
Suppliers
Input Suppliers to Producers and Agribusinesses
Associated Challenges:
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. |
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. |
Suppliers form the backbone of the agricultural production system by providing essential inputs such as seeds, fertilizers, equipment, and other materials necessary for farm operations. Hawai'i Island’s geographic isolation presents significant challenges for suppliers, as most agricultural inputs must be imported, leading to high costs and frequent supply chain disruptions. Key players in this space include agricultural supply stores, regional cooperatives, and organizations such as the HDOA, which facilitate the import and distribution of agricultural inputs across the state. The University of Hawai'i College of Tropical Agriculture and Human Resources (CTAHR) and related programs also play a role in helping producers access inputs and offering guidance on sustainable practices.
Staple Food Commodities
Suppliers of agricultural inputs face significant challenges in serving staple food commodity producers due to the high cost of importing goods and the unreliable nature of supply chains. These challenges are exacerbated by Hawaii’s geographic isolation and the volatility of global supply chains, which can make it difficult for local suppliers to keep critical items in stock. Small and medium-sized farms producing fruits, vegetables, and other staple foods are particularly vulnerable to these disruptions. For example, the cost of importing fertilizers, seeds, and farming equipment significantly increases overhead for small farms, making it difficult for them to scale up production or compete with imported goods. There is growing interest in developing local sources for agricultural inputs, which could help reduce dependency on costly imports. Programs that focus on the development of climate-resilient and sustainable inputs are also gaining traction as part of the state’s broader push toward sustainable agriculture.
Export Commodities
For export commodities such as coffee, macadamia nuts, and tropical flowers, suppliers face similar challenges, but with the added complexity of providing specialized inputs that meet the high standards required by international markets. These include specialized fertilizers, pest management solutions, and custom equipment for harvesting and processing high-value crops. Export commodity producers rely heavily on these inputs to maintain the quality and competitiveness of their products, but high costs and inconsistent availability can hinder growth. The geographic isolation of Hawai'i increases transportation costs, and many of these inputs must be imported from mainland U.S. or international suppliers. The reliance on external supply chains makes the system vulnerable to price volatility and global disruptions, such as those caused by the COVID-19 pandemic. To alleviate these challenges, there is growing advocacy for the development of local input supply chains, particularly for fertilizers, pest management products, and equipment. By reducing reliance on imports, Hawai'i’s export commodity producers could lower costs and gain more control over their production processes, ensuring a steadier supply of inputs.