Reading, UK: Food, pharmaceutical, and other cold chains need assurance from government that they will be treated as critical industries through this winter and beyond, says the Cold Chain Federation.
The federation has written to the chancellor and newly appointed cabinet ministers in the Department for Business, Environment and Transport calling for urgent reassurances of continue support on energy costs for the industry beyond March next year.
The government’s Energy Bill Relief Scheme provides support to eligible organisations until 31 March 2023. But the Cold Chain Federation is calling for support beyond that date.
Shane Brennan, chief executive, Cold Chain Federation, said: “With more and more cold chain businesses no longer being able to rely on forward-bought or hedged electricity, and massive increase in prices forecast well into 2023 and beyond, there are serious questions about the viability of some cold chain operations.”
“We are urging Mmnisters to provide reassurance that whatever government support is in place beyond March next year, the critical businesses in food and pharmaceutical supply chains will remain supported.”
The Cold Chain Federation has made a strong case its letters to the chancellor and ministers for continuation of energy bill support to cold chain operations. The federation cites the potential for unavoidable disruption to food and pharmaceutical supply chains and a significant risk of further food inflation for products like meat, dairy, fruit and vegetables.
“Crucially, unlike other sectors cold stores use significantly more energy in the summer rather than the winter to keep products cool, so the continuation of support beyond March 2023 will be vital,” the federation says.
The Cold Chain Energy Crisis Action Plan, published in September 2022 by the Cold Chain Federation, sets out a range of actions that government can take in the short, medium and long term to help cold chain businesses manage through the energy crisis.
