Hawaii's Forest Industry as a
Viable Agricultural Commodity
The 1991 value of Hawaii's forest industry was reported in the November, 1993
Governor's Agricultural Coordinating Committee Report (GACC) entitled "Hawaii's
Forests: An Inventory and Analysis of Economic Potential. When compared with
other diversified agricultural commodities listed in "Statistics of Hawaiian
Agriculture 1991", the forest industry ranks sixth (6) in the State. The value adding
capability of the industry is tremendous, as $800,000 of raw material is processed into
products with estimated annual revenues of $28.9 million. Over 800 workers are
employed, with a corresponding payroll of $23.2 million. This places the average
wage for industry employees at $13.82, or 51% higher than the average 1991 farm
labor rate of $9.15. Table 1 compares the value of forest products to other agricultural
crops.
Table 1 - Agricultural Crops in Hawaii - 1991
|
Crop
|
Estimated Acres for
Annual Production
|
Value of Production
(thousand dollars)
|
Production Value
per Acre (dollars)
|
|
Sugar
|
181,100
|
$174,000
|
$961
|
|
Pineapples
|
361,000
|
$107,775
|
$299
|
|
Flowers/ ornamentals
|
2,555
|
$68,078
|
$26,645
|
|
Vegetables and melons
|
5,200
|
$38,660
|
$7,435
|
|
Macadamia nuts
|
22,500
|
$34,650
|
$1,540
|
|
Cattle
|
>511,000
|
$32,667
|
$64
|
|
Milk
|
N.A.
|
$30,328
|
N.A.
|
|
Forestry - total:
|
600
|
$28,900
|
$48,167
|
|
logs only:
|
$800
|
$1,333
|
|
Fruits
|
6,900
|
$24,330
|
$3,526
|
|
Poultry
|
N.A.
|
$19,382
|
N.A.
|
|
Aquaculture (1990)
|
489
|
$9,241
|
$18,898
|
|
Hogs
|
N.A.
|
$6,463
|
N.A.
|
|
Coffee
|
>2,300
|
$4,600
|
$2,000
|
It is clear that on a per acre basis, the production of forest products, and the value
which the current industry adds to those products, is highly competitive with other
agricultural industries. If forests were actively managed as farms, productivity per acre could probably be doubled or tripled. The key to Hawaii's forest industry success
is its extensive networks and business linkages, combined with intense utilization
of the resource. Many businesses are small and adaptable to market conditions.
Personal relationships aid in the efficient transfer of technology, resources, and
marketing among industry people. Forestry is a viable agricultural alternative in
Hawaii. |
