TEA HAWAII CO — Department of Agriculture SBIR Phase I: Agribusiness in Hawaii County overwhelmingly consists of small farms which range from 1 to

Description

Agribusiness in Hawaii County overwhelmingly consists of small farms which range from 1 to 49 acres in size. Of the 4650 farms in Hawaii County, all but 471 are less than 50 acres, with the median farm size consisting of 6 acres (USDA 2007). While the majority of Hawaii & #39;s larger agribusinesses can achieve economies of scale, meaning they have the capacity to produce and bring to market their goods in volumes large enough to derive a profit, most of their goods are commercial products, commodities, intended for export to Canada, Japan, the U.S. mainland, and other overseas markets. Not only are the remaining 4179 small agribusinesses in Hawaii County unable to export their produce globally, many have considerable challenges in vending their products locally due to their economies of scale (lower production levels), lack food safety certification, and limited refrigeration, transportation, and processing capabilities. Hawaii & #39;s tea farmers face several challenges, specifically the high costs of labor associated with tea harvesting and processing, coupled with the capitalization costs required to invest in the machinery necessary to aid in the production of a value-added, specialty crop. The commercialization potential of the Phase I research on machine-assisted harvesting methods indicates a potential increase in yield from 40 lbs/acre/year under hand processing methods to 120 lbs/acre/year. The anticipated increase in annual revenue from $40,000 on 5 acres to $120,000 indicate a high potential for this project to qualify for Phase II support to ensure commercialization of machine assisted tea production and further the development of Hawaii & #39;s tea industry.Despite Hawaii & #39;s 52-week growing season, approximately 85% of Hawaii & #39;s food supply is imported from U.S. mainland and international markets (Leung and Loke, 2008), including the bulk of the tea consumed by Hawaii residents. This project attempts to assist the development of Hawaii County & #39;s small tea growers and increase the production and availability of locally grown tea in Hawaii. Developing our local agricultural economy, according to Leung and Loke (2008), will translate into $3.1 billion U.S dollars remaining in our state to support local agribusiness, the current amount being spent to purchase food from agribusinesses overseas. Applicant Tea Hawaii & amp; Company has sold, on a weekly basis, single estate teas representing the collective of growers involved in this project at local farmers markets on Hawaii Island. Increased demand for sales has taken place expanding new agricultural enterprises for Hawaii grown teas. Domestic and foreign tea businesses are looking to Hawaii tea growers for specialty teas to develop new marketing strategies; these market commitments have enabled Hawaii tea growers to increase production. Farm management for Hawaii tea growers is as diverse as specialty markets. Unlike any other agriculture crop, Camellia sinensis tea is a species that can be farmed throughout the year and maintain healthy cohabitation within many Hawaii environments. Educational outreach done in both the private and public sector has created a strong interest in Hawaii County and throughout the State in supporting Hawaii grown teas as an economically viable specialty crop.Hawaii has the opportunity to become the leading domestic producers of high quality artisan teas made from Camellia sinensis due to its unique geographic location and associated environmental variables. The State of Hawaii is situated at the southernmost geographic reach of the United States, in a semi-tropic climate that is well suited for tea production. Furthermore, Hawaii & #39;s volcanic geology and subsequent soil chemistry provides for a unique tea product, which is beginning to gain popularity among tea enthusiasts worldwide. As Hawaii & #39;s tea farmers begin to introduce their product to a broad commercial market, it is critical to provide adequate research and developmen