UK's minor poultry companies face financial struggles

About 100 small companies in the UK poultry industry are in financial difficulty due to the long-term effect of recession up to the lower end of the market.

According to latest research by market analyst Plimsoll, smaller companies have not had the same facilities to ride out the recession as well as their larger counterparts.

"While large companies have relied on their size, brands and better access to cash, smaller companies have been left high and dry. We have given 92 small companies a danger rating. While conditions have improved of late, I fear a high proportion will fail," said report author, David Pattison.

Of the 731 companies analysed in the UK, some 139 are selling less than last year, having seen demand for their products dip and new competitors come in.

"There are clearly too many small companies chasing too little market. The inevitable consequence is another round of consolidation with large competitors buying small companies at a discount. Of the 403 companies with assets of less than GBP 3 million (US$4.33), we have identified 170 as being vulnerable to takeover," said Mr Pattison.