The global recession has cost the UK fresh produce industry around £444m (€489.4m) in lost profit over the past 12 months, a result of lower demand and subsequent falling prices.
That is the verdict of a new report by Market analyst Plimsoll, which has been released this week under the title 'Plimsoll Analysis – Fresh Produce'.
The recession has hit the sector hard with more than half of the companies analysed in our new report making less profit than they were a year before,' said David Pattison, a senior analyst at Plimsoll and the author of the report. 'The bill in lost profits stands at £444m.'
According to the report, which gives a performance rating to the top 993 companies in the UK fresh produce market, the burden of lost profits is not being shared equally across the industry.
'576 companies have bore the brunt of the downturn. These companies have seen their profit margins decimated and, in the absence of a big upturn in demand, will have to cut their cloth accordingly,' said Mr Pattison. 'Watch out for further job losses and closures at these companies as they look to claw themselves back to profit next year. If they fail to act quickly, they could find themselves running out of cash.'
However, he noted that there were 141 companies in the UK that had maintained or increased their profit margins in the last year.
'Those companies prove that an efficient business selling the right product to the right market can still succeed in the UK fresh produce industry,' Mr Pattison added.
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