HomeMy WebLinkAboutCOM 0528.001 2020-2022 MSYA0 y ?
Mitchell D. Roth a11� Douglass S. Adams
Mayor Director
Robert Agres,Jr.
Deputy Director
Counity of Hawaii
STET OF RESEARCH AND DEVELOPMENT
25 Aupuni Street, Room 1301 « Hilo,Hawai'i 96720-4252
(808)961-8366• Fax(808)935-1205
E-mail: chresdev@co.hawaii.hi.us
December 16, 2021
Maile David, Council Chairwoman and
Members of the Hawaii County Council n
Hawaii County Council
25 Aupuni Street
Hilo,Hawaii 96720 co
Re: Research and Development Project and Budget Narratives for the Phase I Finalist
Award for the Build Back Better Regional Challenge—County Council
Enclosed are the Project and Budget Narratives which will provide Council
members with background information on Hawaii County's application for the Phase 1
funds.
If you have any questions,please do not hesitate to contact Economic Development
Specialist Glenn Sako at(808) 961-8811.
Very Respectfully,
ass S. Adams
Director
Cerra. No _
Ref. To: P t t
Hawaii County is an Equal Opportunity Provider and Employer Ref. Date—DEC 2 2 F021
Proposal Narrative
Coalition Vision. The shared vision of the Hawaii Island ' Coalition is of an Agricultural
Cluster that builds its capacity to sustainably generate new jobs and income suited to the Island's
unique resources and communities. Hawaii Island's Agricultural Cluster represents the region's
greatest asset and potential for economic growth and innovation. The island's immense
geographic size (4,028 square miles), abundant land and ocean resources, and variety of growing
climates together create the necessary base for building a closed-loop economic system that
provides quality jobs, natural resource protection, equitable economic development, and linkages
to high-tech innovation and commercialization opportunities.
The County's most recent CEDS, attached as an appendix,reflects Agriculture as a targeted
cluster for development and lists the cluster goal to `Build a sustainable agricultural industry that
can provide a living that is satisfying and financially rewarding for island farmers, cattlemen,
aquaculturists, and agricultural sector workers and mitigating exports."While the Regional
Growth Coalition defines Hawaii County's targeted cluster as Agriculture, it is important to note
that this cluster connects across value-chain and supply-chain domains to other supporting
clusters including transportation, warehousing,value-added processing and manufacturing,
scientific research, diagnostic testing, educational services,business services,waste
management, environmental services,wholesale, retail, marketing, and finance. It is this larger
interconnected web that we define as the Agriculture Cluster.
Economic Opportunity. Hawaii County has a unique opportunity to Build its Agricultural
System Back Better through a collection of projects that correct past systemic barriers to growth
and respond to the current pandemic-related downturn by providing the physical and human
capital needed to create a robust agricultural economy that is in line with our diverse
communities' values. The cluster has an exceptional opportunity to grow the agricultural
economy within Hawaii. The state imports around 90%of its food, equating to three billion
dollars leaving the state each year; diverting just 20%of that capital to local producers would
double the sector's market share and every 10%that is diverted would represent 2,300 new jobs.
With the Hawaii-made brand the economic growth potential within the specialty export market
is expansive.
At this time, only a small fraction of locally grown agricultural products are sold in mainstream
retailers. All of the projects detailed below are designed to provide the necessary certifications
for training, facilities, value-added processing, and distribution to allow locally produced food to
be sold at all retailers, grocers, and clubs across our island state. We believe these investments,
interventions, and greatly expanded markets, will help accelerate workforce development, wage
growth, overall economic growth, and industry innovations, while collectively scaling
meaningful growth and opportunities for all stakeholders.
Coalition Members
County of Hawai`i's Department of Research and Development(COH R&D) is the local
economic development agency for the County and the lead coalition member. The Director of
R&D is the project's Regional Economic Competitiveness Officer. The County has chosen
I rlhe tetnis``Island of I lawai`i"and"County ofl=lawai`i'are used inleichangebly`throughout this pmposat.'Ihe Comity
ofHawai`i is the only local municipality for the entire Island ofHawai`i;Generatly,when"County'',or lead Coalition
member"T&D"is cited,the term mfet s to the goverximententity.
Hawaii County Build Back Better Regional Challenge Phase 1 Proposal Narrative 1
coalition members based on organizations that are committed to integrated solutions that meet
the community's economic, equity, and sustainable development goals.
The Food Basket Inc.,Hawaii Island's Food Bank,provides services in every community
island-wide and serves low-income and ethnic minority populations. The Food Basket supports
local producers through innovative programs that promote the purchase and consumption of
locally grown foods in partnership with food retailers across the state.
The Hamakua Institute is a team of international development professionals committed to
supporting market systems development using collective action. They serve as the convener and
facilitator of HIAP's action teams and committees.
The Kohala Center is an independent research, education, and `aina(that which feeds)
stewardship non-profit for healthier ecosystems. The Kohala Center's agroecosystems work has
three main initiatives: 1)Rural and Cooperative Business Development Services,providing
assistance to rural businesses statewide in the form of collective business models, capitalization
services, and food systems development; 2)Namoku, a 7-acre demonstration farm serving as a
waihona, or nursery, for native plants and people; and 3) Hawaii Public Seed Initiative,
promoting biodiversity and food security via the production of and education around locally-
adapted seeds.
Ma`ona Community Garden is a non-profit organization established to increase the capacity
and sustainability of rural food systems. Over the past eight years Ma`ona has been working to
prototype the equitable organic waste management systems to capture and localize food and
paper waste recycling for the benefit of agricultural producers and underserved communities.
Big Island Resource Conservation and Development Council assists people in the County in
achieving sustainable development while caring for and appreciating their natural environment,
seeking to ensure broadened economic opportunities in ways that conserve, enhance, and
promote the economic, cultural, and natural environment of Hawaii.
East Hawaii Community Development Corporation is a nonprofit corporation organized to
undertake community economic development, research, and charitable activities that seeks to
revitalize local processing facilities to increase food entrepreneurs' access to certified kitchen
facilities and business services.
University of Hawaii as coalition member, represents many sectors of the University of
Hawaii system such as The University of Hawaii College of Agriculture, Forestry &Natural
Resource Management(CAFNRM), Aquaculture & Coastal Resources Center's (PACRC),
University of Hawaii College of Tropical Agriculture and Human Resources (CTAHR),
GoFarm Hawaii, Hawaii Community College, Big Island Invasive Species Committee (BIISC),
and The Data Sciences Institute.
Component Projects. The Coalition projects represent strategic interventions derived from an
agriculture and food system study completed in April 2021 that analyzed the opportunities for
market growth within the cluster. It was conducted by the Hamakua Institute for HIAP and in
partnership with the Hawaii Island Food Alliance (HIFA). Our proposed projects within the
cluster are designed to support the development of a circular economic system, a model which is
ideal and increasingly achievable for island states, and fall within three broad categories: (1)
Value Chain Development, which will increase infrastructure and services for expanding the
availability of diverse Canoe crop varietals to producers, aggregation to increase farms access to
market, shared facilities for value-added production, and integrated systems within the cluster
that utilize closed loop waste strategies and renewable energy to reduce the cost of production;
Hawaii County Build Back Better Regional Challenge Phase I Proposal Narrative 2
(2) Market Development, which will increase the island's collective capacity to build its
economic competitiveness and sustainability within the cluster; and (3) Workforce
Development, Research and Innovation, which will increase agribusiness employment and
technical skills, 'innovate through research, and combat invasive species and the impacts of
climate change, culminating in the Island of Hawai`i's status as an Agricultural Knowledge
Center of Excellence in the Pacific. The nature of this cluster's design is to develop closed loop
systems which means that most projects touch each of these three categories.
Value chain Investment Projects
I. Build Hawaii Island Agricultural Innovation Industrial Park(AIIP) and Food Systems
Campus that is inclusive of The Food Basket's facilities, in collaboration with the Hawaii
County Regional Coalition, and implement out shared strategic objectives to: a) increase
value-added processing capacity on Hawaii Island, supporting a network of certified
kitchens and food hubs, and establishing a centralized facility for aggregated production and
shared high-volume processing; b) explore and support new models of aggregation,
processing, and distribution,particularly from small farms, regularly utilizing online
information and establishing partnerships around food standards; c) increase support and
efficiency of agricultural products transportation and distribution, identifying strategic
opportunities for shared for-profit and nonprofit use of equipment and facilities; d) increase
incentives and mechanisms for cooperation to lower costs and increase opportunities for
small farms; and e) increase collaboration among all stakeholders in the system using (HIAP)
and (HIFA)platforms.
2. Improve existing "Miko Meats" industrial space to be utilized for shared use processing
facilities and business services. The project will serve the immediate demand for these
facilities, before the AIIP build-out is complete.
3. Implement expanded breadfruit agroforestry production and processing on Hawaii Island by
upgrading an East Hawaii Island processing facility for dried and milled flour products
centered around breadfruit and other high-demand agroforestry crops.
4. Expand the availability of Canoe crop varietals through nursery expansion and educational
programming to 'increase traditional food production and preservation within public and
private organizations, and with families across the island.
5. Integrate closed loop waste strategies within the cluster and catalyze job growth throughout
the waste management value chain by coordinating with existing business and investing in
flexible, climate-resilient green infrastructure.
Market System Development
6. Implement Market Development Program teams to support the diverse set of agriculture
markets within the cluster. The teams will identify high potential growth opportunities,
where there is demand for shared equipment, processes, and services that stimulate
production and job growth, and build sustainable demand for these support functions to
continue stimulating cluster growth beyond the period of the grant. The teams will monitor
the economic impacts of their interventions to grow the cluster using a Diffusion of
Innovation model for identifying how introduced changes create a multiplier effect
throughout the market system.
7. Develop a stronger agricultural economy by providing businesses with equitable and
sufficient access to technical assistance in business development, marketing, efficiency
planning, and capitalization through an assessment of and an informed investment in existing
services island-wide.
Hawaii County Build Back Better Regional Challenge Phase I Proposal Narrative 3
Workforce Development, Research, and Innovation
8. Implement critical investment and system improvement strategies within the UH system that
address needed infrastructure, equipment, curriculum, research, technology, data, and staff
needed to address the challenges and opportunities with the Agriculture Cluster,
Preliminary Metrics of Success
A stable local economy is a requirement for strategic growth and innovation. This proposal
recommends projects that will serve island residents and small business owners who have
persevered in the face of repeated economic and geopolitical shocks resulting from natural
disasters including hurricanes, tsunamis, earthquakes, flooding, and volcanic eruptions; and
pandemics such as SARS and now COVID-19. This series of events has stretched the limits of
the region's endurance, making clear that the need to restructure the local economy quickly is
critical to building resilience for the future. The most important metrics of success will indicate
improvements in labor force participation, income and wages, and poverty rates of the estimated
200,629 residents of Hawaii County (U.S. Census, 2020). While Hawai`i's unemployment rate
has recovered significantly from the effects of the pandemic, Hawaii County's employment rate
lags behind the State and the United States.Nonfarm unemployment rates for August 21, 2021,
for the County,the State, and the United States were 6.9%, 6.6°%, and 5.2%, respectively.
We will evaluate the proposed projects success in the following ways: Value chain
infrastructure: new and improved value chain infrastructure (# and sq ft); amount (#) of waste
H of energy saved from renewable energy integrated within the I
diverted and Amount(KWH) gy gy
facilities; average income of farmers and food producers,by demographics who utilize cluster
infrastructure and technical assistance services; # of producers who incorporate new canoe crops
within their production; Market Development Services: clients and industry associations '
engaged; # of new financial structures deployed; # and $ of new capital investments placed by 4
sector investors/grantors (government,philanthropy, and the private sector); demographics of
investment and grant recipients; analysis of capital placed. Workforce Development,Research,
and Innovation: amount(#) of agriculture and manufacturing technologies that are implemented
into systems that increase efficiency; # of university students hired into the local agricultural
cluster; and#of trainings and#trained, by demographic groups. Whole system metrics: overall
cluster job creation; wage growth; reduced unemployment; and anticipated regional GDP
growth. Resiliency metrics: #of green build/energy projects; # and strength of disaster response
plans and public-private sector networks; # of businesses implementing resilience strategies and
type of strategy; etc.
Accessibility of Matching Funds for Phase 2
Coalition members have strong ties to the foundation community and R&D's Food System
Specialist participates in the Food and Farmers Working Group, a statewide alliance of
foundations, investors, and local government departments dedicated to working together to
elevate Hawai`i's community food system through strategic investment. The Coalition has
received letters of support from Stupski Foundation, Hawaii Community Foundation, and The
Harry and Jeanette Weinberg Foundation expressing their support and interest in investing in the
proposed projects. In addition, The Food Basket has a potential match from CDBG funds for the
Agriculture Innovation Industrial Park and Community Food Center and can bring additional
investment into the local economy through their 6,500 plus individual donors,private, County,
State and Federal grants, facilitating and building on their trusted relationships with stakeholders
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Hawaii County Build Back Better Regional Challenge Phase 1 Proposal Narrative 4
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in our region. The Big Island Resource Conservation and Development project with Hawaii
`Ulu Cooperative has two million dollars committed to their facilities improvements. The
Hamdkua Institute will utilize private sector investment for their market system development
project. The East Hawaii Community Development Corporation intends to secure a loan and
private sector investment to match funds for Miko Meats Facility improvements. Lastly, The
Kohala Center and Ma`ona Community Garden will draw upon their robust foundation network
to provide matching funds for their project activities.
Barriers to Implementation. I-lawai`i Island's agricultural cluster has its roots in a self-
sustaining Polynesian agricultural systems that were disrupted with over a century of plantation
sugar production until the sugar industry on the island closed 27 years ago. Since then, there has
been a steady increase in the number of small farms on the island and a significant diversity of
crops produced from them, The island's agricultural production and private investment has
dramatically changed, yet our island's infrastructure, services and government support have not
kept up, holding back the growth of our agricultural industries.
The agriculture and food system study completed earlier this year, identified six main market
system constraints: 1)the lack of available processing and packaging infrastructure, equipment
and services; 2) limited transportation and aggregation services and storage infrastructure to
enable aggregation of small farm production into larger quantities to access larger markets; 3)the
lack of an integrated public-private system for efficiently managing food waste and extracting its
optimal value in enhancing food production; 4) a limited pool of affordable expertise and
experienced workers to support agricultural growth; 5) a dearth of market data and shared market
analysis to help guide local producers and other value chain actors to more effectively compete
local products with cheaper imports; and 6)fractured and inconsistent efforts at building a shared
brand image for local agricultural products in Hawaii and in key target markets on the
continental U.S. and overseas. Our strategic system investments within the clusters value chain
paired with comprehensive market development services and investments within the University's
departments will actively work to mitigate these barriers to success within the cluster.
General Implementation Timeline. The Coalition will utilize EDA technical assistance phase
one funds to develop detailed implementation timelines for each project that will then be
submitted for consideration within our phase two proposals. We know that during year one,
infrastructure projects, after the Phase one planning, design, and partner engagement is
completed, will start construction or construction preparations of new and improved
infrastructure development projects. Construction project timelines will vary depending on
permitting processes and material and labor availability; all projects will be completed before
September 30, 2427. The Hamakua Institute will structure and develop HIAP as a mechanism for
facilitating the public-private collaboration throughout the cluster and design the AIIP
management structure. The Kohala Center will focus on technical assistance and the economic I
viability and sustainability of project investments, and will be engaged in activities throughout
the project, strengthening relationships, initiatives, and networks designed to be sustained
beyond the project term. The University will begin implementing investments and strategies
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identified in phase one.
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Hawaii County Build Back Better Regional Challenge Phase 1 Proposal Narrative 5
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Attachment 6. Project Budget Narrative
The Department of Research and Development(R&D)will use the EDA technical assistance
award to prepare for Phase 2 and additional funding opportunities by contracting for the services
listed in the table below. The County of Hawaii uses open and transparent procurement methods
(see https•//www hawaiicoun y.gov/departments/finance/purchasing) under the State of Hawaii
Procurement regulations (see hgps://spoo.hawaii.gov/). Prior to the ERA's announcement of
Phase I awards, R&D will complete its necessary procurement processes for contracts funded by
Phase 1 funding and will be ready to begin its work on day one of the Phase 1 project period.
Phase 1 Project Use of Funds Amount
I Public-Private R&D will execute a contract with planner-faelitator to $90,000
Sector Partnership support the organizational development of the Hawaii
Capacity-Building Island Agriculture Partnership (HIAP) as the platform
for growing the agriculture sector on Hawaii Island and
facilitate HIAP's market systems planning efforts. See
detail below.
2 Agriculture R&D will execute a contract to conduct an $165,000
Innovation Environmental Assessment and Engineering and
Industrial Park Architecture Design Report for the AIIP facility at The
AIIP Food Basket Community Food Hub location.
3 AIIP—Interim R&D will execute a contract to assess facility $35,000
Services improvement needs for the Miko Meats building in East
Hawaii.
4 Business support R&D will execute a contract to analyze existing $25,000
and access to business support services and existing capital
capital availability for Hawaii Island businesses and
producers..
5 University of R&D will execute professional services contract to $50,000
Hawaii Critical identify and assess the infrastructure, equipment,
Investment curriculum, research, and staff that the University
Assessment System on Hawaii Island needs to support the
bioeconomy and agriculture cluster support.
6 Closed-Loop R&D will execute a contract to lead a county-wide $75,000
System waste and infrastructure assessment to map existing
assets, build a regional waste stream portfolio, convene
strategic partners and prototype strategic solutions with
partner organizations.
7 Polynesian Canoe R&D will execute a contract to develop a community $25,000
Crop inventory inventory of existing canoe plant varietals and best
practices for expanding traditional food preservation
methods.
8 Canoe Crop R&D will excute a contract to assess facility $35,000
infrastructure improvement needs for the Department of Agriculture
support Alae facility (`Ulu Coop) in West Hawaii.
Total $500,000
Hawaii County Build Back Better Regional Challenge Phase I Budget Narrative 1
Project 1 Public-Private Sector Partnership Capacity-Building
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The Hawaii Island Agriculture Partnership (HIAP) (see Regional Assets section and HIAP letter
of support) is the catalyst for market systems change in the County of Hawai`i's proposal. The
following narrative provides a brief background of HIAP's work leading up to this proposal and
the scope of work for Phase I funding.
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Background
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On April 26, 2019, agricultural business leaders, representing a cross-section of the industry
from Hawaii Island, came together to identify opportunities and actions needed to promote the
growth of their sector. In addition, community partners from workforce development, education,
and economic development agencies attended to identify how they could support industry needs.
Their collaboration is modeled after what are known as NextGen Sector Partnerships that are
achieving real results for businesses,job seekers, regional economies, and businesses across the
country. This new public-private partnership was named the Hawaii Island Agriculture
Partnership (HIAP), which established action teams to grow the agriculture sector on the island
focused on the following objectives:
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• increasing the island's capacity for value added processing of agricultural products;
• increasing the pipeline of available trained farm labor, agricultural expertise and service
capacity to grow production and markets; and
• increasing market demand for local agricultural products and building a strong brand
image for products from the island.
To understand how best to collaborate towards these actions, HIAP, working in partnership with
the Hawaii Island Food Alliance, commissioned a food and agriculture system study for the
island to identify and align shared interests for growing the agriculture cluster in a way that
channels more local agricultural production towards local consumers. The system study used a
participatory process of shared system analysis to identify a set of recommended actions to be
pursued by its action teams to overcome the constraints identified in the joint public-private
study teams. Those recommended actions were compiled into three key strategies which HIAP's
members have jointly agreed to pursue as outlined below:
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• A twofold value chain development strategy of building short term processing,
aggregation and storage capacity at the local level through a network of food hubs who
will feed products (including waste)to a larger, centralized aggregation, processing and
distribution facility in a hub and spoke kind of model intended to improve the capacity j
and efficiency of the island's agricultural value chains.
• An agriculture workforce development strategy intended to improve agricultural
training and education using a public-private collaboration with educators, training
service providers and local agribusinesses to ensure training meets local needs. The
strategy also seeks to facilitate entrepreneurship development and the establishment of
more effective mechanisms for farms to recruit quality labor.
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Hawaii County Build Back Better Regional Challenge Phase 1 Budget Narrative 2
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• A market development strategy intended to identify and build market demand for local
products, direct a portion of tourism revenues into the agriculture sector and carry out the
market analysis necessary to identify and pursue new opportunities for growing domestic
and export sales.
The three intervention strategies are matched with the focus of HIAP's three action teams to
form the basis of HIAP's systems-based approach to developing the agriculture cluster.
Agriculture Cluster System Data Collection and Collective HIAP
HIAP established Analysis of
Apr 2019 Study Commenced Farmer Input Agricultural Data
Apr 2020 Jun-Dec 2020 Jan-Feb 2021
} ..x...a. Improved access to inRut
equipment and support Value Chain Development
Increased Small farms I services that add value to for adding value to small
production and access
P 1 Yarm productsandstimulate farm production
improved and
income of supportmore
produrtfon ;
and _ Demand driven Workforce
v services to ?
$ - increase Increased availability of Development for
production, training and information f-;r' agricultural employment
Increased add value to far agricultura€jobs and and entrepreneurship ••0
employment their products business oppartuniti"
and connect to --" ---""- Market Systems
larger markets Improved market `-;?^ Collective HIAP
Rnkagesthat drive
,g Development to effectively Planning of
e demand erovtth in mr link supply and demand Intervention
Improved food _ agricuRural revenues Strategies
security Feb-Jul 2021
INTENDED FARM/ INTENDED MARKET SHARED INTERVENTION
IMPACT BUSINESS CHANGES SYSTEM CHANGES STRATEGIES
HIAP's systems-based approach to developing the agriculture cluster forms the basis for Hawaii
County's proposal for the ERA's Building Back Better Regional Challenge. Under this
proposal, R&D seeks to build the capacity of HIAP to engage and mobilize its action teams to
support agriculture cluster growth opportunities.
Phase 1 Scope of Work
The Phase 1 work is designed around incorporating, structuring, and developing HIAP as a
mechanism for facilitating the public-private collaboration necessary to enable the Phase 2
cluster development proposals to effectively integrate into a cohesive and impactful economic
growth strategy. This work will build HIAP's capacity to serve the agriculture cluster as a neutral
mechanism for convening public and private interests to collaborate in sustainably growing
economic opportunities and improving the competitiveness of local products.
A. Development and structuring of HIAP as a system-wide platform for shared cluster
development. This would involve:
• Identifying and developing governance, controls, decision-making processes, and conflict
resolution mechanisms
• Establishing initial policies, rules, and guidelines
• Transition to a membership-based organization
• Develop draft templates for member agreements involving shared usage of assets and
services
• Develop structure and rules for individual action teams and committees
Hawaii County Build Back Better Regional Challenge Phase 1 Budget Narrative 3
B. Utilizing HIAP's Action Teams and Committees for facilitating public-private engagement
and coordination of shared interests for the design and development of all coalition
projects. With the assistance of the contracted facilitator, HIAP's action teams will
coordinate stakeholder input and public-private alignment around the proposal's three system j
intervention strategies.
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• Through the Value-Added Growth Team: Build upon the Feasibility Study data to get
alignment on the ideal set of aggregation, storage and processing facilities, equipment,
and services to be included in the AIIP plans and also to be installed in food hubs
throughout the island, identifying and validating the shared interests across the island's
producers and how the mechanisms for shared usage will work. {
• Through the New Pathways Action Team: Assess and align public-private
collaboration for identifying on-the-job training needs, opportunities, course offerings
and practical experience necessary to fill current vacancies in the entire agri-food system
and to be an enabler of new growth. Also engage farms, employers, and university
personnel to assess and agree upon agtech and bio-security research and analytical
services necessary to optimize production and reduce risk.
• Through the Market Opportunities Action Team: Identify and align shared public and
private interests in market system analysis, facilitation and services that will establish
new linkages in the cluster and guide interventions in growing market share and building
demand for local products.
PHASE 2
During Phase 2 of the County's BBBRC Initiative, R&D seeks to strengthen market demand and
market linkages throughout the cluster through a Market Systems Development Program. The
program would work through diverse teams of public and private partners to build demand and
remove systemic constraints to growth, particularly for small scale farms and disadvantaged
farmers.
The program objectives are to build capacity within the County to:
A. align and develop economic opportunities in the cluster
B. establish market linkages that improve market performance
C. identify, assess and grow market demand for local products
Hawaii County Build Back Better Regional Challenge Phase 1 Budget Narrative 4
("' j.. ; ;. •
HIAP PLATFORM HIAP ACTICta TEAMS SHARED NEEDS
Engage and aha+ :,, rsrr, COLLECTIVE
PLANNING
Increased promotion Implement a shared public-private
ary Small farms and brand awareness
of local agricultural branding and marketing promotional
Increased agriculture access '
products campaign showcasing local farms and
Cluster employment improved - -
products on-line,in stores and in tours
levels of Public and private _
_' support and institutions collaborate Establish and train public-private market
to strengthen markot
services to tit development teams to identify,analyze
rakew systems in ways that
Increased farm increase and develop market linkages within high
support and enable i
productivity and - production, agriculture duster potential market segments PHASE 2
farmer income add value to I i 3
i grovrth
their products I
and connect S Increased information cam€ : Establish and(ink user designed on-line
,a and market channels I' i. platforms for posting and finding available
to larger aval.btef-liniiin
g [ ; agricultural inputs,Iahor,products,
improved economic markets 't--f+
L supply and demand services,data,su
residence I e throughout the duster pparts,training and events
ECONOMIC IMPROVED ACCESS MARKET SYSTEM SYSTEM INTERVENTIONS
IMPACTS &GROWTH CHANGE
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The following intervention strategies are designed to achieve those objectives:
Embedding & Training Market Development Teams
Establish and train public-private market development teams to identify, analyze and develop
market linkages within high potential market segments
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Phase 2 will bring implementation of a Market Systems Development strategy centered around a
shared set of public and private interests working together to identify, assess and develop
opportunities within individual market segments that represent the demand pull underpinning
potential job growth. This includes specific crops such as avocadoes and `ulu, and specific
services such as technical training, market analysis and labor recruitment.
The program will train and subsidize a cohort of Market Development Specialists embedded
throughout a set of public institutions,business membership organizations and local non-profits.
These teams will form a cohort of trainees who build a strong familiarity of the entire value
chain of a particular cluster market segment. The specific market segments Market Development
Teams will be confirmed and defined in more detail during Phase 1, but initial analysis produces
a short list of segments that will be clustered for analysis and growth potential as follows:
• Tropical Fruits
• Indigenous Starches& Vegetables
• Meat and Dairy products
• Aquaculture and Mariculture products
• Floriculture and Nursery plants
• Tea, coffee and cacao products
• Agriculture & Business Support Services
The Market Development Program will establish a team of four people to focus on each of the
seven clusters identified above. Each team will be comprised of:
Hawaii County Build Back Better Regional Challenge Phase I Budget Narrative 5
• A full time Market Development Team Lead embedded in an industry association
who can lead team efforts and engage industry participants.
• A set of one or more part-time Market Development Advisors representing subject
matter experts in the market segment who can advise the team's data collection,
analysis and planned market interventions.
• A cohort of one part-time University Student and one part-time High School student
working under the direction of Market Development Team Leads gathering and
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compiling data.
Within each segment, the Market Development Teams will identify high potential growth
opportunities where there is a demand for shared equipment,processes and services that
stimulate production and job growth and build a sustainable demand for these support functions
to continue stimulating cluster growth beyond the period of the grant. Industries who are willing
to commit to facilitating change, sharing data and working together for shared growth will
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receive the highest priorities of support under the program.
Each Market Team will establish and develop a corresponding action team within HIAP to
broaden engagement, analysis and cooperation within the market segment and all of its relevant
market actors. The teams will monitor the economic impacts of their interventions to grow the
cluster using a Diffusion of Innovation model for identifying how introduced changes create a
multiplier effect throughout the market system.
Introducing New Technologies and Innovations for Linking Supply and Demand in the
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Cluster
In this intervention, HIAP's Action Teams will convene interests around developing user
designed web-based solutions that can improve market linkages between the supply and demand
for services,transportation and labor. Shared web platforms would seek to link up with existing
platforms or databases that can be expanded to serve a wider industry interest
HIAP's website will also be upgraded to serve as a common repository for agricultural data
accessible to all of its members and HIAP's Data & Analysis Committee would be established
and maintained as a mechanism for aligning public and private interests around data and
conducting joint analysis. This effort would build upon what data summaries have already been
established by the HIAP System Study and upgrade the website to enable more sharing of data
gathered throughout the system.
Branding & Marketing Local Products
The focus of this intervention is to work through HIAP's action team to design, develop and
implement a shared public-private branding and marketing promotional campaign showcasing
local farms and products. Program funds would be used to support an advertising campaign and
series of on-line and in-person promotional events designed to build brand awareness of
agricultural products produced on-island. The campaign will collaborate with local and statewide
"Buy Local" efforts and work with a broad range of farms, food hubs, restaurants, resorts and
Hawaii County Build Back Better Regional Challenge Phase 1 Budget Narrative 6
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others promoting local product lines to residents and tourists locally and to select mainland and
international export markets as well.
PROJECTED JOB GROWTH FROM PHASE 2 PROPOSAL
Estimated job creation from the proposal described above included a total of 31 direct jobs (10
full-time and 21 part-time) and an estimated 70 indirect jobs created by 2027.
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Hawaii County Build Back Better Regional Challenge Phase 1 Budget Narrative 7