The UK fresh produce industry has become increasingly fragmented since its emergence from the depths of the recession, according to research from industry analyst Plimsoll.

David Pattison, senior analyst and author of the 2011 Plimsoll Analysis, said: "Now that the storm is lifting, we have been able to assess the damage left behind. 234 companies are in a parlous state and starting the New Year clinging on for dear life."

According to Pattison, such companies, affected severely by a drop in demand, failed to make the necessary cuts soon enough.

On the other hand, the number of companies now rated as Strong has risen to some 433.

"They have managed to be commercially successful without jeopardising their financial stability," explained Pattison. "While others fail around them, they are in pole position to capitalise in 2011."

He added that, with costs and overheads expected to increase this year, returning to growth would be essential for UK fresh produce businesses.