Farmers on the Isle of Man (IOM) are becoming more dependent on exporting their produce as the local routes to market are diminishing.
The only option for Manx farmers to export their produce off island to the United Kingdom (UK) and further afield is via sea, with the IOM government’s ferry the Isle of Man Steam Packet Company.
Currently, farmers are paying just under £5,000 per trip to take a livestock wagon out and arable farmers £50-£60/t on a trailer that carries 26t.
Route to markets
On the island, the main route to market for arable farmers growing milling wheat was Laxey Glen Mills, but the mill has refused to take in anymore grain for the next two years as its silos are full.
This was after the closure of Ramsey Bakery that took 80% of Laxey’s flour. The only remaining option for milling wheat producers is to export to the UK.
Ian Parsons, president of the Manx national farmers union (MNFU) said:
“Outside of what is used for animal feed on island, there is no route to market unless new accessible markets are found; it is very worrying for farming going forward.”
Beef and sheep farmers say they have had major issues with the government-owned meat plant, known as Isle of Man Meats.
The issue within the multi-species meat plant has not only been the amount of livestock it will take, but also when it will take them.
This left farmers with no choice but to export, as Rose Crellin explained:
“We would all like to support the meat plant and produce for local market, but the grim reality is you’re running a business and when stock is ready to go, it needs to go.”
The dairy sector on the Isle of Man is in a unique position compared to its counterparts as they send their liquid milk to Isle of Man Creamery which is a cooperative ran by 30 dairy farmers on island.
Although their route to market is stable, the Manx price was still lagging 10p behind during the period of high milk prices in the UK last year.
Meat plant
Last year the IOM government released a document called the ‘Burnie report’.
This report was an audit of the meat plant; the outcome from the report showed that the meat plant is operating at below average standards.
It stated that the “factory displays an overall malaise and in places, gross ineptitude”. The report added that “there are multiple problems and it will take an extended period of time to resolve them”.
The largest challenges at the factory related to the following areas according to the IOM Government:
- Fundamentally flawed sales model;
- Amount of management and financial information collected is much too low;
- Pace of operation of the plant is much too slow;
- Staff management and training programme is fundamentally flawed
- Adherence to regulation is poor;
- Factory process reveals an overall lack of attention to detail.
Clare Barber, the Isle of Man’s Minister for Environment, Food and Agriculture (DEFA) said there has already been significant work at the meat plant with the health and safety elements being addressed first.
Minister Barber added: “We’ve recruited a new managing director within the plant. They will be starting mid-June and have a heavy sales and marketing background.
“I think that’s a really good news story, and although she is not starting until June, she has already been joining us for strategy meetings.”
Road haulage equivalency
The Manx National Farmers’ Union (MNFU) has stated that a ‘road haulage equivalency scheme’ similar to the road equivalent tariff (RET) in Scotland, would be a potentially sector-saving decision for Manx farmers to allow them to export products at an affordable rate.
The principle of RET is that ferry fares should be set on the basis of travelling an equivalent distance by road plus a fixed element aimed at cost recovery.
RET was intended to reduce the cost disadvantage faced by island communities and promote the islands as places to live, work, invest and conduct business.
