The Economics of Commercial Wetland Taro Production in Hawaii

Abstract

Taro is an important staple throughout the world, but taro, and especially wetland taro, is a particularly important crop in Hawaii because of the long historical tradition of growing taro in Hawaii and because of the deep Hawaiian cultural associations with the plant. The demand for taro in Hawaii exceeds the domestic supply, and there appears to be growth potential for the industry. However, the economics of this crop are as complicated as those of any other agribusiness enterprise. An economic model of wetland taro production for poi processing is developed in order to estimate typical and specific economic profitability. An analysis of the break-even price and yield and an analysis of the value of and return to various productive resources helps one to interpret the cost of production results. No attempt is made to quantify other positive attributes of wetland taro production, such as the crop's significant cultural and historical importance.