Strong financial support for Falklands loss-making abattoir

Friday, July 28th 2006 - 21:00 UTC

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In a radio interview today, Councillor, Mike Summers, pledged his government's continued support for the Falkland Islands Meat Company, (FIMCO) which operates the Islands' only abattoir. This is despite the fact that the company, which is already highly subsidised by the Falkland Islands Government, made a net loss this year of some £426,000.

Explaining the decision, which followed an informal meeting on Tuesday between members of the Islands' Legislative Council and FIMCO directors, Summers said, "It is clear that we need to take a long-term view of the role of FIMCO and the abattoir in the farming community. The way that they plan their business needs to be aligned with the Department of Agriculture Business Plan so that they are both working on the same basis."

FIMCO, said Cllr. Summers, have been asked to prepare five and ten-year plans for consideration at the August meetings of the Government's Standing Finance Committee and Executive Council, when a formal decision on the amount of further funding available for the abattoir will be made.

FIMCO Operations Manager, John Ferguson, said today that he would not want to pre-empt any decision of the FIG, but welcomed Councillor Summers' indications of further support. In terms of practical issues, FIMCO had had an excellent year with productivity doubled since meat exportation began in 2003.

Mr. Ferguson agreed with Councillor Summers' assessment that this year's loss was due to exceptionally low prices in the global meat market, which might be expected to continue for a further year, but that on the evidence available the expected average price could be substantially higher, long term.

This concluded Cllr. Summers was the reason that the Falkland Islands Government was prepared to take a long-term view. Looking further forward, he said, " the losses should be very substantially less and depending on the developments in the Agricultural Business Plan, how farmers actually get on with their pasture improvement schemes and all of that, it's perfectly possible for the abattoir to start ?washing its face' and breaking even."

John Fowler (Mercopress) Stanley

Categories: Falkland Islands.

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