Many companies in the fresh produce industry are making strong profits, the latest report from Plimsoll Publishing has found.

Plimsoll analysed 1,000 fresh produce companies in its Third Edition 2003 Plimsoll Analysis and found that the 150 most profitable companies in the industry – many of them importers and wholesalers – have an enviable average margin of 7.3%. This compares to an industry average of 1.6%.

But rather than shout about their success, for many it is a closely guarded secret that the fresh produce industry can provide significant rewards said Plimsoll.

"For once it is not doom and gloom," said Plimsoll's David Pattison. "There are some companies that are making lots of profit and not always those you would expect, some are large and well known and others are smaller."

Plimsoll has also found that the fresh produce industry is outperforming many other industry sectors and has a high proportion of exceptionally profitable businesses.

Interestingly, those companies that are doing well in terms of profitability spend more on wages and salaries as a percentage of their sales than the industry average: 13.9% compared to 11% and 19.1% for the loss making companies.

But what is difficult to understand, said Pattison, is that while 150 companies in the industry are so profitable, 14% of those Plimsoll studied are loss-makers. "There is a sheer discrepancy between those making exceptional profits and those that are loss-making," said Pattison. "You have to ask how is it that some are making a loss in an industry where others can be so profitable?"