London Daily

Focus on the big picture.
Wednesday, Mar 04, 2026

Beer shortages and pig pile-ups: Fertilizer crisis rattles European food chain

Beer shortages and pig pile-ups: Fertilizer crisis rattles European food chain

Beer and meat production take a hit as fertilizer plants shut down due to soaring energy prices.

Europe's soaring energy bills are triggering a wave of shutdowns at major fertilizer plants across the Continent, causing disruption for farmers, food manufacturers and — to the horror of bar owners everywhere — brewers of beer.

On Thursday, the world’s largest fertilizer company Yara, based in Norway, announced a 50 percent cut to its ammonia-based urea and nitrogen fertilizer production in Europe, citing “record high prices."

The decision came less than 24 hours after Britain’s largest fertilizer plant CF Fertilisers UK said it would “temporarily halt” production at its Billingham plant. Two other major fertilizer producers in Poland announced they would pause operations earlier in the week.

Fertilizer is not only vital for boosting crop soil fertility, but its production creates a byproduct, CO2 gas, which is used to add fizz to beer and soft drinks, supply hospitals for surgical procedures and allow animals to be slaughtered humanely.

Farmers, food manufacturers and even pub landlords are therefore deeply worried about the wider implications of a looming fertilizer crunch.

Carlsberg Polska, the third largest brewing company in Poland and subsidiary of the Danish multinational, told POLITICO it plans to stop beer production almost immediately — and that other brewers are bound to follow suit.

“Few people realize that carbon dioxide is a byproduct of fertilizer making. And it cannot be stored for a very long time, so we only have a few days’ worth of reserves left,” said Carlsberg Polska spokesperson Beata Ptaszyńska-Jedynak.

“We will be shutting down beer production any moment now … but we aren’t the only ones. Unless they have facilities to produce their own CO2, most beer companies will have to do the same.”

The energy-intensive fertilizer sector is among the first heavy industries across Europe to slash production amid the energy crisis exacerbated by Moscow’s invasion of Ukraine and subsequent Western sanctions on Russian oil and natural gas — a necessary ingredient for nitrogen-based fertilizers.

Jacob Hansen, head of the major lobby group Fertilizers Europe, said that soaring gas prices, which industry observers fear will remain high until at least the end of the year, are making it “impossible” to maintain production.

The energy crisis is exacerbated by Russia's invasion of Ukraine


“It’s an impossible situation to be in. For me it’s obvious that the European gas market is bust — it’s not functioning,” Hansen said. "We are relatively the biggest gas user — so if we see the pain, the pain will come for other people as well."


Ripple effect


The closures have sparked fears across multiple food and drink sectors. Minette Batters, president of the U.K. National Farmers' Union, said the closure of Britain’s largest fertilizer plant was “extremely worrying.” The fertilizer market “is crucial to maintaining and enhancing our domestic food production,” she added, urging the government to review the availability of CO2 products.

Britain’s brewing and pub industry said the timing of the shutdown “couldn’t be worse” and “could lead to shortages of beer across the country.”

“Our pubs and brewers are already dealing with severe headwinds and pressures on their supply chains,” said Emma McClarkin, chief executive of the British Beer and Pub Association. “This decision raises serious concerns for the sustainable supply of CO2.”

Brewers and pubs alike are already facing “extreme” costs for energy, she warned, which threaten to close businesses and damage livelihoods across the U.K..

“Waiting even a few weeks for the government to act could be too long,” McClarkin added. “We need a sustainable plan for the supply of CO2 to our industry and urgent help with rising energy bills for businesses before they’re forced to close their doors.”

Ptaszyńska-Jedynak from Carlsberg Polska said there are also wider implications beyond beer and soft drinks, because CO2 is used for making products like dry ice, which is essential for preserving food during transport and storage.

“The situation is critical for every aspect of the food sector where CO2 is used,” Ptaszyńska-Jedynak said.

Poland's Agriculture Minister Henryk Kowalczyk said Thursday he is working on a plan that would help fertilizer producers purchase gas at a moderate price. “We are working on this. For now, I don't want to talk about the details, we already have some ideas there and we are agreeing on some solutions,” Kowalczyk said.

To ease some of the pressure, the European Commission has proposed temporarily suspending tariffs on key products for making nitrogen fertilizers, which national governments in the Council of the EU will discuss after they resume meetings in September, according to an EU official.

In the U.K., CF Fertilisers’ parent company CF Industries has already received one short-term bailout deal from the government, with a payment last September covering its operating costs for three weeks as energy prices surged on post-coronavirus lockdown demand.

This time, however, ministers appear reluctant to step in.

“While the government continues to examine options for the market to improve resilience over the longer term, it is essential industry acts ... to do everything it can to meet demand,” said a U.K. government spokesperson.

“Since last autumn, the CO2 market’s resilience has improved, with additional imports, further production from existing domestic sources and better stockpiles,” the government spokesperson added.

CF Industries already closed its sister plant in Cheshire back in June


Some U.K. businesses have diversified their supplies of CO2 through imports since the initial crisis last fall. As prices rose, other industries have stepped in to capture the industrial byproduct and refine their own food-grade versions for sale. Last year the Billingham plant provided 60 percent of U.K. supplies. It now supplies only 30 percent.

“Whilst we are in a much better position now than we were a year ago,” said Nick Allen, chief executive of the British Meat Processors Association (BMPA), “the British meat industry will have serious concerns" if CF Industries stops production.

“We can’t see how government can sit on the sidelines and insist that it’s for companies to work it out amongst themselves,” Allen said. “They are going to need to step in.”

CF Industries already closed its sister plant in Cheshire back in June, leaving U.K. CO2 supplies “vulnerable to anything going wrong with their remaining Billingham plant,” Allen said. British industry, he added, has been “heavily reliant on overseas suppliers to make up the shortfall.”

Since the end of July, ammonia producers in Italy and Germany have also cut production and sent European food and drink companies “scrambling” to secure tightening CO2 supplies, Allen added.

Without sufficient gas supplies, he said, farmers will potentially face an animal welfare issue, with mounting numbers of pigs and poultry unable to be sent for processing.

“Europe has always been a relatively high-cost producer" said Hansen from Fertilizers Europe. "We export a lot of specialty products to the rest of the world … We are getting to a point where we can’t export anymore.”

Newsletter

Related Articles

0:00
0:00
Close
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
×