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The Honolulu Advertiser
Posted on: Monday, May 7, 2007

Imports tip Isle produce scale

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By Sean Hao
Advertiser Staff Writer

Milton Agader of Twin Bridge Farms in Waialua stands in his field of asparagus ferns. Agader says it's tough competing with imports.

GREGORY YAMAMOTO | The Honolulu Advertiser

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Despite a national trend toward eating local, Hawai'i is growing increasingly reliant on imported foods.

The news isn't all bad for supporters of the "buy local" movement. The state is producing more fruits and vegetables; it's just that the amount we import is growing faster.

Hawai'i's production of fresh fruits and vegetables has roughly doubled since the 1960s as farms have shifted away from plantation crops to staples such as tomatoes, bananas, cabbage and sweet potatoes.

But the amount of imported fresh produce has more than tripled in the same period.

The result is a tipping of the import vs. local balance in the direction of imports.

In 1960, Hawai'i farmers provided half of the vegetables eaten in the Islands. By 2005 they were only growing one-third of what was consumed, according to Hawai'i Department of Agriculture figures. The local market share of fresh fruit has fared slightly better, falling from 57 percent in 1960 to 42 percent in 2004, in the most recent data.

The drop in market share for local producers comes as farmers grapple with an array of challenges including urban encroachment, high land costs, stiffer environmental regulations and competition from growers worldwide.

"It's tough competing with the Mainland because land costs, water costs, labor costs are all higher," said Milton Agader, co-owner of Twin Bridge Farms in Waialua. "Not only do you have to grow a good product, but you've got to be really good at marketing."

Product labeling helps convince consumers that local products are fresher than imported offerings and are worth higher prices.

"People will pay for added value," said Big Island farmer Richard Ha, who owns Hamakua Springs Country Farms and grows bananas and hydroponic vegetables. "Hawai'i consumers are looking for local produce.

"It's important for it to be branded, otherwise (consumers) won't know it's local."

CROPS MORE DIVERSE

Although Hawai'i's nearly $500 million farm sector remains relatively small compared with the $12 billion tourism industry, agriculture plays an important role in diversifying the state economy, preserving greenbelt lands and reducing the Islands' dependence on imported food.

In the past 45 years, Hawai'i's agriculture sector has undergone a profound shift away from large single-crop plantations to so-called "diversified" crops, which include everything except sugar cane and pineapple.

Hawai'i's farm acreage has fallen from 2.6 million acres in 1960 to 1.3 million acres in 2004 in large part because of the closing of sugar cane and pineapple plantations. Operations such as Twin Bridge farms have helped keep plantation lands in agriculture by growing niche crops such as asparagus.

The situation is more severe for meat, milk and egg producers. Hawai'i has suffered a steep decline in livestock operations. Since 1999, 26 commercial livestock operations in Hawai'i have shut down — a 41 percent drop, according to a survey conducted last year by the University of Hawai'i College of Tropical Agriculture and Human Resources. During that period, the state's poultry sector has been nearly wiped out while the number of milk, egg and pork producers has fallen sharply in part because of rising feed and transportation costs and a lack of available long-term leases on private-sector agricultural lands.

After a decade of mostly declining sales during the 1990s, agriculture overall is on steady footing, thanks to the growth of specialized crops such as coffee, papaya, macadamia nuts and microalgae.

"We are producing a lot more diversified ag, and diversified ag is doing great," said Stewart Nakamoto, an extension economist at the College of Tropical Agriculture and Human Resources.

Since 1960, the production of fresh vegetables has risen from 42.8 million pounds to 85 million pounds as farmers have made significant progress in displacing imported tomatoes, cabbage and sweet potatoes with locally grown versions. Still, Hawai'i's appetite for imported fresh vegetables has more than tripled to nearly 169 million pounds in 2005, according to the Department of Agriculture.

Similarly, fresh fruit production more than doubled from 34.1 million pounds a year in 1960 to 73.3 million pounds in 2004 in part because of relatively new crops such as watermelons and bananas. These figures exclude fruit produced for export.

During the same 1960-2004 period, fresh fruit imports soared from 26 million pounds to more than 100 million pounds.

Even with the introduction of new crops Hawai'i remains heavily dependent on imported vegetables such as potatoes, carrots and onions and imported fruits such as oranges, apples and grapes.

The ability of local farmers to grow more variety of produce depends on various factors including altitude, climate and production costs.

"It's all location-specific," said Ha, who sells produce under the Hamakua Springs label. "Depending on where you are, you're limited on what you can grow."

"We're trying all the different things we can grow," said Ha, who also grows tomatoes, cucumbers and lettuce.

Other potential future crops include tea, blueberries and cacao.

NEW SEAL OF QUALITY

In an effort to raise an awareness of local fresh and processed foods the state last year launched a new "Hawai'i Seal of Quality" label, which is aimed at distinguishing high-quality, Hawai'i-grown and -processed agricultural products.

The green and gold label serves as a certificate of both origin and quality for products coming from the Islands. Use of the logo costs growers and manufacturers a half cent per impression, which covers advertising to raise awareness about the new label.

So far, 25 companies have signed up and 1.8 million labels have been sold, said Matthew Loke, administrator for the Agricultural Development Division of the Agriculture Department. The state plans to spend about $200,000 a year promoting the program.

"We will do not only print but also TV commercials," he said. "And we'd like to work on different projects with leading chefs."

Reach Sean Hao at shao@honoluluadvertiser.com.

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