Locals pay premium for food that is local

It usually feels better and tastes better to buy and eat locally grown foods. But imported food is usually priced better, which makes it tough for many Hawaii residents to support local farmers.

A new survey, however, suggests that Oahu consumers are willing to pay significant premiums for local farm-raised food.

The OmniTrak Group survey commissioned by the Ulupono Initiative asked 600 Oahu residents what factors were most important in deciding whether to purchase six different foods: bananas, eggs, milk, rib-eye steak, romaine lettuce and tomatoes.

Price was the No. 1 factor among responses. But the study also said that people generally are willing to pay a premium of $1 to $3 for such locally grown products if they are better informed about freshness and other differences between local and imported foods.

The premiums were 98 cents a pound for bananas, $1.75 for a dozen eggs, $1.25 for a quart of milk, $2.13 a pound for rib eye, $1.60 for romaine lettuce and $2.55 for tomatoes.

The survey also showed that local consumers who don’t buy these foods from local producers often cite difficulties with availability and identification as a major reason. Ulupono’s study suggested that if local growers can promote better awareness of quality and make their foods more available, then demand and market share can increase.

Ulupono’s survey, which was conducted from March 14 to May 31, provides insight into the disconnect between strong vocal support for Hawaii agriculture and not-so-strong support at the supermarket checkout.

Hawaii consumers spend 8 percent of their food budget on locally grown food, according to U.S. Department of Agriculture figures cited in the survey. By comparison, 81 percent of survey respondents said not enough food is grown in Hawaii.

Waikiki resident Gary Wells picked up some tomatoes at a Foodland store Friday, paying $1.89 per pound for a mainland-grown variety on sale. A better-looking group of local tomatoes from Hamakua Springs Country Farms on Hawaii island was on sale, too, but for 40 cents more per pound. "I just buy whatever’s on sale," Wells said.

Wells also bought rib-eye steaks Friday from Costco for $15.99 a pound. Foodland had rib eyes from Kuahiwi Ranch on Hawaii island for $15.99 a pound as well as mainland rib eyes for $12.99 a pound. Wells said he would buy local steaks, but he likes the extra-thick cuts at Costco. "If they offered it here (Foodland) and it was local, I would buy it," he said.

Monique Jutila, a spa supervisor from Makiki, makes a point to support local farmers because she tries to eat farm-fresh food. She bought an 8-ounce bag of mixed greens from Lone Palm Farm on Hawaii island for $5.99 at Foodland. A competing 6-ounce bag from the mainland was on sale for $4.69. "I’ll pay more," she said. "I try to buy local as much as possible."

But when it came to eggs, Jutila chose a mainland brand on sale for $4.49 a dozen because the eggs came from vegetarian-fed hens. Regular local eggs were $3.99, and a rival mainland box was on sale for $2.99.

Russell Kokubun, director of the state Department of Agriculture, said the Ulupono survey provides valuable data that can help local agriculture thrive.

Ulupono initiated the survey to help it make more-informed decisions on investing in companies that will help expand the local food supply. The organization’s goal is to help the local food supply rise to 15 percent from 8 percent by 2015.

Ulupono is a "social investment" firm started by eBay founder and billionaire philanthropist Pierre Omidyar. The organization focuses on reducing waste and advancing local food and renewable energy production. Companies in which Ulupono has invested include Kapalua Farms, MA’O Organic Farms and the Hawaii Island School Gardens Network.