SBIR-STTR Award

For over a hundred years, the agricultural base in Hawaii has been sugar cane. In recent years, all plantations on the major islands of Oahuand Hawaii have closed, and many are jobless. One alternative to work opportunities is specialty crop production, but changes in global trade have eroded Hawaii's market share through increased competition in U.S. and foreign markets. Problems faced by the industry are (a) independent growers unsuccessful in cooperative marketing efforts, (b) small volume of a wide variety of product, (c) accelerated developments in global trade, and (d) distance from markets The objective of this proposal is to determine the feasibility of an innovative network marketing system for Hawaii agricultural products. Jo Ann Johnston & Co. will be the facilitating entity of the network marketing system. Research will identify or characterize the following: (1) developmental factors in the formation of a collaborative marketing system, (2) source data and design of information systems in a collaborative marketing system for agriculture, and (3) mechanisms for financing a network marketing firm. A potentially powerful marketing tool for small farms in Hawaii will result, and benefits accrue to the total industry and state.Applications:The technical feasibility of implementing an innovative network marketing system for Hawaii agricultural products will be determined. Characteristics of this system in terms of phases of development, collaborative units, modes of interaction, information systems, and financing mechanisms for the independent network marketing firm, Jo Ann Johnston & Co., will be identified. These results can be applied immediately in a developmental phase for marketing Hawaii agricultural products. Commercial applications of the model can be used in other situations having the characteristics of agriculture in Hawaii.

Hawaii has experienced economic decline since 1991 and is in economic crisis with a severe drop in tourism, construction and agriculture. For over a hundred years, the agriculture base in Hawaii has been sugar cane. Most sugar plantations have now closed leaving high rural unemployment rates. Opportunities in specialty crop production exist on ex-sugar lands. However, global trade, consolidation trends, and accelerated economic and technological changes threaten Hawaii's competitiveness in world markets. Similar situations are found in rural America. Globally, network competition has emerged as a key characteristic for business viability in the 1990s. This project tests a network competition model for small farm agriculture. Objectives: 1. Operationalize the marketing network system business concept for Hawaii agricultural products through work with the test industry, Hawaii Export Nursery Association. 2. Test application of the concept to other agriculture industries in Hawaii. 3. Develop support information and communication technologies. 4. As a marketing consultant, explore the potential of teaching the marketing network system business concept to isolated rural communities.Applications:Anticipated results are (a) break-throughs in collaborative industry initiatives with increased value of exported goods; (b) development of methods and materials used to deliver the marketing network service; and (c) heightened interest by other agriculture groups in the marketing network as a business service. Commercial applications are (a) as marketing network system services, and (b) in teaching the business concept to those interested in increased competitiveness of small farm agriculture in rural communities.