The Kent rural economy suffered a decline in profits of more than £100 million as weak food prices squeezed margins.

Turnover in the sector fell for the third straight year in 2014 to £497.3 million according to research by campaign group Rural Plc (Kent).

A huge rise in the cost of sales from £346.3 million in 2013 to £437.6 million last year put pressure on farmers and growers.

It meant gross profit slipped from £168.5 million to £59.8 million, reducing margins from 32% to 12%. Final profit fell to £24.5 million down from £124.7 million.

Rural Plc finance director Mark Lumsdon-Taylor said: “I’m not worried about the turnover but the fall in margins is concerning.

“That is not a great return on investments and that’s a challenge for the rural sector.

“The upstream supply chain, like the supermarkets, control the margins and we have to convince people that if they want a quality British products they have got to pay for it.”

The findings, in the campaign group’s annual report, reveal the horticulture sector is one of Kent’s strongest performers, accounting for £300.7 million of the county’s rural revenues.

Cereals were the second strongest performer, with turnover of £62.6 million, while the lowest income was for pig farmers, making up just £2 million.

“The sector is reflecting what’s happening in the big wide world,” said George Jessel, a director at Rural Plc and owner of a 1,000 acre arable farm.

“Agriculture has to face up to worldwide problems. Commodities are in over-production.

“Everyone around the globe is raising their game. The UK is a very small player in the world market when it comes to commodities.

“But we do produce the best and we need to tell the world that what comes out of Kent and Great Britain is the highest quality.

“Anyone can produce cheaply but if you want quality and to know where it comes from you have got to pay more.”