Mainebiz

V O L . X X I N O. X X V I I N OV E M B E R 3 0 , 2 0 1 5 22 T here's much talk about Portland's farm-to- fork movement, Aroostook as the state's resurging breadbasket, the growth in organic produce, more young farmers moving to Maine than most other states, exploding numbers of farm- ers markets and the diversifi cation of farming. But a recent report from the Harvard Kennedy School says Maine's food and beverage industry is fragmented and still has a long way to go to fully take advantage of its food expertise. One solu- tion the report recommends: mustering pockets of specialization into a business accelerator. at could stimulate coordination among the state's several dozen food and beverage trade groups and more than 100 support system organizations. e food and beverage industry employs about 50,000 Mainers, the report's authors note. "We're not strong in food clusters in Maine, so it's hard to be competitive," says Betsy Biemann, director of the Maine Food Cluster Project and for- mer head of the Maine Technology Institute. In October the project issued a report, "Growing Maine's Food Industry, Growing Maine," that compared Maine to cluster initiatives in Vermont, Oregon and Denmark, discussed strengths and weaknesses in Maine's industry, and advocated for a food accelerator along the lines of other cluster initiatives such as those in technology. e study, sponsored by a grant from Portland- based Libra Foundation, surveyed more than 300 businesses in the state to determine how Maine can grow its food industry to create jobs and generate economic growth. Maine could improve rankings Maine already ranks second in the United States for employment in its fi sh and fi shing products, 21 st for food processing, 26 th for agriculture and 49 th for livestock processing. Employment in agriculture is the greatest, with 9,417, followed by fi sh and fi shing prod- ucts at 7,040, food manufacturing at 4,853 and livestock processing at 103, based on numbers from 2012. e report also notes positive trends in Maine's food industries, including lobster, scallops, aquaculture, craft beer and natural and organic food sales, which have grown and spawned new companies. Farmers and fi shermen also are innovating and adding value to agri- cultural and marine products, including by lengthening the production seasons. But more needs to be done. "We looked at regions and places where certain types of companies were successful," Biemann says. " e location of companies and their surroundings yielded fi nancial success." She defi nes clusters as groups of related companies in a region with shared technology, shared suppliers or markets and sup- porting companies, universities and public agencies. Working in Maine's favor are its abundant farm- land and water, the productive Gulf of Maine and access to large markets in the Northeast. Notably, the researchers also studied cluster initia- tives elsewhere that have done well. In Vermont, for example, a 2009 statewide "Farm to Plate" initiative helped spur a 35% rise in food manufacturing jobs and a 6% increase in the number of food companies. e agriculture sector added almost 4,200 jobs. Biemann says the primary driver for cluster devel- opment in Denmark is a large company, and in Oregon it is trade associations. Maine's challenges include its small internal mar- ket for goods and its broad geography. It's expensive to get food to market, distribution has gaps or bottle- necks, labor may not be available and government regulations can stymie food producers, according to the study. Biemann also mentions the lack of slaugh- terhouse capability as an issue, as well cold storage. 'Food accelerator' being considered Harvard study led by Betsy Biemann looks at 'clusters' idea B y L o r i V a l i g r a ® Employment in Maine's traded food cluster, 2012 S O U R C E : Harvard Kennedy School Mossavar-Rahmani Center for Business and Government Employees Sole proprietors Farm operators and laborers 0 3,000 6,000 9,000 12,000 15,000 Total traded food cluster Agriculture, livestock, inputs & services Fishing & shing products Food processing & manufacturing Total traded food cluster Agriculture, livestock, inputs & services Fishing & shing products Food processing & manufacturing NORTHERN MAINE SOUTHERN MAINE

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