2 Sisters Food Group has warned of the impact on consumers as Britain’s largest poultry supplier faces a ‘significant’ rise in carbon prices.
Owner Ranjit Singh Bhopalan urged the government to act “urgently” and described the impending carbon shortage as a “national security issue”.
Boparan said “consumers are dismayed and concerned that the UK’s carbon surcharge has been significantly increased to 20 times his current level”, which will cause his two sisters to He says it will cost him an extra £1 million ($1.1 million) per week.
From food to energy to transportation, consumers are already facing rising household costs, and Bhopalan has tacitly warned of more suffering if governments do not act.
His cry comes as Britain’s biggest CO2 supplier, US-based CF Industries Holdings, announced last week plans to temporarily close its remaining ammonia production plant in Billingham, Durham, in northeast England.
CF Fertilizers UK justified its decision due to rising global market prices for natural gas and carbon.
Bhopalan, who commented on a similar episode last year, said, “This is a price shock like the one we’ve seen with energy, and all businesses and households are feeling the pain right now. British buyers are paying the price and carbon suppliers are effectively holding consumers hostage.”
Ammonia is the first step in fertilizer production, in the process he binds CO2.
In food production, gas is used in animal and poultry slaughter, food cooling and packaging, and refrigeration systems.
Boparan, which also owns turkey supplier Bernard Matthews, said: “This is a very serious situation that we are facing. Food safety is threatened again in the UK, and shoppers are ultimately the losers. You have to pay to maintain inventory. C02 Suppliers state that these increases are immediate. They say it’s a take or leave situation.
“My business is resilient and we will work with our customers and suppliers to get through this current carbon crisis. But make no mistake, bargaining with our suppliers is not an option here.”
A source, speaking on condition of anonymity, told Just Food that CF Industries (CF Fertilisers) does not supply CO2 directly to UK food manufacturers. , is Nippon Gas, the UK division of Japan’s Nippon Sanso Holdings.
CF Fertilizers also halted production last year at its Billingham plant and another North West England plant in Inse, Cheshire. But the Cheshire factory is set to close in June, potentially costing more than 200 jobs.
A spokesman for CF Industries said last week that “CF Fertilizers UK intends to restart ammonia and his CO2 production when it becomes economically viable again”. “We have notified the government of our plans, but have not sought their support,” the spokesperson added.
The UK government stepped in last year and secured a subsidy deal with CF Industries. Boparan is asking the authorities to do so again.
“This is clearly a national security issue that needs to be addressed urgently. I would like the issue to be acknowledged and the carbon market to be regulated or at least a price cap considered,” Boparan said.
He added: “It is important to prioritize CO2 supply to the food sector so that UK supplies can be maintained and support fertilizer plants that the government says have closed due to rising natural gas prices. It’s truly incredible that such a critical infrastructure company could arbitrarily decide to turn off the tap because of rising prices. It’s irresponsible and disastrous for our industry.
“You can’t just shut down your tools because of inflation. At my store, we need to roll up our sleeves and get to work as best we can. Giving up and saying ‘inflation is too high’ is not an option. ”
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Source: Just Food