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UK produce industry slowly re-emerging
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| 2010-01-10 |
| Reports indicate that the fresh produce market in the United Kingdom is making a steady recovery from the recession.
A leading analyst in the United Kingdom has forecast a stronger year for the UK's fresh produce industry, with new research by the Plimsoll Group suggesting that the market is slowly recovering from the problems of the last two years.
"The recession tore through the market in 2008 and most of 2009 like a tornado and accelerated the rate of change in the market," said David Pattison, senior analyst and author of the 2010 Plimsoll Analysis. "Aggressive 'growth at all cost' operators have been forced to abandon their reckless strategies, and many have been caught out and are in real trouble.
"However, some amazing companies have come through the recession largely unaffected and look set to make 2010 their year," he added. "As the market continues to recover during the year, the changes will continue to come thick and fast."
Despite the positive signs, there remain concerns for some, with 2010 likely to bring further job losses and consolidations in certain areas. "Even as the market improves there are a lot of companies, large and small, that survived by the skin of their teeth and they have to rebuild their profit margins and efficiencies," Mr Pattison noted.
Meanwhile, a number of UK fresh produce companies remained ripe for takeover or merger by a larger parent, according to Plimsoll's research, with many organisations undervalued because of the recession and therefore attractive to prospective owners.
Aside from a profitability refocus and potential job cutting, there is good news throughout the market, Mr Pattison said. "We rated 414 companies as 'strong' in our latest report. As expected, this number is down compare with previous years, but these companies will lead the market out of the downturn. They have managed to be commercially successful without jeopardising their financial stability."
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