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Ministers last night struck a taxpayer-funded deal to avert supermarket shortages as business leaders warned that problems remain due to labour shortages.
Soaring gas prices have left energy companies struggling and led to two US-owned fertiliser manufacturing plants shutting down because they cannot operate at a profit.
The Teesside and Cheshire sites, run by CF Industries, supply 60 per cent of Britain's CO2 gas – which is essential for food production and packaging.
CO2 is used for everything from the humane slaughter of chickens and pigs, to putting the fizz in soft drinks and creating packaging that keeps foods fresh.
And it is critical for cooling nuclear reactors and as well as keeping certain medicines and vaccines cold.
Industry leaders had warned that the shortage could bring the entire meat processing system to a halt.
But it is understood that Business Secretary Kwasi Kwarteng yesterday clinched a deal with the factories to resume production from as early as today.
The CF Fertilisers plant in Billingham, Cleveland, one of two such plants which has been shut down down due to high energy prices
Under a short-term arrangement, expected to last for a number of weeks, the taxpayer will financially support the factories so they can operate again.
The British Retail
