The US Department of Agriculture Economic Research Service just released on May 29, 2008, its Fruit and Tree Nuts Outlook for 2008. Lots of interesting “fruits” of information about the national outlook for fruit and nut prices, imports and exports. But there are also strong lessons to be learned – lessons about sustainable agriculture and the potential for growth of Hawaii crops. The authors, Agnes Perez and Susan Pollack provide lots of data about all sorts of fruit and nut crops, but I'd like to mostly focus on a few crops, important to Hawaii agriculture. First about the prices, prices for farmers in April fell 13% from the previous month.
Overall prices to the farmer are going down....and prices for the consumer "remain strong" which means that although the farmer is not receiving a premium for higher prices paid by consumers, the cost to consumers will continue to rise - largely because of increased transportation costs - those increases are passed along the supply chain to the consumer. Only citrus prices declined. The biggest increase in prices for the consumer was found in bananas, in April 2008, there was a 21.3% over the previous year. The higher prices in bananas can be accounted for by several things - for one, the weather in Central America hasn't been so good for growing bananas - it's been wetter and cooler. Most of the bananas imported into the US in the early part of 2008, come from five countries - Guatemala, Costa Rico, Ecuador, Honduras and Chile. In 2007, we imported 8,827 million pounds of bananas, all but 186 million pounds came from these 5 countries. The other factor causing increased prices is the cost of transportation. Fuel costs to transport these items to the U.S. is increasing dramatically. According to data from the U.S. Bureau of Labor statistics, retail banana prices increased each month in 2008 from January through April, reaching an all time high of 62.7 cents a pound. Domestic consumption, remains strong, we like our bananas! In 2007, per capita consumption of bananas was estimated at 26.2 lbs per person, higher than the 4 previous years.

So what's the point about bananas and sustainable agriculture - local bananas will cost more than imported bananas - but think about the difference -- the higher prices that we have been seeing for imported bananas, do not reach the growers that produce the bananas. The higher prices for imported bananas means that the "middle men" will pay more to ship the bananas to this country, and further to ship them to Hawaii. In 2006, Hawaii imported 15 million lbs of bananas, less than we produce locally but a significant amount. The money you pay for those imported bananas - won't stay in Hawaii. But if you are willing to pay more for LOCAL bananas - yes, the higher costs go to pay for higher local fuel costs, higher local labor costs in Hawaii and higher local costs of production. But the money will remain LOCAL. And the bananas will be THOUSANDS of MILES fresher. Isn't that worth it?
Now, about papayas - domestic demand for papaya continues to grow. Per capita consumption of papaya continues to grow and with it increasing importation of papaya. Imports have grown 12% a year annually since 1990. The growth of the ethnic populations of Hispanic, Caribbean and Asian descent have created this demand. But there is also a growing appetite among average U.S. consumers for papaya due to its novelty, its health-promoting properties and its convenience. In 1990, Americans consumed only 0.18 lbs per capita per year. In the last two years, papaya consumption per capita exceeded 1.0 lb per person. The papaya ringspot virus that devastated Hawaii papaya production could not have hit us at a time worse time - when demand for papaya was growing, Hawaii could not meet that demand. The marketplace sought out other sources - Mexico, Central America and the Caribbean. In 2007, Mexico imported over 204 million lbs of fresh papaya into this country, Belize was next with over 74 million lbs of fresh papaya. Care to venture a guess what was Hawaii's fresh papaya production in the same period? 33.3 million pounds. But there is some good news, Hawaii's utilized production of papaya grew 16% in 2007 over the previous year. Hawaii county accounted for 89% of the papaya production. There is a market, both local and for export of Hawaii papaya and with growing consumer demand for papaya, it is hoped that Hawaii growers will benefit. You can benefit from freshness of Hawaiian papaya by purchasing Hawaiian papaya. And if you have concerns about the "ringspot resistant transgenic papaya" - then buy organic. Either way, you'll be taking advantage of a healthful fruit with growing popularity.

A few words about mangoes, and a graphic. While the US per capita consumption of papaya is just over 1 lb per person, we have developed a greater love for mangoes. Mango consumption is almost 2.5 lbs per person. Imported mostly from Mexico, Ecuador and Peru (for the first quarter of 2008, we imported 157 million pounds, up a whopping 43% over the same period last year).
