Wholesalers
Wholesalers of local agricultural and food products
Associated Challenges:
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. |
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. |
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. |
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. |
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. |
Wholesalers serve as key intermediaries in the food value chain, sourcing large quantities of agricultural products from producers and distributing them to retailers, restaurants, and other end markets. Hawai'i has a limited number of agricultural wholesalers, many of whom face challenges due to the state’s remote location and fragmented agricultural production. Companies such as Armstrong Produce and Sysco Hawaii are among the few large-scale wholesalers operating in the state. Their ability to aggregate products for larger markets makes them a critical link between small-scale producers and larger retail or foodservice outlets.
Staple Food Commodities
In the staple food commodities value chain, wholesalers play a crucial role in aggregating products from small producers and distributing them to larger markets. However, due to the geographical isolation of the islands, the high cost of transportation and limited availability of cold storage facilities create significant barriers to the efficient distribution of locally produced foods. Wholesalers note that expanding cold storage capacity and improving the overall logistics network for agricultural products could significantly enhance their ability to supply local foods to larger retailers and institutions. Improved coordination between producers and wholesalers is needed to ensure consistent supply and quality.
Export Commodities
Wholesalers of export commodities face additional challenges related to inconsistent supply from small and medium-sized producers and high shipping costs for products destined for international markets. For products like coffee, macadamia nuts, and tropical flowers, the role of the wholesaler is to aggregate goods and ensure they are processed, packaged, and transported efficiently to maintain quality. However, logistical inefficiencies, such as inadequate cold storage and transportation bottlenecks, increase the risk of spoilage and reduce profitability. Wholesalers advocate for investment in infrastructure, particularly refrigerated storage and more efficient shipping networks, to enhance the viability of Hawai'i’s export commodities in global markets.