June 10, 2010

Almost 100 small companies in the UK poultry industry are in financial difficulty as the lingering effects of the credit crunch continue to bite hardest at the lower end of the market.

According to latest research by market analysts 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, it reported.

Of the 731 companies analysed, 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," the report said.

Of the 403 companies with assets of less than GBP3 million (US$4.38 million), 170 have been identified as being vulnerable to takeover, the data showed.