Sandy Tedbury came first with her Highland cow, Lilly of Harden, at the Kent County Show

by business editor Trevor Sturgess

Kent’s rural industries are together worth more than Marks and Spencer and deserve more investment, according to financial experts.

They are preparing an annual report on Kent Rural Plc that will show the sector valued at £5.4bn.

That is more than the £5.1bn market capitalisation of Marks and Spencer and just below Sainsbury’s at £5.8bn, ranking Kent 57th in the FTSE all-industry share index. Yet return on capital is a paltry 3%.

Experts are determined to raise that figure and impress investors that it is worth pumping money into farming and horticulture.

The sector desperately needs investment in better water facilities, storage, machinery, research and development and marketing.

Some 85,000 people are employed in Kent’s food chain, 15% of all employees in the county and contributing more than 12% to the county’s economy.

Speaking at Kent County Show, Nick Holmes, an agricultural accountant with Chavereys, said: "This sector is an investor’s dream."

Putting a value on the rural scene was a fresh approach and he hoped this would help increase return on capital, he said.

Mike Bax, High Sheriff of Kent and a land agent with BTF, Challock, said: "What we need is capital. Agriculture has become an increasingly capital intensive business. Vast amounts of money are required before you get paid, and the problem is the industry is always paid in arrears."

He added: "We’ve got tremendous growth potential but we’re short of liquidity."

Environment secretary Caroline Spelman welcomed the Kent Rural Plc initiative.

"I’m really excited by what I have heard and wish it great success."

The full annual report will be published on October 26.