Marketing Hawaii's Agricultural Products

The large producers of sugar and pineapple, Hawaii's principal agricultural products, process and distribute their own crops and those of smaller producers. Competition encountered by both products has been increasing and is expected to become stronger. Producers are meeting competition by promotion and product improvement. Hawaii imports many farm products. Most of these could be produced in Hawaii, but it is more advantageous to specialize in products in which the State has a comparative advantage. Production of poultry and eggs has expanded rapidly in recent years, and price premiums local products receive over imported products have declined. Further reductions are expected if local producers supply a larger share of the market. Producers have maintained the premium for locally produced pork by supplying a decreasing proportion of the growing market. Production of livestock and livestock products is limited by shortage of feed concentrates. Farmers on islands other than Oahu have hesitated to increase production for the Honolulu market because of the lack of fast, economical transportation among the islands. The State government and private interests are trying to improve transportation. Since World War II supermarkets have replaced many smaller retail food stores. As a result of an increase in direct buying by retailers from producers, several wholesale firms have discontinued business. Direct buying is expected to increase, causing big changes in marketing institutions and practices. Growth in population will swell the market for food products. Hawaiian farmers may also supply a larger part of the food bought for the Armed Forces stationed in the State. Aggressive marketing may develop more extensive export markets for coffee, some subtropical fruits, macadamia nuts, and other specialty products