The Department of Environment, Food and Agriculture has today received Tynwald’s approval of £1.6 million pounds expenditure to refurbish the Meat Plant at Tromode. The total cost of the refurbishment will come to just over £2million, with an additional £400,000 coming from the DEFA administered ‘Agricultural Development Fund’ and £200,000 from Isle of Man Meats.
The existing meat plant is now 18 years old and a large amount of equipment within the building is life expired. The boilers in particular require urgent replacement and the gas used in the refrigeration units becomes illegal after 2014. The landlords (Department of Infrastructure) have also identified the need to improve areas within the plant to meet revised animal welfare standards and Health and Safety at Work obligations which will also be upgraded as part of the refurbishment works.
The refurbishment proposals coincide with a co-ordinated plan for a sustainable future for ‘Isle of Man Meats’. A new 15 year lease has recently been agreed, together with a four year subvention deal providing an opportunity for the business to adjust to changes to supply chain and associated market turbulence that have been impacting on the meat industry across the UK and Ireland.
Currently the red meat industry is worth over £10million a year and the plant delivers direct returns to Treasury of over £400k a year. In addition to providing a facility for the future, the refurbishment will reduce costs in relation to power consumption and increase efficiencies in other areas.
Phil Gawne MHK, Minister for the Department of Environment, Food and Agriculture said:
'The importance of this facility to the Isle of Man cannot be overstated. It is essential that we have a plant to meet the demands of the Manx food industry and to ensure Food Security and the existence of a self-reliant food chain. Economically, the plant provides an important route to market for local farmers; without it, the only alternative is live export. It is also fundamental to the success of growing the food sector’s contribution to GDP, a target approved by this Court in January 2014. The Plant has made savings of some £1.4 million pounds since 2008 and this refurbishment will allow this efficiency drive to continue.'
Graham Crowe, Chairman of Isle of Man Meats welcomed the decision saying:
“Isle of Man Meats has undergone significant changes to its business in recent years, being increasingly customer focused and dedicated to providing a quality service. This is something we are committed on building on. However, regardless of trading conditions this refurbishment is essential to ensure that the business can continue to operate.'
Brian Brumby, President of Manx National Farmers Union also lent his support saying:
'this refurbishment comes at a time when large investment is occurring at our competitors’ plants in the UK. The ability for the Island to be able to process its own meat is likely to become more important in terms of food security. It is important that Manx farmers have the option of a local meat plant and currently make a significant contribution to the running of the plant through accepting reduced returns on their stock when compared to UK meat plants.'
