New research from Plimsoll Publishing suggests that almost half of the UK fresh produce industry has not been affected by the global economic slowdown.
The study surveyed the UK’s top 1,000 fresh produce firms, based on their latest financial performance. Its findings were that the brunt of the downturn is being felt by about a fifth of the companies in the marketplace, while many have maintained financial strength and even increased sales.
Plimsoll’s figures show that the market is showing no overall growth, compared to growth of almost six per cent this time last year.
However, there is much changing among the players in the marketplace as they jostle for sales, highlighted by the huge gap in performance. Some 305 firms have seen their sales decline, some by as much as 13 per cent, while 530 firms have seen sales increase, some by as much as 15 per cent.
David Pattison, senior analyst at Plimsoll, said: “The recession seems to have accelerated a shift in the market. Some companies have clearly been affected by those that have swapped to low-cost alternatives or by the loss of a key client. Others are clearly benefiting.”
Profitability is slim industry-wide, with most companies reporting profits of less than one per cent. Although this is largely in line with last year’s figures, the gap between the very profitable and those missing out is widening. More than half of those surveyed by Plimsoll have seen their profits fall and a quarter are losing money. But 423 firms have actually increased profitability.
Pattison, pictured, said: “The recession has been a good thing for a number of companies - it has sharpened their management and improved the accountability of the directors.”
But there are plenty in the trade who would dispute this. One importer and supermarket supplier said: “To say there are fresh produce companies that have not been affected by the recession is untrue. All the category managers in our sub-sector supplying into the supermarkets - everyone - have all made redundancies.
“It has definitely affected companies. Anyone who denies that is lining up their own business for failure.”
