By Alex Eichenstein
Ken Love grows over 300 species of exotic tropical fruits on his farm each year. The longtime executive director of Hawaii Tropical Fruit Growers then sells his produce, including mango plums, durian and other seasonal items at a roadside stand to passersby.
A master preserver trained in food safety and sustenance, Love also turns those fruits into jellies and jams. But even for him finding the necessary supplies, like sugar and jars, has become a major expense due to the difficulties of transporting them from the mainland.
“The cost of shipping is what’s driving the increase on all prices,” he said.
Love has cut back on transport costs by diversifying his output and selling directly to customers, but he thinks the high shipping fares are still hurting more than just producers.
“It’s the farmer that gets squeezed, and ultimately the consumer who’s buying our produce,” Love said.
Many farmers in Hawaii are feeling the impact of the high cost of transporting goods and the items used to produce them amid supply chain problems that worsened during the coronavirus pandemic.
“The lingering problem we have in the supply chain is a real run up in pricing, and that hasn’t gone away,” said Mike Hansen, president of the Hawaii Shippers Council.
A program by the U.S. Department of Agriculture is helping farmers offset these costs. The agency reimbursed farmers $3 million in 2022 and increased the funds allotted to the program to $4 million this year. But it’s the only program of its kind, which limits its impact.
Other factors, like inflation and labor costs, have contributed to rising prices, but 39% of farmers, ranchers and allied operators surveyed by the Hawaii Department of Agriculture in 2020 said shipping costs posed a barrier to expanding their operations, especially on Maui, Kauai and Hawaii island. These are the department’s most recent available figures on this point.
The problem is exacerbated by a dearth of competition in the island state’s shipping industry.
Ocean shipping is more common among farmers in the state, and many also believe that the Jones Act drives up their costs. The law mandates that commerce between domestic ports be carried out by ships constructed in the United States, which cost four to five times more than those made elsewhere.
Young Brothers, which as a state-regulated monopoly is the only company that provides interisland shipping services, was allowed to increase its rates by about 46% in 2020. That increase translated to higher costs for farmers, many of whom were already heavily burdened by the pandemic.
Young Brothers did not respond to a question about whether it has plans to decrease the rates.
Instead, the vice president of operations Chris Martin said in an emailed statement that the company offers farmers a 30% to 35% discount on shipments of agricultural products grown in the islands.
“In the past five years alone, this discount program saved Hawai‘i farmers statewide nearly $10.7 million,” he said.
Other companies have also increased prices over the past few years, in part because of high fuel costs.
In Livestock Marketing, Derrell Peel, OSU Extension livestock marketing specialist, reviews the USDA’s recent January cattle reports and explains why the overall U.S. cattle herd continues to shrink.