The Economics of Commercial Banana Production in Hawaii

Abstract

Commercial banana production in Hawaii is primarily organized to supply the Cavendish-type banana, and all banana imports are of the Cavendish-type. The Hawaii banana industry currently supplies about one-half of the Hawaii market, but Hawaii could become self-sufficient with relatively little expansion if banana production were profitable. An economic model of Hawaii banana production is developed from which one can derive estimates of typical and specific economic profitability and consider various production, marketing, and policy scenarios. An analysis of the break-even price and yield and an analysis of the return to productive resources, help one interpret the cost of production results.