Tesco's takeover of the Isle of Man's Shoprite chain 'presents a significant risk' to the survival of food production on the Isle of Man.

That's according to a fresh statement from a farmer's union on the island who has called for an emergency Tynwald meeting on the buyout.

All nine of the island's Shoprite stores have been purchased by Tesco - bringing an end to 51 years of trading for the chain which was founded in 1972 by the Nicholson family.

The news was announced on Monday and saw a 'number of Shoprite staff' being put at risk of losing their jobs as a result of the sale.

In the wake of the announcement, Rob Callister, MHK for Onchan, revealed that he and 'others' had written to the government's chief minister, calling on Alfred Cannan 'not to bring forward' any plans that would see work permits for the Isle of Man removed.

All nine stores will continue trading under the Shoprite brand name in the short-term before transitioning gradually to Tesco shops over the next nine months, according to the supermarket giant.

Tesco has also confirmed that its product pricing structure at the new branches will remain similar to that seen at its UK supermarkets - with a 'small fee' added on to goods to cover transportation costs.

However, there are fears on the impact the buyout could have on Manx food producers now the largest independent grocery retailer on the island is set to disappear.

The Isle of Man's Robinson's firm spoke about the takeover yesterday - saying while it shared a 'specal bond' with Shoprite, news of the buyout came as a surprise.

The Manx NFU have now weighed-in on the issue, saying the government have a duty to protect the island 'the Walmart Effect' - a term coined in the US which refers to the economic impact felt by small businesses when a large company expands into a new area.

'Monday’s announcement on the takeover of the Shoprite chain by Tesco was as much breaking news to the island's agricultural and food production industry as it was to everyone else and has understandably caused considerable alarm in the Manx Farming sector.

'The Manx NFU have been acutely aware of the volatile and precarious economic situation that has been developing over the last few years in relation to the Islands food production, and we recognise that this new situation presents a seismic shift in the risks to our production ability.

'We will continue to lobby for better product representation, value recognition and fair access to the marketplace for our Manx Produce, both in the private sector and with our Government.

'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.

'Manx producers are now exposed to the potential of a a mo. These are real threats that have yet to be realised by our Ministers and Government decision makers.

'We do acknowledge that there may be opportunities, yet to be presented, which could benefit the local food industry.

'We respond positively to 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.

'As a producer representative body, we also applaud our established local retailer Robinson’s for both their long-term commitments to local producers and their consistent support and promotion of high-quality Manx Produce.

'They have always had a key role in the delivery of local produce, and we hope this will continue.

'Tesco revisiting their buy-local strategy adopted when they first established on the Isle of Man would go a long way to demonstrating their commitment and investment in the Island’s economy.

'We would welcome the opportunity for local producers to play a major role in this. Manx Produce needs to be recognised for the contribution it makes to the many aims of our Government, including the local economy, environment & biodiversity gains, carbon reduction targets, our biosphere status, high welfare standards, low intensity production and reliability when other routes can and do fail. All of this is achieved while producing excellent quality products.

'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.

'The 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.'

‘The Isle of Man Government is committed to continuing to work with the MNFU and all Manx producers, suppliers and distributors, with supporting transitional arrangements for those who currently supply Shoprite and Tesco being a primary focus.

‘Through the Department for Enterprise and Department of Environment, Food & Agriculture, the Isle of Man Government has been in regular contact with Tesco following their purchase of Shoprite earlier this week to understand the immediate impact on local staff and suppliers.

A spokeswoman for the Isle of Government said: ‘The Isle of Man Government is committed to continuing to work with the MNFU and all Manx producers, suppliers and distributors, with supporting transitional arrangements for those who currently supply Shoprite and Tesco being a primary focus.

‘Through the Department for Enterprise and Department of Environment, Food & Agriculture, the Isle of Man Government has been in regular contact with Tesco following their purchase of Shoprite earlier this week to understand the immediate impact on local staff and suppliers.

‘We are fully focused on working to ensure our local food and drink producers can continue to supply to their customers, and expect Tesco to share further updates over the coming days.’