Food and Drink Federation warn CO2 shortages could impact in 10 days

Further stark warnings have been issued this morning in light of the ongoing concern about the shortages of carbon dioxide affecting a range of products used in the food and drink industry.

Speaking on BBC Radio 4 this morning, Ian Wright the Chief Executive of the Food and Drink Federation said, “We have been saying for several weeks now that the ‘just in time’ system which underpins our supermarkets and our hospitality industry is under the most strain it has ever been in the 40 years it has been there”.

“We probably have about 10 days before this gets to the points where consumers, shoppers and diners notice that those products are not available”.

The problems with CO2 have been linked to the Company, CFF, halting its production in light of the high cost of natural gas input prices which are said to have risen to £900 a tonne. This is far greater than the prices that the company is believed to receive from the ammonia and carbon dioxide that they make out of the production process.

Speaking to the BBC Radio 4 Today programme this morning, the Business Secretary Kwarsi Kwarteng MP said the government was very focused on the issue.

Kwateng played down speculation that the government might consider nationalizing the company stating that the process would take too long.  He said that between nationalisation and doing nothing, there are “lots of options”.

Kwarteng suggested that something may be sorted out later today, and accepted that it would likely come at “some cost”.   He commented that, “We are looking at different ways in which we can provide support, and if we do provide support, that will be on a temporary basis. That is not something we will want to do indefinitely”.