One-quarter of companies in the UK poultry industry are making a financial loss, as economic conditions continue to take their toll.
According to a new Plimsoll analysis market report into company performance, 195 companies are making a loss, with many “burying their heads in the sand”.
David Pattison, author of the report, said: “More and more companies are making a loss for the first time in their history.
“Many can rightly claim to be victims of difficult trading conditions. A quick refocus on profitability would make sure this stays an isolated occurrence.”
However, overall conditions are no excuse for a band of serial loss makers in the market, Mr Pattison said.
The report found 100 companies are making a loss for the second and third year running and are selling at unsustainable prices.
“They have put off making the painful decision that more prudent companies made a while ago.
“No one wants to trim costs, lay off staff, cancel dividend payments and the like, but carrying on regardless is now unviable.
“They can no longer bury their heads in the sand,” Mr Pattison said.
The full Plimsoll Analysis is now available. Readers of Poultry World are entitled to a £50 discount. Call 01642 626400 for further details and quote reference PR/FI70.