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Soaring energy prices impacts industries across the UK - 20-09-2021

It’s headline news at the moment and over the weekend as CF industries catches all the media attention having to stop production at its two fertiliser plants due to soaring energy prices, leading to a chain of other events in the industry.

CF industries supply 60% of the UK’s CO2 supply, and they do not know when production will now resume having reached the tipping point due to wholesale costs. CO2 is used to stun animals prior to slaughter and in dry ice form to keep food fresh for storage and transport. It is often sourced as a by-product of fertiliser manufacturing.

Some meat suppliers in the UK have already said they only have “two to three days’ CO2 supply and are now having to prioritise how they use what they have”. Supermarkets have already warned of limited stock of some frozen items due to the gas shortage. Compounding this is the already strained supply issues due to the shortage of HGV drivers in the UK, and no doubt panic buying of meat produce to strain supply further. Perhaps now is a good time to go vegetarian! Some may be forced too if supply does not resume.

Over the weekend we also heard that at least 4 energy suppliers are due to go bust unless they secure loans or government support. The industry is likely to be shaken up over the next few weeks as the soaring gas and power prices start to bring consequences.