Aggregators
Buyers, Brokers and Food Hubs
Associated Challenges:
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. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
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. |
Aggregators, such as buyers, brokers, and food hubs, are essential for connecting small producers to larger markets. These entities help pool products from multiple small-scale farms to meet the volume requirements of distributors, retailers, and other buyers. On Hawai'i Island, food hubs and cooperatives play an important role in aggregation, especially for farms that cannot individually meet the demands of larger customers. Expansion of food hubs and similar initiatives is seen as a key strategy for improving market access for local producers.
Staple Food Commodities
In the staple food commodities value chain, aggregators serve as critical intermediaries between small-scale producers and larger markets. Food hubs allow farmers to pool their products, enabling them to meet the quantity and quality demands of distributors, retailers, and institutions. However, aggregators face logistical challenges due to the fragmented nature of agricultural production on Hawai'i Island and the high cost of transportation between islands. Improving aggregation models and expanding cold storage and transportation infrastructure would enhance the ability of small producers to access broader markets, both locally and regionally.
Export Commodities
Aggregation is essential for export commodities, particularly for small and medium-sized producers who lack the scale to independently access international markets. In the export sector, aggregators help pool products like coffee, macadamia nuts, and tropical flowers, which can then be processed, packaged, and shipped more efficiently. However, logistical inefficiencies, particularly in transportation and cold chain management, continue to be major barriers. Aggregators also face challenges in meeting the phytosanitary standards required for exporting certain products, further complicating the process. Improving aggregation infrastructure and developing more efficient transport networks are critical for reducing costs and expanding market access for Hawai'i's export commodities.