Value Chain Analysis

This project applies value chain analysis to Hawaiʻi Island’s agriculture cluster to help improve efficiency, quality, and profitability for those sectors with a high potential for inclusive growth. Value chain analysis provides a comprehensive approach to understanding problems within targeted segments of the agricultural cluster. It encourages looking at the entire value chain of a specific category of products to identify the root causes of problems holding back growth. By addressing root causes, rather than symptoms, this analysis helps to develop sustainable solutions for producers.

The process starts with identifying key actors and activities, such as farmers, processors, distributors, retailers, and consumers. It then looks at key functions within the value chain including production, processing, packaging, transportation, and marketing, assessing the value added at each stage.

By working together with stakeholders across the value chain, the teams develop a comprehensive understanding of the challenges and opportunities within these value chains and identify solutions that address the underlying system. The value chain analysis is carried out jointly with representatives from producer associations, subject matter experts and other industry stakeholders. The MSDI Project Team provides guidance to the cohort of market systems facilitators in gathering and analyzing data, participating in stakeholder meetings to develop a detailed understanding of problems, understand their root causes, and identify opportunities for improvement.

The analysis focused on three separate value chains:

• Staple food crops – the fruits, vegetables, meat and dairy products that comprise the majority of Hawaiʻi Island’s staple food diets.

• Export crops – key agricultural crops exported from Hawaiʻi island including coffee, macadamia nuts, papaya, flowers and nursery products, and aquaculture.

• Agribusiness services – the operational, technical, training and business services that small farms need to sustain and improve their economic viability.

Through the value chain analysis, the project partners facilitated connections and strategic alignment among stakeholders seeking to improve and expand Hawai'i Island's agricultural economy. By identifying systemic constraints, MSDI aims to support small farm/agribusinesses, create more inclusive and sustainable agricultural market systems, and contribute to Hawai'i's food resiliency.