Factbox-Food industry in parts of Europe under pressure as CO2 runs short
Reuters
Published Aug 30, 2022 02:38PM ET
Updated Aug 30, 2022 02:49PM ET
(Reuters) -A shortage of carbon dioxide (CO2) is putting pressure on food sectors in some European countries, after major producers cut output in response to rising energy costs.
Chemical makers produce CO2 as a byproduct used in parts of the food industry, ranging from putting the fizz into drinks and cooling products during transport to stunning poultry and pigs before slaughter.
Here are some countries flagging shortages:
BRITAIN
Britain's food and drinks industry https://www.reuters.com/world/uk/uk-urges-businesses-meet-demand-co2-after-cf-fertilisers-halts-production-2022-08-25/ urged the government to prepare contingency plans to ensure CO2 supplies after the main domestic supplier, CF Fertilisers UK, decided to temporarily halt ammonia production at its Billingham plant in northeast England.
ITALY
In July, Italian drinks companies https://www.reuters.com/business/retail-consumer/italian-fizzy-drinks-risk-falling-flat-c02-runs-short-2022-07-27/ flagged production cuts due to trouble with sourcing carbon dioxide, as chemical companies slashed output, blaming soaring gas prices, and suppliers struggled to secure necessary volumes.
POLAND
Danish brewery Carlsberg (OTC:CABGY)'s subsidiary in Poland https://www.reuters.com/markets/europe/carlsbergs-unit-poland-could-stop-production-due-lack-co2-supplies-spokeswoman-2022-08-25/ could cut or halt beer production due to a lack of CO2 deliveries.
The delivery halt also poses a danger to the nation's food security, said Andrzej Gantner, general secretary of the Polish Federation of Food Industry.
FRANCE
Air Liquide (OTC:AIQUY) said ammonia production stoppages impacted its CO2 supplies, adding that it was actively working to limit the impact of these shortages on its clients. The French company sells various products containing CO2 to industry clients, ranging from drug packaging to arc welding.
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Written By: Reuters
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