Oregon tries to lure natural foods companies from Calif.

Amy’s Kitchen — a thriving frozen-food company in California — is being aggressively courted by Gov. Ted Kulongoski, who for a year has been trying to persuade organic and natural food businesses in the neighboring state to move north.

By The Associated Press

http://www.helenair.com/articles/2004/09/05/business/e03090504_02.txt

Kulongoski has pointed out to Amy’s Kitchen that in Oregon, it could save nearly $4 million on workers compensation costs, energy and taxes.

The Democrat even paid a personal visit to the company’s Santa Rosa headquarters.

‘‘He just came in and said ‘Hi, I’m Ted,”’ said Andy Berliner, who co-founded the $100 million-a-year company.

But California Gov. Arnold Schwarzenegger is fighting back, pledging cheaper workers’ compensation and other incentives if the company remains in California.

Kulongoski’s effort to woo Amy’s Kitchen is part of ‘‘Oregon Naturally,” a campaign to persuade organic and natural food companies in California to move their operations to Oregon.

The governor sees California as an attractive target because the neighboring state has an established natural foods community that’s suffering from skyrocketing operating costs, said Marty Brantley, Oregon’s director of economic and community development.

Plus, Brantley said, Oregon needs eco-friendly food processors to help keep its 17 million acres of agricultural land profitable and productive.

The ‘‘Oregon Naturally campaign,” launched last fall, comes as both states are struggling to recover from recession. Oregon has suffered the highest jobless rate in the nation for much of the past three years.

‘‘In these weakened states, there’s much more focus on the economy,” said John Mitchell, regional economist for U.S. Bank. Across the country, state leaders are getting heavily involved in efforts to attract and keep jobs, he said.

Washington’s Gov. Gary Locke, for instance, sparred with other states and sponsored a $3.2 billion package of tax breaks to win a bid for Boeing’s new 7E7 assembly plant.

Kulongoski has sent letters to 250 California companies advertising Oregon’s livability and lower costs for workers’ compensation, utilities and taxes. So far, only one company has agreed to move north.