Provided is a lyoprotected microcapsule for increasing the survival of a microorganism, such as Pantoea agglomerans E325, after lyophilization and/or storage, which includes an interior core having at least one live microorganism a first polymer and at least one nutrient, as well as an exterior shell having second polymer. The lyoprotected microcapsule also includes at least one lyoprotective agent. The polymer may include alginate and the lyoprotective agent may include maltodextrin, trehalose and combinations thereof. Microorganisms within the lyoprotected microcapsules exhibit enhanced survival after lyophilization and/or storage. Also provided are methods for producing such lyoprotected microcapsules and methods for using the lyoprotected microcapsules.