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Meat plant- value for money?


Banker

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Job security won’t be helping matters, lots of people like to know their job is safe and the meat plant always feels like it’s only one step away from closure.

What sort of role does the animal waste processing plant play? I know that’s Government run (DOI) what are charges/fees there compared to a UK processing plant, is that having any impact on slaughter rates?

Edited by Annoymouse
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22 minutes ago, John Wright said:

2. That’s what we had for the best part of 60-70 years. Imports undercut the Manx production and reduces throughput and increases cost per carcass. That puts up price to the public or requires additional subsidy.

Nobody would seriously propose today that we should go back to a system under which we would only be allowed to buy Manx sausages, Manx steak etc? Competition is key to innovation.

I still think that the best idea is to fund the meat plant from taxation at whatever it costs but provide no other farming subsidies. And ban live export. 

Assuming that we think it's worth people still farming sheep and cattle here. 

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51 minutes ago, Gladys said:

Annual accounts are never a substitute for management accounts on which managenent decisions should be made. Different beast. 

Well indeed and government ones have a tendency to roll everything they can into one line and call it Operating Costs (see Manx Radio).  The 2018-19 Accounts are here:

https://www.tynwald.org.im/business/opqp/sittings/20182021/2019-GD-0059.pdf

and as usual any interesting stuff is buried in the notes.

I also found an interesting press release from 2015 relating to the charges made by DEFA to the Meat Plant.  Obviously some things will have changed since.

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38 minutes ago, TerryFuchwit said:

Without the risk of sounding like Banker - how do the Channel Islands do it?

They don’t have a meat for consumption industry. Tiny land masses. Heavily/densely  populated. Agriculture is intensive. Early spuds, CI milk, tomatoes, flowers. Lots of glass. There aren’t the acres and hill farms for commercial beef and lamb.

Jersey has an abattoir with average through put of between 15-50 animals per week.

so small beer by our standards

http://www.gov.je/Government/FreedomOfInformation/pages/foi.aspx?ReportID=2344
 

Guernsey has a recently built ( £2 million ) government owned abattoir with slaughtering by one  private slaughter man. I can’t see throughput. One man, won’t be high. I can see the prices per carcass

The latest Manx figures I could find were a throughput averaging 1,000 a week, beef, sheep meat and pork.

 

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51 minutes ago, Roger Mexico said:

Well indeed and government ones have a tendency to roll everything they can into one line and call it Operating Costs (see Manx Radio).  The 2018-19 Accounts are here:

https://www.tynwald.org.im/business/opqp/sittings/20182021/2019-GD-0059.pdf

and as usual any interesting stuff is buried in the notes.

I also found an interesting press release from 2015 relating to the charges made by DEFA to the Meat Plant.  Obviously some things will have changed since.

The interesting stuff is always buried in the notes.  The accounts are prepared in line with relevant accounting standards and the Companies Act, so not sure where the issue is.   

One would assume that when agreeing the subvention, Treasury get more detailed financial information including forecasts and business plans, and thoroughly scrutinise them.  

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Assuming a through put of 1000 animals a week and a current subvention by the taxpayer of £2 million each carcass is already subsidised by £40.

Looking at cost of sales, ie buying the animals, the operational staff wages, and heat, light, power, rates, of £8 million ( I’m rounding ) each carcass costs on average £160 to put through the abattoir.

I appreciate it’ll be different between calves, beef, pigs, lamb and mutton.

Then there’s £1.25 million of administrative/managerial overheads.  £25 per carcass.

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7 hours ago, Boris Johnson said:

I would not mind paying a premium for Manx meat but it is not as good as it used to be 20+ years ago, what happened?

Yes, when we used to come over to visit family, we would always load up with lamb and rib of beef as it was much better quality/flavour and was comparatively priced to what we could get in the UK. 

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A lot of info in the report https://www.tynwald.org.im/business/opqp/sittings/20182021/PP-2021-0150.pdf

"Since 2018, Isle of Man Meats has received a subvention of around £2 million per annum. It is unclear to us how this amount was decided upon, but the audited accounts make it clear that the company is reliant on the subvention, which covers the costs of operating the Plant. Both the DEFA Minister and the Chairman of Isle of Man Meats have repeatedly stated that the Meat Plant would not exist without the subvention."

"Producers are paid UK AHDB prices for their livestock. AHDB prices are based on the average price paid for deadweight livestock from a sample of abattoirs across Great Britain, which changes week by week; currently IOM Meats uses the Central price for beef, as that is the region where most of the produce is sold. This is a result of the much-debated policy of ‘equivalency’ with UK prices, which is intended to encourage Manx producers to send their livestock to the Meat Plant rather than sending it away for processing. Paying AHDB prices is part of the agreement between DEFA and Isle of Man Meats for operating the plant; it has been DEFA’s policy in principle since the 2008 reforms."

"Currently, Isle of Man Meats supplies the local marketplace with only 20-30% of the meat it processes; under derogation the amount supplied to the local marketplace was closer to 80%."

"There is already an example on Island of how to run a successful food commodity business without the need for Government subvention: the Isle of Man Creamery. This model works for a number of reasons."

So the report pretty much says what everyone on this thread had already said but is still worth a read.

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