True Cost: Lost Opportunities
Although significant, the real cost of the federal quarantine on Hawai‘i’s agricultural sector is not the direct cost of pest mitigation efforts. The real cost is the suppression of entire industry sectors and business models from growing to scale or even forming. This opportunity cost makes up the majority of the estimated $760 million in negative financial impact to Hawai‘i’s agricultural sector each year.
Paradoxically, these quarantine restrictions place Hawai‘i, a full U.S. state since 1959, at a competitive disadvantage compared to foreign countries and other states when exporting certain agricultural products to the mainland. This is particularly contradictory since many of these other regions present their own pest risks, as they share land borders with other countries and states and lack Hawai‘i’s natural geographic isolation.
For example, Mahi Pono, a local farming company that owns and operates approximately 41,000 acres of agricultural land in Central Maui, has struggled in trying to get its limes on the USDA’s approved commodities list.
Mahi Pono is the largest U.S. producer of limes — a significant achievement in so few years — and has been working through USDA export approvals since 2023 for its lime crop. The farm has planted 3,000 acres of limes in Central Maui and is unable to sell limes to the mainland U.S. market due to quarantine restrictions and its pending application for the approved commodities list.
Frustratingly, over this same timeframe, Mahi Pono has been able to export limes with little issue to Canada.
“Regulatory frameworks must evolve alongside science,” said Jayson Watts, Mahi Pono’s director of environmental health and safety. “Mahi Pono has worked closely with industry experts and USDA leadership to develop a proven mitigation approach for our limes, yet we remain unable to access mainland markets without resorting to expensive and quality-compromising treatments. This is despite being one of the largest lime producers in the nation.
“We were grateful for the opportunity to meet with U.S. Secretary of Agriculture Brooke Rollins in March, who pledged her support for Hawaii’s farmers. We remain hopeful and look forward to continuing to work with her team — in the spirit of ‘Buy Hawai‘i, Buy America’ — to reduce import reliance and ensure American-grown produce from Hawai‘i can compete fairly and fully in the national marketplace.”
According to the International Fresh Produce Association, from Aug. 1, 2021 to July 31, 2022, Mexican lime imports into the United States reached approximately 1.38 billion pounds. That equates to about 4.1 pounds of limes for every man, woman and child in the United States. Imported Mexican limes account for over 90% of U.S. market.
The lime industry has grown rapidly over the past decade, and could have been an incredible market opportunity for Hawai‘i farmers, but this opportunity continues to be suppressed by Hawai‘i’s century-old federal quarantine. Instead, the United States has allowed foreign producers to benefit from a fast growing agricultural market sector.