A new commercial board is being put in place to run the meat plant.

The new management team is due to take over the running of the business in January.

It will be tasked with improving performance and offering more competitive pricing to farmers. This will include more effective marketing and supply management.

Efforts will also be made to attract UK commercial partners to boost the sustainability of the meat plant, which slaughters cattle, sheep and pigs from Manx farms.

The way forward was agreed by DEFA, the Fatstock Marketing Association and the Agricultural Marketing Society after a tender exercise failed to find a private operator to run the plant.

Government will continue to provide support to the loss-making plant, which saw its annual subsidy rise to nearly £1.4m last year.

The new arrangements were drawn up with input from the farming industry. An industry meeting will be held on Monday December 11 at the QEII High School in Peel, starting at 7pm.

Environment, Food and Agriculture Minister Geoffrey Boot MHK said had been clear for some time that the plant needs to be operated more efficiently and with a stronger commercial focus.

He said: ’I have been encouraged by the pragmatic approach taken and the willingness of all parties to arrive at a solution that represents the best interest of our taxpayers, our consumers and our farmers.’

He added: ’The meat plant is a national asset that is vital to the future success of our farming industry and local food security.’

Andrew Cooper, general secretary of the Manx National Farmers Union, said change was necessary. He said: ’Our members are cautiously optimistic.’

A spokesman for the FMA board said they were disappointed not to be successful in the recently discontinued tender process.

But he added: ’The FMA directors have concluded that the best future for the livestock sector in the Isle of Man lies in this proposed venture. We are committed to delivering a rapid and smooth transition as well as contributing to this exciting new business.’