After a tough year in 2009, the UK poultry industry is likely to see more job losses in 2010 but the overall conditions are improving.

According to a new research by industry analysts, Plimsoll, the country's market is slowly emerging from the economic depression of the past two years. David Pattison, senior analyst and author of the 2010 Plimsoll Analysis, said the recession that tore through the market in 2008 and most of 2009 had accelerated the rate of change in the market.

Pattison added that aggressive operators that work on the mantra of 'growth at all costs' have been forced to ditch their reckless strategies and many have been caught out and they are in real trouble. However, some have come through the recession largely unaffected and are ready to make 2010 their year.

On the likely changes in the market in 2010, he said there will be more job losses and consolidations. Despite the improving market, there are many companies that just barely survived and they have to rebuild their profit margins and efficiencies.

Pattison noted that a further 9,000 jobs have to be cut in order for companies to be profitable and stay competitive in 2010. On the other hand, employees need to contribute more to the recovery of their companies as the average sales per employee figure fall to £213,000 (US$340,000). As the market saw over £330 million (US$526 million) worth of profit being erased last year, employers had to reduce manpower as well as getting more from their current resources.

As for mergers and acquisitions, 139 companies are ready for takeover or merger with a bigger parent firm.

On a more positive note, Pattison said 268 companies are rated as ''Strong'' in the latest report and they are expected to bring the market out of the downturn.