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Belafon4/08/2020 8:01:22 am PDT
NEW YORK/CHICAGO (Reuters) - A slew of U.S. ethanol plants have shut down as fuel demand has collapsed during the coronavirus outbreak, and meatpackers have been hit by a worrying side-effect: less carbon dioxide is now available to chill beef, poultry and pork.

“We’re headed for a train wreck in terms of the CO2 market,” said Geoff Cooper, president of the Renewable Fuels Association industry group. The RFA said 29 of the 45 U.S. ethanol plants that sell carbon dioxide, or CO2, have idled or cut rates. The U.S. ethanol sector is the top supplier of commercial carbon dioxide to the food industry, accounting for around 40% of the market, according to the American Farm Bureau Federation.

That has put the U.S. meat industry on high-alert. It uses carbon dioxide as a refrigerant and preservative for meat, and also uses the gas to stun animals before slaughter.

The CO2 crunch is the latest supply chain disruption threatening the food industry as it struggles to keep workers on the job during the coronavirus outbreak while meeting rising demand at grocery stores.

reuters.com