With the explosion of African Swine Fever across Asia ravaging the Chinese pig population, the price UK pork exporters are commanding for their produce into China has rocketed…. but it is having a devastating knock on effect on the UK Sausage market.
Prices for pork in China have more than doubled in the past year alone. That’s fabulous news for the “majors” involved in killing pigs and processing their meat. However, for domestic sausage manufacturers, the sudden spike in costs is decimating the market.
The disease sweeping Asia has seen costs in the UK rocket in a very short space of time and supply become more constricted as supplier look to the Far East for greater return on their produce. In response, European prices for pork are also starting to climb dramatically. Growing worries over the spread of the disease and supply & demand dynamics being weighed very much in the latter’s favour mean that the issue is unlikely to abate in the near future.
With this in mind, Plimsoll, the UK’s leading market and company analysts, have produced a special study on the UK Sausage Manufacturers industry highlighting which UK companies are already in financial difficulty and least able to absorb sharp costs increases in cost and tighter margins.
The new Plimsoll Analysis assesses each of the UK’s 69 leading Sausage companies looking at their short- and long-term financial health, overall trend in performance, future durability and potential for acquisition. Based on the latest financial data for each company, this new analysis shows:
- 33 of the 69 companies are already rated as Caution or Danger – the former suggests growing issues whereas the latter indicates immediate improvements are required
- 8 of the companies included are ripe for takeover – these companies are independently owned and with a large difference between current and future value. If the market is to consolidate in the short-term, Plimsoll considers these the most attractive targets
- 6 companies have lost more than a quarter of their value – As profit margins are increasingly under pressure, valuations have plummeted by 7% in the latest period
The UK Sausage market is being severely buffeted. Once the current crisis abates the shape of the industry and the companies remaining could have changed significantly. The Plimsoll Analysis provides an easy means of highlighting those companies ill prepared to ride out the current storm, those well placed to make a strategic acquisition or two and the players powering ahead in spite of it all.
Price at £350 (+VAT), the Plimsoll Analysis – Sausage Manufacturers can be purchased using the button above. All orders will be invoiced and the analysis sent across within the hour.