Staple Food Commodities

Hawai'i Island

Staple food commodities are defined as those essential agricultural products required to sustain the island’s population. The primary purpose of focusing on these commodities is to enable HIAP's members to better understand Hawaiʻi Island's food value chains, the market ecosystem that enables these value chains to function efficiently, and the economic capacity to improve the island's food security.

Each of the tabs below provides summary information on different aspects of the Staple Food Commodities Value Chain. To develop a holistic understanding of our island's food system, follow all of the tabs from left to right to take a deep dive into the value chain.

Staple food commodities are categorized in ways that make it as easy as possible to track reported agricultural and economic data, dividing various agricultural products into three primary groups: Fruits, Vegetables & Melons, and Livestock & Dairy. It is important to note that some products in the vegetables category are technically fruits but are included with vegetables due to common usage or processing needs.

Fruits

The fruit sector on Hawaii Island is crucial for the local agricultural economy but faces significant challenges such as logistical difficulties and supply-demand misalignment which lead to periods of surplus and shortages. Opportunities for growth include the development of value-added products such as fruit powders and essences, which can extend the market reach and improve shelf stability of the products. Investing in cold chain infrastructure and localized processing facilities could significantly reduce losses and enhance the sector's competitiveness. Collaborative efforts and public-private partnerships are essential to address these systemic constraints and leverage opportunities for sustainable growth.

Vegetables & Melons

Vegetable and melon production benefits from Hawaii's diverse microclimates, which allow for a wide variety of products. However, the perishable nature of these products demands rapid and efficient distribution systems to maintain freshness. There is untapped potential in processing which could include creating vegetable powders or packaged fresh-cut products for local and tourist markets. Enhancing infrastructure, such as developing local processing centers and improving transportation routes, would help stabilize supply chains and reduce wastage, making these products more competitive and accessible.

Livestock & Dairy

Livestock and dairy production on Hawaii Island is notably affected by the high costs associated with importing feed, alongside challenges in processing capacity which limits market expansion. Opportunities for sectoral improvement include enhancing local distribution networks and establishing small-scale, localized processing units that could help in adding value to products such as cheese, yogurt, and packaged meats. These changes could enable producers to better meet local demand and potentially enter into higher-value markets .

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Livestock & DairyVegetables & MelonsFruits

Alpacas

Beans

Carrots

Citrus

Eggs

Kiwifruit

Milk

Peaches

Pomegranates

Rhubarb

Tomatoes

Apples

Beets

Cattle

Corn

Figs

Kumquats

Okra

Pears

Potatoes

Sheep

Turkeys

Apricots

Berries

Cauliflower

Cucumbers

Geese

Lettuce

Olives

Peas

Pumpkins

Spinach

Turnips

Artichokes

Breadfruit ('Ulu)

Celery

Daikon

Grapes

Longan

Onions

Peppers

Quail

Squash

Watercress

Asparagus

Broccoli

Cherimoyas

Dates

Greens

Lychees

Papayas

Persimmons

Rabbits

Sweet Corn

Avocados

Brussels Sprouts

Cherries

Ducks

Guavas

Mangoes

Parsley

Pineapples

Radishes

Sweet Potatoes

Bananas

Cabbage

Chickens

Eggplant

Hogs

Melons

Passionfruit

Plums

Rambutan

Taro

Who are we trying to benefit?

Understanding a value chain best starts with the people in the value chain we seek to benefit most - the Producers. Below is a summary of the available demographic and income details of the island's staple food commodities producers in Hawai'i County from the 2022 USDA National Agricultural Statistics Service (NASS) Agricultural Survey. Please note that Fruit Producers are combined in this data with Macadamia Nut producers in the category of Fruits & Tree Nuts. Macadamia Nuts are categorized with export crops in a separate valaue chain analysis.

Staple Food Commodities Producer demographics.png

As the available data specifically for staple food commodities producers is limited, we can note the data across all farms in the County as indicative of the demographics of the staple food producers, who represent the largest portion (70%) of the island's producers. Some key statistics of note about the island's producers includes the following.

Advanced Age of Farmers: The average age of farmers is 61 years, with a significant portion (around 46%) of producers being 65 years and older. This raises concerns about the sustainability of the farming population, as fewer younger producers are present (only 6% are under 35). This advanced age signals potential challenges for future farming capacity unless younger farmers are encouraged to enter and remain in the sector.
Number of Beginning Farmers: The data shows 951 producers have been operating their farms for 5 years or less, which accounts for about 15% of the total producers. This indicates some level of new entry into farming, though it is relatively modest compared to the overall producer population.
Gender Distribution: Male producers account for about 57% of the total producers, while female producers represent 43%. This suggests a notable presence of women in farming, although men still dominate slightly in terms of producer numbers.
Internet Access: There is a strong presence of technology adoption, with 2,896 farms (about 80%) having some form of internet access. The predominant methods of access include broadband and cellular data plans, highlighting a reasonable level of digital connectivity which could support innovations and market linkages.
Off-Farm Employment: A significant number of producers (65%) work off-farm, with many (about 34%) working more than 200 days off-farm. This suggests that a large portion of farmers may rely on off-farm income, potentially indicating challenges in achieving full-time viability from farm operations alone.
Land Tenure: The majority of farms are fully owned (2,623 farms) compared to part-owned or leased land. This level of ownership provides stability but could limit opportunities for new entrants if land availability is restricted.
Income from Farm-Related Activities: The data reveals income diversification through farm-related activities, such as custom work, agri-tourism, and gross cash rent. However, income from these activities varies widely, with some categories like agri-tourism showing significant growth potential ($9,338,000 in 2022 compared to $1,569,000 in 2017).

Staple Food Crops Value Chain Diagram.png

Horizontal Linkages

Producer Groups and Cooperatives: Horizontal linkages among producers of similar products are crucial for achieving economies of scale, sharing resources, and collective marketing. The data from various sources highlights several key horizontal linkages on Hawaii Island:

Hawai'i ’Ulu Cooperative: This cooperative is a prime example of horizontal linkage, enabling breadfruit farmers to pool their resources for processing and marketing. The cooperative's shared processing facilities reduce individual costs and increase collective bargaining power, allowing members to access larger markets and achieve better product prices.
Farmers’ Markets and CSA Programs: Local farmers' markets and community-supported agriculture (CSA) programs provide platforms for producers to sell their products directly to consumers. These markets foster collaboration among farmers, enabling them to share best practices and coordinate marketing strategies. CSA programs, where consumers subscribe to receive regular boxes of fresh produce, also strengthen horizontal linkages by creating a steady demand for a variety of products from multiple farmers.

Vertical Linkages

Integration Across 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. Data indicates 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 Ho'olako Project, 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.

Market Intelligence and Demand Forecasting

Effective market intelligence and demand forecasting are crucial for aligning production with market demand. The data highlights the need for better information flow along the value chain:

Understanding consumer preferences and market trends can help producers make informed decisions about what to grow and when to harvest. Improved market research and data analysis can reduce the misalignment between supply and demand, minimizing waste and increasing profitability.
Establishing feedback mechanisms between producers, processors, and retailers can enhance coordination and improve responsiveness to market changes. For example, regular communication and data sharing can help adjust production schedules and processing volumes to meet current demand levels more accurately.
Building strong relationships with retailers and exporters is critical for ensuring that local products reach both domestic and international markets. The data indicates several successful examples and opportunities for improvement:

Targeting high-value niche markets and exploring more efficient packaging and transportation methods can help Hawaiʻi Island products compete in global markets. The data suggests that focusing on quality and leveraging the unique attributes of local products can create competitive advantages in international markets.

Challenges

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.

Root Cause

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.

Challenges

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.

Root Cause

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.

Challenges

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.

Root Cause

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.

Challenges

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.

Root Cause

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.

Challenges

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.

Root Cause

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.

Challenges

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.
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.
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.

Root Cause

Socioeconomic Barriers to Attracting and Retaining Farm Labor

Structural socioeconomic factors—such as the high cost of living, lack of affordable housing, low agricultural wages compared to other sectors, and limited social support—create significant barriers to attracting and retaining a stable farm labor force on Hawaiʻi Island. These systemic issues make agricultural jobs less viable and unattractive to potential workers, leading to labor shortages that constrain farm productivity and scalability, especially for small farms.

Challenges

Permitting Delays	Lengthy permitting processes, particularly for infrastructure projects like cold storage and processing facilities, delay necessary investments. Producers face significant challenges navigating Hawaii’s regulatory and permitting framework.
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.
Complex Food Safety Compliance	Small farmers face difficulties complying with the Food Safety Modernization Act (FSMA) and other food safety standards. The cost and complexity of compliance prevent many from accessing certain markets and limit their ability to scale.
High Transaction Costs for Small Farms	The lack of aggregation infrastructure leads to high transaction costs for buyers and processors when dealing with small farms, reducing the incentive to source from local smallholders.
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.
Permitting and Regulatory Delays	Lengthy and complex regulatory processes, such as building permits and environmental compliance, disproportionately affect small farmers. These delays hinder the timely expansion of farms and limit infrastructure development.
Compliance	Stakeholders consistently identify the high costs associated with compliance, permitting, and infrastructure development as major barriers to inclusive agricultural development.

Root Cause

Regulatory Frameworks Misaligned with Small-Scale Farming Needs

Regulatory systems and compliance requirements are predominantly designed for large-scale commercial operations, lacking adaptation or flexibility for small-scale farmers. This misalignment results in disproportionately high compliance costs and complexities for small farms, restricting their ability to expand infrastructure and meet food safety standards. The systemic lack of tailored regulations and support mechanisms inhibits growth and market access for small producers.

Challenges

Cold Chain Management	Maintaining the cold chain is critical for export commodities like flowers, fruits, and seafood. The absence of adequate refrigerated facilities and inefficient cold chain logistics leads to higher post-harvest losses and reduced quality.
Limited Processing Infrastructure	There is a lack of local processing facilities for export crops, forcing producers to rely on off-island processing, which increases costs and risks. Investments in local processing facilities for macadamia nuts and coffee are essential.
Logistical Inefficiencies	Inefficient distribution networks and a lack of cold storage facilities increase the risk of product spoilage during transportation. These inefficiencies disproportionately affect perishable products, such as tropical flowers and seafood.
High Transportation Costs	Hawaii's geographic isolation makes it difficult for producers to compete in international markets. High shipping costs and fuel prices significantly impact the profitability of crops like macadamia nuts, coffee, and floriculture.
Limited Cold Chain Capacity	Inadequate cold storage and distribution infrastructure for perishables (especially fruits and vegetables) result in post-harvest loss, lower quality produce, and missed opportunities in high-value markets.
Inadequate Aggregation and Processing Facilities	Hawaiʻi Island lacks sufficient aggregation and processing facilities, making it difficult for small-scale farmers to reach markets efficiently and profitably. This infrastructure gap exacerbates post-harvest loss and limits access to markets.
Compliance	Stakeholders consistently identify the high costs associated with compliance, permitting, and infrastructure development as major barriers to inclusive agricultural development.

Root Cause

Systemic Underinvestment in Essential Agricultural Infrastructure

Chronic underinvestment by both public and private sectors in critical agricultural infrastructure—such as processing facilities, aggregation centers, and cold chain logistics—has led to significant gaps on Hawaiʻi Island. This systemic issue results in high transaction costs, substantial post-harvest losses, and reduced access to high-value markets, making it difficult for small farms to scale up and remain competitive.