Service Providers

Businesses providing agricultural and businesses services to producers and other agribusinesses.

Service providers play a crucial role in the value chain by offering essential support services such as technical assistance, business development, marketing, and compliance guidance. The key challenge is that there are not enough service providers to meet the demand, particularly in rural areas, and many producers struggle to access affordable services. Improved coordination among service providers and better outreach to small-scale producers could increase the value chain's efficiency.

Associated Challenges:

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.
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.
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.
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.
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.
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.