Beer shortage warning as government says to investigate 'crippling' price hikes

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Bosses warn of beer shortages as brewers face 400% CO2 price hikes, while beer producers meat say they see 'little justification' for massive gas price hikes

Food and drink industry bosses say they have been hit by 'crippling' CO2 price hikes (

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Food and drink industry leaders have called on the government to shed light on 'crippling' price hikes that are worrying the supply chain.

Bosses have warned of beer shortages as brewers face 400% CO2 price hikes, while meat producers say they see 'little justification' to massive increases.

There are growing concerns about CO2 supply, with gas production halted at a plant in Billingham due to soaring energy prices and another in Teesside temporarily shut down.

Nick Allen, chief executive of the British Meat Processors Association, told the Mirror he saw "little justification" for soaring wholesale prices and called on the government to deal with the "crippling" increases.

Bosses say the price of gas has risen since CF Fertilizers announced last month it was shutting down production at its remaining UK ammonia plant in Billingham, near Middlesbrough, after the outbreak energy costs made production "unprofitable".

Soaring CO2 prices could spell hardship for beer drinkers, industry bosses warn (

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The company is one of the UK's largest producers of CO2, which is a by-product of ammonia production.

Mr. Allen said: "We have been reassured by government sources that, despite the imminent closure of the remaining CF Industries factory in Billingham and the shutdown for maintenance of the Ensus factory in Teeside, there is no there will be no supply problems due to increased supply from new entrants to the UK Co2 market and continued access to imported gas.

“However, that doesn't mean there won't be a price issue. Even before these shutdowns, our members were reporting huge price hikes from CO2 wholesalers that we hardly see justification.

"We would like to see the government discover the origin of these crippling price increases and intervene to stabilize the situation."

Meanwhile, brewers have warned the impact of CO2 supply issues is having a catastrophic effect.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: "There is currently extreme volatility in the supply of CO2 to brewers and pu...