NurtureME BrandTerritory

Local Maine Grown and Produced Food

The Industry:Local Maine Food

“Local agriculture is considered to be food, farm products, and services that are primarily grown, raised, harvested, processed, or offered in Maine, with the intent of maximizing product value, economic returns to Maine producers and processors, and economic viability of Maine farms.” (Recommendations for Policies and Programs Needed to Support and Sustain Local Agriculture in Maine, 2004: 8)

The Maine agriculture and food processing and marketing system is the State’s third largest industry creating wealth for all of Maine, especially our rural communities.  (The Agricultural Creative Economy, 2008: 9)

Maine & England

Type of Industry

• Try me (goods): discover the tastes and variety of Maine foods

• Be loyal to me (people): make a lifestyle choice to support your state, your community, and your health

• Believe in me (causes): an ideology

The Maine Consumer• Population (as of Jan 2010): 1.3 million

USDA Economic Research Service: Maine State Fact Sheet

• Median Household Income (2009): $48,032 US Census Bureau: Income Data

• Per Capita Personal Income (2009): $36,479(Maine Economic Growth Council Measures of Growth in Focus Executive Data Summary, 2011: 1)

• Poverty Rate: 12.6%USDA Economic Research Service: Maine State Fact Sheet

• Unemployment Rate: 8%ibid

• Housing Units: 704,578US Census Bureau: Maine Quick Facts 

• Houses per Square Mile (2000): 41.3ibid

Food Maine Grows/Produces• Largest producer of Brown Eggs & Wild

Blueberries in the world• Second largest producer of Maple Syrup in

US• Eighth largest producer of Potatoes in US• Rank second in New England for

production of Milk and LivestockMaine Department of Agriculture website

2011

Maine Local Twenty

1. POTATOES2. APPLES3. MILK/CHEESE /DAIRY4. BLUEBERRIES5. EGGS6. MAPLE SYRUP, HONEY7. CARROTS8. FRESH AND PROCESSED TOMATOES9. GRAINS10. DRY BEANS11. GARLIC12. ONIONS

13. GREENS, SPINACH, KALE14. SEAFOOD: SHRIMP, SCALLOPS,

LOBSTER, MUSSELS, CLAMS, FISH15. GROUND MEATS: BEEF, TURKEY,

LAMB, CHICKEN, SAUSAGE, PORK16. ROOT VEGETABLES: BEETS,

PARSNIPS, TURNIP, RUTABAGA, SUNCHOKES, LEEKS, CELERIAC

17. WINTER SQUASH AND PUMPKIN18. CABBAGE19. PROCESSED VEGETABLES: CORN,

BEANS, BROCCOLI, PEPPERS, PEAS20. MUSHROOMS

20 foods Maine can produce for its citizens to enjoy all year.

Cheryl Wixson, MOFGA’s Organic Marketing Consultant

How the industry ticks

• Farmer’s markets• Agricultural fairs• CSAs• Farmers selling direct to

restaurants and grocers• Farmers selling to

middlemen who sell to restaurants and grocers

• Farmers selling to processors

Sandy River Farmer’s Market, Farmington, ME

Local Agriculture is Sold at…

64% Roadside Stands and Stores17% Farmer’s Markets14% Pick-Your-Own Operations5% CSA Subscriptions

(Maine’s Organic Farms – An Impact Report, 2010: 24)

Billion Dollar Industry

• $1.2 billion: The amount Maine food producers and processors generate in sales [world wide] annually (Maine Department of Agriculture website 2011)

• $3 billion: The amount Maine consumers spend on food products and services each year (Recommendations for Policies and Programs Needed to Support and Sustain Local Agriculture in Maine, 2004: 3)

Room for Growth• >4%: The percentage of the $3 billion

Maine consumers spend on food products and services that Maine farmers receive (Recommendations for Policies and Programs Needed to Support and Sustain Local Agriculture in Maine, 2004: 3)

• 40%: The amount Maine farmers could increase their yearly by income if Maine consumers upped their purchase of Maine goods and services from >4% to just 10% (ibid)

Economic Impact of Organic Farming Industry

Direct Indirect Induced$36.6 million

$30.3 million

$24.5 million

Farms pay expenses for inputs, labor,

and taxes, and return

dividends to owners

The businesses from whom

they’ve bought things

then turn around and

make payments for

their own expenses.

The households who have been paid wages and profits from

the farm spend that money on

other businesses.

Sum of $91.5 million = Total Economic Impact

(Maine’s Organic Farms – An Impact Report, 2010: 16-17)

Every time a Maine citizen pays $1 directly to a Maine

organic farmer, we:1. Provide that farm with $1 in direct funding.2. Create $.83 in spending for other local businesses.3. Create $.67 derived from spending of Maine’s

organic farm families.4. Support one of 1,596 jobs on 582 farms.5. Help to maintain 33,000 acres of cropland and

another 8,500 of pasture in organic production.6. Express our direct appreciation for the high-

quality products that Maine’s organic farmers produce. (Maine’s Organic Farms – An Impact Report, 2010: 4)

Major Issues Affecting Success of Local AgricultureI. Valuing Agriculture as an Industry that

Contributes to the Maine Economy II. Developing Adequate InfrastructureIII. Educating Consumers about Locally Grown Food IV. Adding Value to Local ProductsV. Saving Viable Local Farms into the Future VI. Improving Financing Options for Local Ag-

businessesVII. Managing Cost of Production VIII. Managing Labor Costs

(Recommendations for Policies and Programs Needed to Support and Sustain Local Agriculture in

Maine, 2004: 12)

Future of the Industry• 1997-2002 30% Growth rate in Local

Agriculture (Maine’s Organic Farms – An Impact Report, 2010: 24)

• 2002-2007 growth continued at 30% (More than doubled in 10 years!) (ibid)

• Expect Continued growth, especially in organic sector•800+% increase in number of certified

organic farms in Maine from 1988-2008 (ibid, 5)

2007 USDA Census

Ways to Capture More of the Local Share of the Sales Dollar

1). the major increase in farm income must come from marketing;

2). value is added through labeling or processing; 3). reach consumers directly via farmstands or stores; 4). improve supply through pooling to move product

through the conventional food system; 5). access higher-volume markets to capture

margins such as through cooperatives; and 6). track and adjust to shifting consumer

preferences and focus on Maine consumers.

(Recommendations for Policies and Programs Needed to Support and Sustain Local Agriculture in

Maine, 2004: 8)

For Continued Growth• Maine must search for ways to diversity

their products and sell into higher value, local niche markets. (Maine’s Organic Farms – An Impact Report, 2010: 22)

• Local agricultural products need to be offered at grocery stores that are less than ten miles away from the casually supportive food shopper (ibid)

• Tourists have stated they would purchase more local food if it were more available or more clearly labeled. (Agricultural Creative Economy, 2008: 22)

The economy is becoming experience-based and people are looking for products and activities that involve more than just an exchange of goods. (Agricultural Creative Economy, 2008: 22)

Bibliography• 2007 USDA Census

http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Ag_Atlas_Maps/Farms/Number/07-M002.asp

• Agricultural Creative Economy, 2008 http://www.maine.gov/agriculture/mpd/information/agcreative.pdf

• Maine Department of Agriculture website 2011 http://www.maine.gov/agriculture/index.shtml• Maine Economic Growth Council Measures of Growth in Focus Executive Data Summary, 2011

www.mdf.org/files/DataSummary2011.pdf/288/ • Maine’s Organic Farms – An Impact Report, 2010 http://www.dnnmaine.com/mofga/files/Organic

%20Impact%20Report.pdf • Recommendations for Policies and Programs Needed to Support and Sustain Local Agriculture in

Maine, 2004 http://www.maine.gov/agriculture/co/Local%20Ag%20Devlopment%20Task%20Force%20Final%20Report.pdf

• US Census Bureau: Income Data http://www.census.gov/hhes/www/income/statemedfaminc.html 

• US Census Bureau: Maine Quick Facts http://quickfacts.census.gov/qfd/states/23000.html • USDA Economic Research Service: Maine State Fact Sheet

http://www.ers.usda.gov/StateFacts/ME.htm • Wixson, Cheryl Can it be done? Yes! Maine provides enough calories to feed everyone living

therehttp://www.mofga.org/Publications/MaineOrganicFarmerGardener/Spring2010/MaineLocalTwenty/tabid/1559/Default.aspx