Progress report for SW23-954
Project Information
Guam, an Insular Area of the United States is a small island located at 13°N 144°E, and is both the largest and the southernmost island in the Northern Marianas Island chain in the Pacific Ocean. According to the 2020 U.S. Census, Guam’s population is roughly 153,836, and residents are dispersed throughout its 19 villages. Roughly 21,700 US military personnel and families reside in Guam. Guam is comprised of the indigenous population of Chamoru (37%), Filipino (26%), Caucasian (7%), Chuukese (7%), Korean (2%), other Pacific Island (2%), other Asian (2%), Chinese (2%), Palauan (2%), Japanese (1%), Pohnpeian (1%) and other mixed ethnicities (10%). Guam’s economy is primarily supported by tourism, military and government spending. In the fiscal year 2019, Guam received 1.63 million visitors, marking it the best fiscal year to date for its tourism industry (Guam Visitors Bureau, 2020).
The island has based its agriculture mainly on small-scale, subsistence farming with extremely limited access to processing and packing facilities. Most of the agricultural food products that the population has depended on to feed Guam families have been imported from the continental US. More specifically, Guam has a major trade deficit of Net food & Non-alcoholic beverage exports by 22%; where in 2019 the island imported 18 million ($USD) in staples versus 4 million ($USD) in exported agrifood products (Guam Bureau of Statistics, 2019). The restrictions of the Jones Act have made it significantly more expensive to transport goods from the US mainland to places like Hawaii, Alaska, Puerto Rico, or Guam (Negron, 2022). The COVID-19 pandemic further exposed Guam’s fragile infrastructure to supply chain interruptions. Other factors, such as the rapid increase in the cost of fuel and runaway inflation, are even more pronounced on small islands like Guam that have relied heavily on imported goods, enfeebling the ability of households to afford high quality food.
To stabilize the food supply to meet the needs of local people and tourists, it is important to develop Guam’s agriculture to stabilize food prices and reduce carbon footprint. Li et al. (2019) evaluated consumer preferences for local food, who found that consumers are more willing to pay (WTP) for local oysters harvested within 25 to 100 miles than those within 400 miles. Chen et al. (2019) reported similar results, where consumers are willing to pay a price premium on strawberries grown on biodegradable plastic mulches. In this project, we will conduct field experiments to determine consumer’s willingness-to-pay for Guam’s agricultural produce, and interviews to understand farmer experiences and preferences for producing local and sustainable food. This research will identify the most effective branding, marketing, and selling strategies to reach out to potential customers, as well as approaches to increase the involvement of Guam’s farming community sustainable production for the local market. Researchers and extensionists from Micronesia, American Samoa, and the Northern Mariana Islands will participate in local conferences and roundtable discussions in Guam, focusing on innovating strategies to promote and further develop sustainable agriculture among/within small island communities.
To support a competitive agriculture system, this project seeks to identify the potential economic and environmental benefits of local food markets. We evaluate consumers’ willingness-to-pay (WTP) for top-selling local commodities. In addition, we keep track of and maintain a database on market data in a timely basis. This will improve transparency for producers in meeting customer expectations and developing commodity standards. Simultaneously, we investigate farmer preferences and experiences in producing food sustainably for Guam’s local markets. Identifying factors that influence decisions to participate in sustainable agriculture will aid Extension in the development of educational workshops and other materials promoting increased producer participation. Throughout this project, we strengthen the local food value chains and revitalize Guam’s Agriculture with profitable economies in Tourism (AgroTourism).
Through (Obj.1) consumer preference studies and (Obj.2) farmer-focused surveys, the University and its collaborating organizations will (Obj.3/4) analyze and develop promotional strategies for local farmers to (Obj. 5) market produce in domestic markets and for communities and tourists.
Cooperators
- - Producer
- - Producer
- - Producer
Research
Objective 1 - Years 1&2: Conduct a feasibility study on consumer behavior towards the sustainable and locally grown food market in Guam.
Methods: We will investigate a) the consumer preferences of favorable attributes for local produce, and b) the premium they would pay for top listed local and/or sustainable products. A two-part survey phase is crucial to identify popular produce attributes to improve quality of sales for current production. This is followed by an actual market auction to implement and identify marketing preferences. We will recruit 1200 adult consumers (including residents and tourists), each provided with a $10 cash coupon, which they can use to purchase food products. In this setting, three products with different labels of origin and product attributes are provided to characterize the within-subject variations. The baseline product will be an (a) unlabeled product. Others will be presented with labels: (b) “local,” (c) “non-local. In addition to these within-subject treatments, the experimental design considers between-subject treatments to estimate how average WTP for each product varies with information content. Along with an information-free control group, candidates of between-subject treatments include (A) an informational message on sustainable agriculture in Guam, (B) an environmental label, and (C) a pledge to assist local farmers. By investigating changes in their WTP can enable the local agricultural community to make more informed decisions on marketing strategies.
Objective 2 – Years 1, 2 & 3: Interview farmers about their experiences of, preferences for, and the benefits that they receive from producing food to sustain Guam’s markets.
Methods: Established qualitative methodologies, including participant observation, interviews, and structured surveys, will be adopted to explore producer experiences, market preferences, and practice benefits. On-farm interviews will be conducted with three groups of farmers in Guam: (1) farmers currently involved in supplying sustainable products to local markets, (2) farmers interested in producing sustainable products for local markets, and (2) those who currently see no value in such practices or markets. The Guam Bureau of Labor & Statistics records 300 Ag Production workers for Guam (December 2021), so we intend to interview 10% of the population or 30 producers altogether. We will work with Mike Aguon and collaborating farmers to recruit potential study participants throughout Guam from the three groups to ensure that at least 10 individuals for each group will be recruited for a minimum of 30 on-farm interviews in total. Volunteers from this interview group will document their practices and perceived benefits through photovoice. A follow-up survey will be used to triangulate and establish the extent of interview results among farmers more broadly. Researcher observations made during on-farm interviews and at local markets where farmers sell their produce will provide additional context for grounding study participant perceptions and views.
This project started in October 2023 due to a funding delay, therefore, there was not much significant progress made over the past year.
Research Outcomes
We will do a consumer preference study to survey the purchasing behavior, preferred produce qualities, attractive labelling, and the utility for local support. This will help improve and standardize price points across local produces, effectuating agricultural markets and consolidating supplier power.
We will also research on ways to promote local agricultural products to residents to identify what is perceived as a fair price. Our work will explore the interests, challenges, and benefits of Guam’s farmers in growing and selling for the local market through on-farm and photovoice interviews and a follow-up survey. The results will be used to increase farmer participation growing sustainable produce for the local market, and raise consumer awareness on the value of supporting local producers and environmentally sustainable agriculture. In sum, our mixed method approach that seeks to understand sustainable island food production from both consumer and producer perspectives will generate more alternatives to import agricultural products and improve in Guam’s position as it relates to food security.
Education and Outreach
Participation Summary:
Objective 3 - Year 1-3: Develop integrated branding, selling, labeling and promotional strategies for local farmers to market their products to local consumers and visitors more effectively and efficiently.
Objective 4 - Year 3: Integrate learning curriculums in agriculture business and economic related courses to market sustainable and local markets in Guam. Student artifacts will include innovations such as developing printed and electronic materials to educate commercial and residential farmers on effective branding, marketing, and promotion strategies.
Objective 5 - Year 3: Alignment of heritage tourism, food and agriculture economic strategies using Guam localized One-Village-One-Product (OVOP) Model.
Methods: (i) Host Guam Local conference and Food and Agriculture Trade Show, which will feature 18-19 villages’ respective offerings (e.g. agriculture/heritage food products, etc.) and hold a competition. Offer a partnership with winning entries for engagement with the university’s business program. This will raise the awareness and build the capacity of the village and industry leaders to accelerate the commercialization of OVOP prospects. Implement guidelines and facilities/services for technical support in various industries, distribute OVOP products at villages, and make recommendations for the Guam Unique Merchandise & Art (GUMA) Entrepreneur incubator program. (ii) Conduct Beta Testing of high demand-potential product innovations. This includes assessing the potential and possible commercialization of (OVOP) place-based agriculture produce, and the traditional use of indigenous plants through transfer technology from best practices. (iii) Explore import-substitution prospects. Align training programs for value-added products, cottage industries, to expose products to bigger markets. (iv) Assess high-demand cultural products for exporting, including a marketing branding strategy for locally made products alongside a product line development strategy. The digital images and accompanying interview text (key quotes/stories) created by farmers in Objective 2 could be shared in a gallery-style exhibition highlighting the heritage, economic, and environmental benefits, and perceived benefits, of sustainable agriculture. The exhibition would be a part of the Guam Local Conference and Food and Agriculture Trade Show. Afterwards, the photograph exhibition could be hosted at farmer’s markets and restaurants that sell or serve locally-produced food, as well as online by University of Guam Cooperative Extension and Outreach.
This project started in October 2023 due to a funding delay, therefore, there was not much significant progress made over the past year.
Education and Outreach Outcomes
In transforming agricultural markets, smallhold farmers are able to better engage in food value chains and imply diversification. A study by Janvry using supply-and demand approaches for agriculture (2020) suggests that the key element is to give access to producers to take advantage of crop
diversification structures and develop seasonal calendars for production and labor. This is an important contribution to food security strategies that encourage further contract farming, productive alliances (between cooperative associations, intermediaries, suppliers, consumers, etc.), raise medium to high value domestic consumption, and introduce varieties for export crops. The adoption of technology or farm management requires reliable assessment and awareness for best practices, market characteristics, and customization of advice. Following the Extension delivery for producer adoptions, trainings position a network for “peer farmers” and “contract farmers”. Extension services typically creates entry points of information and maximizes dissemination of quality information to reinforce learning, implementation, and acceptance (Janvry, 2020).
Trainings will use Extension models for “push and pull approaches” to use farmer networks for social learning, motivation, and seeding information. It is a demonetizing method for more frequent and less costly workshops, while reaching out to less privileged farmers through informal social networks. Workshop trainings and evaluations will be used to emphasize producer interests and comprehended understanding, focusing on marketing (quality control, customer contracting, labelling, etc), food safety, crop scheduling, technological upgrading (irrigation systems, soil matter, etc), and crop valuing. These coordinated trainings will address the particular needs for producers and offer solutions for producers to meet demands in an efficacious and sustainable manner.
Institutional support and extension aim to further establish modernization and transformation through curriculum and education platforms. These relationships are crucial to continue research and improvement within food systems. Since statistical concerns exist for associated capacity and readily
available data on Guam’s Agricultural markets, an additional key objective intends to integrate student projects while fostering relevancy.
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