Britain's food industry has warned that millions of animals will be destroyed and shop shelves will be short of supplies unless the government takes urgent action. Getty Images
Britain's food industry has warned that millions of animals will be destroyed and shop shelves will be short of supplies unless the government takes urgent action. Getty Images
Britain's food industry has warned that millions of animals will be destroyed and shop shelves will be short of supplies unless the government takes urgent action. Getty Images
Britain's food industry has warned that millions of animals will be destroyed and shop shelves will be short of supplies unless the government takes urgent action. Getty Images

Millions of animals face destruction as UK energy crisis set to leave shelves bare


Nicky Harley
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Britain's food industry is warning that millions of animals will be destroyed and shop shelves will be short of supplies within 10 days unless the government takes urgent action.

The closure of two of the UK’s largest fertiliser plants, which supply two thirds of the nation’s carbon dioxide, has led to panic across the country’s meat and poultry sectors.

The industry relies on carbon dioxide for stunning poultry and pigs, and for packaging that extends the shelf life of products such as meat and vegetables.

Rapidly rising gas prices have led the plants to close but the impact is being felt across the food sector.

With consumer gas bills expected to rise in the coming months owing to the crisis, it is thought the first effect the public will see will be on supermarket shelves.

Industry leaders are calling on the government to take urgent action and offer financial bailouts to the companies before the crisis hits supermarkets.

Ian Wright, chief executive of the Food and Drink Federation, told The National that supply issues could be seen in shops and restaurants within 10 days.

“Important parts of the food and drink supply chain – already under significant pressure from the impacts of labour shortages – are now seriously compromised by disruptions in the supply of CO2,” he said.

The CF Fertilisers site on Teesside, northern England, has halted carbon dioxide production because of high natural-gas prices. Photo: Getty
The CF Fertilisers site on Teesside, northern England, has halted carbon dioxide production because of high natural-gas prices. Photo: Getty

“Two thirds of the CO2 volume that normally supplies the food and drink industry is now not available following the suspension of manufacturing by key producers.

“CO2 is essential to the manufacture of many food and drink products. This shortage will have serious consequences on the UK’s food and drink supply chain.

“While there is no danger of us running out of food or drink, we will see the impact of this on UK shop shelves and in hospitality very soon. Sudden and unpredictable changes to availability are very likely.

“Continuing labour shortages and rising costs of raw materials are also important disrupters. We are working with government to identify an urgent solution to the immediate supply crisis, as well as how best to safeguard against future incidents.”

He said that poultry and pig production will begin to be “very seriously” affected by the end of the week and meat packaging will follow a week later.

Chief executive of the British Poultry Council, Richard Griffiths, said the industry is on a knife-edge and has not been told how much carbon dioxide stock is presently held in the UK.

Its slaughterhouses and processing plants, which go through an average of 20 million birds a week, hold limited stocks of carbon dioxide. Mr Griffiths said they are in limbo because suppliers are not scheduling deliveries beyond 24 hours in advance.

“With fewer than 100 days to go until Christmas, and already facing mounting labour shortages, the last thing British poultry production needs is more pressure,” he told The National.

“If CO2 supplies become tighter and more unpredictable then supply chains will have to slow down. Ultimately, no CO2 means no throughput.

“We need the government to help facilitate and financially support that prioritisation to maintain food supply and avoid bird welfare issues. We are working closely with Defra and the Department for Business, Energy and Industrial Strategy to assess stock, implement contingency plans and mitigate any major impact on a sustainable supply of food.

“Our members are on a knife-edge situation at the moment. When birds cannot be slaughtered and must be kept on farm there is the potential for welfare, food supply and food waste issues to arise.

"If vital sectors like the poultry meat industry face CO2 shortages that compromise their performance, it will very quickly become an issue of national security. We hope this can be avoided through swift government action.”

On Tuesday, UK business secretary Kwasi Kwarteng faced questioning from politicians about the growing crisis.

Britain’s business secretary said he hopes to reach an agreement to restore carbon dioxide supplies to food processors and avert potential shortages and price increases as the country deals with the fallout from soaring energy prices. Photo: AP
Britain’s business secretary said he hopes to reach an agreement to restore carbon dioxide supplies to food processors and avert potential shortages and price increases as the country deals with the fallout from soaring energy prices. Photo: AP

He has been in discussions to examine the possibility of subsidising the country’s largest carbon-dioxide producer, CF Industries, to increase reserves and to ensure production can resume "as quickly as possible".

The company halted production at two plants following a rise in gas costs caused by cold weather in Europe and Asia.

“Time is of the essence, and that’s why I spoke to the CEO, speaking to him twice in the last two days, and we’re hopeful that we can get something sorted today and get the production up and running in the next few days," he told BBC Radio 4's Today programme.

Mr Kwarteng said “it will come at some cost … we’re still hammering out details, we’re still looking at a plan”.

However, he said consumers would be the government's first priority.

"Protecting consumers is our primary focus and is shaping our entire approach to this issue," he said.

“They must come first.”

Kerry Maxwell, of the British Poultry Association, said the industry has still not received an update from the government in response to its request for urgent help.

“Things are changing minute by minute. We are remaining eagle-eyed on the situation and are continuing to ask the government to financially help the CO2 industry,” she told The National.

“The worst case scenario is, if CO2 supply becomes more unpredictable and depleted it will slow down all our production and it will impact the industry and consumers in the run up to Christmas.”

The chairman of the National Pig Association, Rob Mutimer, said that if the situation facing the pork industry does not change, farmers will be forced to slaughter their own animals, owing to a lack of space and feed.

“If the situation doesn’t change, it’s going to spiral completely out of control,” he said.

“And the only end-game there is ... we as farmers are going to end up slaughtering our livestock – not for the food chain but to put them into rendering, to dispose of carcasses like what happened in foot and mouth.

“And that’s a terrible situation to be in.”

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5.30pm Handicap Dh85,000 1,000m

 

The National selections:

2pm Arch Gold

2.30pm Conclusion

3pm Al Battar

3.30pm Golden Jaguar

4pm Al Motayar

4.30pm Tapi Sioux

5pm Leadership

5.30pm Dahawi

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

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Updated: September 21, 2021, 1:48 PM