Some fresh produce businesses are neglecting their long-term finances as they remain too focused on day-to-day operations, according to one banking expert.

Guy Reeves, relationship director for corporate markets at Lloyds Banking Group, said that in some companies there are instances where finances are put to one side to concentrate on ‘the real business’. “This is a mistake. One is intrinsic to the other.

“In any trade, the business has to have a fundamental strategy. Two examples are ‘stack ‘em high, sell ‘em cheap’, or ‘differentiate and seek a premium price’,” he explained.

“In any industry there will be certain businesses that have a challenging financial profile,” he added. “The business needs to recognise this and reach out at the earliest opportunity to seek help and advice.”

Reeves struck a positive note for some within the industry: “I do expect to see some consolidation within the industry to allow economies of scale. In the current economic environment, production needs to be efficient.

“But with the focus on healthy eating, I would expect continued growth in the fresh produce industry.