Industry analyst Plimsoll has released a new report claiming that 346 companies in the fresh produce industry have lost over a third of their value in the past year.
A special edition of the 'Plimsoll Analysis – Fresh Produce' study showed that of the top 992 companies analysed and valued, 632 groups are actually worth less now than they were during the same period of 2009.
'It's not surprising that the value of companies has taken a pounding recently but the extent of the squeeze is striking,' said David Pattison, senior analyst at Plimsoll. 'Only 360 companies managed to increase their value – a record low.'
And Mr Pattison suggested that there were fundamental reasons for the dip in the value of certain companies, aside from a lack of eager cash-rich buyers.
'A number of factors have affected values. As demand slackened and companies were inclined to protect their market share, many saw profitability fall as a result,' he explained. 'Declining margins have been the biggest weight on values in the market. The 346 companies that have suffered 30 per cent and more falls in their value have all seen their profit margins plunge too.'
It is not all bad news, Mr Pattison points out, with some companies riding out the economic downturn to come out in a positive light.
'Despite it all, 360 companies are now worth more than they were last year,' he said. 'Considering the malaise in the market over recent years that is a quite remarkable achievement. I hope it points to better times ahead.'
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