New commercial-scale food production lab coming to UMaine will expand markets through innovation

Maine’s food economy and related rural workforce are well-positioned to grow with new commercial-scale processing and production capacity that will come online soon, thanks to the University of Maine.

At its regular meeting in Orono on Monday, the University of Maine System (UMS) Board of Trustees authorized UMaine to spend  $4.46 million in state and federal funds to create the UMaine Food Innovation Lab by renovating 4,800 square feet of existing space in the Keyo Building on the Orono campus and potentially adding a 1,200-square-foot addition. Construction would start this fall and the facility is expected to open by the end of 2025 and will feature three commercial food processing rooms, a walk-in cooler and freezer, various processing equipment, blast-freezing equipment, kettles, a classroom, and more. 

“We are thrilled that the UMaine Food Innovation Lab is one step closer to becoming a reality! This facility will provide support to Maine’s food entrepreneurs through its proximity to research, education and expertise that is critical to grow Maine’s food businesses,” said University of Maine Cooperative Extension Dean Hannah Carter. “The Keyo building’s location is ideal for this facility due to its location on campus and its square footage to accommodate production, education and office space.”  

Food and beverage manufacturing, which the new facility will support, is a small but rapidly growing and diversifying part of Maine’s economy.

The state’s 10-year economic strategy notes Maine’s opportunity to meet growing consumer demand for sustainable food products, given its natural resources, manufacturing strengths and proximity to major markets on the eastern seaboard. But a recent report from the Maine Department of Economic Development notes that “food processing and supply chain infrastructure needs” are currently a barrier to growth. 

From 2017 to 2022, the food and beverage manufacturing workforce, which makes up 1.2% of the state’s total employment, grew by 755 jobs, or 10%, from 7,536 to 8,291, according to that report. Food and beverage manufacturing companies generated $3.5 billion in sales in 2022 — 78%, or $2.7 billion, of which were generated from out-of-state buyers. Among the strongest and fastest growing food and beverage manufacturing industries in Maine are frozen fruit, juice and vegetable manufacturing; retail and commercial bakeries; breweries and distilleries. Poultry processing is also among the fastest growing, and Maine’s seafood industry continues to benefit from the seafood product preparation and packaging subsector. 

“Maine’s farm sector is critically important to our economy, being able to bring value-added products to market creates more opportunities for farmers and food processors. This project provides essential support for the food innovators to test their ideas and concepts while providing students with hands-on experience,” said Marge Kilkelly, owner of Dragonfly Cove Farm in Dresden and chair of the Maine Board of Agriculture, which provides guidance on UMS agriculture education and research, led by UMaine, the state’s only institution to achieve R1 Carnegie Classification putting it among the top 146 research universities in the county. 

Jason Bolton, associate dean of UMaine Extension, said by having the necessary license and equipment, the lab will allow startups, small- and mid-sized businesses to conduct pilot production trials and sell the products they make there, whether they are meat, seafood, baked goods, or even ice cream. Entrepreneurs will be able to research and develop new goods, scale up production of their existing commodities, package items and distribute them. The facility will feature a loading dock from which to ship products. 

“The ability to commercially produce and sell food is exciting, and something that we’ve wanted to do for quite a while as an institution — to help food entrepreneurs and existing companies and also provide really fantastic training and educational opportunities to our learners,” Bolton said. 

With both a commercial kitchen and classroom, the facility  will offer new hands-on learning experiences for students participating in food-related microcredential programs, such as those for food processing sanitation, seafood and meat and poultry Hazard Analysis Critical Control Point. 

Bolton said UMaine Extension also hopes to connect students with businesses using the facility  for potential internship opportunities. 

“Hopefully in the first couple of years, we’ll be able to start co-packing, where we use the talent of students and the staff associated with the center to produce the food for companies that don’t have a workforce,” Bolton said, “so students will get firsthand knowledge of scaling up products and the commercial production of products. We already have companies that are interested in that.” 

UMaine Extension will hire a director and supervisory technician for the facility. Bolton said facility operations would also be supported by the enterprise of UMaine Extension food science and safety professionals. Bolton said companies will also have the opportunity to collaborate with Sodexo, which provides campus dining services for UMaine and other UMS universities. 

The new facility and collaborative opportunities it will support reflect similar offerings from other universities nationwide, including Rutgers University, Cornell University, The Ohio State University and the University of Nebraska–Lincoln. Similar to those facilities, Bolton said businesses would be charged for using the new facility at varying rates depending on their needs, with the goal of keeping it accessible to start-up food entrepreneurs. Facility use fees would be utilized to cover operational costs.

The project is supported by $2.5 million in Congressionally Directed Spending secured in the federal fiscal year 2023 budget by U.S. Sens. Susan Collins and Angus King, and $1.96 million from Gov. Janet Mills’ Maine Jobs & Recovery Plan approved by the 130th Maine Legislature. 

“Through the Solutions for Maine R&D and Innovation Hub launched in 2023, UMaine is already utilizing MJRP funds to assist small food businesses in Maine as they recover from pandemic impacts,” said Renee Kelly, associate vice president of strategic partnerships, innovation and engagement for UMaine. “The UMaine Food Innovation Lab will help us super-charge that work and support the continued growth of individual companies and the overall food manufacturing sector in Maine, and we’re grateful to Gov. Mills and Sens. Collins and King for securing the funding that makes this important work possible.” 

In addition to enabling the university to better serve student and industry needs, modernization of the antiquated Keyo Building is consistent with the System’s goal of strategically addressing its $1.6 billion in deferred maintenance, nearly $1 billion of which is at UMaine’s Orono campus. 

Contact: Marcus Wolf, 207.581.3721; marcus.wolf@maine.edu