There are warnings about beer shortages amid warnings over a 400% increase in the price of C02. Bosses from the food and drink industry have called on the Government to look into the price rises causing alarm in the supply chain.
Brewers have warned the impact of CO2 supply issues is having a catastrophic effect. It comes as meat producers are also warning of the impact of rising C02 costs, the Mirror reports.
Emma McClarkin, chief executive of the British Beer and Pub Association said: “There is currently extreme volatility in the supply of CO2 to brewers and pubs, causing increasing uncertainty for their businesses.
"Some brewers have reported week on week price increases of more than 400%, a cost they simply can’t pass onto customers. Without a reliable, sustained supply of CO2 to our industry there will be a real, genuine threat of beer shortages from our great British brewers.”
Concern is growing over CO2 supplies after production of the gas was halted at a plant in Billingham due to soaring energy prices and another in Teesside temporarily ground to a halt.
Nick Allen, chief executive of the British Meat Processors Association, told The Mirror that he could see "little justification" for rocketing prices from wholesalers and called on the government to address "crippling" increases.
Bosses say the price of gas has risen since CF Fertilisers last month said it is stopping production at its remaining UK ammonia plant in Billingham, near Middlesbrough, after soaring energy costs made production "uneconomical".
Mr Allen said: "We have been reassured by Government sources that, despite the imminent closure of CF Industries’ remaining Billingham plant and the shutdown for maintenance of the Ensus plant in Teeside, there will not be a supply issue because of a boost in supply from new entrants to the UK Co2 market and continued access to imported gas.
"This does not, however, mean there won’t be a price issue. Even before these shutdowns, our members were reporting huge price hikes from the CO2 wholesalers which we can see little justification for.
"We’d like to see Government get to the bottom of where these crippling price rises are originating and intervene to stabilise the situation."
A government spokesperson said: “We are aware that CF Fertilisers has taken the decision to temporarily halt ammonia production Billingham but we are confident CO2 stocks are secure for the coming winter.
“While the market’s resilience has improved in the past 12 months with additional imports, further production from existing domestic sources and better stockpiles, the government is continuing to examine options for to improve this over the longer term.
"It is still essential that the industry acts in the interests of the public and business to do everything it can to meet demand.”
