Farmers Hit Back: “We Were Kept in the Dark”

Shock and anger as Fatstock Marketing Society disowns meat board pay surge

The Isle of Man’s farming community has erupted in anger after the Fatstock Marketing Society (FMA) declared it was “dismayed and shocked” by revelations of spiralling boardroom payments at the Meat Plant. In a blistering statement, the FMA insisted it had no knowledge of the escalating fees until the figures were exposed in Tynwald this week.

“We didn’t know – because we weren’t told”

The FMA, which represents the Island’s farmers and holds the A Shareholder role in the Isle of Man Meat Company Ltd (IOMMCL), says its nominated non‑executive director has been paid a fixed £7,000 per year since 2022. But the Society claims it was blindsided by the discovery that government‑appointed directors and the Chair were pocketing far higher sums through day rates and consultancy invoices.

Farmers, the FMA says, have been demanding answers: “How did you allow this to happen?” The Society’s blunt reply: “We did not know because the information was not shared.”

Costs up, performance down

The statement goes further, accusing the government‑run company of failing to deliver improvements to justify the ballooning costs.

• Staff numbers have “increased significantly.”
• Waiting times for farmers to get stock into the plant have “risen markedly.”
• Local butchers have struggled to source the meat their customers want, especially before Christmas.

Instead of efficiency, the FMA says the plant has become increasingly reliant on taxpayer subvention, draining DEFA’s budget while farmers shoulder the consequences.

Governance fault lines exposed

The FMA points to a structural imbalance: while it nominates one director, DEFA controls the appointment of the Chair and all other non‑executives. That leaves the farming body with no say in how the board is run. Since the forced handover of the plant in 2018, the Society says its concerns about governance have only grown.

Reset or rupture?

The Society acknowledges that DEFA has now halted the extra payments and that shareholders are working on a “reset process” to clarify board roles and improve communication. But the damage to trust is clear. Farmers, already struggling with rising costs and market pressures, now see a facility critical to the Island’s food security being run at a cost they cannot fathom.

Public trust on the line

The FMA’s intervention piles pressure on DEFA and the Meat Company board. What began as a row over hidden remuneration has now escalated into a full‑blown crisis of confidence: farmers say they were kept in the dark, taxpayers see money drained into consultancy channels, and butchers face shortages at the counter.

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The full statement is below:

The FMA wish to make the following statement as a response to the written reply earlier in the week to the Question raised by Julie Edge MHK.

Since the FMA were forced to sign its meat plant business over to the new IOMMCL, an arm’s length government company, in 2018, we have had ever increasing concerns with how the business has been run.

The FMA is the A Shareholder and has one nominated NED on the board. DEFA is the G shareholder and is responsible for the appointment of the other NEDs and the Chairman, the FMA currently having no say in these appointments.

The A Shareholder NED has received £7000 per annum payment since April 2022.  The current director in this position and the rest of the FMA Board were unaware of the change of payment to the G Shareholder NEDs and the extent of the board members payments until the publication of the answer to the written question submitted by Julie Edge MHK.  The FMA directors have been asked by farmers how they have allowed the payments to directors and the chairman to escalate, the simple answer is we did not know because the information was not shared.

We understand that the additional payments were stopped as soon as the Minister and the new Chief Officer became aware.

If improvements were far above the costs incurred by these Professional Directors, then they could perhaps be condoned but unfortunately this does not seem to be the case, in fact, the business seems to be reliant on ongoing subvention, usage of which has escalated annually, staff numbers have increased significantly, waiting times (stagger) for farmers to get their stock into the plant has risen markedly again and local butchers have struggled to get the product their customers want through the season and again especially in the lead up to Christmas.

The FMA which is made up of 5 elected farmer members, a number of whom have been actively engaged in running the business prior to IOMMCL’s takeover, is dismayed and shocked with the payment detail of what was provided in the written response to the tabled question by Julie Edge.

The farming industry is struggling to understand this particular level of expenditure and the consequential strain on the remaining DEFA budget. As farmers, we have a very clear understanding of how critically important this facility is to our businesses’ along with keeping the Island self-sufficient in meat.  Not only does the plant support beef, lamb and pork producers; dairy farmers and cereal farmers along with the huge support network of businesses that both support and supply farmers and local buyers rely on a healthy meat sector supply chain on the Island.

The industry and the Island recognise the complexities and challenges of running this facility and values the contribution that DEFA make. The shareholders are currently working together to identify core roles, structures and framework for the board as part of the current reset process and are working towards improved communication and understanding with the IOMMCL.