Staple Foods Constraints

VALUE CHAINS

INFORMATION review

Staple Food Commodities

Hawai'i Island

Systemic Constraints

Potential for System Change

Limited investment in agricultural education and career development

The shortage of skilled professionals in the agribusiness services sector stems from limited investment in agricultural education, training programs, and career development pathways. There is a systemic underfunding of specialized educational programs that focus on agribusiness services, such as technical assistance, compliance support, and advanced agricultural practices. Additionally, careers in agribusiness services are perceived as less attractive due to low wages, limited advancement opportunities, and a lack of awareness about the sector's importance. This results in fewer individuals pursuing careers in agribusiness services, leading to a workforce that is insufficient in both quantity and expertise to meet the needs of producers. The educational system's disconnect from industry needs further exacerbates this issue, as curricula may not align with the practical skills required in the field.

Addressing the shortage of skilled professionals in the agribusiness services sector requires strategic investment in education and career development aligned with industry needs. Collaborating with educational institutions to update curricula, incorporate practical skill-building, and promote agribusiness services as a viable and rewarding career path can attract new talent. Enhancing the attractiveness of these careers through competitive compensation, clear advancement opportunities, and raising awareness of their importance to the agricultural sector can shift perceptions. By bridging the gap between education and industry, the sector can build a robust pipeline of skilled professionals equipped to meet the evolving needs of producers, thereby strengthening the overall capacity and effectiveness of agribusiness services.

Fragmented data collection systems due to lack of coordination and investment

Insufficient market information and data are a result of fragmented data collection systems caused by a lack of coordination among government agencies, service providers, and producer organizations. This fragmentation is compounded by inadequate investment in data infrastructure and market research. Without a centralized or collaborative approach to data collection and sharing, efforts are duplicated, resources are wasted, and critical market intelligence remains siloed. Additionally, there is a lack of incentives and mechanisms to encourage stakeholders to gather and disseminate valuable information. This prevents stakeholders from accessing reliable data needed for informed decision-making, strategic planning, and identifying market opportunities, ultimately hindering the growth and efficiency of the value chain.

Improving data collection and sharing systems by investing in centralized or collaborative data infrastructure presents significant potential for system change. Developing integrated platforms where government agencies, service providers, and producer organizations can contribute and access reliable market intelligence can enhance transparency and strategic planning. Encouraging data sharing through incentives or partnerships can reduce duplication of efforts and ensure that all stakeholders have the information needed for informed decision-making. By harnessing technology and fostering a data-driven culture, the agribusiness services value chain can become more efficient, responsive, and capable of identifying and capitalizing on market opportunities.

Lack of effective coordination and communication among stakeholders

There is a significant lack of coordination and communication among service providers, producers, government agencies, and industry groups. This fragmentation leads to a disconnect between the services available and the actual needs of producers. Without effective platforms for stakeholder engagement and feedback, service offerings may not align with the diverse and evolving requirements of the agricultural community. This misalignment results in underutilization of services, inefficiencies, and missed opportunities for collaborative problem-solving to address systemic issues such as market access and workforce development.

Enhancing coordination and communication among service providers, producers, government agencies, and industry groups offers a pathway to realign services with the actual needs of the agricultural community. Collaborative platforms such as HIAP and HIFA can facilitate the exchange of information, feedback, and best practices. Such platforms can help identify gaps in service provision, reduce duplication of efforts, and promote the co-creation of solutions to systemic challenges like market access and workforce development. By fostering a culture of collaboration and mutual support, the agricultural sector can optimize resource utilization and unlock opportunities for collective growth and innovation.

Overreliance on declining government support

The private sector's limited participation in agribusiness service provision stems from market failures such as insufficient demand aggregation, high operational costs, and perceived low profitability in serving a fragmented producer base. Historically, government agencies and non-profits have filled this gap, offering services often at low or no cost. However, a significant decrease in agricultural service jobs—14% in the private sector and 45% in government agencies from 2013 to 2022—has reduced the availability of these services. Producers' expectations of free or subsidized services discourage private investment, further limiting the development of a robust private agribusiness services market.

Stimulating private sector participation in agribusiness services requires creating an enabling environment that addresses market failures and aligns incentives. Developing innovative financing models, such as cost-sharing schemes or subsidized programs, can reduce the perceived risks and operational costs for private providers entering the market. Facilitating demand aggregation through producer associations or networks can make serving small-scale farmers more attractive by ensuring a consistent client base. Additionally, shifting producer expectations by highlighting the value and impact of quality services can encourage willingness to invest in paid offerings, thereby fostering a more robust and sustainable private agribusiness services market.

Fragmented, small-scale producer base leads to high costs and low economies of scale

Hawaiʻi Island's agricultural sector is characterized by a multitude of small-scale and part-time producers who are geographically dispersed and cultivate a diverse range of crops. This fragmentation results in high transaction costs for service providers, as reaching and serving numerous small clients scattered across the island demands significant time and resources. The lack of economies of scale makes it challenging for service providers to offer affordable services, leading to high fees that are often prohibitive for producers. Additionally, the small scale of operations limits producers' ability to collectively bargain for better service rates or access shared resources like equipment, exacerbating the affordability issue.

Fostering collaborative models such as cooperatives or producer networks can encourage farmers to organize collectively, pool resources, share services such as equipment and training, and increase their bargaining power with service providers. Leveraging digital platforms and mobile technologies can further streamline communication and service delivery, reducing costs and making it more feasible for providers to offer affordable services. Such systemic changes can create economies of scale, enhance access to essential agribusiness services, and ultimately improve the viability and profitability of small-scale farming operations.

Lack of Coordination Among Stakeholders

The export commodities value chain in Hawaiʻi is fragmented, characterized by weak institutional frameworks and a lack of effective collaborative mechanisms among stakeholders. Historical factors, such as the transition from plantation economies to smallholder farming, have led to a dispersed industry structure with many small-scale producers operating independently. This fragmentation is exacerbated by limited trust, inadequate communication channels, and the absence of strong industry associations or cooperatives. As a result, there is poor horizontal coordination among producers and weak vertical linkages with processors, distributors, and marketers. This systemic issue leads to inefficiencies, such as duplicated efforts, underutilized resources, and missed opportunities for collaborative marketing, joint investment in infrastructure, and advocacy.

A market systems development approach can address this fragmentation by strengthening institutional frameworks and fostering collaboration across the value chain. Facilitating the formation or enhancement of producer associations, cooperatives, or clusters can build trust and improve communication among stakeholders. Establishing platforms for regular dialogue, information sharing, and joint decision-making can align objectives and strategies. Encouraging collaborative initiatives—such as shared marketing campaigns, collective bargaining with buyers, or joint investment in processing facilities—can enhance efficiencies and market competitiveness. Policy support to incentivize collaboration, such as grants for cooperative projects or streamlined regulations for collective enterprises, can further promote coordination. By transforming the value chain into a more cohesive and collaborative system, stakeholders can leverage shared resources, reduce costs, and better position Hawaiʻi's export commodities in the global market.

High Energy Costs and Lack of Sustainable Solutions

Hawaiʻi's energy sector is heavily reliant on imported fossil fuels due to its geographic isolation, resulting in some of the highest energy costs in the nation. This dependence affects the agricultural sector significantly, particularly for producers engaged in energy-intensive activities like drying, processing, and cold storage of export commodities such as macadamia nuts and coffee. The systemic issue lies in the limited investment in renewable energy infrastructure and energy-efficient technologies within the agricultural sector. Contributing factors include inadequate access to capital for renewable energy projects, insufficient policy incentives, and a lack of technical expertise or awareness among producers to implement sustainable energy solutions.

Addressing this root cause requires a systemic shift towards sustainable energy integration within the agricultural sector. A market systems development approach can facilitate partnerships between agricultural producers, renewable energy providers, financial institutions, and policymakers. By developing accessible financing models and providing technical assistance, producers can adopt renewable energy technologies and energy-efficient practices. Policy interventions could include creating incentives such as tax credits or subsidies for renewable energy investments in agriculture. Capacity-building initiatives can raise awareness and build technical expertise among producers. These systemic changes can reduce energy costs, enhance profitability, and improve the competitiveness of Hawaiʻi's export commodities in global markets while contributing to environmental sustainability.

Underinvestment in Agricultural Education and Workforce Development

Persistent underinvestment in agricultural education, training programs, and extension services has led to significant gaps in workforce development and skill acquisition. This systemic issue leaves many farmers ill-equipped to navigate the complexities of modern farming practices, compliance requirements, and financial management, limiting productivity and the ability to access higher-value markets.

Addressing labor shortages requires innovative strategies that can reshape how labor is accessed and utilized within the agricultural sector. By exploring collaborative models that enhance labor efficiency—such as shared labor pools or flexible scheduling—producers can pilot new approaches to optimize the existing workforce. Implementing technology or mechanization where feasible can also alleviate labor demands. Testing these solutions on a small scale allows producers to assess their effectiveness and scalability, potentially transforming labor dynamics in a way that benefits staple food commodity production without imposing unsustainable costs.

High Barriers to Entry for New and Young Farmers

Systemic barriers—such as limited access to land, capital, education, and training—make it challenging for new and young farmers to enter the agricultural sector on Hawaiʻi Island. Combined with insufficient succession planning for aging farmers, these issues contribute to a demographic shift that threatens the future sustainability of the island’s agricultural sector.

Navigating complex compliance requirements can be streamlined by developing systems that simplify processes for producers. By piloting user-friendly compliance tools or platforms that consolidate regulatory information, producers can more easily meet standards without excessive burden. Demonstrating the effectiveness of these tools can encourage broader adoption and potentially influence regulators to consider more accessible frameworks. Such systemic changes can reduce barriers to market entry and expansion for staple food commodity producers, enhancing their competitiveness.

Lack of Support for Transition to Diversified Agriculture

The decline of the sugar plantation industry was not accompanied by adequate investment and policy support for developing a diversified agricultural services sector. This systemic oversight has led to a gap in critical support services—such as technical assistance, equipment repair, and access to affordable agricultural inputs—impairing the growth potential of small farms and the overall agricultural economy on Hawaiʻi Island.

Improving access to critical infrastructure involves rethinking how resources are allocated and utilized within the market system. Producers can explore models that optimize existing facilities through shared usage agreements or cooperative management. Piloting initiatives that coordinate logistics and infrastructure use can reduce costs and improve efficiency. Success in these areas can lead to a more integrated system where infrastructure supports rather than hinders production, enabling staple food commodity producers to scale operations and access new markets.

Fragmented Market Information Systems and Lack of Data Infrastructure

The absence of integrated and accessible market information systems, due to underinvestment in data infrastructure and coordination mechanisms, leads to information asymmetry and inefficiencies in the agricultural value chain. This systemic issue hinders effective decision-making by farmers and other stakeholders, resulting in mismatched supply and demand and limiting market access, especially for small-scale producers.

Enhancing biosecurity measures is pivotal for safeguarding agricultural productivity. Producers can test collaborative approaches to pest and disease management, such as coordinated monitoring or shared response strategies. By piloting these initiatives, producers can evaluate their impact on reducing crop losses. Successful models can be scaled up, fostering a proactive biosecurity culture within the agricultural community that protects staple food commodities and contributes to overall sector resilience.

Inadequate Biosecurity Infrastructure and Policy Implementation

Insufficient funding, coordination, and enforcement of biosecurity measures have led to inadequate pest and disease management services on Hawaiʻi Island. This systemic lack of robust biosecurity infrastructure increases vulnerability to pests and diseases, resulting in crop losses and higher costs for farmers, particularly affecting fruit and vegetable production.

Access to reliable market information is essential for informed decision-making. Producers can pilot data-sharing initiatives or develop networks that provide timely market insights, pricing trends, and demand forecasts. By evaluating the benefits of improved information flow, producers can adapt production plans to better meet market needs. Scaling up these initiatives can lead to a more transparent and efficient market system, enhancing opportunities for staple food commodity producers to optimize profitability.

Challenges

Root Cause

Workforce Development Gaps in Service Provision	There is a need for improved training and education programs to build a skilled workforce within the agribusiness services sector. Limited availability of trained professionals affects the quality and reach of services provided to producers.
Lack of Specialized and Tiered Training Programs	There is a gap in the availability of training programs that cater to different levels of farmers' expertise, particularly intermediate-level ("missing middle") training. This limits farmers' ability to advance their skills, adopt advanced practices, and respond to evolving market demands.

Limited investment in agricultural education and career development

Challenges

Root Cause

Lack of Available Data and Market Information

Insufficient access to reliable market data and demand information constrains decision-making for both service providers and producers. This results in inefficiencies in service delivery, pricing, and market opportunities.

Fragmented data collection systems due to lack of coordination and investment

Challenges

Root Cause

Disconnect between available services and producer needs	There is a disconnect between the services available and the actual needs of producers, leading to inefficiencies and underutilization of available support.
Lack of Coordination Among Stakeholders	There is limited coordination among service providers, producers, government agencies, and industry groups, hindering collaboration and the development of unified strategies to address systemic issues like service provision, market access, and workforce development.

Lack of effective coordination and communication among stakeholders

Challenges

Root Cause

Limited Private Sector Participation in Service Provision	The private sector struggles to offer affordable, tailored services to a fragmented and diverse producer base, constraining the sector's growth and innovation potential. This limits the development of a robust agribusiness services market.
Decrease in Agricultural Service Jobs	A significant decrease in private sector agricultural service jobs (14% from 2013 to 2022) and government agriculture employees (45% decrease) has reduced the availability of support services for producers. This decline exacerbates challenges in accessing necessary agribusiness services.

Overreliance on declining government support

Challenges

Root Cause

High Transaction Costs for Service Providers	The small scale and dispersion of farms increase the transaction costs for service providers, making it less attractive to offer services to small and remote producers. This reduces the availability of services for those who may need them most.
High Costs and Challenges in Farm Equipment Access and Maintenance	Farmers face high costs and logistical challenges in accessing and maintaining farm equipment due to harsh environmental conditions, and high import costs. Farmers are wary of shared usage models or rental equipment due to biosecurity risks.
Affordability of Agribusiness Services	The cost of agribusiness services is often prohibitive for many farmers, especially small-scale and part-time producers. High fees for business, financial, and technical services limit access to crucial support needed to enhance productivity and profitability.

Fragmented, small-scale producer base leads to high costs and low economies of scale

Challenges

Root Cause

Lack of Coordination Among Stakeholders

There is limited coordination between producers, government agencies, and industry groups, hindering collaboration and the development of unified strategies to address systemic issues like transportation, market access, and workforce shortages.

Lack of Coordination Among Stakeholders

Challenges

Root Cause

High Energy Costs

Processing facilities, especially for energy-intensive processes like drying and roasting, face high energy costs. These costs impact profitability for macadamia nut and coffee producers, prompting interest in renewable energy solutions.

High Energy Costs and Lack of Sustainable Solutions

Challenges

Root Cause

Workforce Development	There is a need for improved training and education programs to build a skilled workforce, particularly for aquaculture, floriculture, and macadamia nut production. Limited extension services and training resources further compound the issue.
High Labor Costs and Shortages	Labor-intensive crops like coffee and flowers are heavily impacted by Hawaii’s high wage rates and a shortage of skilled workers. The difficulty of attracting seasonal workers during peak harvest periods further exacerbates this issue.
Pests and Plant Diseases	Insufficient services and high costs for pest management make it challenging for small farmers to protect crops from pests and diseases. This leads to lower productivity and increased financial strain on producers.
Aging Producer Workforce	With an average age of 61 and reduced access to extension services, Hawaiʻi Island's agricultural workforce faces a challenge in transferring knowledge and skills to new farmers. This creates gaps in productivity and sustainability.
Inadequate Technical Assistance	Limited access to technical support services, such as extension programs and research institutions, constrains farmers' ability to implement modern farming techniques and business practices, particularly among small farms.
Workforce Housing Challenges	A lack of affordable housing and allowances for farmworkers to live on the farm creates challenges for attracting and retaining labor. These housing barriers make it difficult for workers to remain in rural farming areas.
Cost and Availability of Farm Labor	The high cost and limited availability of farm labor are critical barriers to farmers' ability to maintain operations. This issue stems from competition for labor with higher-paying sectors and unattractive employment conditions for farm labor.

Underinvestment in Agricultural Education and Workforce Development

Challenges

Root Cause

Aging Producer Workforce

With an average age of 61 and reduced access to extension services, Hawaiʻi Island's agricultural workforce faces a challenge in transferring knowledge and skills to new farmers. This creates gaps in productivity and sustainability.

High Barriers to Entry for New and Young Farmers

Challenges

Root Cause

Inadequate Technical Assistance	Limited access to technical support services, such as extension programs and research institutions, constrains farmers' ability to implement modern farming techniques and business practices, particularly among small farms.
High Input Costs	The high costs of imported agricultural inputs, such as seeds, fertilizers, and equipment, significantly raise production expenses. This reduces profitability and scalability, especially for small and beginning farmers.

Lack of Support for Transition to Diversified Agriculture

Challenges

Root Cause

Data Gaps in the Value Chain	Data collection, especially from smaller farms and backyard producers, is insufficient. Without comprehensive data, it is difficult to make informed decisions regarding market opportunities and areas for improvement within the value chain.
Market Access and Promotion	Smaller producers struggle to access international markets due to limited promotion and branding efforts. Expanding the promotion of Hawaii’s premium agricultural products and establishing unified marketing strategies is seen as a priority.
Lack of Available Data and Market Information	Insufficient access to reliable market data and demand information constrains decision-making for both producers and buyers. This results in inefficiencies in pricing, production volumes, and market opportunities.
Misalignment of Supply and Demand	There is a frequent misalignment between farm production and market demand. Poor demand forecasting and issues with harvest timing lead to inefficiencies, resulting in food waste and revenue losses for small-scale producers.

Fragmented Market Information Systems and Lack of Data Infrastructure

Challenges

Root Cause

Pest and Disease Management	Coffee and macadamia nut producers face persistent challenges from pests such as the Coffee Berry Borer and macadamia felted coccid, which lower yields and increase costs. Research into pest-resistant varieties is critical for mitigation.
Pests and Plant Diseases	Insufficient services and high costs for pest management make it challenging for small farmers to protect crops from pests and diseases. This leads to lower productivity and increased financial strain on producers.

Inadequate Biosecurity Infrastructure and Policy Implementation

Prioritize the Constraints

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