AUGUSTA – Gifford’s Famous Ice Cream has been awarded the contract to supply all Associated Grocers of Maine stores in Maine, New Hampshire and Massachusetts with ice cream under AG’s Shurfine label.

The contract means more than just a big boost to the 24-year-old Skowhegan company.

It means a boost to Maine dairy farmers; a boost to Oakhurst Dairy, which processes the cream and milk; a boost to Sure Winner Foods of Saco, which distributes the ice cream; and an estimated $2 million boost annually to Maine’s economy.

“This is a real Maine story,” Gov. John Baldacci said Wednesday as he tasted Gifford’s vanilla ice cream at AG’s fall marketing show in Augusta. “It’s great for Maine dairy farmers, a Maine milk processor, a Maine ice cream company, Maine stores and Maine consumers.”

Awarding Gifford’s the private label contract makes Gardiner-based AG of Maine the only wholesale food distributor in the state to be supplying its retailers with ice cream from a Maine company.

The contract will require Gifford’s to purchase 220,000 pounds of additional milk and cream from Oakhurst Dairy’s 96 Maine farms to make the expected 100,000 gallons of Shurfine ice cream each year.

Patrick Flannery of Oakhurst said: “This will allow a Maine company to sell more milk in Maine. When you purchase an Oakhurst product, you know the money stays in this state. We will now be looking for additional producers to fill Gifford’s need. It’s a win-win situation.”

As he toured the show displays, Baldacci was impressed with AG’s dedication to offering as many Maine products as possible in its owner-operated stores.

“This is so important,” the governor said. “We need to recognize that rather than import a lot of products we should take advantage of the wealth that is here in Maine.”

“If we can do this with other parts of the agriculture industry, just think how our economy can grow,” Baldacci said.

Michael Westort of Associated Grocers said AG has more than 300 stores in Maine, all individually owned and operated. “We have a great loyalty to Maine products, and our customers, from the small supermarket to mom and pop stores, want Maine products.”

Shurfine is the unifying label in AG stores, explained Westort, and not only will Shurfine Ice Cream actually be Gifford’s, but Shurfine milk is Oakhurst, the bread products are LePage bakeries, and a good percentage of seasonal produce is grown locally.

A walk around AG’s displays revealed dozens of Maine producers supplying local products and proudly noting their Maine roots on their packaging. LaBree’s Bakery of Old Town brags, “Quality is our Maine ingredient.” Maine Street Flour Co. of Limestone has the state as part of its label. Izzy’s Cheesecake of Portland has “Proudly Made in Maine” on its packaging.

“These are Maine companies working together,” said Westort.