THERE are fears food prices could rise further as a Cheshire West factory plant is shutting down with the loss of 300 jobs.

We reported in June that 283 jobs were to be axed as CF Fertilisers UK Limited announced it was to close its Ince site, while keeping the Billingham factory open, as part of a restructuring of its UK operations for long-term profitability and sustainability.

CF Industries produces 60 per cent of Britain's CO2 supplies via agricultural fertiliser production, but soaring energy costs last September resulted in both the Ince and Billingham plants closing. The latter reopened thanks to Government support.

Despite hopes of a potential buyout from UK-based investors, no such deal came to fruition, and it is understood the Ince plant has been shutting down this month.

The CO2 traditionally produced by such plants is crucial for the packaging and preservation of fresh food and salads, and there are now concerns food prices could be more volatile in the future, amid a cost of living crisis. The hot and dry summer which has led to drought warnings in parts of the UK is expected to exacerbate the situation with harvests being impacted.

The Ince CF Fertilisers plant first started producing ammonia in 1965. While it has the facility to produce 'NPKs', which are compound fertilisers that blend nitrogen with other nutrients, including phosphate, potash and sulphur, the firm said such operations are currently economically unviable, as manufacturing it would result in heavy losses.

However, the most recent financial report for CF Industries showed revenue was $2.9 billion, up more than 173 per cent year-on-year and more than $246 million higher than expected by analysts.

A demand for fertilisers is expected to increase in the coming months as planting season approaches in certain parts of the world. Additionally, the blockade of agricultural terminals in ports of the Black Sea – due to the war in Ukraine – has meant there could be increased fertiliser demand to grow crops in African countries and Southeast Asia to head off a potential food crisis.