Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact on (a) national fertiliser supplies, (b) food security, and (c) carbon dioxide supplies for abattoirs and the food and drink sector of the CF Fertilisers halting ammonia production at the Billingham plant.

It is disappointing that CF Fertilisers has taken the decision to halt ammonia production at Billingham. However, since last autumn the CO2 market’s resilience has improved, with additional imports, further production from existing sources such as anaerobic digestion and bioethanol, and better stockpiles. We expect the supply of ammonia (from imports by CF Fertilisers), nitric acid and fertiliser to the UK market to be unaffected. While the Government continues to examine options for the market to improve resilience over the longer term, we urge industry to do anything it can to meet demand, which is in the best interest of businesses and the public.

National Fertiliser Supplies

CF Fertilisers produces ammonium nitrate fertiliser and nitric acid in the UK at Billingham. The Company expects to fulfil all ammonia and nitric acid contracts and all orders of Ammonium Nitrate contracted for delivery in the coming months. The supply and price of these products is a commercial matter for CF Fertilisers and we expect supply to continue.

Food Security

The UK has a highly resilient food supply chain, as demonstrated throughout the COVID-19 response. It is well equipped to deal with situations with the potential to cause disruption. Our high degree of food security is built on supply from diverse sources; strong domestic production as well as imports through stable trade routes. We produce 61% of all the food we need, and 74% of food which we can grow or rear in the UK for all or part of the year, and these figures have changed little over the last 20 years.

Defra has well established ways of working with the industry and across Government to monitor risks that may arise. This includes extensive, regular and ongoing engagement in preparedness for, and response to, issues with the potential to cause disruption to food supply chains.

Carbon Dioxide Supplies

The resilience of the UK’s CO2 supply has improved since last autumn and Defra do not expect any significant disruption to essential food supplies, such as meat production. We are in regular contact with representatives from the farming, food and drink sectors to help manage the situation. We will monitor the situation carefully and we are working with the meat industry to ensure that supplies of CO2 to the pig and poultry processing sector are maintained.

Defra is working with sector stakeholders to encourage contingency planning and resilience and understand that various CO2 supply companies in the UK are working on or have secured additional CO2 to mitigate shortages. We are confident CO2 stocks are secure for the coming winter. Since last autumn, the market’s resilience has improved, with additional imports, further production from existing domestic sources and better stockpiles.