UPDATE 2-UK meat industry warns of imminent threat to supplies from CO2 crisis

* CO2 shortage is caused by closure of fertiliser plants

* Meat industry needs CO2 for animal slaughter, packaging

* Ocado reduces lines of frozen foods it can deliver
(Adds Ocado, Cranswick, updated BRC line, farmers union)

By James Davey

LONDON, Sept 20 (Reuters) - Some of Britain's meat
processors will run out of carbon dioxide (CO2) within five
days, forcing them to halt production and impacting supplies to
food retailers, the head of 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 fertiliser 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
even sooner.

RETAILERS HIT

Allen said the government was working hard to try and
resolve the issue and might be able to persuade a UK fertiliser
producer to re-start its plant.

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 were down 2.7% at 1105 GMT.

Shares in processor Cranswick, whose products
include fresh pork and chicken and gourmet sausages, were down
2.7% after CEO Adam Couch said production could be halted.

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
prioritise 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 fertiliser and CO2.

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

Foreign office minister James Cleverly said the government
was looking to address short-term shortages.

"We will ensure that we are able to put food on the table,
obviously that is a real priority," he told Sky News.

Britain's big four supermarket groups - market leader Tesco
, Sainsbury's, Asda and Morrisons - had
no immediate comment.
(Reporting by James Davey; editing by Guy Faulconbridge, Jason
Neely and Gareth Jones)