The aggregation function of Hawai'i Island's staple food commodities value chain presents both challenges and opportunities for improvement. A significant opportunity lies in the establishment of larger centralized facilities for aggregated storage and high-end processing. Such facilities could serve dual purposes: meeting local demand for fresh and processed fruit products while also facilitating export operations. These centralized hubs could provide economies of scale in storage, processing, and distribution, potentially making Hawai'i Island fruits more competitive in both local and export markets.
Complementing these larger facilities, there's a recognized need for localized, smaller-scale facilities to support processing and packaging for small farms. These localized facilities serve as collection points for small producers, allowing them to aggregate their produce and access larger markets that they might not be able to supply individually. This two-tiered approach to aggregation – centralized facilities for larger operations and local facilities for smaller producers – could help balance the needs of different scales of fruit production on the island.
Food hubs have emerged as a crucial component in the aggregation process, playing a vital role in balancing supply and demand and acting as a buffer between producers and consumers. These hubs serve multiple functions, including product aggregation, processing, distribution and marketing. They can be particularly beneficial for small and medium-sized farms, providing them with access to markets that might otherwise be out of reach due to volume or consistency requirements.
The aggregation of vegetables presents unique challenges due to the diverse nature and varying shelf lives of these crops. Unlike fruits, which often have longer shelf lives, many vegetables require rapid aggregation and distribution to maintain freshness. The island's food hubs play a crucial role in aggregating vegetables from multiple small producers. For instance, the Hawai'i 'Ulu Cooperative, while primarily focused on breadfruit, has expanded to include various vegetables in its aggregation and distribution network.
The aggregation function varies significantly between sectors. For cattle, the Hawaiʻi Cattlemen's Council, representing about 130 producers, plays a crucial role in coordinating between ranchers and facilitating marketing efforts. In 2020, they reported coordinating the shipment of approximately 30,000 calves to mainland feedlots.
For smaller livestock operations, aggregation is often informal. The Hawai'i Island Meat Cooperative, established in 2018, has been working to aggregate products from small-scale poultry and pig farmers. As of 2021, they reported working with 25 member farms. In the dairy sector, the small scale of current operations means most aggregation happens at the farm level. The Hawai'i Island Goat Dairy Association, formed in 2019, represents five producers and has been working to coordinate marketing and distribution efforts.
Challenges in aggregation persist however, particularly for small farms. Many struggle to supply reliable volumes and consistent quality to larger buyers, including supermarkets and institutional purchasers. This challenge highlights the need for better coordination and infrastructure in the aggregation process. Improved communication systems between producers and aggregators, standardized quality grading processes, and flexible storage solutions could help address these issues and strengthen the overall aggregation system for Hawai'i Island's fruit sector.