VALUE CHAINS
INFORMATION review
Staple Food Commodities
Hawai'i Island
Market System Map
The market system map provides an overview of the various functions, rules and stakeholders of the staple food commodities value chain. This helps to understand the various inter-relationships and interdependencies that shape performance and opportunities for producers. Click on any of the System Components below to see the underlying information.
Understanding the value chains of the island's agricultural products from production to consumption helps to identify the factors that determine the prices producers get for their products and where different market opportunities might exist, particularly for more value-add to products that can increase farm profitability. Analyzing vertical linkages amongst value chain functions and horizontal linkages amongst producers can yield potential new opportunities. The following diagram displays each of the value chain functions and market segments determined by farm size and income.
Horizontal linkages among producers of similar products are crucial for achieving economies of scale, sharing resources, and collective marketing. Several industry groups and producer associations exist, demonstrating a reasonably high level of horizontal linkages within the value chain.
Vertical linkages involve the connections between different functions in the value chain, from production to processing, distribution, marketing, and sales. Effective vertical linkages ensure smooth transitions of products through the value chain, enhancing overall efficiency and profitability.
The relationship between producers and processors is critical for timely and efficient processing of agricultural products. The data indicates that many small-scale farmers lack access to adequate processing facilities, creating a bottleneck in the value chain. Initiatives to develop localized processing infrastructure, such as The Food Basket's Agriculture Innovation Center, aim to address this gap by providing shared facilities for value-added production. This will enable farmers to process their products locally, adding value and reducing the need for costly off-island processing.