April 8, 2020

 

US meatpackers affected by ethanol plants closing

 

The COVID-19 pandemic has lowered demand for fuel in the United States, resulting in ethanol plants closing and leaving meatpackers without enough carbon dioxide to refrigerate chilled beef, pork and poultry, reported Reuters.

 

The Renewable Fuels Association (RFA) industry group said 29 out of 45 ethanol plants in the US that sell carbon dioxide (CO2) have idled or cut rates.

 

The American Farm Bureau Federation said US ethanol supplies 40% of commercial carbon dioxide used in the country's food industry.

 

Carbon dioxide is used as a refrigerant and preservative for meats and as a gas to stun livestock for slaughter.

 

The CO2 supply issue is the newest disruption affecting food supply in the country, in addition to companies struggling to keep workers because of COVID-19 as retail demand continues to surge.

 

The world's biggest ground beef supplier Cargill and poultry processor Perdue Farms have said they are looking into ways to ensure supply.

 

Andrea Staub, Purdue Farms spokeswoman said the company has enough supply for CO2.

 

Rich Gottwald, Compressed Gas Association president said meat companies cannot continue food production at normal rates in a CO2 shortage.

 

Industry group the North American Meat Institute, with members comprising of major companies such as Tyson Foods and WH Group's Smithfield Foods said it will assist connecting meat companies with CO2 suppliers, especially for companies that project problems obtaining CO2 supplies.

 

Veronica Nigh, a farm bureau economist said some companies are already paying higher than normal prices for CO2.

 

-      Reuters