Hawaii’s food hubs are trying to build on the growth they and local farmers experienced during COVID-19, when there was increased demand for locally produced food.
Food hubs, which connect farmers and their produce to local markets, generally have centralized facilities where products can be aggregated, stored in industrial refrigerators or processed into chips, cookies, sauces or other value-added products.
They also help distribute and market products for small-scale farmers and give back more money to farmers for the produce they sell. Many in the state participate in the Supplemental Nutrition Assistance Program and the DA BUX program, which make healthy food accessible at lower prices to qualified low-income households.
When the coronavirus hit in 2020, direct-to-consumer purchasing offered at food hubs, farmers markets and other platforms became increasingly popular because they allowed for social distancing that many traditional stores could not provide. At the same time, imports, which make up 85% to 90% of the food in Hawaii, became unreliable amid supply chain disruptions.
The Farm Hub Hui, which consists of 13 food hubs across the state, together made about $6.7 million in sales in 2019, before the pandemic, according to Saleh Azizi, the hui’s coordinator. Sales grew by nearly 80% in 2020 to $12 million.
Sales increased again in 2021 by a more modest 24% to $14.9 million.
Even as COVID-19 recovery continues, there is still interest in supporting local farmers, feeding people using locally grown produce and making Hawaii more food-secure and less reliant on imports. The state has set a goal to double its local food production by 2030, and recently passed laws set goals within several state departments to procure a certain amount of locally sourced food.
Act 175, passed in 2021, requires the Department of Education to locally source 30% of the food it serves at schools by 2030, for example. Other organizations and enterprises have set their own goals, such as Hawaii Pacific Health’s plan to buy 50% of its food from local suppliers.
Azizi estimates 2025 sales numbers could reach figures anywhere from $20 million to $35 million, depending on the state’s investment in food hubs, he said.
A legislative measure that would allocate state money to food hubs could boost sales by establishing a food hub pilot program within the state Department of Agriculture.
“We’re seeing some reduction in COVID-related demand for local food, so this is a very timely conversation,” Azizi said.
The amount of money in Senate Bill 2218 would come from the state’s general fund and is still unspecified, but qualified food hubs would be able to receive that funding in the form of grants to expand and improve their facilities and hire more workers.
Similar bills died during the last two legislative sessions. SB 2218 passed the House Committee on Finance on April 1.
Azizi found in a survey conducted last fall that the Farm Hub Hui’s food hubs need $88 million over the next one to three years, mostly for construction and property costs.
The hui is looking to the state to provide about $15 million of that amount, or about $3 million annually if SB 2218 becomes law.
“This can be really viewed as a form of investment in the agriculture systems in the state, which historically the state has not done a significant investment in,” said Hunter Heaivilin, a legislative advocate for Hawaii Farmers Union United.
The bill has so far received broad support. The Agriculture Department; the city’s Office of Climate Change, Sustainability and Resiliency; the Hawaii Farm Bureau; Hawaii Pacific Health; and farmers themselves have all testified in favor of the bill.
Food hubs are trying to attract business from larger institutions, although the ability of hubs to consistently provide large volumes of products is a concern they’re trying to address.
Matt Johnson, CEO of Oahu Fresh, a subscription-based service that gets produce from a network of small farms, recently gave a tour to representatives from Hawaii Pacific Health and Kamehameha Schools, which are interested in purchasing food.
“It’s our job to go look around. We still need to fill your order,” Johnson said when asked whether food hubs can reliably supply large orders regularly.
He said contracts to purchase food from food hubs could generate growth for the farms that supply them.
“If you’re saying you need 1,000 pounds a week of whatever, we’ll say we’ll come up with an agreement, we have a price, we have a contract,” Johnson said. “Now we can go back to these farms that we’re working with … and say, ‘Hey, here’s some land to grow on to sell to the food hubs.’”
