Producer

Producers of all types of agricultural products.

Producers are at the heart of the value chain, responsible for growing staple food crops under challenging conditions, including high input costs and unpredictable weather. Feedback from stakeholders highlights the need for better access to financial resources, technical assistance, and market data to help producers become more competitive. Opportunities exist in developing new value-added products and improving market linkages.

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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.