Technologies Supporting Agricultural, Aquacultural, and Fisheries

Chapter 8

Technologies SupportingAgricultural, Aquacultural, and

Fisheries Development

CONTENTS

Page

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................275integrated Development of a Food and Kindred Products industry........276

Food Preservation and processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....277Marketing Development . . . . . . . . . . . . . . . . . . . . . . . ....................285Integrated Production, Processing, and Marketing . . . . . . . . . . . . . . . . . . . .288Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................292

Intersectoral Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........296Integrating Agriculture and Aquiculture With Energy Development .. ...296In tegra t ing Tour i sm and Resource Deve lopment . . . . . . . . . . . . . . . . . . . . . . 302Integrating Urban Development With Resource Management . ...........309

Chapter 8 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................311

B o x

Box Page8-A. Zeolite Refrigeration Systems . . . . . . . . . . . . . . . . . . . . . . . .............279

Figures

Figure No. Page8-1. Modern Food Industry Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..2768-2. Common Island Food Industry Components . .................,.....2778-3. Organizations Supporting Food Industry Development . . . . ...........2778-4. Components of On-Farm Biogas Systems . . . . . . . . . ..................299

TablesTable No. Page8-1. Effects of Food Irradiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......2818-2. Primary Resources Used in Craft Production in U.S.-Affiliated

Pacific Islands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................306

Chapter 8

Technologies Supporting Agricultural,Aquacultural, and Fisheries Development

INTRODUCTION

Consideration of the ecological integrationof island resource systems is integral to islandrenewable resource management and develop-ment and to optimum use of human and natu-ral resources. Two other kinds of integrationare important as well: 1) integration in the de-velopment of the various components of foodand kindred products industries, and 2) integra-tion of resource development with other formsof economic development.

Little is gained from increasing agricultureor fisheries production if what is grown orcaught is not purchased, if a substantial partof it is lost to pests or deterioration before itcan be purchased, or if no means exist to getit from the producer to the consumer. Thus,integrated development of food and kindredproducts industries requires that attention begiven not only to the modes of production, butto preservation or enhancement of productquality and value (preservation and processing),fulfillment of product specifications deter-mined by consumer demand (marketing), andproduct storage and transportation.

Conversely, integration of the provision ofbasic human services (e.g., water, energy, andwaste treatment) with resource managementand development is not a required componentof resource development and is not commonlypracticed on continents. However, such in-tegration can provide “double-duty” from gov-ernment infrastructure investments on smallislands. Airstrips and even roads can be usedas passive water catchments on water-poor is-lands. Residential wastes can be a source of nu-trients for farms or forests. Aquiculture of cer-tain plants can even aid water purificationallowing reuse by humans. Development oftourist attractions could include efforts to pre-

serve endangered species or habitats of criticalimportance to fisheries in multiple-use pro-tected areas, and development of the handi-crafts industry associated with tourism can pro-vide a means for rural people to earn incomeand to maintain traditional skills.

Agriculture, aquiculture, and fisheries pro-duction systems also can be integrated withenergy production technologies. For example,intensive mariculture farms need large quan-tities of seawater to supply oxygen to and flushwastes from ponds, and pumping is an energy-expensive operation. Such farms could be builtaround powerplants which pump large quan-tities of cooling water daily from the sea. Inthe future it may also be possible to integrateaquiculture with ocean thermal energy conver-sion (OTEC) systems, passive seawater energysystems, biomass conversion systems, and so-lar pond systems. On-farm production of energyfrom animal and/or crop wastes, using digesters,can reduce energy costs to farmers. Such sys-tems may help islands reduce their reliance onimported oil.

Both of these forms of integrated develop-ment commonly involve comprehensive plan-ning and broad government involvement, Forexample, development of the various componentsof food industries may require government in-centives to entrepreneurs to enter lagging sec-tors so that their services can be provided togrowing ones. Similarly, determining the po-tential for investments in large public infra-structure to provide secondary benefits prob-ably will require considerable detail in projectplanning, specification of engineering design,facility siting, etc. Analysis of such factors mustoccur on an island-by-island basis.

275

276 . Integrated Renewable Resource Management for U.S. Insular Areas

INTEGRATED DEVELOPMENT OF A FOODAND KINDRED PRODUCTS INDUSTRY

A commercial food and kindred products in-dustry includes not only food and fiber produc-tion activities (see chs. 6 and 7), but also proc-essing (the biological, chemical, or mechanicaltransformations of products subsequent to har-vest), distribution, and marketing (figure 8-l).In the United States, before agricultural com-modities reach consumers, they must be assem-bled, processed, packaged, warehoused, stored,transported, and distributed through the institu-tional food trade wholesale and retail outlets(93).

In a well-developed food and fiber industry,each of these components commonly is under-taken by different private individuals, busi-nesses, or cooperative organizations. With eachsuccessive step, value is added to the productthrough transformation or distribution. Pricesare raised, but revenues also are capturedwithin the local economy. (For example, thenonfarm activities provide as much as 85 per-cent of the value added to the U.S. food andfiber system’s output (93)).

Food and feed processing technologies essen-tially transform raw materials into higher val-ued products with uniform marketing charac-teristics and longer shelf lives than the sourcematerials. Such technologies tend to augmentinterdependence, encourage specialization,and are subject to economies of scale (82). Theyalso promote the transformation from a barter

economy to a cash economy. Finally, becauseconvenience foods are preferred on many is-lands, increased local processing of foods hassubstantial potential to replace products cur-rently imported.

On most U.S.-affiliated islands, fresh food ismarketed directly by the producer (farmer orfisherman) to the public through roadside orharborside stands and open air markets. Thus,the producer is responsible for transporting,marketing, and maintaining the quality of theproduct. Some food may be sold to governmentfood distribution centers, a small amount is soldto small retail stores, and still less is distrib-uted to supermarkets or off-island (figure 8-2).

Only Puerto Rico’s food industry approxi-mates that of the United States or other de-veloped countries. In the absence of comple-mentary private sector development of thecomponents of food industries, the processing,marketing, and distribution components canbe centralized–through government-supportedcooperatives or organizations—until privatesector entrepreneurs take over (figure 8-3).

Besides raw materials, resources critical toprocessing include skilled people, information,and supporting infrastructure such as energy,water, and transportation facilities. Marketing,in particular, depends on reliable transporta-tion systems.

Figure 8-1 .—Modern Food Industry Components

Producing Processing Marketing

In a well-developed food industry different private sector individuals, businesses, or cooperative organizations commonly are responsible foreach segment of activity.SOURCE: Office of Technology Assessment, 1986,

Ch. 8—Technologies Supporting Agricultural, Aquacultural, and Fisheries Development ● 277

Figure 8-2.—Common Island Food Industry Systems

On most U.S.-affiliated islands, fresh food is marketed directly by the producer (farmer or fisherman) to the public through roadside stands

In the absence of private sector development of the roles of food industries, processing and marketing components can be centralized, viacooperatives or centralized organizations, to provide these services until private sector enterprises can take over.

SOURCE: Office of Technology Assessment, 1986.

Food Preservation and Processing

Several methods of preserving and process-ing traditional foods for subsistence use existin the U.S. Pacific islands. These include dry-ing or smoking of fish, coconut meat, Pandanusfruit; fermenting coconut sap for coconut wine;and, in some areas, preserving breadfruit bystoring it in the soil (2). The primary objectiveof traditional food preservation/processing wasto ensure continuous food supplies during war-fare, natural disasters, and off-seasons.

Today, the major goals of preservation/proc-essing are to increase product storage life andquality, to minimize crop wastage and spoil-age during peak production seasons, and to ease

shipping and marketing (82). Food processingalso may increase market demand (e.g., by in-creasing ease of food preparation). Further-more, local processing of food may provide sub-stitutes for products currently imported.

Primary and secondary processing and pres-ervation methods range from simple and small-scale to complex, large-scale operations. Pri-mary processing involves the preservation ofcrops and other products, whereas secondaryprocessing deals with more complex processessuch as extraction of plant oils, fermentation,or manufacturing of food products.

Food and feed processing methods through-out the U.S. Pacific territories are generally un-

278 ● Integrated Renewable Resource Management for U.S. Insular Areas

developed. In Puerto Rico, the food process-ing industry is a strong manufacturing sector,primarily processing raw material importedfrom the United States and foreign countries(77). The strength of this sector may be due,in part, to the existence of a Food TechnologyLaboratory established at the University ofPuerto Rico Agricultural Experiment Station.

Primary Food Processing Methods

Primary processing and preservation meth-ods include refrigeration and freezing; dehydra-tion (sun-drying, smoking, hot-air drying, andfreeze drying); retort processing; irradiation;and hot-water bath treatments. Several of theseprocesses can be combined or conducted se-quentially.

Refrigerated Storage.—Proper storage facil-ities are needed to reduce postharvest lossesfrom spoilage, insects, rats, or other pests. Onmost U.S. Pacific islands, storage facilities areinadequate because it is costly to provide mod-ern storage facilities for the many small islandsthat are scattered throughout vast expanse ofocean. Low-temperature storage can provideprotection from pests and spoilage and extendthe shelf-life of perishable fresh products suchas fruits, vegetables, and fish. However, low-temperature storage generally is not economi-cal for most island crops because of the highenergy cost. Furthermore, for most Pacific is-lands the use of cold storage is constrained bylack of or irregular power supply,

Refrigeration of foods for short-term storage(freezing for long-term storage) is nonethelessdesirable, as it is safe, maintains flavor, and issuitable for many foods. Controlled atmosphererefrigeration (using carbon dioxide gas) can pre-serve certain fruits and vegetables for up to 21days (82). Easy processing and packaging andacceptance of products worldwide make thepotential for frozen tropical food excellent (cf:Bacardi frozen concentrate tropical fruit mixers).

While refrigeration is common in the U. S.-affiliated Caribbean, refrigeration and foodfreezing facilities other than household refriger-ators largely are limited to larger hotels andrestaurants throughout the U.S. Pacific. An

American Samoa tuna cannery has a large,commercial refrigeration and freezing facility.

Icemaking and refrigeration are essential iffish are to be sold at other than dockside loca-tions. High temperature is the single most sig-nificant factor leading to loss of quality. Fishthat can be stored for 2 weeks frozen may lastonly a day or two at 500 F. It is generally recog-nized that a large part of the growing demandfor marine products must be met through im-provements in fish utilization, not just ex-panded catches (54).

Losses of fish may be heavy even on board,and in the period after docking and before mar-keting. Keeping fish alive in “wells” until land-ing, shaded, or covered with wet seaweed orother such materials may also enhance preser-vation. Losses could be reduced from the be-ginning by keeping vessel surfaces clean andcooled with seawater, and by careful handling(48).

If transport to markets is required the catchis further reduced from exposure as well as in-sect infestation. For many fisheries use of iceduring transport is not possible; icing can, how-ever, be delayed up to about 6 hours if the fishis consumed soon thereafter. Rapid chilling canbe efficiently achieved by layering ice (prefer-

Photo credit: Office of Technology Assessment

Packing fishery products in ice remains a primarypreservation technique on many Pacific islands despiteirregular ice availability. Shown here, fish are being

removed from ice packing and displayed for salein a local market.

Ch. 8—Technologies Supporting Agricultural, Aquacultural, and Fisheries Development “ 279

ably in flakes or small pieces) and fish in a cov-ered box or hold area. Only sanitary watershould be used to make the ice, and ice shouldnot be reused once fish have been stored in it.

Ice machines that do not require gasoline,diesel oil, or electricity are being developed insome areas. A low maintenance biomass-fueledicemaker has, for example, been developed atthe Asian Institute of Technology in Thailand.Ice forms as heat is extracted from water ina closed container during the conversion of liq-uid ammonia to gaseous ammonia. A compactsolar refrigeration system uses the same tech-nology but the ammonia-water solution is heatedin the pipes of a solar collector (48). Solar-pow-ered zeolite refrigeration systems are now be-ing developed and may have particular rele-vance for use in small remote island areas (86).

Dehydration.— Food dehydration is a com-mon, relatively simple, and inexpensive pri-mary processing technology. Depending on theproduct, sun-dried items can be placed on racksor on iron roofs. Sometimes wire netting isplaced over drying racks or platforms to reducedirt and insect contamination (82). Althoughsun-drying is simple, cheap, and easily trans-ferable, it is limited by the availability of sunnydays. In some areas, in fact, peak crop harvestcoincides with the rainy season. Sun-dryingalone, moreover, frequently will not reduce themoisture content of products to a level lowenough to prevent fungal or bacterial growth(82). Thus, while sun-drying is suitable for homeuse, for initial preservation, or for nonfooditems, handling and sanitation problems ren-der it less suitable for most volume processingfor sale (65).

Fish commonly are preserved in rural areasof the tropics by sun-drying, but significantlosses result from spoilage, contamination, andinsects. Drying on raised structures could re-duce some of these losses. Solar fish dryers canbe made simply and inexpensively with wood(to form a frame) and plastic or glass (to pro-vide cover), A wide variety of solar dryers havebeen designed with these and other inexpen-

but the energy requirements of conventionalabsorption refrigeration systems pose a con-straint to the application and use of this tech-n o l o g y .

Solar coolers, using natural zeolite mineralsas the adsorbant, are now being developed (86)that show promise for use on small tropicalislands to extend the life and therefore the po-tential markets for perishable food products.Because of several unique, properties of zeo-lites, they can be used to provide efficient re-frigeration with low-grade energy such as so-lar heat. Once fully developed and availablefor purchase, zeolite-based solar coolers havethe potential to provide food refrigeration orfreezing; refrigerated transport; and spaceconditioning (heating and cooling, dependingon seasonal need) for livestock and for com-mercial and tourist facilities.

The solar refrigerator and walk-in cooler arethe technologies of most immediate applica-tion and widest possible use. Coolers can beused onsite or installed on flat bed trucks oron boats for field use. One technology beingdeveloped uses waste heat from internal com-bustion engines, significantly reducing theweight of the system as compared to solarbased~systems.

Zeolite solar technology is initially highlycapital-intensive, thus those people who mostneed it probably cannot afford it without gov-ernment or private subsidy. However, wheresuch technology is used to market more pro-duce than could otherwise be saved and sold,increased income can be expected to result,and Low-interst might be repaid in a rea-sonable time. Nonsolar zeolite systems have

low initial costs and can be used without sub-sidies wherever waste heat is available.


Photo credit: D. Tchernev

This small-scale solar-powered zeolite refigeration systemmay be particularly appropriate for remote areas orroadside markets where energy availability prevents the

use of conventional refrigeration systems.

sive and readily available materials (includingold oil drums, thin metal sheeting, and evensun-dried mud). Fish exposed to the flow ofheated air in such structures dry very rapidly,and high temperatures reduce spoilage by moldand bacteria. Low-cost agrowaste-fueled fishdryers and combined agrowaste/solar dryershave also been designed and constructed in thePhilippines (48).

Hot-air drying and smoking are accomplishedby placing the product on drying shelves orracks in ovens using natural-draft smoke orforced hot air. Hot-air dryer designs vary de-pending on the crops, on the types of driedproducts desired, and on the type of availablefuel (82). Hot-air drying and smoking may belimited by fuel availability and cost. Dryers canbe made from simple wooden or bamboo racks,steel racks, or durable steel drums. Forced hot-air dryers have been used effectively for dry-ing various island products such as copra, blackpepper, chili peppers, and herbs.

Smoking is a traditional method of preserv-ing fish products. Smoking dries the product,and certain substances in smoke kill bacteria,

particularly in the presence of salt. Simplesmokers consist of trays hung in the columnof smoky air above a fire. A variety of ovensand kilns have been developed in Africa andthe Philippines (48).

Smoking, hot-air drying, and sun-drying maybe used in combination for drying products.Dehydration also is frequently combined withother processes such as salting (used for thou-sands of years to preserve fish) and sugar cur-ing. Spices, seasoning, tropical fruit flavors, andother specialty products seem to offer primaryareas for expansion of dehydrated products. Inaddition, byproducts and waste products ofdried foods can be added to animal feed for-mulations (82).

Dehydration also may be accomplished byfreezing and drying at the same time. Freeze-drying technology may be applied to selected,high-valued products, provided reliable elec-tric power is available (82). Freeze-drying main-tains the flavor and helps protect the cellularintegrity of the food. However, this technologyrequires high amounts of energy and skilled la-bor, and therefore cannot be applied economi-cally on many islands.

Retort Processing.—Retort canning or pres-sure cooking is a common method of preserv-ing fruits and vegetables, and can be used onsome fish and meats. The goal of such thermo-processing is to heat the product to microbe-killing temperatures of around 100° F. Tradi-tional canning equipment is readily availableand systems have been developed for lesser de-veloped areas of the world (82). Acid fruit prod-ucts are easily canned without substantialhealth hazards as the acid level prevents spoil-age by most toxic organisms. Retort canningof nonacid foods such as vegetables and meats,however, can be a health hazard if quality-con-trol procedures are not followed.

The retortable pouch–a multilayer adhesivelybonded package that will withstand thermo-processing temperatures—may maintain higherquality foods than those retorted in conven-tional cans and may require less energy dueto shorter cooking times at lower temperatures(97). Further, retort pouches have an improved


product-to-package weight ratio compared tocans, providing savings in transportation. Thissaving may be reduced by secondary packag-ing used to increase product durability intransport.

Irradiation.— Irradiation for preserving foodand crops has been used both experimentallyand commercially in many countries (69). Ir-radiation is considered an alternative to chem-ical preservation of foods and crops, or whererefrigeration and retort processing are not fea-sible (table 8-l). Low doses of radiation preventsprouting of tubers, destroy insects, and inhibitmold on fruits and vegetables. Medium to highdoses of radiation can preserve foods for longperiods of time (69,70). Low doses of radiationfor spices, hog carcasses, and some fruits andvegetables have been approved by the U.S. Foodand Drug Administration (83). Use of high dosesof radiation for control of insect pests on pro-duce, and for preserving fruit and vegetablesrecently has been approved. Irradiated man-goes have been exported from Puerto Rico tothe U.S. market (60).

Irradiation could reduce the use of pesticidesand inhibit maturation and spoilage of crops,thus extending shelf life and possibly making

Table 8-1 .—Effects of Food Irradiation

Dose Rads Purposes

Low-dose . . . . . . 1-1oo Control insects in grainskilorads and flour

Inhibit sprouting inpotatoes

Sterilize trichina worms infresh pork

Inhibit decay, controlinsects in fresh fruitsand vegetables

Medium-dose. . . 100-1,000 Destroy Salmonella andkilorads other bacteria in meat

and poultry

High-dose . . . . . 1,000-3,000 Control insects, micro-kilorads organisms in dried

spices and enzymesused in food processing;destroy botulism spore

Dose: Dose is calculated by knowing the energy given off by the radiation source,the distance between the energy source and the target material (food and its pack-aging) and the duration of treatment. “Rad” stands for “radiation absorbed dose.”1 kilorad = 1,000 rads.

SOURCE: S, Sachs, “Q & A Irradiated Food at the Supermarket, ” USDA FoodNews for Consumers 3(1): 14-15, 1986.

some foods more available or less expensive.Application of irradiation technology, however,requires the availability of electric power,skilled personnel, and a high initial capital costmaking it an unlikely prospect for use on mostislands.

Hot-Water Bath Treatments.—Hot-water bathtreatments are an alternative to fumigation orirradiation to eliminate pests, especially fruitflies, in fruits. It has been used as an alterna-tive to fumigation with ethylene dibromide,which recently was banned from use on all fruitand vegetables for trade in the United States.Fruit, such as papaya, are immersed in waterfor 40 minutes at 108° F followed by a 20-minuteimmersion in water at 120° F. This treatmentkilled all eggs and 99 percent of insect larvaein commercial-sized lots of papaya in Hawaii.In general, hot-water bath-treated papaya main-tains its quality, including the flavor, texture,absence of blemishes, and absence of hard spotson fruits (98). This method holds promise forwide application on islands because it is sim-ple, inexpensive, and does not depend on ex-pensive imported materials.

Secondary food Processing Methods

Secondary food processing systems, in gen-eral, involve more complex techniques, highercapital investments, and more energy-intensivetechnologies than primary processing. On U. S.-affiliated islands, secondary food processingsystems include fermentation, oil extraction,and starchy crop processing.

Except for coconut oil extraction, commer-cial secondary food processing methods are un-developed in U.S. Pacific islands. However, inMicronesia a traditional coconut wine (toddy)is made by cutting the stalk of a coconut flowerand allowing the sap to drip into a containerto ferment naturally. Secondary processing iscommon in Puerto Rico; for example, brine-fermented citron is one of the oldest fruit proc-essing operations on the island (77).

Fermentation. —Fermentation of fruits is acommon method of preservation and flavor-enhancement, and is used in many cultures toderive alcoholic beverages. Fermentation of fish


and shrimp was originally developed in South-east Asia as a means of flavor enhancement.Since this generally involves hydrolysis in thepresence of high salt concentrations, products(generally a liquid or paste) have good keepingqualities. Nutritive quality is maintained, andthe process is simple (48).

Plant Oil Extraction Methods.—Chemicaland physical extraction methods are availablefor extraction of oils from plants. Dependingon the products, oil extraction ranges fromsimple, inexpensive, small-scale techniques tocomplex, capital-intensive extraction methods.Basically oil extraction involves drying theproduct, chopping it into small pieces for press-ing and/or chemical extraction and fractiona-tion to obtain the desired oil (82). Coconut oilcan easily be extracted from dried coconut meat(copra), by pressing or boiling. This can be ac-complished using common kitchen implementsor in a factory setting with proper quality con-trol and precise extraction procedures (67,82).Oil from the ylang-ylang (Cananga odorata)flower is extracted through similar procedures.

Starch-Crop Processing Methods.—A num-ber of relatively simple processing technologiesfor making flour, chips, and pellets from com-mon starchy island crops such as rootcrops,coconuts, breadfruit, plantain, and banana areavailable. These are relatively simple technol-ogies which basically involve chopping and/orshredding the crop into small pieces and dry-ing it or grinding it into flour. Flour may beprocessed into pellets and packaged in variousways (21,77).

A simple cottage-scale flour-grinding opera-tion has been in operation for several years atMacheweichun Xavier Society in Truk. It in-volves the use of wood-fired dryers, a flourgrinder, a drum shredder, and miscellaneoushoppers, trays, and containers (21).

Summary

Although U.S.-affiliated islands offer oppor-tunities for food processing development, thepacific islands in particular are constrained byhigh energy costs, small markets, and relatively

small and unreliable domestic production ofraw materials. The energy requirements for cer-tain processing technologies, such as freeze-drying, refrigeration or freezing, irradiation,and retort processing, can be substantial. Thismay seriously handicap application on U. S.-affiliated islands where energy is costly and ir-regularly available. Availability of fresh watermay also be a constraint for resource poor is-lands such as atolls.

Although Puerto Rico has the capability forprocessing most food products, it is constrainedby the limited quantities and the high pricesof raw materials produced locally. Hence, foodprocessing industries are forced to import rawmaterials from neighboring islands or from themainland United States (77).

Establishment of regional or local coopera-tive food processing centers may overcome theconstraints provided by the small size and frag-mentation of islands of the U.S. Pacific territo-ries. A processing center could provide a stronglink between processing and production, andmay provide technological support to produc-ers and marketers thus facilitating commerciali-zation of local products (82).

Cooperative processing and preservationcenters could absorb crop surplus not taken bythe fresh produce market, preventing waste andproviding intermediate products for furtherfood and feed formulations. Local producersmight be encouraged to expand crop produc-tion if processing facilities guaranteed a mar-ket for excess products: sustained levels of pro-duction above local subsistence needs can takeplace when a stable cash market exists to ab-sorb the surplus (70). It is estimated that be-tween 30 to 50 percent of fruits and vegetablesproduced in the Commonwealth of the North-ern Mariana Islands (CNMI) have been discardedbecause they have no market outlets (87).

Development of cooperative food processingfacilities will require coordinated developmentof marketing services, island infrastructure,agriculture production, and managerial skills.Government cooperation and support probablyis necessary.

Ch. 8—Technologies Supporting Agricultural, Aquacultural, and Fisheries Development w 283

Opportunity: Expand Researchin Postharvest Technologiesfor Island Products

Postharvest technology research commonlyis biologically or physically oriented, thus com-plementing production research. Some posthar-vest technology research focuses on the biologi-cal or chemical properties (e. g., composition,quality, safety, nutritional value) of productsthat affect the handling, storage, transportation,preservation, and effective use of such prod-ucts. Other postharvest technology research fo-cuses on the mechanical technologies used toassemble, process, package, warehouse, store,transport, and distribute products.

A 1983 OTA assessment concluded that pub-lic sector research in postharvest technologyand

1.

2.

3.

economics can be justified because:

benefits are distributed beyond those whobear the costs, and substantial social ad-vantages are derived from both public andprivate research;in the absence of public sector support andguidance, postharvest research might bebiased strongly toward mechanical andchemical technologies, since economicreturns can be extracted in the short run;andfor those situations where private researchmight be detrimental to industry competi-tiveness, a mix of public and private re-search may best preserve competition orreduce market power.

Some areas of research, such as:

1.2,

3.

new food sources and their development,naturally occurring food contaminants,andyields in relation to productivity versus nu-tritional components, might best be under-taken by joint public sector/private sectororganizations.

Three research agencies in the U.S. Depart-ment of Agriculture (USDA] conduct and fundpostharvest research: the Agricultural ResearchService (ARS), Economic Research Service(ERS), and Agricultural Marketing Service

(AMS). Although ARS conducts some posthar-vest research, including some in Puerto Ricoand the U.S. Virgin Islands (USVI), it is not orga-nized to manage, conduct, or be responsive toregional research needs (93). ERS has Interna-tional Economics Divisions which identifytrends in food demand in foreign countries (ona regional basis) and draw implications for ex-port markets in those countries. Its NationalEconomics Division primarily assesses theorganizations and performance of the majorU.S. commodity subsectors (animal products;crops; and fruits, vegetables, and sweeteners).

AMS is an action agency primarily devotedto distribution of market news to the agricul-tural community, inspection and grading offood products, and other regulatory activitiesand some research. AMS has responsibility forthe conduct of studies of the facilities and meth-ods used in the physical distribution of foodand other farm products; for research designedto improve the handling of all agricultural prod-ucts as they move from farm to consumers; andfor increasing marketing efficiency by devel-oping improved operating methods and facil-ities (93)0

The Agricultural Experiment Station of theUniversity of Puerto Rico has developed a FoodTechnology Laboratory devoted to fostering thedevelopment of processing industries. An asso-ciate degree in Food Technology is offered atthe University’s Utuado Regional College. Prod-uct research since its inception in the late 1940shas included: canned sweet potatoes, cannedfruit nectars, frozen fruit concentrate, cannedsoups, frozen root crops, jams, jellies, and mar-malades. Although many of these efforts failedto reach commercialization, and others failedto survive (primarily due to economic reasons),the food processing industry showed rapidgrowth between 1960 and 1970 in diversifica-tion and sales volume (77). However, becausequantities of acceptable quality fruits and vege-tables were not reliably available from local pro-ducers, the Puerto Rican food processing in-dustry shifted to the processing of imported rawmaterials.

6 3 - 2 2 2 0 - 8 7 - 1 0 Q L . 3


Opportunity: Develop New ProductsFrom Extant Crops and Catch

Local processing of crops can provide higherreturns to growers than exporting raw materi-als, and can provide import substitution oppor-tunities. Major opportunities for developmentof new products from locally available cropsare coconut oil products; fruit juices, jams, jel-lies, and marmalades; and animal feeds.

Coconut Products. —The major commercialcrop in the U.S. Pacific is coconut, from whichcopra is made. Copra oil processing plants ex-ist on Majuro, Moen (Truk), and Pohnpei. Yapis in the process of building a plant. The Pohn-pei Coconuts Products plant has developed aline of products—laundry and bath soap, dishsoap, cooking oil, body oils, and shampoo—forthe local and tourist markets. Plants on Trukand Yap will offer similar products, mainly forimport substitution. Copra oil also is a poten-tial substitute for diesel oil, but its cost ($4.00/gallon) compared to imported diesel oil ($1.50/gallon) is prohibitive at present (73).

Fruit Products. —Surplus fruit crops can bemade into jams and jellies, juiced and bottled,or used in production of fruit ices, currentlypopular in areas having refrigeration. Small-scale juicing machinery, suitable for smallquantities, are available and are employed onsome Pacific islands. Through a successful Yapgovernment-sponsored radio campaign, coco-nut milk has replaced large amounts of im-ported canned beverages; similar campaignscould promote locally produced juices (73).

Animal Feed.—Another major avenue forsubstitution of imports with locally producedand processed products is animal feeds. Feedsfor livestock come from a variety of sources de-pending on the kinds of livestock raised andthe husbandry methods. Livestock feeds in-clude green forage, pasture grasses, hay, silage,feed concentrates and, for some livestock suchas pigs and chicken, left-over food or cropwastes, In Puerto Rico and the USVI, most cat-tle are raised on improved or unimproved pas-tures. Dairy cattle are supplemented with feedconcentrates (5), and silage and green foragesuch as Leucaena leucocephala are used occa-

sionally to supplement cattle feed. In PuertoRico, hay is fed to horses and calves during thedry season. About 10,000 tons of hay are pro-duced yearly on about 2,000 acres and another4,000 tons are imported (101).

Although the demand for animal feed is high,practically all feed concentrates are importedto U.S.-affiliated islands. Pohnpei imports about400 tons of pig feed concentrates annually (85)and Puerto Rico imports about 500,000 tons ofraw materials for livestock feed concentratesannually. None of the latter incorporate ingre-dients that can be produced locally (5).

High costs of imported feed concentrates con-strain development of livestock industries onmost islands. Imported feed concentrates areexpensive and may represent one-half to two-thirds of the total cost of producing meat anddairy products in the U.S. Pacific territories(38). Furthermore, unreliable shipping hascaused shortages of feed forcing farmers onsmall islands to ration and substitute feed. Ra-tioning and substituting local materials for feedhave resulted in decreased livestock produc-tion and reduced feed conversion efficiency.Shortages may also cause a “feed shortage men-tality” on the part of unsophisticated farmersresulting in rationing of feed even when an ade-quate supply of concentrates is available on is-lands (5).

Establishment of plants that process local rawmaterials for feed may minimize crop waste,provide a market for crop surpluses during peakproduction seasons, and make use of currentlyunderutilized resources. Such plants could alsoprovide substantial benefits to farmers by in-creasing market demand and absorbing sup-ply not taken by the fresh produce market (38).Development of alternative markets can mod-erate supply fluctuations and contribute to in-creased market efficiency.

Many attempts have been made to producefeed concentrate from local raw materials. Forexample, a feed processing plant on Palau,using copra meal, fish parts, and imported ricehulls, grain, and vitamins, was established in1976. However, the plant was forced to closewhen the copra oil mill closed down (45). In


general, ingredients such as fish meal, vitamins,and mineral supplements still must be imported(5,85). An animal feed processing plant cur-rently is operated on Guam, but low-quality feedhinders its ability to compete with importedproducts (65).

On U.S. Pacific islands, a variety of local rawmaterials offer potential as feed components,such as copra meal, breadfruit, banana, root-crops, and various agriculture wastes. Leu-caena leaves, which contain up to 30 percentprotein (49), can be dried and used as an ingre-dient of feed concentrate. Excessive feeding ofLeucaena to nonruminant animals can causehair loss and ill health and poor feathering inpoultry, because it contains a harmful chemi-cal called “mimosine” (49). However, the toxiceffects of mimosine are reversible and can beneutralized when certain micro-organisms areinoculated into cattle feed (79). Mimosine con-tent in Leucaena leaf meal also can be reducedby adding ferrous sulfate to rations, soaking itin water overnight, or boiling it for a fewminutes.

In Puerto Rico, byproducts from local phar-maceutical companies, tuna or pineapple can-ning plants, rum breweries, and sugarcanerefineries can be used as ingredients for ani-mal feed concentrates (72). Quantities of thesebyproducts, however, are limited and onlyseasonally available. These products could sub-stitute for only about 10 percent of currentlyimported feed concentrates (5) and are not suffi-cient alone to support a feed processing facility.

Although the use of local produce for ingre-dients in animal feed is technically feasible, itis seriously constrained by the high productioncosts for small-scale operations and by the un-reliable and seasonal availability of local rawmaterials (5,67,82,85). Because of these con-straints, local raw materials generally can onlybe used as an extender for imported animalfeeds (67). However, in most cases it is cheaperto import finished feed from large foreign oper-ators than to blend imported and domestic rawmaterials (5,67,85). High fuel costs, costly main-tenance of equipment, and difficulty in gettingspare parts are also major hindrances to oper-

ation of local processing plants in most U. S.-affiliated Pacific islands.

Marketing Development

Opportunities for market development existdespite small local markets and highly competi-tive export markets. In addition to the smallsize of local markets, marketing on U.S.-affili-ated islands is constrained by low levels of pro-duction, lack of marketing skills, and for smallproducers primarily on U.S. Pacific islands, bythe inability to meet marketing demands (e.g.,consistency in quality, quantity, and pricing).Under certain circumstances, however, cooper-atives may overcome these constraints (102).Another way to facilitate marketing, is linkingsmall-scale “satellite” farmers and fishermento large-scale, well-established, producers. Thissystem has been effectively instituted for or-namental plant producers in Puerto Rico (6).Although increased penetration of export mar-kets is possible, it is considerably more diffi-cult than developing local markets. In eithercase, government intervention may be needed.

Development of Local Markets

Farmers and fishermen use a variety of mar-keting methods to sell their product. In general,local markets are small relative to agricultureproduction potential. The absence of alterna-tive market outlets, such as export markets andfood processing plants, and inefficient distri-bution and marketing of fresh produce, leadto unstable prices, unnecessary product lossesand spoilage, and inability to meet the demandsof institutional buyers.

The local market in Puerto Rico, althoughrelatively small for most commodities, is stable.Although local marketing methods in PuertoRico are not as advanced as in the mainlandUnited States, they appear adequate. Local pro-duce such as plantains, bananas, pineapples,and others are sensitive to market fluctuations;even small surpluses can depress prices, sincesurplus crops cannot be readily exported off-island. Thus, some crops, such as coffee, areprotected against competing imports by local



Large open-air markets, where the majority of locally produced agriculture and fishery products are sold directly fromthe producer to the consumer, are typical of many island areas.

regulations (47). On the other hand, the localmarket for some crops is, in a sense, “pro-tected” by relatively high transportation costsof imports from the mainland United States(about 2.5 cents/lb for grain and 6 to 7 cents/lbfor refrigerated products) (101).

About half of the food tonnage consumed inPuerto Rico is produced locally (100). The per-centage of the local food market that can becaptured by Puerto Rican food producers islimited by local production potential and byconsumer preference for supermarket conven-ience food produced mainly by mainland U.S.food processing corporations (40).

In the U.S. Pacific islands, food imports aresubstantial. However, imported commoditiesare mainly sold in the major urban centers (38).

Only a small fraction of the urban populationsconsume imported fresh food. Therefore, onlya small amount of imports can be substitutedby locally produced fresh food. Opportunitiesto develop the local markets on U.S.-affiliatedislands and reduce imports are based on thepotential for supplying various sectors of thelocal markets such as government-sponsoredprograms (e.g., school lunch, food stamp, andold age programs), tourist, and military markets.

Currently, most food products for the mili-tary and tourist markets in the Pacific are im-ported from suppliers outside Micronesia, thus,the potential for import substitution is great,However, hotels and military facilities requireregular supplies of high-quality produce cur-rently unavailable on the islands. Even if onlypart of the fresh produce requirements can be


supplied locally, it could make a significantdifference to local economies.

Opportunity: Substitute LocaIlyProduced Food for Imports in FederaIlyFunded Food Assistance Programs

In American Samoa, Guam, and the CNMI,opportunities exist to increase gradually the useof locally produced commodities in federallyfunded food assistance programs. Part of blockgrant funds (e.g., for school lunch or old ageprograms), could be used to purchase locallyproduced commodities, including processeditems, instead of imports. The CNMI FoodStamp program requires that 25 percent of foodstamp expenditures go to the purchase of lo-cally produced commodities. These require-ments increase the use of local products andbenefit local producers (38), Gradual increasesin the required percentage could result in ad-ditional benefits to producers and consumers.

Opportunity: Develop theTourist Market

Tourism represents potential demand foragriculture and fisheries products where sig-nificant tourist industries have developed, suchas in Guam, Palau, the CNMI, Puerto Rico, andthe USVI. For Puerto Rico, the impact of tour-ism on agriculture development is not known.In the USVI, however, certain small-scale agri-culture ventures are directly dependent on thetourist industry (13). Tourism in the FreelyAssociated States (FAS) and American Samoais hindered currently by weak airline linkageswith major Asian/Pacific markets and relativelyexpensive fares (38), but has the potential to be-come a significant market as it develops. InGuam and the CNMI, tourism provides the ma-jor private sector income generating activity;about 450,000 tourists visit Guam and Saipanannually (38) and prospects for continued growthin visitors is high (3).

Although large numbers of tourists visit theCNMI and Guam, local producers can take lit-tle advantage of this market because of themonopolistic practices of tourist facility (e. g.,hotel) operators. Japanese interests control most

of the tourist industry and have set up a num-ber of barriers for local suppliers to access thismarket. Only small amounts of commoditiessuch as food and locally made handicrafts en-ter into the tourist market (102).

Opportunity: Supply Military Markets

The military presence on Guam and Kwaja-lein represents potential demands for local agri-culture and fishery products. Military person-nel and dependents in Guam make up roughly20 percent of the resident population. In theMarshall Islands, the Kwajalein Missile Basehas a population of about 7,500, most of whomare Marshallese employees and dependents liv-ing on nearby Ebeye Island (35]. Although thesepopulations represent potential markets forfresh produce, most food is currently importedfrom suppliers outside Micronesia.

While local farmers could supply at least partof the fresh produce requirements, irregularand limited supplies of local produce make itimpractical for satisfying the military markets(see app. c). In addition, accounting advantagesaccrue through military dependence on cen-tralized supply of warranted products. Only ifthe centers do not carry a particular com-modity, or fail to meet minimum quality stand-ards, are local commanders encouraged to pro-cure locally. A Department of Defense teamrecently was sent to Guam to evaluate prospectsfor greater reliance on local markets, particu-larly of fresh foods. However, only smallamounts of local products are likely to bebought by military employees, dependents, andcivilian employees in the near future (35).

Opportunity: DevelopInterisland Markets

Trade in selected agricultural commoditieswithin Micronesia also is possible. The poten-tial for intraregional trade depends both on co-ordinated development planning and strength-ening surface and air transportation servicesamong the islands (38), The most direct stepto developing markets for Micronesia cropswould be to conduct a pest and disease surveyof Micronesia to provide a basis for U.S. Fed-


eral quarantine regulations affecting Guam andother potential markets. If quarantine regula-tions were revised, some traditional crops couldbe exported to Guam and other areas where de-mand for traditional foods is unfulfilled (15).

Development of Export Markets

Export potentials for the U.S. Pacific differfrom that of the U.S. Caribbean islands, dueto differences in geography, and the socioeco-nomic conditions. Puerto Rico and the USVIhave ample opportunity to export fresh producedue to the cheap and frequent ocean transportto major east coast markets (60).

Currently Guam and CNMI have the bestprospects for agriculture exports outside ofMicronesia. Guam and Saipan islands havegood air transportation links to Japan, a poten-tial overseas market. Wide-body passenger air-craft serving Micronesia have the capacity toship air freight containers. Japan seems to bethe most promising export market, because ofits high per capita income and already largevolume of imported fresh produce. A recentstudy concluded that avocados and papayashad the best export potential in the Japanesemarkets, with other possible exports beingtomatoes, sweet corn, bell pepper, melons, andornamental plants (12). However, Japan’s strictquarantine regulations preclude most fresh pro-duce exports from Micronesia. Until the fruitfly is eradicated on Guam and the CNMI andeffective methods for treating fresh produce arefound, Japanese markets will remain closed toMicronesia exports. At present, only copraand green bananas can be freely exported intoJapan (app. F, 65).

Removal of U.S. import tariffs on producefrom Caribbean Basin countries as a result ofthe Caribbean Basin Initiative, has not seriouslyaffected the local market for Puerto Rican prod-ucts. However, import tariff reductions seriouslyhurt the potential for export of fresh producefrom Puerto Rico (101). Exporting Caribbeancountries have a competitive advantage inlower wage structures ($2 to $4 daily as com-pared to $16 to $26 in Puerto Rico), which re-sults in lower product prices even after addi-

tion of transportation costs. To increase foodexports, Puerto Rican producers must both re-duce production costs and improve the qual-ity of their produce, thus reducing competitionbetween Puerto Rican products and foreignsubstitutes.

Integrated Production, Processing,and Marketing

Neither production nor marketing can be de-veloped in isolation and one cannot be success-fully developed without attention to the other.Without viable markets, production will stag-nate or decline. Without regular and reliablesources of product, market development andexpansion cannot occur. Many opportunitiesexist for integrating production and marketingto make these activities more efficient andmutually supportive. Such integration can re-move certain constraints that affect each sec-tor in isolation. For example, commercial small-scale operations may be handicapped by smalland unstable markets or inadequate transpor-tation services; small producers commonly arenot able to produce uniform quality products,do not have access to adequate capital and, gen-erally, lack marketing skills. Cooperatives and/or vertical integration of agricultural systems(linking smallholder farmers with large produc-ers or processors) may help mitigate such con-straints and provide enterprises capable of cap-turing economies of scale.

Cooperatives1

Cooperatives are known to be a useful wayof organizing and mobilizing capital and peo-ple in developing communities. Cooperativesoffer an alternative when conventional corpo-rations are unable or unwilling to enter mar-kets because of inadequate return, high risk,or lack of capital. A producer cooperative pro-vides some economic benefit to individuals asthey earn a livelihood. A consumer coopera-tive—in essence, a buying club—helps individ-

1This section is summarized from N. Nathanson, “The Suit-ability of Cooperative Enterprises for the Production of Foodon the Territorial Islands of the United States, ” OTA commis-sioned paper, 1986.


uals pool their resources to obtain products nototherwise available on acceptable terms. Thereturn on the member’s investment is almostalways of secondary importance; the desire fora particular type or quality of product isparamount,

While small farmers face real difficulties pur-chasing small quantities of supplies competi-tively, and can ill-afford expensive equipment,farmer co-ops can competitively purchase sup-plies, services, and equipment and market pro-duce for the benefit of the entire group. Groupsof farmers may even purchase a sizable tractof land and work it together, either by subdivid-ing the land or sharing in the production of theentire tract. The more highly organized foodproducer cooperatives provide fully integratedprograms for their members. These may ar-range bulk purchases of supplies, lease plant-ing and harvesting equipment to individualmembers, process and market the finishedproduct, provide financing for members, andeven conduct research and development in newcrops or techniques. Other co-ops are morelimited in purpose.

Advantages and disadvantages to co-ops ex-ist relative to capital enterprises. One majoradvantage is the built-in incentive for membersto use services offered, increasing the cooper-ative’s revenues, However, members generallylack incentive to purchase more than one share;this limits cooperative capital and can ulti-mately necessitate debt financing. There alsois a danger of short-sighted decisions by mem-bers with diverse interests or limited knowl-edge of market economies. Some argue that notenough profit motivation exists in a coopera-tive organization to assure sufficient earningsfor future growth. Nonetheless, the coopera-tive structure seems, in some cases, to be en-couraging increased agricultural production onthe islands.

In Puerto Rico and the USVI, some traditionof market-oriented agriculture exists, but thereis little modern, competitive agriculture in thePacific under the control of indigenous popu-lations. Exceptions occur with the help of co-operative enterprises, whose member-investors

have a direct need for the produce or servicesupplied.

A Successful Small-Scale Cooperative:SFCA.—Only about 5 percent of the land in theNorthern Marianas is suitable for agriculture,and much of that requires irrigation. Public re-sources and private capital directed at the prep-aration of farmland have been very limited.Nevertheless, the Saipan Farmers’ CooperativeAssociation (SFCA) is demonstrating that, withcompetent management, and a modest amountof public and private capital, small-scale agri-cultural co-ops can have a measurable impacton food supply. With nurturing, SFCA couldbecome a model for agricultural developmentin other Pacific islands.

SFCA has 85 producing farmers as members.Its principal activity is the retail sale of mem-ber produce; a secondary activity is the procure-ment of supplies and animal feed for sale tomembers. Chartered in 1972, SFCA was nearlybankrupt by 1980, but since new managementtook over in 1982, it has been far more success-ful. Sales have increased from $133,000 in 1982to $575,000 in 1984. The co-op has little capitalbut a $10,000 line of credit allows it to pay mem-bers cash for products.

SFCA does not guarantee members a fixedprice, or purchase products that are below amarket standard, but it has been able to pur-chase most of what its members produce, Mostproducts sold are fresh fruits and vegetablesalong with some locally processed and bakedgoods, eggs, and honey. No meats or fish aresold. A major problem in earlier years was spoil-age, but with more attentive management anda higher sales volume, this has been greatlyreduced.

SFCA sales, while growing, still representonly a small fraction of the market potential.To serve more of Saipan’s dispersed popula-tion, SFCA will need more retail outlets.

A Struggling Multiservice Cooperative:FEDA. —The Federation Para El DesarrolloAgricola de Puerto Rico (FEDA) is a complexfederation of some 20 producer associations inPuerto Rico. It operates a tropical fruit juice


processing and marketing plant and providesfinancial and technical assistance to 600 regu-larly participating and 600 intermittently par-ticipating member-farmers who supply thefruit. FEDA has developed all the elements ofa fully integrated agribusiness program, includ-ing a modern processing plant, new techniquesto raise productivity, a revolving loan fund tofinance plantings, and a functional organiza-tional and management structure. The averagemember earns about $4,000 per year farming,and through FEDA can increase the farm’s in-come by at least 50 percent.

The primary product of the federation plantis passionfruit juice, but seven fruits are proc-essed. FEDA also raises rabbits and pigs forsale as food, using the waste from the juice plantfor animal feed. FEDA also has spawned a non-profit institute which conducts botanic researchto improve productivity and trains farmers togrow tropical fruits.

FEDA enjoyed considerable success in itsearly development years, but with an enormousdebt load and high overhead costs, it is not yetfinancially self-sustaining. FEDA’s obligationto purchase the product of participating farmersplaces a tremendous demand on its financialresources. Member farmers who set policythrough their elected directors tend to set theprice they receive above market price, furthertaxing FEDA’s resources.

To assure financial success and to use theplant fully, new off-island markets for fruit juicemust be developed. Major U.S. distributors re-quire enormous quantities of product, morethan FEDA can now provide. Ultimate successwill depend on the ability to market an esti-mated 10 million pounds of fruit annually.FEDA is attempting to market to local distri-butors in South Florida and New York wherelarge Caribbean populations live. It may be,however, that greater returns to the farmerscould have been realized by concentrating onlocally used foods rather than specialty exportproducts.

Cooperatives That Failed: USVI FisheryCooperatives. —The Farmer Cooperative Serv-

ice of USDA, between 1975 and 1978, partiallyfinanced fishery cooperatives in St. Thomas(with 44 fishermen) and St. Croix (with 51fishermen). The cooperatives were formed toprovide a more organized and sanitary methodof selling catch and to help members purchasesupplies such as fuel and ice. Most memberswere part-time fishermen who had been sell-ing their catch on street corners. Spoilage andfish poisoning were common.

Each proposed cooperative called for theeventual construction of a waterfront supplyand receiving facility with a cooler, freezer, fuelpumps, cleaning area, and retail sales area. Theco-ops would also sell fish to hotels and restaur-ants. Both co-ops appear to have been well-planned technically, but both failed. Several fac-tors contributed:

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members were required to sell their catchto the cooperative at a price well belowstreet market price, and the volume avail-able for sale was consistently below pro-jection due to overfishing, theft, and dam-age to the fishermen’s traps;both operations were substantially in debtas a result of their financing structures, ex-pensive overheads, soaring fuel prices, andinflation; andthe fishermen’s association never becamea strong, cohesive organization and had dif-ficulty setting operating policy, maintain-ing market discipline, and selecting com-petent management.

A Potential Cooperative in Koror, Palau.—At least one-half of Palau’s population lives inthe capital city of Koror, where traditional foodslargely have been replaced by canned imports.Although consumers seem to prefer fresh lo-cal produce, interest in farming has declined.

Residents of some outlying communities rec-ognize the market potential of island crops, andhave steadily increased production of fruits andvegetables since 1977. Primary factors limitingfurther growth in local food production appearsto be related to distribution problems: badroads, lack of refrigeration during shipment,rats, and handling all take their toll.


All farming is done on individual plots, butsome rudimentary cooperative associationshave formed. One group of Melekeok farmersshares the cost of shipping produce from theirisland to Koror. Two small retail outlets havedeveloped to market the produce of certain sup-pliers on an informal cooperative basis. Withsome assistance, these associations could de-velop a formal cooperative similar to the Sai-pan Farmers’ Cooperative Association.

Opportunity: Support Cooperative Organi-zations.—Few local government agencies orprivate organizations on the islands actively en-courage the development of agriculture or fish-eries cooperatives. Although the Governmentof Puerto Rico has established financing andtechnical assistance programs to encourage thedevelopment of cooperatives, the emphasis hasbeen in housing development and retailing. De-spite attempts for at least 3 years, FEDA wasunable to obtain local financing, although it se-cured almost $3 million off island. Only afterFEDA obtained considerable mainland atten-tion was it able to obtain local support.

Local governments can encourage develop-ment of cooperatives by investing in infrastruc-ture (e.g., roads) and providing tax benefits andtechnical assistance. Production and market-ing specialists may be particularly needed.Guaranteed contracts for the purchase of lo-cally produced items by schools, welfare andsocial service programs, or tourist facilitiescould provide market stability. The CNMI gov-ernment’s preparation of a 56-acre plot of landfor lease to local farmers has contributed to thesuccess of SFCA; continuation and expansionof such actions could bring the local economysizable benefits.

A number of mainland-based organizationscould become involved in development of co-operatives on U.S.-affiliated islands. The Na-tional Cooperative Bank chartered by Congressin 1978 provides financing and developmentassistance for cooperative business and hous-ing. A nonprofit subsidiary, the Consumer Co-operative Development Corporation (CCDC)has the specific mission of assisting low-incomedevelopment cooperatives. CCDC will provide

“advances” to promising organizations to de-velop business plans or marketing programs,and could provide term financing for projectslike SFCA or FEDA, but probably should notbe considered a primary source of startup ordevelopment capital. The National CooperativeBusiness Association provides education andinformation-sharing services to cooperativebusinesses through publications, conferences,seminars, and direct technical assistance.

The Agricultural Cooperative Service (USDA)helps farmers maintain successful cooperativesby performing studies on the production, mar-keting, financial, organizational, legal, social,and economic aspects of cooperative activity.The service also provides technical assistance(based on applied research findings) in runningcooperatives, organizing new cooperatives, co-operative merging, and in developing strategiesfor growth. The service collects and publishesstatistics on cooperative activity in U.S. agri-culture, and its monthly “Farmer Cooperatives”magazine reports on developments in the fieldof cooperative development and management.

Verticality lntegrated"Contract" Systems

The formation of integrated food produc-tion/processing/marketing systems is likely tobe a successful method of increasing food pro-duction on U.S.-affiliated islands. Contractfarming is one method of vertical integrationwhich extends benefits to small farmers as wellas to large producers.

Under this system, businesses contract withsmall farms to raise a specified amount of rawmaterials at a guaranteed price (and may pro-duce materials themselves]. To coordinate thissystem, the company determines product quan-tities required to fulfill identified consumer de-mands and maintain desired market prices,Commonly, the company provides farming in-puts (e.g., fertilizer), some production assistance(technical and financial), and central process-ing facilities and marketing services. Thus, thefarmers own and operate their farms, the cen-tral operation unit buys, processes, and sellsthe product, resulting in an integrated enter-


prise capable of capturing economies of scale(6).

Integrated contract farming provides signif-icant benefits to both producers and consumers:

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small farmers can capture the benefits ofeconomies of scale in processing and mar-keting and so obtain greater returns thanas independent producers;because pricing decisions are made priorto delivery of the product to market, priceuncertainties are shifted from farmers toconsumers;farmers receive greater access to markets,which may be expanded through advertis-ing and promotion underwritten by thecentral company;consumers are assured of more standard-ized product quality and, perhaps, accessto a range of product quality at varyingprices; andconsumers receive relatively stable prod-uct availability and price (71).

Numerous examples of successful vertical in-tegration of agricultural enterprises exist inPuerto Rico (71). For example, the Puerto RicoDepartment of Agriculture provides financialassistance to both the processing and distribu-tion facilities and to “satellite farmers” supply-ing the broiler and ornamental plant industries(6).

Black pepper production on Pohnpei initiallywas similarly integrated, although farmers werenot under contract and the central processingand marketing unit was a government-run agri-culture station. Since high quality is essentialto market Ponape pepper successfully, the stategovernment subsidized quality control by sup-plying staff and processing equipment to theAgriculture Station. Farmers brought maturepepper to the station for weighing and proc-essing by agriculture division staff. The closecontrol of the drying process and prompt pack-aging by agriculture division staff helped toensure a uniform, high-quality product (19). Af-ter sale of the processing equipment to a non-governmental organization, pepper quality andexports have declined. The Pohnpei State gov-ernment plans to repossess the processing

equipment (73) and, presumably, return to theintegrated production/processing/marketingsystem originally established.

Transportation

Good transportation services are essential formarketing produce as well as for agriculturaland aquacultural development. In the Pacificislands, sea transportation services are inade-quate to provide farmers with access to mar-kets within Micronesia or to Hawaiian or Asianexport markets (38). Inter-island transportationproblems most often exist in the frequency andexpense of transportation services, as well asthe absence of any scheduled transportationservice to some outlying islands. Intra-islandshipping services are few and roads connect-ing outlying areas to urban centers commonlyare unpaved and irregularly maintained. Scat-tered location of islands, great distances be-tween producers and markets, and small volumeof product constrain increased transportationservices. Because of inadequate road systems,farmers from remote villages are unable to bringtheir products to markets in the urban centers(19,38).

The U.S.-affiliated Caribbean islands gener-ally have adequate and regularly scheduled,reliable transportation services. Puerto Ricoand the USVI have close contacts with the U.S.mainland and many island residents frequentlytravel there (101). The Caribbean islands havelong been a tourist haven and thus airline andcruise ship transportation is readily available.Additionally they lie within major shippingroutes and historically have been transshipmentpoints between South and Central America toEurope. Transportation related difficulties inthese islands are more often related to expenserather than availability.

Even where sea transportation services areadequate, e.g., between the U.S. mainland andthe U.S. Caribbean islands, the costs are high.This is partially due to U.S. Federal regulationsrequiring the use of U.S. carriers for interstatecommerce and Federal Government negotia-tion of air routes between the United States (in-


eluding U.S.-affiliated islands) and foreigncountries.

The availability or frequency, quality, andcost of transportation in island economies isgenerally dictated by: distance and geography,market size or demand, and technology. In thePacific, the general pattern is one of substan-tial distance, small markets, and technologiesthat make transportation an expensive service(25).

Technological advances have increased thetransportation options available; however, costsand investments required to use these techno-logical opportunities also have risen substan-tially. For example, with increases in aircraftsize and carrying capacity providing greaterpassenger/cargo and distance capabilities, oper-ating costs have risen and larger airport facil-ities are required. Newer aircraft are cheaperto operate than older designs when fully loaded,but can be significantly more expensive if notfull. If cargo carrying capacity is to be in-creased, vessel/aircraft size and/or trip fre-quency must generally move upward. with thisincrease, freight costs and attendant businessrisk would likely also be higher (25).

Economic risks for transportation businessesare compounded in small markets where thepotential for local fluctuations are greater.Maintenance and enhancement of internationaltransportation infrastructure is a particularlydifficult economic development task. The ma-jor capital assets of transportation providers,ships and aircraft, are unlike other corporatecapital assets: airplanes and vessels can be rap-idly relocated to other markets. Even when atransportation company is financially solventor is making a modest profit, the level of busi-ness success is often measured against stand-ards other than local or corporate gains. Prof-itability and business risk are measured not onlywithin the local economy, but also are com-pared with other markets (25).

Many producers will assume transportationcosts in order to become or remain competi-tive in a market: this is frequently the case foroutlying producers. It should be noted that theseoutlying producers begin with a cost disadvan-

tage, attributable partially to transit expensesfor inputs. where production cost, includingtransportation, is a key determinant in the suc-cess of a producer, the transport equation isa major factor in economic development. Thevalue of the products needing transportation,and their perishability or sensitivity to trans-port risks must be carefully assessed prior toinvestment. In a large transportation market,a canceled flight may mean a delay of severalhours, while it could well mean a several daydelay or total loss of goods in a small market.

Intra-island and Inter-islandTransportation

In many Pacific islands, inter-island and intra-island surface transportation typically is inade-quate to provide producers with reliable mar-ket access and inputs, such as animal feed andfertilizers, are difficult to obtain. Inter-islandshipping services and associated harbor dock-ing/storage facilities need to be upgraded to en-able an expansion of renewable resource-basedenterprises. For example, the general logisti-cal problems of supplying feed, equipment, andsupplies and transporting the products to mar-kets, as well as expense imposed by currenttransportation systems, hinder aquiculture de-velopment (20) and often preclude significantcommercial livestock production (38) in manyof the U.S.-affiliated islands.

Intra-island Transportation. -Lack of farmand other secondary roads on many Pacifichigh volcanic islands inhibit accessibility to cur-rently unused agricultural land and hinder mar-ket access from existing farms. Fostering ofagricultural and aquatic enterprise develop-ment will necessitate construction of second-ary roads where this deficiency represents asignificant constraint, such as in the FederatedStates of Micronesia (FSM) and Palau (38) andthe south side of Pohnpei (19). Although infra-structure development generally is given highpriority in development plans, the amounts al-located to road construction may not be ade-quate to address farm needs.

The dirt and coral roads of Micronesia arenotoriously poor and heavy rains result in im-


passable mud, ruts, potholes, and sometimeswashouts. In addition, poor roads result in highvehicle repair costs and can reduce the produc-tive lifetime of vehicles already shortened dueto salt-air corrosion. The expense and exper-tise required to maintain roads in good condi-tion may be beyond some local government ca-

pabilities (19). In addition, while roads bringaccess to markets, they also expose formerlytraditional communities to outside influencesand accelerate the departure from the tradi-tional lifestyles to which some people preferto adhere (27).

In some cases alternative transportationmight be considered. For example, for severalyears, a locally built shallow-draft barge hastransported lumber successfully from Pohn-pei’s southern mangrove forests into Kolonia.while the use of draft animals for transporta-tion is not a viable alternative for most is-landers, the practice exists in some rural areas.Carabao (a Southeast Asian water buffalo) areused by some rural families for transport ofsuch items as building materials. The numberof carabao—130 in the FSM islands in 1983,and 16 on Palau in 1982—is so small that usetrends cannot be determined (85).

Inter-island Transportation: Remote Islandsto Population Centers.—The remote or smallcoral islands and atolls provide a special setof management problems. The infrequency andoften unpredictable transportation service some-times result in occasional food and supplyshortages in the outer Marshall Islands (67).Many outer islands, and particularly atolls, lackbasic infrastructure and transportation facil-ities necessary to future economic developmentactivity such as medium-draft docks or harborsfor export and import trade, to support fishingfleets, or airstrips to facilitate emergency evacu-ation in case of storms, injuries, or epidemics.A dilemma in interisland transportation is thecargo capacity limitation imposed by airstripsize. The length of most outer island runwaysprecludes economically efficient cargo air-planes; conversely, the short-takeoff and land-ing (STOL) craft used have minimal cargo ca-pacity and, thus, the cargo space tends to berelatively costly (25).

Many development activities on outlying is-lands currently are determined by the availabil-ity and frequency of sea-going transportationservices. On many small atolls and remote is-lands, boat visits are infrequent and often un-predictable. Part of the frequency problems areattributable to the lack of appropriate ocean in-frastructure compounded by the natural rough-ness of the Pacific Ocean’s high seas. Relativelyloose scheduling of calls is commonly requiredbecause narrow, dangerous channel passageor anchorage/cargo handling often is achiev-able only at certain tides (25).

Some islands within this category rely oncopra production, which requires little supportinfrastructure. Copra transportation within theMarshall Islands is well organized, thoughlogistically it is not a simple task. Sailing ca-noes or small boats (20 to 30 feet) with smalloutboard motors or inboard diesel enginestransport the copra to a common collectionpoint within each atoll (67).

Copra from the outer islands is transportedto Majuro for processing by small transport ves-sels which carry trade goods, cargo, and pas-sengers throughout the Marshalls. Four “fieldtrip ships” currently are operated by the Repub-lic of the Marshall Islands Government and pri-vately owned ships have occasionally providedsimilar services in recent years. A typical round-trip voyage from Majuro lasts 2 to 3 weeks andincludes stops at four to six atolls. The lengthof each stop and duration of the entire trip isunpredictable because departure and arrivaltimes and transit of reef passes must be adjusteddaily to tides and weather conditions. This un-predictability can compromise the quality ofthe copra, since it deteriorates if it is stored toolong, and may prevent the product from reach-ing buyers in a timely manner (67).

Opportunity: Upgrade inter-islandAir Links

Each of the FAS governments has devotedconsiderable efforts to upgrading inter-islandair links. For example, 19 runways have beenconstructed on the outer Marshall Islands since1980. These can accommodate small 14- to 16-



This Airline of the Marshall Islands (AMI) aircraft andairfield on Ailinglaplap (Marshall Islands) are typical

for those remote atolls having airfield facilities.

passenger planes operated by the Airline of theMarshall Islands (67). Recently, a missionaryorganization, Pacific Missionary Aviation, or-ganized villagers in the outer atolls of the FSMto construct short airfields for emergency airevacuation, improved communication, andmail service. Today, airfields have been com-pleted on Pingelap and are being constructedon Mokil and Ngatik in Pohnpei (39). The con-struction of small airstrips on other outer is-lands (that can afford the loss of productivecopra land) could help to stimulate economicactivity, tourism, and communication, and fa-cilitate government administration (39).

lntraregional and InternationalTransportation

potential for intraregional and internationalcommodity exports in the Pacific islands arehindered by inadequate transportation services,particularly in the FAS and American Samoa.Little or no regularly scheduled surface ship-ping exists between the FAS or AmericanSamoa and Asian-Pacific markets (38). Even

where transportation services are available, theexpense often hinders tourism and export po-tential of certain commodities. Rates for aircargo from U.S.-affiliated islands are based oninternational schedules rather than domesticrates, making shipping expenses extremely high(80).

An additional factor is the nature of most Pa-cific markets. Generally, the markets are import-heavy, with very limited out-bound cargo. Theone-way traffic is a contributing factor to highcargo carrying costs; in Pacific markets, theserates must amortize the costs of virtually emptycargo holds on the out-bound voyage (25).

Opportunity: Coordinated RegionalTransportation Development

Strategies to increase resource industry de-velopment would necessarily involve develop-ing adequate land and water transportationand, in some instances, air shipment (30). Thepotential for intraregional trade depends onstrengthening surface and air transportationservices among the territories and on coordi-nated development planning (38). Quarantineand inspection services must be upgraded con-currently with transportation to reduce the risksof accidental introduction of harmful pests intothe islands (88).

Coordinated regional development of thetransport network is one means to address theproblem of virtually empty back-haul. Experi-ence in the deregulated air industry has shownthat focus of commercial carriers on the morelucrative parts of the Pacific regional markethas generally left the smaller Pacific points withreduced service (25).

Another strategy for increasing cargo capac-ity and reducing freight costs is a passenger/freight mixed load approach. Dedicated aircargo services have had little success in the pa-cific due to the economic context. The mixeduse approach probably would increase revenue/load potential while reducing business risk.This strategy, however, does not overcome theproblems of converging seasonal peaks of pas-sengers and cargo.


Opportunity: Subsidizationof Air Transport

General transportation problems in the Pa-cific islands may restrain development of cer-tain enterprises which require imported inputsor export capacity. For example, the high costsof air freight within the region, together withthe general lack of airline services, make it dif-ficult to obtain needed equipment and supplies.The high cost of transportation also reducesor eliminates the profit margin on products des-tined for export. Some form of government sub-sidy for the shipment of supplies and products(56), or government-sponsored identification

and/or research into more cost-effective formsof transportation for the U.S.-affiliated islands,could be considered to help remedy this sit-uation.

Another approach would be to amend the Es-sential Air Services program, which guaran-tees a minimum level of service to small com-munities, to include cargo movement needs inthe service level determination process. Al-though this would increase Federal liabilitiesby raising minimum guarantees, carriers mayfulfill minimum requirements without subsidyas island economies develop.

INTERSECTORAL INTEGRATION

Some basic human services required by is-land people as by those elsewhere are cleanwater, energy, and safe disposal of wastes. Inaddition, development trends of U.S.-affiliatedislands require that the services required bytourists and increasingly urban populations beprovided. These services commonly requirelarge government investments in infrastructureand dedication of land and other resources totheir operation. However, these forms of eco-nomic development are not necessarily com-peting with resource management and devel-opment. In many cases, they can be designedand developed to provide long-term secondarybenefits to agriculture, aquiculture and fish-eries. For example, the airstrip on Majuro (RMI)also serves as a passive water catchment, col-lecting the rainwater that falls on the cementsurface and directing it into a holding pond thatcan be tapped for use. Roads can be similarlydesigned.

Although analyses of the potentials for com-bining such developments with renewable re-source development must be performed on anisland-by-island, and probably case-by-case ba-sis, which is beyond the scope of this report,a number of means to derive benefits for re-source development from infrastructure devel-opment can be suggested, including:

● integrating agriculture and aquiculturewith energy development,

● integrating tourism and resource develop-ment, and

● integrating urban development with re-source management.

Integrating Agricultureand Aquaculture WithEnergy Development

Energy is a major limiting factor to economicdevelopment, particularly in the U.S.-affiliatedPacific islands. Fossil fuels must be importedand the operating and maintenance costs foroil and gas energy production systems are high.Thus technologies conserving imported fossilfuels or using renewable energy sources are pre-ferred.

The energy demands in Micronesia are smallbut increasing; in aggregate 5.8 million barrelsof petroleum fuels (excluding jet fuel) are im-ported annually. The cost to local governmentsis high. Metered rates, where they exist, usu-ally have little correlation to the cost of pro-duction. Local governments often subsidize useby at least 50 percent (91). Given policies of notactively collecting bills, this can rise to 100 per-cent (24).

Puerto Rico and the USVI have well-devel-oped networks for electricity production anddistribution. It is unlikely that development of


renewable resources (e.g., for processing plants)may be hindered by the lack of electricity. Thecost of electric power, however, is high (77).In the past, the rural poor in Puerto Rico de-pended on cheap, accessible wood for cooking,but today that demand has diminished consid-erably and firewood is only used occasionally(68). However, charcoal commonly is used forbackyard barbecues and roadside food stands,

Energy availability and cost will continue tobe a major economic development problem inthe Caribbean and the Pacific. In the short run,energy conservative activities and technologiesnot dependent on expensive fuels are needed.In the long run, renewable sources of energy,based primarily on the sun and the oceans, mustbe developed. Although this energy has beenconsidered “free,” establishment and mainte-nance of the infrastructure required to tap itare costly and can require long payback peri-ods. Alternative energy sources are being ex-plored in all of the island areas. These sourcesinclude energy from biological processes, ther-mochemical processes, ocean-related energygeneration, and hydropower.2 Each of these canbe developed to include components mutuallybeneficial to agriculture, aquiculture, andenergy.

Agriculture and Energy Development

Agriculture can be integrated with severalother technologies to conserve and recycleresources and energy, increase production effi-ciency, and improve island environments. Op-portunities exist for generation and use of bio-mass for energy generation and biogas energyfrom animal and crop waste and residue.

Energy from the conversion of wood andother plant matter represents an important, po-tentially underexploited resource for the is-lands. As renewable domestic energy resources,these can help the islands reduce their depen-dence on imported oil. Energy could be derivedfrom numerous types of biomass, includingwood, grass and legume herbage, crop residues,animal manure, food-processing wastes, oil-

2A complete analysis of these technologies is beyond the scopeof this assessment. For further information see (50,51,52,53,55,94,96).

bearing plants, seaweed, and many other ma-terials (50,95).

Wood Fuels.—Fuelwood, including coconuthusks and shells, is the most plentiful and leastexpensive source of energy in Micronesia, andon most atolls the only source. Most of this fuelis used for cooking and sometimes for creat-ing smoke to repel insects from homes andgardens. Fuels used in cooking largely are by-products of the food production system: driedhusks of mature coconuts, husks of Inocarpusnuts, and wood from secondary vegetation gen-erally from fallowing garden sites (15). Char-coal is not widely used, though species thatmake high-quality charcoal (Leucaena spp.,casuarina, and mangroves) occur commonly onthe high islands (24).

Conversion to wood-fired electric plants inMicronesia is not foreseeable in the near fu-ture. Labor and capital investments are gener-ally higher for fuelwood plantations than forconventional stands due to higher stocking den-sities (often 20 to 40 times as high) which inturn affect the cost of seedling production.More mechanized harvesting and processingmethods are also required. Converting electricplant facilities and adjusting existing grid sizesalso would be costly.

Coconut-Derived Energy Products.—A num-ber of coconut palm products traditionally haveserved as primary fuel sources in the U.S.-affili-ated Pacific islands. Coconut husks and shellshave been the major Marshallese cooking fuelfor centuries. Husks and shells also fuel copradryers; distillation of salt from seawater; melt-ing of lead for fishing weights; and bleachingof the Pandanus leaves used in woven sleepingmats and fine handicraft items (67).

Coconut shell charcoal has been consideredas a possible byproduct of copra making in theMarshall Islands. High shipping costs, rela-tively high labor costs, and small potentialoutput would make centralized processing pro-hibitively expensive, although decentralizedprocessing on the outer islands (where thereis excess labor) might be possible (67).

The use of coconut palm biomass to fuellarger scale activities such as steam generation


is technically possible (16). Difficulties lie inin collecting, storing, and handling the quanti-ties needed for such uses. In the Marshall Is-lands, husks could be gathered in large quanti-ties on Majuro Atoll. However, husk shipmentsto Majuro from the outer islands are not possi-ble given current shipping capacity; the sheervolume of whole nuts or husks would be 10times greater than the volume of copra froman equivalent number of nuts. The costs of ex-panding service and of acquiring new shipsprobably would be prohibitive. If husks weregathered in large quantities for fuel, moreover,they would not be available for decay and re-turn to the soil. Atoll soils are very sandy andorganically poor, and loss of this nutrient in-put overall could have a negative impact (67).

The use of coconut oil as a substitute for dieselfuel is being examined in a number of coun-tries. Tests conducted in Western Samoa haveshown that coconut oil can be used alone orin a blend with diesel fuel without affecting en-gine power. Particulate matter in the coconutoil, however, clogged fuel filters after a fewhours of operation. Injector coking and resi-due accumulation on other internal parts wereexpected to be serious problems (63). Furtherresearch may reveal a way of avoiding theseby pretreatment of the coconut oil, modifica-tion of engine design, fuel blending with pe-troleum products or ethanol, or a combinationof approaches (67).

Successful coconut oil-fueled engines alsocould be used for power generation, thus elim-inating the supply problems inherent in bas-ing petroleum-fueled generating systems on re-mote islands. A 1983 cost comparison in theMarshall Islands showed that a 10-kW coco-nut oil-fueled, generator-expeller combinationwould be cheaper than a photovoltaic systemof the same size (28). Neither system, however,is affordable by outer island standards, and theywere not compared to standard diesel-poweredsystems. Moreover, the comparison did not ac-count for fluctuations of coconut oil prices ordeclining costs for photovoltaic systems as theefficiency of that technology improves. Thesefactors could drastically affect the comparison(67).

Biogas. —Considerable interest exists in en-hancing agriculture production through newand sometimes innovative integration of di-verse technologies into one production system.These include waste recycling by anaerobicdigestion to derive energy and nutrients—energy-integrated farming. By adding simplecomponents, this system also can be integratedwith aquiculture or residential waste disposal.This innovative system has not been usedwidely for commercial application, perhaps dueto lack of support by local practitioners, conti-nuity in technical assistance, or social or eco-nomic analysis.

The major objective of energy-integratedfarming systems is to transform animal or cropwastes cheaply into useful products and, thus,effectively recycle a wasted resource. The coreof the system is a digester: an oxygen-free con-tainer in which organic matter is fermented bymicro-organisms producing “biogas” and athick slurry (l). Biogas is comprised of about60 percent methane and 40 percent other gasesprincipally carbon dioxide. The same fermen-tation process occurs in nature whenever or-ganic matters decompose in the absence of oxy-gen, e.g., in animal digestive tracts or in swampmuds. The organic matter for recycling neednot be animal wastes. Crop residues, leaves,grasses, straw—virtually any organic materialsuitably prepared—can be used independentlyor in conjunction with manures to produce bio-gas. Induced fermentation processes in diges-ters can be made more efficient by controllingthe variables such as quantity and quality oforganic materials and temperature (l). Thequantity of biogas and residue produced in thedigester depends on the amount and types oforganic matter, the capacity of digester, andambient temperature.

Completely fermented slurry has reducedharmful organisms, is virtually odorless, andretains the fertilizer value of the original mate-rial. Solids can be manually or mechanicallyseparated from the liquid. The resulting sludgecan be processed and used for various purposes,such as potting soil or as an animal feed addi-tive (1,11). Slurry and sludge also can be usedfor fertilizing agricultural lands or to fertilize


Figure 8-4.—Components of On-Farm Biogas Systems

Conversion and products

I t d

I ● Kitchen refuse YI I i1 J

Slurry cleanup Water

subsystem AquicultureIrrigation

tIt

SolidsFertilizerAquicultureFeed recycle

SOURCE A.G. Alexander, “Assessment of Energy-Related Farming Technologiesfor U S Insular Areas,” OTA commissioned paper, 1986

aquiculture ponds. Biogas can be used to fuela variety of gas burning appliances such aslights, stoves, refrigerators, or even to run mod-ified gas-fueled engines (1,32).

Although each system is different, the basiccomponents of an energy-integrated farmingsystem are the same, with three basic units (fig-ure 8-4) (l): 1) a collection and blending systemin which organic matter (manure and wastes)is collected and mixed with water before fer-mentation, 2) a biogas digester wherein anaero-bic fermentation of organic matter takes placeand biogas is produced and stored, and 3) slurryand wastewater storage or separation. Effluentcan be used directly or the solids can be sepa-rated from the liquid and used separately.

Social, economic, and environmental bene-fits derived from the digester system include:

●

reduced fuel, fertilizer, and/or animal feeduse;avoided costs of waste disposal to achievecompliance with Environmental Protec-tion Agency regulations;

●

●

●

●

●

sales of farm products which are otherwisewasted;increased yield and quality of traditionalfarm commodities;reduced production costs;decreased purchased fuel or fuelwood usethrough substitution of biogas; andreduced health hazard and environmentalpollution caused by improper treatment ofwastes (l).

In addition, water is needed to wash wastesinto the system on a daily basis. Thus, a pro-gram to build biogas systems could result inimproved water systems for families as well asimproved sewer systems which could help al-leviate health problems (15).

Biogas production lends itself to a broad scopeof applications ranging from single-household,manually operated digesters with little need forhigh efficiency, to huge, costly, corporation-sustaining complexes totally reliant on hightechnology and having closely calculated “pay-back” scenarios that dictate their ultimate suc-cess or failure (1). Currently, a viable biogasplant requires a minimum of four to five con-fined pigs or cattle (53). Development of en-ergy-integrated farm technologies in the nearterm (6 to 7 years), probably will affect com-paratively few farmers having existing largemanure supplies and pressing need for its dis-posal. In the longer term (8 to 20 years), small-farm and household-level biogas units could beimplemented that could contribute to the gen-eral welfare of insular communities.

Small-Scale Operation. —In small farm oper-ations or rural family farming, biogas can beused for lighting or cooking. The solids can beseparated from the residual liquids by coarsesieving or merely by gravity separation in asmall settling pond designed for periodic drain-ing and cleaning (l). Wastewater can be usedfor garden irrigation, or can be cleaned by aninexpensive aquiculture of organisms such astilapia and water hyacinths that thrive on therich suspended organic matter still containedin the digester effluent. The major constraintfor increased application of small-scale opera-tions is the strong cultural resistance of many


islanders to handling animal wastes. Further-more, the initial capital cost is outside the ca-pacity of most small farmers.

Large-Scale Operation.—Although opportu-nities for large-scale integrated farming systemsexist, implementation and widespread appli-cation are seriously constrained by: 1) lack oflarge livestock operations that can produceenough recoverable wastes, 2) lack of exper-tise in design, installation, and operation, and3) lack of capital support (1). The largest com-mercial application of energy recovery of wastesusing fermentation principles was recently in-stalled by the Bacardi Corp. in Puerto Rico (84).Benefits derived from large-scale operation in-clude potential direct substitution of purchasedutility power and periodic sales of excess powerto local utilities. Indirect substitutions include

the recycled mineral nutrients contained in thedigester solids and wastewater, in protein recy-cled to farm animal feed, in imported dry-feedsand feed concentrates substitution with green-feed, and on-farm production of plants andaquatic organisms produced in the aquiculturesubsystems (l).

Aquaculture and Energy Development

Aquiculture can be integrated with irrigationand other agricultural support systems, as wellas with wastewater treatment and energy de-velopment, to the mutual benefit of each de-velopment component. Because power is abasic commodity in developed and developingeconomies, and most power-producing plantsare constructed in coastal zones, powerplants

Ch. 8—Technologies Supporting Agricultural, Aquacultural, and Fisheries Development . 301


Slurry derived from this large-scale biogas system isdirected through aquiculture tanks containing tilapiaand water hyacinth before being discharged throughan irrigation system, thus, providing several benefits

in addition to energy generation.

and mariculture systems could be designed tobe mutually beneficial.

The oceans of the world, and the Pacific inparticular, are a reservoir of potential energy.There currently is no available low cost andsimple means of exploiting this potential in sub-stantial quantity. Numerous technologies beingresearched may one day change this situationalthough, with the exception of wind-poweredshipping, this does not seem likely to occur forseveral decades. Major ocean energy systemspotentially suitable for the tropics are oceanthermal energy conversion (OTEC), passive sea-wave energy systems, and biomass and solarpond systems. Integration of aquiculture withthese technologies may improve their economicfeasibility and make productive use of oceanenergy “wastes.”

OTEC systems use large quantities of coldwater pumped from deep ocean areas to thesurface, similar to natural upwellings of coldwaters along some continental coasts (94,96).OTEC uses the surface water as a heat sourceand the cold deep water as a heat absorber. The“fuel” is free, but low efficiency means that verylarge volumes of warm and cold water mustbe circulated through the system. The energyand material cost of pumping large volumes of

cold water from considerable depths effectivelyprecludes the development of small-scale OTECsystems.

A byproduct of OTEC schemes is artificialupwelling of deep, cold waters. Tropical sur-face waters are nutrient poor, but the deepwater is nutrient-rich. Such water, after its tem-perature change has been used to generateenergy, can be used for mariculture. The cul-ture systems use the upwelled, nutrient-richwater and abundant sunlight for primary pro-ductivity (mainly phytoplankton) on whichother organisms are cultured in sequence. Suchtechnology may be applied wherever the landborders deep seas (e.g., atolls and volcanic is-lands) primarily along the equatorial belt, wheresolar radiation is plentiful.

Artificial upwelling mariculture systems havebeen demonstrated on St. Croix and in Hawaii.The USVI project has since closed and is con-sidered a failure due to a need to supplementupwelled water with additional nutrients andrapid spread of infections and disease withinthe monoculture organisms (59).

Since 1981, a number of mariculture experi-ments have been conducted at the NaturalEnergy Laboratory of Hawaii (NELH), an alter-nate energy research, development, and dem-onstration center. Some species demonstratedhigher growth rates in comparison to naturalrates or those in other aquiculture systems. Cur-rently kelp and abalone are being commerciallycultured using NELH’s “artificial upwelling,”and plans are underway to grow algaes to pro-duce a nutritional additive, pharmaceutical-grade biochemical, pigments, vitamins, andfertilizers. Indications are that development ofartificial upwellings do not need to be involvedin power generation to be financially attractive(9).

Wave energy systems are a more steady andpredictable energy source than the winds fromwhich they draw their energy, yet variationsin wave size and energy are substantial. Waveenergy is concentrated at the sea surface, con-sequently a wave energy collection device needsto be of substantial extent, hindering its applica-bility to small islands (14). However, sedentary


species can be cultured in much of the areaotherwise reserved for energy generation.

Biomass energy generation systems have pri-marily focused on using kelp, a large, coldwaterseaweed. Submerged reef areas and lagoons areprobably available near the U.S.-affiliated is-lands where other macroalgae could be grown,but the nutrient-rich water required is largelylacking in tropical areas.

In several places in the Caribbean, includ-ing St. Croix, pilot programs have studied thefeasibility of converting raw algal biomass intomethane gas and other sources of cheap, non-polluting energy (17). Algae are grown on en-closed (often floating) artificial substrates, har-vested periodically, and converted chemicallyto gas. Two major problems influence the suc-cess of this process: 1) the relative scarcity oflarge, fleshy algae in island waters, particularlyin light of intense fish grazing; and 2) the costof nutrients and processing chemicals (103).This technology probably is more suitable foropen ocean culture rather than nearshore sys-tems (14).

Solar ponds use a strong salinity gradient tosuppress convective mixing of a body of waterheated by the sun (55). A substantial supply ofsalt is needed to maintain the required highlysaline bottom layer. Hypersaline ponds in PuertoRico and the USVI and Pacific atoll lagoonsmay lend themselves to solar pond energy gen-eration. The cleanliness of the air on small is-lands and the clarity of the sea water wouldgreatly reduce one of the problems with land-based ponds: heat-absorbing leaves, dirt, etc.,accumulate in the surface layer reducing theheat collected by the highly saline lower layers.Certain salt-tolerant species, such as brineshrimp (used in livestock and fish feeds) prob-ably can be cultured in these ponds with littledetriment to energy generation.

Integrating Tourism andResource DeveIopment

Tropical island environments not only encom-pass a variety of economically important renew-able resource systems, they also attract tourists.

The integrated development of renewable re-source uses and of tourism will require carefulplanning, but is preferable to isolated and pos-sibly conflicting approaches to these two op-portunities for economic development on theislands.

Economic benefits and negative environmentaland social impacts as well have been attributedto tourism in developing countries (33). Whetherthe former outweigh the latter has been a mat-ter of some debate among economists and so-cial scientists. While small tropical islands maybe particularly vulnerable to tourism’s negativeimpacts, with proper planning and management,tourism development may be paced and inte-grated with resource management in ways thatmaximize the economic and environmentalbenefits of a tourist industry and mitigate itsadverse impacts (3). For example, tourism canprovide both the need and the capital means(as well as one rationale) for protecting natu-ral areas, as well as the impetus for repairingenvironmentally degraded areas. Tourists rep-resent potential consumers of island products,and their presence creates jobs in a variety ofproduction and service sectors.

Local governments can set objectives for in-tegrating tourism into island economies and de-cide what environmental and social changescan be tolerated and what resources can becommitted. If the scale of development exceedsthe limits of change acceptable to the environ-ment or community, a tourist destination couldquickly “peak out” and stagnate or decline inpopularity.

Impacts of Tourism

Tourism research to date has primarily fo-cused on economic and social impacts (3). Thepotential benefits of a tourist industry includeincreased job opportunities, improvements ininfrastructural services, and increased tax rev-enues and foreign exchange earnings. Incomefrom tourism can help offset deficits createdby imports of raw materials and manufacturedgoods.

The quality of the environment, which is whatattracts tourists to the islands, however, can


be compromised by tourists themselves. De-mands for land, water, and waste disposal gen-erated by tourism may stress the limited re-source base of small islands. Waste disposal,especially from large development, can be a par-ticular problem if effluents are discharged intolagoons or other nearshore areas with limitedcirculation. Other potential contributors toenvironmental stress are construction and rec-reational activities (66). Tourists may disturbwildlife, trample coral, and collect live shellsand corals. It has been estimated that 1 live coralhead was collected for each 230 visitors toHawaii—equivalent to about 19,000 to 24,000specimens in 1 year (3). All of these environ-mental impacts will vary with the character andintensity of tourist site-use and development,and resiliency of the ecosystem (7).

Some of Caribbean tourism’s most visible im-pacts are on the environment. In the space ofone generation, natural coastal and beach areashave been displaced by hotel and marina ex-pansion. Mountain faces and pristine land-scapes have been etched with condominiumsand roads. Large developments have alienatedvast land areas from traditional uses and evenmodified climatic features (41). Sensitive eco-systems like swamps and mangroves have beenirreversibly disturbed and lobster and fish bedshave deteriorated (43).

Tourism may also have negative socio-cul-tural impacts, including changes in demogra-phy, lifestyles, consumption patterns, work andleisure habits, and loss of traditional values andcustoms, These effects vary with the numbersof tourists (relative to native population), andwith the extent of the cultural and sociologicaldifferences between the tourist and indigenouspopulations (89), Their impact can be large onisland territories with small populations.

Finally, some of the positive economic bene-fits of tourism may have been overstated. Tour-ism can function as a seed industry if profitsare reinvested in other sectors of the economy.This does not happen as often as expected;much of the income from tourism goes off is-land to purchase imports, many for the touristindustry (3).

The failure of tourism to benefit the localeconomy on a greater scale, and the imposi-tion of burdens on the local population to thebenefit of the industry (e.g., loss of publicbeaches to resorts) has, in some cases, contrib-uted to a sense of resentment by the residentpopulation. Tax incentives encouraging to tour-ism development means loss of revenue for lo-cal governments. Local people become frus-trated because, while they are employed in arange of jobs from low service positions to mid-dle management, top managers and owners areusually foreign (10). It has been argued that po-tentially negative impacts of tourism on a hostcountry are primarily a concern and responsi-bility of government (26), since private sectorinvolvement is likely restricted to financial andeconomic considerations.

Pacific Tourism. —Tourism has developedonly on certain Pacific islands; vast stretchesof ocean separate destinations. Statistics ontourism in the Pacific are scattered amongmyriad sources and are not presented in a con-sistent or standardized format. The Pacific AreaTravel Association annually compiles one ofthe more complete and detailed compendiumsof statistical information on tourism, but doesnot cover Palau or the Marshalls.

Tourism development is a stated goal of eachof the U.S.-affiliated island governments. Guam


The natural beauty, unique cultural settings, and historicsites of the U.S.-Affiliated tropical islands attract

growing numbers of tourists.


and Saipan have reached the intermediatestages of the tourist development model pro-posed by Butler (4), as defined by: 1) increas-ing external influence on tourist infrastructure,2) large numbers of tourists who use the serv-ices of travel agents and other organized infra-structure, 3) declining rates of increase in tour-ist numbers, 4) heavy advertising and marketingto attract visitors and extend the tourist sea-son, 5) the presence of major franchises andchains, and 6) some local opposition to tour-ism. The more remote islands of Micronesiaattract considerably fewer visitors than do thoseof the Marianas chain. In 1981, only 20,981 vis-itors were recorded for Palau and the FSM com-bined, most from the United States (44,61,62).American Samoa also receives few tourists.

Many of the same factors that constrainrenewable resource development also constrainthe development of the tourist industry in thePacific region. These include lack of reliable,inexpensive, frequent air service; lack of de-velopable land for transportation and facilities;insufficient infrastructure; a reliance on im-ported foods, materials, and energy; and lackof trained personnel. Availability of transpor-tation is often cited as the primary limiting fac-tor in the development of an island’s touristindustry (64). The distance between servicepoints necessitates large aircraft, but lack ofmarket populations prohibits reasonable oper-ating cost structure (62). Carriers, routes, andtimetables change frequently. Water suppliescritical to tourism also are small on many is-lands. Depending on the nature of development,potable water requirements could vary from100 to 500 gallons per person per day (22,99).

Finally, in some areas, cultural traditions in-hibit acceptance of tourism as a viable optionfor earning a living (29,31,90). Even where tour-ism employment is acceptable, avoidance ofhostility among local people is linked to the pro-vision of good jobs, not menial employmentonly, and to local ownership (66). Managementjobs, however, are primarily filled by expatri-ate personnel rather than local people, possi-bly leading to frustration.

Caribbean Tour ism.—Many attractivebeaches, an ideal climate, and proximity to ma-jor markets have given the Caribbean an advan-tage in competing for international tourists.However, only with the advent of mass tour-ism of the 1950s and early 1960s did tourismbecome a major economic activity in the region(81). The Caribbean region captures almost 3percent of world tourism. As a result, the im-portance of tourism has become pervasive, andit has become the leading sector for the majorityof Caribbean microstates (42).

Puerto Rico and the USVI depend largely onvisitors from the urban populations of theUnited States and Europe. In the USVI, tour-ism is the base of the private economy and themajor economic activity contributing to thegross domestic product (GDP) and employmentgeneration (43). Tourism is economically, so-cially, and physically pervasive. The territoryhas received over a million tourists annuallysince 1972 and, in 1979, total visitors outnum-bered local residents by a factor of 13. Theirgross expenditures were double the entire oper-ating budget of the Virgin Islands local govern-ment. Because it is so labor-intensive, the touristindustry has a considerable impact on employ-ment, generating nearly one-third of all islandjobs. Tourist infrastructure dominates the in-sular landscape. The islands’ tourist economymakes the territory a major growth centerwithin the eastern Caribbean; however thereis no consistent, reliable, quantitative base fromwhich to assess the economic contributions andperformance of the tourism industry (81).

In Puerto Rico, which is economically morediversified, tourism accounts for a smaller por-tion of the GDP and total employment (81). Al-though tourism accounts for only about 5 per-cent of GDP, it creates linkages throughout theeconomy which result in increased total out-put by nearly all other economic sectors. Thus,for every tourist dollar spent between 1970 and1980, GDP increased by an estimated averageof $1.25 and total gross output by an averageof $2.08. In all, 142 jobs were created in PuertoRico in fiscal year 1980 for every $1.0 million


spent by tourists, including an estimated totalof 1,442 jobs in agriculture (75).

Caribbean tourism appears to face a challeng-ing period ahead. A new recognition existswithin Caribbean governments of the costs andbenefits of tourism, and of the need for long-term planning with accurate market informa-tion (81). Long-term tourism viability will prob-ably require a more focused marketing strat-egy, and it may depend on the industry’s linkagepotential with domestic sectors, such as agri-culture and fisheries (43).

Local governments may need to insist on sub-stantial local shareholding and participation intourism-related companies. Residents could betrained as tour leaders in a program similar tothe intensive summer training at the Univer-sity of Hawaii School of Travel Industry Man-agement.

Opportunity: Create Linkages BetweenTourism and Island Producers

Systematic management to promote increaseduse of local agricultural produce in hotels andrestaurants could help encourage regularity ofsupply and quality (18). Similarly, increased useof island handicrafts for decor in tourist facil-ities, and sales of handicrafts to tourists canfoster this resource-based productive sector.

Whereas large, “industrial tourism, ” charac-terized by hotels and infrastructure meeting in-ternational standards, require substantial in-vestments in support facilities, and largelydepend on imported foods, smaller scale, econ-omy-class tourism, and “craft tourism” with“homestays” can make more use of island prod-ucts. The islands could strive to attract moretourists of the second type, including “explor-ers” and “adventurers” (3). Educational tourismalso is becoming popular as upscale travelersseek opportunities to learn about the cultureand environment of remote areas. Promotioncould be approached from the islander’s per-spective. What is special and important to theperson who lives there? What would they likethe tourist to see to get a true sense of the place?

Handicrafts Industry Development3

Island peoples have traditionally used fibers,shells, wood, and other local materials to makea wide variety of implements and decorativeobjects (table 8-2). Although some loss of skillshas become evident on some islands in recentyears, considerable interest in and demand forisland handicrafts exists, mainly on the part ofexpatriate and tourist populations. Handicraftindustries, if developed with attention to effi-cient production, marketing and quality con-trol, could contribute significantly to islandeconomies; attract more tourists; foster pres-ervation of traditional art forms and pride inindigenous skills; and make productive use ofsome natural resources that might otherwisebe left unused.

Many contemporary handicrafts in the is-lands are derivatives of traditional forms, insome cases miniaturized and standardized forsale to tourists. Other are innovations, fash-ioned with newly imported tools and materi-als, and geared to the tastes of tourists and othernonnative buyers, Few handicrafts today areintegral to life and culture on the islands.

Pacific.—The rich variety of traditional han-dicrafts in Micronesia reflects the culturaldiversity of the islands. Basketry and hand-weaving of natural fibers was the most widelyspread skill, developed to a fine art in easternMicronesia where wood was scarce. Containerswith elaborate shell inlays were characteristicof Palau, and pottery was made where clay wasavailable in Palau, Yap, and Saipan. Loomweaving was practiced in the central Carolinesand tapa cloth (made from tree bark) was madein Samoa. The Trukese were skilled in bothwoodwork and fiber arts.

3This section is summarized from M. Vitarelli, “HandicraftsIndustry Development and Renewable Resource Managementfor U.S.-Affiliated Pacific Islands, ” OTA commissioned paper,1986; and from D. Sheehy, “Traditional Crafts in the U.S.-Af-filiated Caribbean Islands: An Addendum to Handicrafts IndustryDevelopment and Renewable Resource Management for U. S.-Affiliated Pacific Islands,” OTA commissioned paper, 1986.


Table 8-2.-Primary Resources Used in Craft Production in U.S.-Affiliated Pacific Islands

Type of materialName of raw material Where used (and part used) Crafts made from materials

Coconut (tree) . . . . . . . . . all islands fiber ( leaves) wood (trunk)husk, shell of nut

Pandanus (tree) . . . . . . . . . all islands fiber (leaves)wood

Banana (tree) . . . . . . . . . . . most islandsMangrove (tree) . . . . . . . . . high islandsBreadfruit (tree) . . . . . . . . . low islandsIvory nut palm (tree) . . . . . PohnpeiMahogany (tree). . . . . . . . . high islandslronwood (tree) . . . . . . . . . most high islands

some low islandsDort (tree) . . . . . . . . . . . . . . PalauIfil (tree) . . . . . . . . . . . . . . . many islandsPaper mulberry (tree) . . . American SamoaHibiscus (bush) . . . . . . . . . all islands

Bo-jo-bo (vine) . . . . . . . . . .SaipanTumeric (herb) . . . . . . . . . . most islandsBamboo . . . . . . . . . . . . . . . high islandsTrochus Shell . . . . . . . . . . most islandsPearl oyster . . . . . . . . . . . . most islandsTurtle shell . . . . . . . . . . . . . most islandsCowrie & other shells . . . most islands

fiber (leaf sheaths)woodwoodnutwoodwood

woodwoodfiber (inner bark)fiber (inner bark)woodnutrootwoody fibershellnacreous shelltortoise shellentire shell

baskets, purses, matsspears, bowlstwine, ladles, jewelry, beltsmats, fans, purses, baskets, pillows, hats, wall

decorations, cigarette cases, woven sails for modelcanoes, etc.

lava-lava skirts, cordage, wrapping used in other craftswood carvings, statuescarvings, model canoescarvings, jewelrycarvingscarvings

carvingscarvingstapa clothfiber Ieis, mwarmwar, ropes, nets, “grass” skirts,

carvingsbo-jo-bo dollsyellow dye for fibersfish traps, hair combs, navigation chartsjewelry (exported for use as buttons)jewelry, inlay for wooden bowls, carvingsjewelry, combs, women’s “money plates”jewelry, purses, ornaments, parts of decorative wall

hangingsjewelryCoral (red & black) . . . . . .W. Carolines coral

SOURCE: M. Vitarelli, “Handicrafts Industry Development and Renewable Resource Management for U.S.-Affiliated Pacific Islands,” OTA commissioned paper, 1986

While the range, diversity, and variety ofform; quantity; and quality of handicrafts haveall decreased, only certain traditional skills havedisappeared. Many interesting new forms ofhandicrafts have emerged in part because tour-ists, foreign museums, and shops all expressan interest in purchasing island crafts. Marketsurveys have shown that Pacific island handi-craft products are readily salable within andoutside the territory, for example, to major out-lets in Hawaii, the U.S. mainland, and Canada(78). However, production at reasonable pricesmust be stimulated and the success of theindustry currently depends on tourism, notexport.

Development of handicrafts as a small indus-try has not yet occurred within the Pacific is-lands for a number of reasons. Local productsoften lose out in competition with cheaper im-ports. In some areas, tourist demand for han-dicrafts outstrips local supplies of quality prod-ucts offered at consistent prices. Guam, for

example, attracts many tourists and has numer-ous outlets for sale of handicrafts, yet few arelocally produced. The lure of a steady incomethrough government employment may be largelyto blame. Handicrafts are normally home-pro-duced and marketed on an individual basis, andin one’s spare time. Production is rarely anorganized group effort, although exceptions oc-cur (e.g., museum-employed draftspersons onAmerican Samoa; a National Endowment forthe Arts project on Palau; the Small IndustriesWorkshop on Truk; Ponape Coconut Productspackaging; crafts groups at Kolonia, Pohnpei;and a few government-sponsored projects).

Few producers have marketing skills and nocooperatives or intermediary marketing agen-cies exist to supply these and help assure regu-lar quality production. Also lacking are mech-anisms for the preservation and transfer ofhandicraft skills; a guaranteed market in someareas; and an assured, constant supply of rawmaterials, some of which must be prepared for

Ch. 8—Technologies Supporting Agricultural, Aquacultural, and Fisheries Development • 307

Photo credit” M. Vitarelli

Traditional crafts, although gaining importance ascommercial items, retain their practical application ineveryday island life. Shown here, coconut leaves are

being woven into a utility basket by anisland draftsperson.

use. Even today, periodic depletion of resources,and delays in getting materials to draftspersonssometimes hampers production.

Caribbean.— As in the Pacific, traditionalcrafts until recent decades played a vital rolein the daily lives of most Puerto Ricans and Vir-gin Islanders. Historically, most were depen-dent on traditional craft skills for many of theireveryday necessities.

The traditional handicrafts currently foundin Puerto Rico clearly reflect three major strainsin the island’s cultural history. Woven hemphammocks were common to the local ArawakIndians and are still fabricated locally. Thebomba drums and painted coconut husk masksand maracas are clearly of African derivation.

Certain musical instruments, carved woodenanimals, and santos (religious icons) areuniquely Puerto Rican but draw from Spanishprototypes. Other prominent Puerto Rican craftforms are pacemaking; jewelry made from lo-cal seeds, shells, and coconut shell; basketry;machetes; wooden furniture and caning; tin-work; and pottery and papier mache masks.

As the modern technology and factory-madegoods of the United States were increasinglyimported by the islands from the 1920s to thepresent, three general trends of change wereobservable. First, many handicraft skills wereeclipsed or were forgotten through disuse, asforeign-made or factory-made items were im-ported. Skills at roof thatching, for example,were all but lost as corrugated tin and otherready-made materials were used to cover peo-ple’s homes; brooms, vine baskets, palm hats,hand-hewn wood furniture, fish traps, andother common necessities were increasingly offoreign origin.

Second, as society became more commodity-oriented and the dictates of the marketplaceplayed an ever-increasing role in the produc-tion of handicrafts, crafts that were not com-petitive as commodities fell into desuetude. Asthe set of esthetic criteria that determined qual-ity shifted from those of the local, primarily ru-ral and agricultural community members tothose of the city-dwelling consumers of urbanSan Juan and foreign lands, traditional craftsthat could find a niche in the marketplace com-monly suffered an esthetic disjuncture. In somecases, the change in the process of crafts pro-duction from the craftsman devoting great at-tention to each individual piece to the crafts-man having to maximize the number of piecesproduced in order to meet the demand resultedin greater standardization, reduced artisticdiversity, and miniaturization.

Finally, the burgeoning tourist industry,hand-in-hand with underemployment, createdan economically appealing situation for thoseinterested in producing and selling handicraftsfor foreign tourists. Many (if not most) of thesecraft items were made and marketed as sou-venirs or “hand-made” crafts and did not drawon local traditional craft skills or esthetic ideals.

308 • Integrated Renewable Resource Management for U.S. Insular Areas

Photo cradit: M. Vitarelli

Traditionally used raw materials such as pandanus and coconut leaf fibers and shells still are used today in many fineisland handicrafts. Clockwise from top left 1) Marshall Islands’ place mats, 2) Trukese wall decoration with cowrie shell

accents, 3) Marshall Islands’ sewing basket with cowrie shell accents, and 4) Trukese decorative tray.

Although Puerto Rico’s crafts have clearlysuffered a decline in this century, in many casesthere has been a renewed vitality since the1950s. The Institute of Puerto Rican Culture,created in the 1950s, began a policy of stimu-lating the practice of indigenous traditional artsthrough contest, local and islandwide craftsfairs, exhibits, and education programs. Morerecently, the Office of Crafts Development ofthe Administration de Fomento Economicoprovides technical assistance and some toolsto traditional craftsmen. It also has institutedan annual recognition program of Master Crafts-man of the Year and Young Craftsman of theYear, bringing prestige, recognition, and great-er visibility to Puerto Rico’s craftsmen. In addi-tion, several crafts items have been consciously

promoted as symbols of insular identity, suchas the omnipresent carved wooden coqui (asmall frog).

Traditional crafts of the U.S. Virgin Islandssuffered a similar decline as did the crafts ofPuerto Rico, but have not enjoyed a similarrenewal of vitality. Few traditional craft itemshave been converted successfully to commodi-ties for the tourist or local market. Some craftstraditions continue, such as fishnets, fish traps,and the woven grass hats of Frenchtown, butthey are to be found at the margins of daily life.

Traditional crafts have not received the gov-ernmental recognition and support in the USVIas they have in Puerto Rico. The Virgin IslandsCouncil on the Arts and the multicultural edu-

Ch. 8—Technologies Supporting Agricultural, Aquacultual, and Fisheries Development • 309

cation divisions of the local public schools havegiven some attention to local traditional cul-ture, but to date there has been no comprehen-sive survey to inventory local crafts and assessthe needs of local traditional craftsworkers, norhas there been any focused government effortat conserving local handicrafts.

Opportunities to Encourage Handicraft In-dustry Development.–Several measures canbe taken to mitigate these constraints and toencourage the growth of a handicrafts indus-try in the U.S.-affiliated islands. Producers, forexample, can cooperate for specific purposes(advertising, participation in fairs) and stand-ardize prices for handicrafts. Island hotels,restaurants, and offices can make more use ofhandcrafted items in place of imported glassand plastic decorative items. Perhaps with Fed-eral Government support, island governmentscould:

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aid in the provision of tools, materials, andworkplaces;help establish vocational training inschools and master-apprentice programsfor transfer of skills from elders;provide publicity, sales promotion, andsales agents;establish museums and cultural centers(with handicraft sales shops) on majorislands;provide funding for filming or other doc-umentation of crafts being made to aid skilltransfer and educate visitors;where export is feasible, compile a tradeindex or list of overseas products, produc-ers, and retailers for distribution overseas;create tax incentives for organizations andbusinesses who support local handicrafts,or culture and the arts; andprepare handicraft development plans.

In the latter, planners must choose betweenemphasis on limited production or mass-pro-duction; indigenous handicrafts or innovativederived forms; local consumption or export. Ex-cept in unusual cases, in the near-term han-dicrafts are likely to remain a source of sup-plemental income to small-scale artisans, thusprograms to increase the earnings potential of

handicrafts must be long-term (56). A wise ap-proach to development might be cautious step-by-step expansion, building on existing skillsand focusing on quality and organization be-fore mass-production is attempted.

If a systematic effort is made to improve andexpand the handicraft industry, methods ofconserving and/or replenishing supplies of rawmaterials must be researched and implementedto avoid depletion. As limited rural lands con-tinue to be developed in the U.S. Caribbean,and as certain crafts grow in popularity, re-source depletion may hinder development ofsome crafts. Reforestation programs could beinitiated to ensure a continuous supply of wood,laws enacted and enforced regulating the col-lecting of shells and coral, and neutral landsset aside for cultivation of fibers (40).

Integrating Urban DevelopmentWith Resource Management

Renewable resource management can be in-tegrated into urban development in a numberof ways, including: wastewater treatment andreuse to protect nearshore ecosystems and forland fertilization, and development of urbanforestry to provide noise reduction and otherenvironmental services and a source of high-value wood for small-scale artisans.

Wastewater Treatment and Reuse

Providing safe drinking water and protectionof groundwater supplies are important goalsin the U.S.-affiliated islands. Solid waste man-agement, including controls over littering andcentralized refuge collection and disposal, isalso needed. Sewerage linkups to appropriatelydesigned treatment plants and outfalls areneeded by many urban subdistricts and villages(39).

Most U.S.-affiliated islands are facing prob-lems in ensuring safe water supplies and ade-quate sewage disposal. For example, reportsfrom diving groups suggest that Truk lagoonis becoming so polluted that, unless waste dis-posal in the lagoon is minimized, divers mayventure elsewhere in the future, reducing tour-


ist income (39). In July 1982, sewage pollutionin Truk lagoon activated a cholera outbreakleading to loss of life (8).

Although EPA is constructing outfalls andtreatment facilities for domestic sewage on theislands, funds are inadequate for hookups toindividual houses and businesses. Thus, sew-age pollution remains a serious problem. Con-struction of sewage outfalls and treatmentplants has been accomplished or is planned forPohnpei, Kosrae, Yap island, and Falalop onUlithi (Yap). Solid waste disposal and landfillmanagement continue to be challenges (39). Theneed to manage wastewater discharges andsolid waste disposal will continue to grow withthe populations unless remedial actions andnovel approaches which reduce constructionand maintenance costs are identified and ini-tiated.

Integrated Aquiculture/Wastewater Treat-ment Systems.—Seaweed or aquatic plant cul-tivation might also be used for water treatment(57,58). Aquatic plants effectively strip muchof the nutrients from wastewater, thereby re-ducing eutrophication effects in the receivingwater body (46). The use of aquatic plants forwastewater treatment has considerable poten-tial for use in the tropics because of the stableenvironmental temperatures. Aquaculture sys-tems for water treatment have been institutedin several areas of the continental United States(23,76) and this concept deserves more atten-tion for application on the islands (56).

Land-Application of Sewage Sludge andWastewater.—Treated wastewater is not nowused for irrigation on the U.S.-affiliated islands.On St. Croix, use of a saltwater flush systemin some areas makes wastewater too saline (47).However, wastewater blended with impoundedrunoff can be used for irrigation.

Some wastewater facilities plans in PuertoRico call for the land disposal of some effluentsvia irrigation (34). However, there is declininginterest in this since irrigation demand has di-minished (47).

Adequately digested and disinfected sewagesludge could be valuable as a soil conditionerand fertilizer in many areas. On Guam, treatedsludge is used to a very limited extent by localfarmers. In other areas, cultural beliefs wouldhave to be overcome and facilities constructedto yield safely treated sludge. An increasingconcern is the extent to which heavy metalsand toxic substances enter sewer systems andconcentrate in sewage sludge (37). Only theUmatic/Merizo waste treatment facility onGuam employs land treatment on a relativelylarge-scale, but the success of this operation hasbeen hampered by operating and maintenancedifficulties. These, plus land availability andpublic acceptance constraints are major obsta-cles to land treatment of wastes.

Urban Forestry

Urban forests have a number of influenceson the quality of the residential and urban envi-ronment in addition to contributing to an es-thetically pleasing environment. Although littleinformation exists on the effects of open-growntrees and 30 to 50 percent tree canopy coverapplicable to urban forest situations (74), ur-ban trees can reduce the kinetic energy of rain-drops thus protecting parks, lawns, and unpavedroads and may help regulate water runoff. Treesshade buildings, thus reducing ambient air tem-peratures and, perhaps, reducing energy con-sumption by air-conditioners. On the otherhand, trees can restrict air flow around build-ings and reduce the cooling effect of wind onthe buildings. Urban noise can be amelioratedby woody vegetation, which serves as a barrierto sound waves, and dense litter layers, whichabsorb sound (74).

Forests and forest soils in and around urbanareas can serve as “sinks” for air pollutantssuch as carbon monoxide although, of course,they also can be a source of allergens. Urbanforests also commonly are inhabited by birds,some of which are insectivorous and reduceinsect populations perhaps reducing the needfor pesticides. Finally, urban forests can serve

Ch. 8—Technologies Supporting Agricultural, Aquacultural, and Fisheries Development . 311

as a source of valuable woods. Urban and road-side trees that must be removed for other rea-sons supply much of the raw material for asmall wood crafts and specialty furniture in-dustry on St. Croix (USVI). This use of avail-able wood could be a model for economic useof wood where large-scale commercial forestryis not feasible (92).

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