There is some optimism surrounding the food industry in Maine, but Maine Grocers and Food Producers Association Executive Director Shelley Doak still maintains a wait-and-see attitude.
Doak reports more economic opportunities for food manufacturers, with more new startups for full-service independent markets. She is excited about a “Fork Food Lab” connecting food manufacturers with food lovers in Portland. Maine has an aquaculture industry that is flourishing, and more and more young people are turning to farming and specialty foods. There also is a growing biopharmaceutical industry.
The unemployment rate in November stood at 4 percent, slightly lower than the national unemployment rate of 4.6 percent. But Doak is concerned that there are 28,000 people not working full time out of a total workforce of 693,000. It is not known whether these people are retired, working part-time or have given up looking for work.
She acknowledged that there are plenty of retail grocery jobs in the stores, warehouses and distribution centers. But Doak is concerned about the lack of high-paying jobs.
“Many paper mills have been closed, and they have not been replaced. And we have other companies that have consolidated or merged,” she said.
There are 303 food stores in Maine, led by Hannaford with 46 stores, according to the 2016 Griffin Report Market Review published in the October. Independent grocers represent more than one-third of the stores, with 163.
Other top retailers in terms of number of stores are: IGA, 24 stores; Shaw’s, 21; Walmart Supercenters, 19; and Save-A-Lot, 11. Target and BJ’s Wholesale Club each have three stores. There is one Whole Foods Market and one Trader Joe’s.
Doak is concerned about economic issues in 2017 that were shaped by several ballot questions in November.
On Jan. 1, the state’s minimum wage will rise to $9, followed by $1-increment raises until it reaches $12 per hour in January 2020. Thereafter, the rate will adjust depending on the consumer price index.
Voters also approved a 3 percent income tax hike on people making more than $200,000 a year to raise $150 million to support K-12 education.
According to Doak, Maine Gov. Paul LePage, a Republican, is vowing to change the income rate bracket to offset the 3 percent increase after he successfully reduced Maine’s income rates two years ago.
There also is talk of a repeal of the 3 percent increase, which would make Maine’s income tax rate the second highest in the country.
Doak said it remains to be seen what effect this has on spending and, in particular, corporate spending on new expansion and development.
She also is concerned that LePage may possibly be expanding the sales tax on prepared foods and grocery items.
