Massive congestion amongst the UK’s largest fresh produce companies is putting unprecedented pressure on businesses to maintain their place in the market, according to a new study by Plimsoll Publishing.

The study found that the UK’s largest 200 companies control 91 per cent of the market - an increase from 87 per cent two years ago. The study suggests that this is having a huge impact on the fresh produce companies’ financial performance. These major companies are fighting each other headlong in a battle for market share.

The complete Plimsoll 200 Fresh Produce Analysis offers a full industry overview and analysis of each of the UK’s 200 largest fresh produce companies.

Of the 200 Fresh Produce companies surveyed 51 of the companies are showing no sales increases at all, 42 are selling less than they were two years ago, 127 companies have failed to increase sales at the same rate as their investment and 85 companies increased their debts simply to hold their place in the market.

The full 544-paged report suggests that the value of these 200 companies has fallen by around 40 per cent in the last 12 months. Plimsoll’s report identifies the companies who are prime potential acquisition targets.

David Pattison, senior analyst with Plimsoll, said: “The recent slow down in the UK economy will only accelerate a long standing problem in the market. Following the last few years, which have been largely profitable, business leaders have been keen to invest heavily, and in turn have borrowed heavily. Yet due to the turbulent economic climate of 2008 they are seeing very little by way of return. This ambitious investment strategy has left some companies in severe financial danger, and as a result 23 companies have been awarded a danger rating in this study as result of their failing business strategy.”

“The consequences are serious; these companies need to have serious rethink when it comes to their business models. It is likely that jobs will be lost and key projects could be cancelled in an attempt to control the spending - but for some companies it could well be a case of too little, too late.”