UK meat industry warns of imminent supply threat from CO2 crisis

By James Davey

LONDON (Reuters) -Britain’s meat processors will start running out of carbon dioxide (CO2) within five days, forcing them to halt production and impacting supplies to retailers, the industry’s lobby group warned on Monday.

A jump in gas prices has forced several domestic energy suppliers out of business and has shut fertilizer plants that also make CO2 as a by-product of their production process.

The CO2 gas is used to stun animals before slaughter, in the vacuum packing of food products to extend their shelf life, and to put the fizz into beer, cider and soft drinks. CO2’s solid form is dry ice, which is used in food deliveries.

The CO2 crisis has compounded an acute shortage of truck drivers in the UK, which has been blamed on the impact of COVID-19 and Brexit.

“My members are saying anything between five, 10 and 15 days supply (remain),” Nick Allen of the British Meat Processors Association told Sky News.

With no CO2, a meat processor cannot operate, he said.

“The animals have to stay on farm. They’ll cause farmers on the farm huge animal welfare problems and British pork and British poultry will disappear off the shelves,” Allen said.

“We’re two weeks away from seeing some real impacts on the shelves,” he said, adding that poultry could start disappearing from shops even sooner.

Allen said the government was working to try and resolve the issue and might be able to persuade fertilizer producer CF Industries to re-start its UK plants.

Business minister Kwasi Kwarteng said he met CF Industries CEO Tony Will on Sunday to explore ways to secure CO2 supplies.

“Work is ongoing … to ensure that those sectors which are impacted by this … have appropriate contingency plans in place to ensure that there is minimal disruption,” he told parliament.

Meanwhile, the British Soft Drinks Association warned some manufacturers had only a few days of CO2 left.

UNHAPPY CHRISTMAS?

Some in the poultry industry fear a Christmas crisis.

Ranjit Singh Boparan, owner of 2 Sisters Food Group and Bernard Matthews, said the CO2 issue was “a massive body blow”, noting that the supply of turkeys this Christmas was already compromised by labor shortages.

Shares in processor Cranswick, whose products include fresh pork and chicken and gourmet sausages, fell 4% after it said production could be halted.

The crisis is also having a more immediate impact.

Online supermarket group Ocado said it had temporarily reduced the number of lines it is able to deliver from its frozen range. Dry ice is used to keep items frozen during delivery. Ocado shares fell 1.6%.

The British Retail Consortium (BRC), which represents retailers including the major supermarket groups, said the CO2 shortage had compounded existing pressures on production and distribution.

“… it is vital that government takes immediate action to prioritize suppliers and avoid significant disruption to food supplies,” said Andrew Opie, the BRC’s director of food and sustainability.

Britain’s National Farmers Union said it was concerned about the shortages of fertilizer and CO2.

“We’re aware of the added strain this puts on a food supply chain already under significant pressure due to lack of labor,” NFU vice president Tom Bradshaw said.

Britain’s big four supermarket groups – market leader Tesco, Sainsbury’s, Asda and Morrisons declined to comment.

(Reporting by James Davey; Editing by Guy Faulconbridge, Jason Neely, Gareth Jones and Alexander Smith)

Pfizer wants to store vaccine at higher temperatures, making deliveries easier

FRANKFURT (Reuters) – Pfizer Inc and BioNTech SE have asked the U.S. health regulator to relax requirements for their COVID-19 vaccine to be stored at ultra-low temperatures, potentially allowing it to be kept in pharmacy freezers, they said on Friday.

Approval by the Food and Drug Administration (FDA) could send a strong signal to other regulators around the world that may ease distribution of the shot in lower-income countries.

The companies have submitted new temperature data to the FDA to support an update to the current label that would allow vials to be stored at -25 to -15 degrees Celsius (-13°F to 5°F) for a total of two weeks.

The current label requires the vaccine to be stored at temperatures between -80ºC and -60ºC (-112ºF to -76ºF), meaning it has to be shipped in specially designed containers.

The shot’s cold-storage requirements set off a scramble among U.S. states at the beginning of the rollout for dry ice, in which it can be stored temporarily when there are no specialized freezers available, for instance in rural areas.

Amesh Adalja, senior scholar at the Johns Hopkins Center for Health Security, said the higher temperatures should “greatly expand the ability to use this vaccine in many parts of the world (or even the U.S.) that do not have the capacity for deep freeze storage”.

Pfizer/BioNTech’s vaccine, along with Moderna Inc’s two-dose shot, has already won U.S. emergency-use authorization and is being widely distributed as part of the country’s mass vaccination efforts.

The update from the drugmakers comes as two studies from Israel found that the vaccine greatly reduced virus transmission, and the shot was backed by two of the South African government’s top advisers.

The new data also will be submitted to global regulatory agencies within the next few weeks, the two companies said.

A BioNTech spokeswoman declined to provide more details on the timing and which agencies would be contacted.

“The data submitted may facilitate the handling of our vaccine in pharmacies and provide vaccination centers an even greater flexibility,” BioNTech Chief Executive Ugur Sahin said.

Deutsche Post, which has shipped COVID-19 vaccines to several European countries, Israel, Bahrain, Mexico and Singapore, among other states, said -25 degrees would provide some relief but transportation would still not be easy.

A spokeswoman said air freight would likely no longer require dry ice on board, increasing storage capacity per plane.

BioNTech has said it imposed long-term storage and transportation requirements of -70 degrees out of caution because it had started stability and durability tests on its vaccine relatively late.

Even though it launched its COVID-19 vaccine development program as early as January 2020, working on four compounds in parallel, it did not decide until July which of the four to proceed with, and only then started stability tests.

If approved, the less onerous storage requirements would provide significant logistical relief.

The World Health Organization’s COVAX global vaccine-sharing program has so far limited distribution of Pfizer-BioNTech vaccines to just a few countries, partly out of concern over a lack of infrastructure in developing nations.

The WHO said it was hopeful that eased requirements could broaden its reach.

“We are aware of reports of this and look forward to seeing the data. If proven correct, this could make rollout of the vaccine easier in all countries, and particularly in low-income ones,” it said.

Moderna’s product, which like Pfizer’s is based on so-called messenger RNA molecules, is already cleared for storage at -25 to -15 degrees Celsius.

(Reporting by Manojna Maddipatla and Ankur Banerjee in Bengaluru, Ludwig Burger in Frankfurt, John Miller in Zurich, Matthias Inverardi in Duesseldorf, Michael Erman in Maplewood, N.J. and Lisa Baertlein in Los Angeles; Editing by Shounak Dasgupta, Anil D’Silva, Jan Harvey and Nick Macfie)

Super-cold container firm va-Q-tec expands to meet COVID-19 vaccine demand

By Ilona Wissenbach

FRANKFURT (Reuters) – Cold-storage specialist va-Q-tec is significantly expanding its fleet of 2,500 rental containers to meet growing demand to transport COVID-19 vaccines that need to be kept as low as -70 degrees Celsius (-94°F), its chief executive said.

The German company is in talks with all the major pharmaceutical manufacturers of COVID-19 vaccines, CEO Joachim Kuhn told Reuters in an interview.

Kuhn said the company would “significantly expand” its fleet of rental containers in the coming year. He did not specify how many extra containers were planned, though said it would not be to the extent of doubling the fleet.

Va-Q-tec is among a handful of high-end packaging providers who have found themselves in high demand as drugmakers and logistics firms prepare to transport such shots around the world. Its shares have risen by 230% this year, valuing the company at around $690 million.

The company’s turnover has increased by 30% annually over the past 10 years. “We expect this growth to continue in a similar form,” said the CEO, adding that global vaccine distribution might take several years.

“We are carefully increasing the number. With the market growing by more than 10% per year, we are not afraid that we will be left sitting on empty containers after corona.”

The Würzburg-based company completed a 25 million Swiss franc ($27.4 million) bond issue on Monday to help fund its expansion plans.

It manufactures “passive” containers, which use dry ice to keep the contents at ultra-cold temperatures for up to five or six days, as opposed to “active” containers that also use electric motors for cooling.

The vaccine candidate developed by Pfizer and BioNTech, which uses mRNA technology, needs to be kept at about -70 degrees Celsius, colder than the offerings from Moderna Inc and AstraZeneca PLC.

Kuhn said va-Q-tec had contracts with the world’s 20 largest airlines and major freight-forwarders. He said intercontinental transport with cargo flights was expected to be less of a problem than last-mile distribution on the road, given there was experience in transporting super-cold goods by air.

“To meet the demand for dry ice is not a big problem in our latitudes with sufficient regional production,” Kuhn said. “It will be a challenge in countries that do not have this infrastructure in Africa, Latin America or Russia.”

(Reporting by Ilona Wissenbach, Reuters TV; Writing by Jamie Freed; Editing by Pravin Char)