University of Montana ScholarWorks at University of Montana Graduate Student Theses, Dissertations, & 2008 Redeveloping a Montana Food Processing Industry: The Role of Food Innovation
The historical and contemporary context
THE HISTORICAL AND CONTEMPORARY CONTEXT OF FOOD PROCESSING IN MONTANA
In 1950, seventy percent of all the food Montanans ate was grown in state
Montana's agriculture traditionally included large-scale cultivation and processing of peaches, apricots, watermelons, strawberries, asparagus, celery, sweet potatoes, and squash, providing a diverse range of fresh produce Residents benefited from year-round access to locally grown apples, beets, cabbage, carrots, onions, potatoes, turnips, and rutabagas, ensuring a steady supply of vegetables throughout the year Coupled with abundant grain and meat products, Montana furnished a nutritionally complete, year-round diet for its population.
The Problem: Decline of Food Processing Industry and Montana’s
Montana historically relied on local food production, with Native American peoples utilizing over 60 wild edible plants and early European settlers becoming self-sufficient despite challenging climate and soil conditions This self-sufficiency was driven by Montana's geographic isolation and limited transportation infrastructure, which necessitated growing or foraging food for survival While the decline of food autonomy began in the early 1900s due to decreased transportation costs and increased access to foreign markets, Montana continued to produce most of its food locally until the 1950s Today, numerous foods have been commercially cultivated in Montana, reflecting this historical trend of regional self-reliance.
Table 1.1: Crops and animals that have been commercially grown in Montana
Barley Asparagus Apples Beef Basil Alfalfa seed
Buckwehat Arugula Apricots Bison Caraway Alfalfa hay
Canola Beans, green Blackberries Chickens Coriander
Corn Beets Cantaloupe Emu Dandelion
Flax seed Broccoli Cherries Fish (farmed) Echinacea Bromegrass see d d
In 1941, only about 32 percent of Montana’s food was imported from out of state; by
1985, that number had more than doubled to 66 percent (Herrin and Gussow 1989)
Montana, now ranking second in the nation for agricultural land area, has seen most of its produce shipped out of state and abroad, resulting in a significant decline in local food consumption Over the past 50 years, the percentage of Montana-produced food consumed locally has dropped from 70% to nearly 5%, impacting community health and local economies This shift leads to shortages of fresh, locally sourced food, reduced profits for farmers, and economic decline in rural areas By 2003, eight of the ten poorest counties in the United States were in Montana, highlighting the severe economic challenges faced by the state’s rural communities.
Kamut© Cabbage Elderberries Lamb Fenugreek Corn silage
Millet Carrots Grapes Llamas Garlic Grass silage
Montina© Cauliflower Huckleberries Ostriches Lavender
Mustard seed Celery Peaches Pheasants Milk Thistle
Oats Corn Pears Pigs Mint Small grain hay
Rye Cucumber Plums Turkeys Parsley Sorghum silage
Safflower Lettuce Raspberries Shallots Tame hay
Sorghum Onion Rhubarb Many more Wheatgrass see
Peas (dry) Tomatoes Nursery plants
Grains Vegetables Fruits Animals Herbs Forages
Kentucky bluegrass seed is an important agricultural crop, as noted by Western (2005) According to the 2005 U.S Census Bureau report, Montana ranked 45th in the nation for median household income, placing it among the states with the lowest incomes alongside West Virginia and Louisiana.
Currently, crops are being shipped out of state, leading to the loss of potential value if we processed and consumed the food locally Instead, we spend money importing food from elsewhere, which reduces our economic benefits Herrin and Gussow (1989) documented a significant rise in food imports to Montana between 1941 and 1980, primarily due to the decline and consolidation of the state's food processing industry Historically, Montana was highly food self-sufficient because its robust food processing sector effectively utilized its abundant agricultural resources.
The U.S Census Bureau defines a food manufacturing establishment as any facility that transforms livestock and agricultural products into items for intermediate or final consumption Montana’s food manufacturing sector has experienced significant changes over the years, peaking at 218 establishments in 1954, then steadily declining to 114 by 1992 However, in the past decade, there has been a slight resurgence, with 166 establishments recorded in 2002, indicating potential growth opportunities This recent increase prompts important questions about the profile of these new businesses, their successes, and challenges Despite the growth in food manufacturing establishments, the demand for local, value-added foods remains unmet, highlighting ongoing opportunities within Montana’s food industry Refer to Figure 1.1 for a visual representation of these trends.
Figure 1.1: Change in number of Montana food manufacturing establishments over time
Source: U.S Bureau of the Census
The number of Montanans employed by food manufacturing establishments has significantly declined over the years, decreasing from 4,079 workers in 1947 to just 2,381 in 2006 (U.S Bureau of the Census, 1949 and 2006) The industry reached its historic low in 1998, when employment dropped to only 2,024 individuals, highlighting a persistent downward trend in Montana’s food manufacturing sector (U.S Bureau of the Census, 1998) This decline is visually represented in Figure 1.2, illustrating the ongoing reduction in employment within Montana’s food manufacturing industry.
Figure 1.2: Change in number of Montana food manufacturing employees over time
Source: U.S Bureau of the Census
The decline in food manufacturing establishments in Montana has significant economic implications, leading to fewer jobs and reduced opportunities for economic growth and investment This decrease also limits the number of facilities available for farmers, ranchers, and food entrepreneurs to process their products, hindering the development of value-added goods As a result, the limited processing capacity makes it increasingly challenging to meet consumer demand for local food, impacting the local food economy.
Consumers nationwide, including in Montana, are increasingly demanding local food options, driven by a desire to know the origins, producers, and production methods of their food This growing demand is evident in institutional markets, such as university programs, exemplified by the University of Montana’s Farm to College initiative that launched in spring.
In 2003, Montana launched the first "farm to cafeteria" program of its kind, marking the beginning of a nationwide movement to promote local and regional foods in educational institutions Over the past decade, this initiative has expanded across the United States, with at least 200 colleges and approximately 950 K-12 schools in more than 35 states actively participating in bringing locally sourced food to students These programs aim to support local agriculture, enhance food quality, and foster community engagement within educational settings.
In 2006, a study conducted by University of Montana researchers in partnership with Grow Montana evaluated the benefits, challenges, and needs of the University’s Farm to College Program The survey of 380 students dining regularly in the main hall revealed that 84% consider the program very or somewhat important, with supporting Montana’s farmers and ranchers (42%) and keeping more money in local communities (21%) being the primary reasons students value it.
Providing local and regional food products to the university faces challenges because many farmers and producers sell food in its raw form, such as heads of lettuce instead of pre-washed and chopped options Universities are accustomed to receiving ready-to-eat, processed foods, making it difficult for vendors to meet these expectations A key finding from the University of Montana study emphasizes that increasing value-added processing within the state could significantly enhance local food businesses' ability to serve public institutions and ensure year-round availability of local products.
Farm to cafeteria programs exemplify the growing interest in local food initiatives, prompting advocates across Montana to focus on expanding access to food processing facilities This effort aims to retain economic value within the state and meet rising consumer demand for local products Reinvigorated by this movement, Montana is working to rebuild its food processing infrastructure to support local farmers and entrepreneurs In March 2007, nearly 300 stakeholders gathered in Helena to develop actionable recommendations for addressing the state's food system challenges, highlighting a statewide commitment to strengthening Montana’s agricultural and food sectors.
The Agriculture Summit brought together various working groups that identified key steps to enhance the state's food system The food processing and distribution workgroup recommended promoting the development of more local and regional food processing and distribution systems to strengthen food security and support local economies.
To support sustainable development, it is essential to increase resources and capacities, including the growth of cooperatives (see Appendix E) Despite strong statewide demand for local food, this need remains unmet due to a decline in available food processing infrastructure, hindering the expansion of local food systems and economic growth.
Laying the groundwork: The ins and outs
LAYING THE GROUNDWORK:THE INS AND OUTS OF FOOD INNOVATION CENTERS
The fast-paced, competitive food processing industry can be intimidating for newcomers and challenging even for seasoned professionals, posing a significant economic hurdle Food innovation centers play a crucial role in supporting food entrepreneurs by providing essential tools such as knowledge, equipment, and practical experience to help them succeed These centers also have the potential to revitalize Montana’s food processing sector, fostering growth and economic recovery However, there is a notable lack of research on food innovation centers, and this study aims to address that gap by exploring their impact and benefits.
Montana’s food processing industry continues to face challenges, with less than 10% of its exports being processed or value-added products as of 2004 In contrast, neighboring states like Idaho and South Dakota excel in this sector, with over 80% and 90% of their agricultural exports respectively comprised of value-added products This disparity highlights Montana’s struggles to compete in the processed food market compared to its regional counterparts See Figure 2.1 for a visual representation of these statistics, emphasizing the industry's need for growth and strategic improvement.
Figure 2.1: Value added as a percentage of total agriculture and food exports (2004)
MT Idaho Wyoming North Dakota South Dakota
Source: US Department of Commerce (2004) in McLeay and Barron 2006, 4-8
Food processing innovation is deeply influenced by regional geographic, agronomic, and demographic factors, which create unique challenges and opportunities To address these regional needs, food innovation centers are specifically tailored to support local food processing industries Insights into these centers were gathered through interviews with directors and key staff from 11 centers across the United States and Canada, providing valuable guidance for improving and expanding food innovation efforts in Montana The information shared is primarily based on these interviews and supplemented by data from the centers’ official websites, with references to each center by their location for clarity.
This chapter presents an organized overview of the data, structured under key categories including organizational structure, services provided, user groups, markets served, and funding Each center's unique characteristics and offerings are summarized to highlight their distinct contributions, emphasizing their roles in meeting diverse community needs and ensuring targeted service delivery across different markets.
Mission Mountain Food Enterprise Center, Ronan, Montana: The Mission Mountain
The Food Enterprise Center was established in 1998 following its involvement in the Alternative Energy Resources Organization’s (AERO) Montana Food System Initiative, which assessed the local food system and identified key strategies for its development As a program of the Lake County Community Development Corporation, a non-profit 501(c)(3) organization, MMFEC has dedicated itself to supporting and strengthening the local food economy since its founding.
165 clients and currently has 32 clients utilizing the facility and its technical assistance services This number is up from only 3 clients in 1999 Mission Mountain Food
Enterprise Center is the only facility in the state of Montana that offers the infrastructure and equipment entrepreneurs need to process their food product
The Food Processing Development Centre in Leduc, Alberta, was established by the Alberta government in 1984 to add value to the province’s commodity products and reduce reliance on low-cost commodity production Fully owned and operated by the government, the center operates with an annual budget of $5.5 million, funding programs, equipment maintenance, staff, cleaning, and procurement This initiative supports Alberta’s goal of strengthening its food processing industry and promoting sustainable economic growth.
The Food Processing Development Centre manages building maintenance, power engineering, and utilities through a dedicated government budget, employing 39 full-time staff The center's client base fluctuates, with 100-125 new products introduced annually, and typically 1-3 new contracts signed each year Currently, 25-30 companies utilize the facility to process and sell their products Each client undergoes a comprehensive business evaluation, requiring a detailed business plan, marketing strategy, and exit plan The centre is open to companies of all sizes, provided they demonstrate a clear growth strategy.
University of Idaho Food Technology Center, Caldwell, Idaho: The Food Technology
Center was started in 2002 by the College of Agriculture and Life Sciences at the
The University of Idaho’s Food Technology Center employs three full-time and three part-time staff members, serving around 60 clients and fostering partnerships between local growers and entrepreneurs It promotes supporting the local food economy by encouraging clients to market their products regionally and locally The center operates with an annual budget of $250,000 and anticipates revenues of approximately $500,000 this year While its service fees cover its operational costs, the Research and Development (R&D) division funds freight and new equipment through contracts with private firms, such as chemical companies and large food corporations, which typically range from $20,000 to $50,000.
Joseph J Warthesen Food Processing Center, St Paul, Minnesota: The Joseph J
Warthesen Food Processing Center is part of ongoing teaching, research, and service at the University of Minnesota’s Department of Food Science and Nutrition The
Founded in 1970, the department and its processing facility have evolved from a focus on dairy production, which was primarily used internally, to a comprehensive processing hub Today, the facility integrates meat, dairy, grain, extrusion, and beverage processing, serving a diverse range of clients worldwide Its clientele includes local entrepreneurs, global industry leaders, and mid-sized companies, showcasing its broad reach and expertise in food processing.
The Food Processing Center in Lincoln, Nebraska, was established in 1983 by the Nebraska Legislature to support the development of value-added food products within the state Affiliated with the University of Nebraska-Lincoln but operating as an independent organization, the center manages its own organization, management, and decision-making processes Employing 30 staff members (excluding faculty) and with an annual budget of $1.5 million, the center served approximately 40 clients in 2007, including repeat customers, with client numbers varying each year It also provides laboratory testing services for some clients, though these are not included in the client count.
Rutgers Food Innovation Center, Bridgeton, New Jersey: The Rutgers Food
Innovation Center began as a result of research conducted in 1997 by the Rutgers
The Rutgers Food Innovation Center, part of the Department of Agriculture, Food, and Resource Economics at Rutgers New Jersey Agricultural Experiment Station, was established in 2001 within a federally recognized empowerment zone in southern New Jersey’s agricultural sector Initially operating from a rented office with virtual advisory services, the center expanded in 2008 to include a 23,000-square-foot grant-funded processing facility With an annual budget of $1.5 million supported by university subsidies, the center employs eight full-time and six part-time staff members and has served approximately 800 clients to date, averaging about 125 clients per year With the new facility in place, the center aims to assist many more food industry stakeholders in the future.
Taos Food Center, Taos, New Mexico: The Taos County Economic Development
The Taos Community Economic Development Corporation (TCEDC) has dedicated 12 years to addressing structural poverty, limited job opportunities, and unemployment in northern New Mexico One of its key programs, the Taos Food Center, operates as a private non-profit 501(c)(3) organization, promoting a family and community-based approach that provides assistance to anyone interested in developing food products To support local entrepreneurs, the center offers low-cost storage and kitchen rental rates, with 96-98% of services provided free of charge through subsidization Currently serving around 51 clients, the Taos Food Center plays a vital role in fostering economic growth and food entrepreneurship in the region.
Northeast Center for Food Entrepreneurship, Geneva, New York: The New York
State Food Venture Center, together with the University of Vermont’s Center for Food
Science, received $3.8 million in funding in 2000 from the USDA Fund for Rural
The Northeast Center for Food Entrepreneurship was originally operated jointly by two centers in America, funded by external support After the funding ended in 2005, the centers parted ways but continue to operate, with Cornell University covering the director’s salary and half of the extension support specialist’s salary, while other expenses are funded through grants and service fees Annually, the center receives around 1,000 requests for assistance, working closely with approximately 200 clients and helping develop about 500 new food products each year Due to New York’s large size, most clients engage with the center remotely via mail, email, phone, and fax, with few walk-in visitors.
The Food Innovation Center, Portland, Oregon: Constructed in 1999, The Food
Innovation Center became one of 11 Oregon State University experiment stations in
Most agricultural commodity stations are located in rural areas, focusing on crops like wheat, potatoes, fruits, vegetables, and livestock such as cattle In contrast, the Food Innovation Center in downtown Portland specializes in the food industry and is a collaborative effort between Oregon State University and the Oregon Department of Agriculture Serving 50 to 70 clients annually, the center’s client base is steadily growing The center operates with an annual budget of approximately $1.22 million, funded through university support, grants, and other sources Its team comprises ten employees, including two faculty members, five research assistants, and three administrative staff, dedicated to advancing food innovation and industry development.
The Prince Edward Island Food Technology Centre, established in 1987 by the provincial government, serves as a vital hub for the region's robust agricultural and food processing sectors Despite being the smallest Canadian province with a population of around 140,000, PEI’s Food Technology Centre operates with an annual budget of $3.5 million and a staff of approximately 30 employees, reflecting its significance in the local economy Over half of its clients engage in international sales, primarily exporting seafood and value-added potato products to the United States The center provides analytical services to about 100 clients annually and supports product development and technical projects for an additional 50 clients each year.