact of a sudden shortage of CO2 across a range of sectors. The Government needs to step up and take responsibility.

NFU vice-president Tom Bradshaw told ²ÝÁñÉçÇø Guardian last years deal was an important step in ensuring UK food businesses have access to CO2.

The supply issues experienced over the past year have highlighted a key fragility in the UK food system, and by extension, the vulnerability of UK food security, he said.

Government must recognise and continue valuing British food and farming and develop policies which support its resilience.

Mr Bradshaw also urged Ministers to ensure farmers were able to optimise their use of farmyard manure, with fertiliser prices increasing by more than 200 per cent in some cases.