DEFA Minister John Shimmin has called for all sectors involved in the production and retailing of the Isle of Man’s food to “pull together like never before” to battle against the global financial crisis.
In a statement to local farmers, producers and retailers, he said the volatility of the farming industry in recent years means that further difficulties cannot be ruled out.
“Now - more than ever - we must ensure that we get the most from the market and work as efficiently and effectively as possible,” he said. “We need to work together - government, farmers, processors, retailers and consumers.”
Mr Shimmin’s statement, contained in the latest edition of the DEFA newsletter ‘Agri-News’, said:
“The UN-OECD Agricultural Outlook report released in June reported a positive outlook for farmers over the next decade. As incomes rise worldwide, diets are expected to slowly diversify away from staple foods towards increased meats and processed foods that will favour livestock and dairy products. In turn, it predicts that commodity prices will rise in real terms by between 10% and 45% over the next decade.
“That is not to imply that tomorrow’s farmers are in for an easy ride. Farming has been through several volatile events recently such as high fuel and fertiliser costs, adverse weather and the global financial crisis. It would be foolish of me to predict that similar events will not happen in the future.
“The Government’s budget is under its greatest pressure in a generation - now more than ever, we must ensure that we get the most from the market and work as efficiently and effectively as possible. We need to work together - government, farmers, processors, retailers and consumers.
“The Department is continuing to seek some form of extension to the derogation but we must recognise that Europe is increasingly demanding free trade. If we wish to continue to export dairy products and meat to the UK and beyond, we must accept the need to remove import restrictions. Having said that, I am hopeful that some limited extension may be achievable.
“Derogation or not, we are not immune from the global economy. The processing sector in the UK continues to contract and restructure to remain competitive. Small and medium sized meat plants, similar to our own, are closing but it is virtually impossible to envisage a meat industry in the Isle of Man without a meat plant. The same is true of a Creamery.
“Therefore, my Department will be working more closely with IOM Meats and the Creamery over the coming months to ensure that the businesses are sustainable in the long term.”
