The new board in charge of the loss-making Meat Plant say they have made real progress in bringing stability to the operation.

But they said the problems facing the abattoir are structural and the underlying issues cannot be fixed by the company alone.

In an open letter, the board of the Isle of Man Meat Company said that when it took over in late September last year, it inherited a business in real difficulty.

There was no general manager or operational leadership, the Manx National Farmers’ Union had issued a public letter of no confidence and machinery had failed, leading to lost product.

Since then, waiting times for livestock have dropped from over 12 weeks to zero, cattle processing speeds have more than doubled, from nine to more than 20 per hour and the gap on gross profit has narrowed, with sales now closer to covering costs.

A new general manager and full senior leadership team was appointed earlier this year and 11 skilled butchers from the Philippines have been recruited.

Product shelf life is being extended from 11 to 42 days and there has been a significant reduction in breakdowns on the line.

A plan is underway to stock a profitable Manx meat range in all Tesco stores in the island.

But in its open letter, the board says big challenges remain.

Isle of Man Meat Company sells meat for less than it costs to buy and process the animals - and this means the more livestock it handles, the more money it loses, with these losses covered by a government subvention.

There are constraints on the operation of the abattoir - it must accept all animals, regardless of commercial value, it must pay farmers UK market prices, even if the animal can’t be sold at a profit, and the company is told it cannot sell directly to hotels, restaurants, or catering outlets.

‘In short, we operate in a commercial market without the commercial freedoms we need to be viable, without subvention,’ the open letter states.

‘The island produces more local meat than it consumes domestically, especially lamb. Most excess meat is sold off-island, often at a loss. And much of the meat eaten on-island is imported.

‘That means taxpayers are subsidising meat that isn’t being eaten here. If we’re paying for it, we should be eating it.’

The open letter sets out three options for the future - shut the plant and export all animals for slaughter off the island, scale back to basic slaughter only, or build a ‘working model’ with a clear agricultural strategy.

That ‘working model’ would mean working with the industry to tighten the specifications of animals which the plant would receive, opening up new sales channels on-island and encouraging islanders to buy Manx meat.

The board says it’s happy to continue in its role as it stands but warned that once ‘difficult truths are named’, the Meat Plant could become a ‘political and public punch bag’.

Its open letter concludes: ‘While there is still more work to do inside the business, the bigger issue lies in the economic conditions we are operating within. These conditions are specific to the Isle of Man.

‘With investment now and over a few years, with the correct support from producers and butchers, the subvention can be reduced to a sustainable level. It is now for the public, government, and industry to decide what future they want.’

Local producers are being invited to a dedicated meeting in the coming weeks to receive updates, ask questions, and contribute to the conversation around the company’s future direction.

General manager Michael Barker said: ‘We acknowledge past challenges and are firmly focused on moving forward with greater collaboration.

‘Bringing producers to the table is not about looking back but about shaping the future together. Our aim is a productive and honest dialogue that strengthens the sustainability and resilience of the island’s meat industry.’