Shoprite sale caused 'considerable alarm' to Manx farming sector

MNFU 'disappointed' by ministers' comments

The takeover of Shoprite by Tesco has caused 'considerable alarm' in the Manx farming sector.

The Manx National Farmers Union says Monday's announcement, that the UK supermarket chain would take on all nine stores, was 'as much breaking news to the Islands agricultural and food production industry as it was to everyone else'.

In its view, the Union says, 'the prospect of one retailer now almost fully dominating the food sector in the Isle of Man, and an eroded commitment to Manx produce, compounded by the continuously escalating high cost of import and export for the industry, presents a significant risk to the survival of local food production.'

Real threats, it says, which have 'yet to be realised by our Ministers and Government decision makers'.

However, the MNFU admits there may be opportunities, yet to be presented, which could 'benefit' the local food industry, and it's welcomed Tesco's statement regarding engagement with local suppliers and encourage any ‘early-doors’ communications between the retailer and industry that allows businesses to plan and adjust.'

In a statement, issued Wednesday morning (11 October), the Manx National Farmers Union says: "We have been disappointed by the comments from our Chief Minister, and the Minister for the Department of Enterprise. It is evident that they have not recognised the risks and vulnerabilities that our producers and processors have. Manx producers are investing now in the food production required for the next few years, and our Government consistently fails to take account of this."

"IOM Government must be pro-active in order to protect the industry, and not sit back and let things ‘play out’ while delivering platitudes and empty words to a food supply industry now seriously under threat. If Government do not address all these risks effectively and immediately, it could well deliver the terminal blow to many local producers.

"Isle of Man Government has a responsibility to protect our Island from exposure to ‘the Walmart Effect’. They need to take immediate steps to protect retail diversity on the Isle of Man, by legislation if necessary, and ensure that the retailer operates to a strict Code of Practice to ensure local producers are treated fairly for the long term. 

"Government response must include a commitment to prevent adverse economic affects and consideration of a moratorium on any retailer dominance of this scale to avoid both producers and consumers being held to ransom in the future. We must make sure that no barriers to other retailers are created, or abuse of an oligopolist position by exploiting or blocking other local business.  There must be protection from risks to our food sovereignty and consumer choices.

"We call upon the Chief Minister, Council of Ministers, and Members of Tynwald to convene an emergency meeting with all producers and processors to discuss steps that will be undertaken to protect existing business in the Isle of Man, seek opportunities that can be sought, and to set out how Government will commit to investing in the local food market that is facing these unprecedented changes seemingly alone. IOM Government needs to act decisively, show commitment to local producers, and back Manx Farming."

Meanwhile, the Environment, Food and Agriculture Minister, Clare Barber, says she's hoping government can act as a facilitator for local producers and suppliers.

She says Tesco has to be willing to support them all year round, not just when they need them: