The UK faces a food security crisis while consumers are ‘held hostage’ by further price rises as supplies of CO2 skyrocket overnight, warned 2 Sisters Food Group and Bernard Matthews owner Ranjit Singh Boparan.
The warning followed the announcement that a key supplier of CO2 to the self-proclaimed ‘Chicken King’s’ poultry processing operations had hiked prices up to 20 times their current levels.
Boparan warned that the price hikes would ultimately compound the food inflation environment for shoppers and his businesses would have no choice but to swallow the increases.
“This is a very serious situation we are facing. Once again, UK food security is under threat and the shopper ultimately loses – we simply have no choice other than to pay to keep supply,” said Boparan.
‘Take it or leave it’
“C02 suppliers are saying these increases happen immediately. They say it’s a take it or leave it situation.”
According to 2 Sisters analysis, the UK uses about 2,000 tonnes of CO2 a day. With plants in Billingham and Wilton due for imminent closure, this accounts for 1300 tonnes alone. The current import capacity from Europe is around 600 tonnes, resulting in a huge supply squeeze and a £1m a week on-cost.
“This is a price shock just like we’ve seen with energy and all companies and households are feeling the pain right now,” Boparan added. “What is very sad is that it’s the UK shopper who will ultimately pay the price and CO2 suppliers are, in effect, holding consumers hostage.”
Regulate the market
He urged the Government to take the current crisis more seriously, labeling the situation a national security issue that needed to be dealt with as a matter of urgency. Boparan called for acknowledgement and action to regulate the CO2 market, or at least consider price capping.
“When poultry cannot be processed, it means birds must be kept on farms where there is a potential implication for animal welfare,” Boparan continued. “The overall effect is welfare is compromised, and there is a reduced supply.
“My businesses are resilient, and we will navigate our way through this current CO2 crisis in partnership with our customers and suppliers. But make no mistake – negotiation is not an option here with the suppliers.”
