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Supply Crunch - CO2 shortages threaten meat production and frozen food supplies

Geoff Riley

19th September 2021

The supply-chain crisis affecting the UK economy seems to be deepening. Sharp increases in world natural gas prices are said to have led to the temporary closure of some fertiliser plants the output of which creates carbon dioxide used in the meat production and packing industry,

The threat is that this could seriously impede the meat supply chain in the UK within a matter of days. Indeed the UK's CO2 supply is said to have been cut by almost 60% and it remains vital to a number of industries.

The government claims that “Britain has a diverse range of gas supply sources, with sufficient capacity to more than meet demand.” These words may ring hollow in the days to come with potentially serious economic consequences.

Joint Supply: Commercial carbon dioxide is recovered from electric power & fertilizer plants which produce hydrogen or ammonia from natural gas.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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