Fears of food and beer shortages caused by new CO2 crisis as major plant halts production

FEARS have been sparked there could be food and beer shortages caused by a carbon dioxide crisis at a major production plant.

Soaring energy prices have caused CF Fertilisers to stop operations at its Billingham plant - which could impact the supply of food and production of beer.

The firm produces ammonia, and the CO2 by-product that is produced is commonly used to put into beer to make it fizzy and is also put into food packaging to keep items fresh.

It is also used to humanely slaughter chickens and pigs, and is put in fizzy soft drinks too.

But high natural gas and carbon prices have led the factory, which supplies 40% of the country's CO2, to shut down temporarily - sparking concerns of gaps in the shelves.

British Beer and Pub Association chief executive Emma McClarkin said the timing "couldn't be worse" for struggling pubs and breweries.

She said: "A guaranteed supply is essential for operations across pub and brewing businesses and this announcement comes at a time when they are already facing extreme cost rising that are threatening businesses and people’s livelihoods across the country."

Concerns were sparked about a CO2 crisis hitting boozers last year.

Experts warned it could hit Christmas beer supplies, as the nation faced the worst CO2 shortage for over 40 years at that point.

Pubs also faced a carbon dioxide shortage in 2018 which hit thousands of branches across the country, with some Wetherspoons, Punch, Admiral Taverns and Enterprise Inns pubs left unable to sell draft beer and fizzy drinks.

National Farmers Union said today's news of CF Fertiliser's plant closure was "extremely worrying" for the agricultural industry.

It would be meeting with the company to see how long the temporary suspension would last for.

Its president Minette Batters said: " I am also urging the government to review how this decision impacts CO2 availability in the UK, which is essential in the food supply chain to process and package food.”

A government spokesperson said: "While the Government continues to examine options for the market to improve resilience over the longer term, it is essential industry acts in the interests of the public and business to do everything it can to meet demand.”

Energy prices soared on Monday after Russia said it would run maintenance on a key gas pipeline - the Nord Stream 1.

This has caused concern for experts who warn Russia may not open the pipeline to put pressure on Europe as the war with Ukraine continues - which could cost energy bills to spiral.

Industry insiders say as many as 400,000 UK businesses could go bust if energy costs continue to rocket.

Spiralling energy costs are among a number of factors that have caused food shortages across the country recently.

Supermarkets including Tesco and Asda ran out of some varieties of tomato earlier this year.

Bosses say it is due to problems including energy bills hikes, bad weather and militant truck drivers.

It caused the price of the salad staple to rocket by 60%.

Cooking oil was rationed across Tesco, Iceland and Morrisons stores, as the Russia-Ukraine crisis has disrupted the supply of sunflower oil across the globe.

The crisis has also sparked concerns about the supply of bread and beer - both countries produce a third of the world's total wheat supply.