Committee hears support for $3 million bill to study and market Oregon food and beverage industry

State Representative Lucetta Elmer opened the public hearing on House Bill 2689, which would direct the Oregon Department of Agriculture (ODA) to establish a domestic trade program to promote Oregon‑made food and beverage products, fund a study of processing competitiveness, and appropriate $3,000,000 from the General Fund for the marketing program and $750,000 for the study. The bill declares an emergency and requires a report with recommendations no later than Sept. 15, 2026.

Representative Lucetta Elmer, State Representative for House District 24, told the committee the Food and Beverage Council and Food Northwest developed the measure’s recommendations. "My hope is that by passing this legislation, we can identify opportunities and barriers to local businesses as well as open up domestic market opportunities," Elmer said.

Dave Dillon, president of Food Northwest, told the committee the sector includes roughly 2,600 companies in Oregon and employs about 21,000 people directly. Dillon said the council found barriers to scaling businesses, including workforce shortages, limited access to affordable capital, and a lack of co‑manufacturing capacity. "The council spent about 18 months studying issues of opportunity for food and beverage companies," Dillon said, adding that ODA was the appropriate agency to carry out the study and the domestic marketing program.

Nikki Guerrero, founder of Hot Mama Salsa, described the practical gaps the bill seeks to address, including scarce small‑scale co‑packing capacity, regulatory burdens tied to the Food Safety Modernization Act (FSMA), and workforce needs for equipment technicians. Guerrero said many small and mid‑sized food businesses face a “valley of death” trying to scale from under $1 million in annual sales into sustainable $2–$5 million operations and that the proposed study could pinpoint co‑packing and workforce needs.

Lisa Sharp Lehi Hansen, director of the Oregon Department of Agriculture, said ODA has traditionally focused on export marketing and has strong ties to federal USDA programs. "What we haven't done at ODA for some time is really focused on our domestic market or had state funding dedicated to that work," Hansen said, and she described potential uses for funding such as a state brand, trade shows, matchmaking events and targeted domestic promotions.

Committee members asked about administrative costs and the share of appropriation the department would use to run the program; Hansen said she would return with more detail. Members also questioned whether a formal study was necessary; industry witnesses said the Food and Beverage Council’s forthcoming report includes recommendations but that a time‑sensitive, targeted study—especially of co‑packing and distribution—would help identify where public funds would most effectively be invested. The hearing record shows no committee vote on HB 2689 during this session.

Ending

Supporters urged prompt action to address scaling, co‑packing and workforce barriers cited by producers; ODA committed to provide additional detail on administration and program design to the committee. No formal action or vote was recorded in the hearing.