USVI Public Records

Document text

Virgin Islands Agricultural Experiment Station Report No. 2 June 1974 FRUITS and EGETABLES Production and Consumption Potentials and Marketi ng Problems in the U.S. Virgin Islands ee OE We + > “<a de: 4 a Waal a ws IE: 3" .* cM a. % . > | > ts A FPN yc a . oo s < ey aes J, yey an < on”, aA”. ger ~s> 74 (v7 Malay? ei ' “A, a Ran, oe ) at \ Samra: & Ys = we \\ - Te Oe 3 a« a) f “y \ y¥% Dee |= ~<) 7 ¥i “i wrt avy ~— a ? avd Pte wages VIRGIN ISLANDS AGRICULTURAL EXPERIMENT STATION Fenton B. Sands, Director — St. Croix, U.S. Virgin Islands Virgin Islands Agricultural Experiment Station Report No. 2 June 1974 FRUITS and VEGETABLES Production and Consumption Potentials and Marketing Problems in the U.S. Virgin Islands College of the Virgin Islands in Cooperation with Commodity Economics Division Economic Research Service U.S. Department of Agriculture Virgin Islands Agricultural Experiment Station Fenton B. Sands, Director St. Croix, U.S. Virgin Islands CONTENTS Page Foreword ©0000... 0.000 ees iii Summary and Conclusions ...................022-050000---- i Vv Current Status of Fruit and Vegetable Production and Requirements Lees 1 Major Constraints to Fruit and Vegetable Production ............- en 1 Enterprise Budgets for Selected Crops .............0 00000002 eee eee 3 Income Estimates for a Fruit and Vegetable Farm ......._.......---. 45+: 4 Problems of Labor Distribution .............0.000 00... e eee eee 6 Demand for Fruits and Vegetables in the Virgin Islands ................. 6 Potentially Profitable Items for St. Croix Producers ..................05: 16 Marketing Channels and Practices ............0..005 00 cece cece eeee 18 Attitudes of Local Firms Toward Virgin Islands Produce ................ 19 Requirements to Meet Domestic Consumption .................0.----55: 20 Appendix ............ eee eee eee bennett eet nent eens 23 COVER PHOTO: Some of the fruits and vegetables raised on St. Croix. The vegetables include pump- kin, cabbage, carrots, onions, tomatoes, okra, turnips, bell peppers, eggplant, cucumbers, sweet corn and sweet potatoes. Fruits include bananas, pineapples, mangoes, coconuts, avocados, papayas, melons, or- anges and grapefruit. FOREWORD This report, “Fruits and Vegetables: Production and Consumption Potentials and Marketing Problems in the U.S. Virgin Islands,” is one of a series of feasibility studies sponsored by the newly created Virgin Islands Agricultural Experiment Station, College of the Virgin Islands. These investigations were financed totally with Federal funds made available to the Station under the provisions of the Hatch Act, Amended. . Preparation of this report was accomplished through a cooperative agreement with the Com- modity Economics Division, Economic Research Service, U.S. Department of Agriculture. Dr. Troy Mullins and Dr. Robert W. Bohall, agricultural economists of the Economic Research Service, conducted the study and wrote the manuscript for this report. The objective of these studies was to try to determine the agricultural enterprises, both plant and animal, that have economic potential on the Virgin Islands. It is my belief that the agricultural industry must be economically sound in order to be viable. On the Virgin Islands, agriculture has been on the decline since the early part of the 1960's. The average number of farms, farmers, and production of agricultural commodities (with the ex- ception of fluid milk) have all declined at a consistent rate. Among the questions which are upper- most in the minds of many people are: What factors have been responsible for these declines? Can these downward trends be stopped and perhaps reversed? What is the future of the agricultural industry, particularly on St. Croix where 85 percent of the farmland is located? This report on fruit and vegetable production, along with the others, sheds some light on these questions. These feasibility reports have also revealed the areas where lack of training and education on the part of the farmers has adversely affected production. These subjects have now become part of the new program of the V.I. Extension Service. At the same time, the lack of information about the response of crops and livestock in this environment, which also limits production, has been recognized. These gaps in our knowledge have become the basis for the planned research program of the V.I. Agricultural Experiment Station. Thus, these studies have given more direction to the efforts of the Extension and research programs of this land-grant institution. More importantly, the results of these studies are expected to be beneficial to full- and part-time farmers, as well as to potential investors. This series of reports rests squarely on the belief that a revival of agriculture would contribute substantially to the general welfare through increased output of goods and services and by pro- viding additional employment. Moreover, expanded production and marketing of farm products could provide greater, and in some cases cheaper, sources of nutritious foods for consumers. A more fully developed agriculture would complement the major industry—tourism—in two ways. First, visitors would be pleased to be served local products, especially tropical fruits and vegetables, by hotels and restaurants where such products are often not now available. Second— and perhaps more important—an expanded agriculture would tend to preserve the environment of exotic tropical islands. Most visitors and some permanent and semi-permanent residents come to the Virgin Islands to seek this environment. If this attraction is destroyed, the basis of the major industry of the Islands will be undermined. The Virgin Islands Agricultural Experiment Station gratefully acknowledges the cooperative assistance and contributions from many St. Croix farmers; Rudolph Shulterbrandt, Commissioner, V.I. Department of Agriculture, and his staff; and Bennett S. White, Jr., project consultant and former USDA agricultural economist, now retired. Fenton B. Sands, Director March 1974 SUMMARY AND CONCLUSIONS Crop tarming, inciuuing the production of fruits and vegetables, has been declining for a number of years on St. Croix. At present, growing fruits and vegetables is a marginal enterprise, and the feasibility of developing a profitable industry is hampered with numerous problems, including un- certain climate, water shortages and deficiencies in management, labor and technology. Developing practical irrigation systems would reduce some of the uncertainties, but the economic feasibility of irrigation remains undetermined. On the other hand, this study clearly shows that there are some basically favorable factors. The fact that Virgin Islands producers raise only a small portion of total local consumption means that a market exists if outside competition can be met. This potential market will be enlarged by pros- pective increases in population and higher real incomes of consumers. The attitude of buyers toward local produce is generally good, and mar-° keting facilities are adequate to handle consider- ably greater quantities without additional invest- ment by the industry. It is evident that improve- ment in management and technology could reduce costs and increase grower returns. Enterprise bud- gets which allow for some, but not all, opportuni- ties for greater efficiency show an ability to com- pete effectively with other areas of supply for several crops. There is a continuing need for substantial pro- duction of vegetables and fruits to supplement in- comes in rural areas and to improve the diets of most Cruzan families. A strong effort to improve domestic food production and marketing is jus- tified, even at significant expenditure of public funds. Possible economic recessions of varying dura- tions are very real, and in such periods, food grow- ing could provide a livelihood for many families. Even in periods of drought, truck gardeners often realize $40 or more per week from sales through produce stands. In addition, larger quantities and a better quality of local produce would be attrac- tive to tourists. Currently, visitors who expect to find high quality vegetables such as tomatoes, Ict- tuce and okra and tropical fruits such as mangoes, papayas and pineapples are frequently disap- pointed. Iv The level of economic activity prevailing at a given time influences the need for and the interest of rural families in growing food crops. Favor- able tourist trade and _ significant construction programs in recent years have maintained a fair level of employment, and native Cruzans have had less need to rely on local production for income. However, there is an abiding interest in home gar- dens and a program to assist the dedicated small gardeners, who market through local stands, pos- sibly would attract a reasonable number of partic- ipants. The major kind of help these growers need is information on variety selection, fertilization rates, insect and disease control, and standardiza- tion of products offered for sale. Under a somewhat less vigorous economy, the economic environment might well be more favor- able for starting profitable food production on a much larger scale. On the part of management, there would be more need for developing sources of income from farming. Labor supply possibly would be more ample and the attitude toward farming improved. Also, seeing the need for devel- oping employment in agriculture, and for lower food prices to consumers, lending agencies pos- sibly would extend assistance. Finally, retired or seasonal residents of St. Croix likely would rely more on locally grown produce, thus giving sup- port to such a program. Although truck farming and the marketing of these products would not represent major sources of income and employ- ment, the contribution would help to diversify and balance the economy. In the meantime, possibilities for more com- mercialized units should not be neglected. An op- eration of 12 to 18 acres of vegetable crops thag will permit orderly scheduling of planting, grow- ing and harvesting, and balanced with fruits which need attention mainly in the off-season for vege- tables would offer some promise. Depending on the amount of power equipment that could be utilized effectively, two or three full time laborers in addi- tion to the operator would be needed. More time would have to be given to standardization, quality control, and supplying available markets on regular schedules. The marketing system in the Virgin Islands is reasonably sophisticated and operates much like that serving comparable population centers on the U.S. mainland. Produce imported from the main- land or from Caribbean areas is distributed by two regional chain stores, a few intermediate indepen- dent supermarkets, five or six purveyors servic- ing hotels and restaurants, and three merchant wholesalers which serve some 50 to 60 neighbor- hood groceries. The marketing facilities for locally grown fruits and vegetables are more than ade- quate for the level of output. Total demand for fruits and vegetables will continue to expand. On a year-round equivalent, counting temporary visitors, the total population of the Virgin Islands in 1980 is expected to be about 136,000—an increase of 41 percent over 1973. If the Virgin Islands economy maintains its recent growth rate, the real incomes of families, including the low income segment of the popula- tion, could double by 1980 and add some 10 per- cent to the total demand for fresh fruits and vegetables. The profit potential for St. Croix growers ap- pears best for mangos, tomatoes, papayas and okra and possibly pineapples and onions. For most items, the volume nceded for the Virgin Islands would not justify investment in packingsheds and specialized equipment necessary to compete with produce coming from the U.S. mainland. How- ever, a lower-priced product could be offered to the local Cruzan trade with less marketing serv- ices. If St. Croix growers are going to market their product in St. Thomas, transportation would raise the consumer cost slightly. Current marketing facilities on St. Croix are capable of handling up to 3 million pounds of pro- duce annually, or roughly the production from 200 acres of fruits and vegetables. This is the acreage that might be needed if 8 or 9 commodities show- ing promise can be commercially produced for local consumption. With increased volume, some of the assembling, hand sizing and grading func- tions might have to be shifted back to the producer. But the storage, selling and distribution could con- tinue to be handled by the Virgin Islands Depart- ment of Agriculture or through a cooperative using the same facilities. The attitude of commercial buyers in the Virgin Islands toward local produce is generally favorable, but problems of dependable supplies and minimum grading and sizing of the produce will have to be overcome. In particular, a sufficient supply of quality produce for a long enough period to ad- just procurement procedures is a prerequisite to a shift to local produce. Improvement of market in- formation such as import volumes, values, and cur- rent prices made available to all segments of the industry through the Virgin Islands Department of Commerce would facilitate the development process. Total year-round domestic requirements for nine selected fruits and vegetables could be produced on about 230 acres, assuming normal yield levels. Estimated demand increases by 1980 would adjust the land requirements upward to about 350 acres. Requirements for St. Croix only convert to slightly less than half these acreages. Furthermore, if only the domestic requirements during the months of favorable climate were met (that is, without irri- gation which is essential to year-round production) the land required would be reduced to only about 130 acres for the total Virgin Islands and 60 acres for St. Croix alone. Developing a viable fruit and vegetable industry in the Virgin Islands is a challenge to well-inte- grated extension programs. If past trends are to be reversed, all opportunities to reduce costs and im- prove quality in both production and marketing for the most promising products must be vigorously exploited. Research undertaken earlier on the island and research results from other sources where conditions are similar could contribute to solving problems of soil, climate, crop varieties and cultural practices. Socioeconomic research must deal with the extremely important problem of management. Extension must bear principal re- sponsibility for arousing the interest of current and potential new growers and for demonstrating that new approaches will be profitable. Finally, the task of revitalizing the fruit and vegetable indus- try cannot be separated from the problems of agri- culture as a whole. All segments compete to some extent for the same resources and all are affected by the poor public image of farming as a means of livelihood. This latter needs to be further identi- fied, causative factors quantified insofar as pos- sible, and corrective educational programs need to be undertaken. FRUITS and VEGETABLES Production and Consumption Potentials and Marketing Problems in the U.S. Virgin Islands by TROY MULLINS AND ROBERT W. BOHALL CURRENT STATUS OF FRUIT AND VEGETABLE PRODUCTION AND REQUIREMENTS Crop farming on St. Croix has been declining for a number of years and currently is practically at a standstill. The elimination of sugar cane as the major cash enterprise and closing of the sugar mill in 1966 apparently did little toward channel- ing attention in the direction of truck farming. The U.S. Census of Agriculture reports that farmers selling vegetables decreased from 178 in 1950 to 29 in 1970, and planting of vegetables from 269 to 66 acres. For tomatoes which ranked first in sales ($7,405 in 1969) the farms reporting declined from 129 in 1950 to 12 in 1969; and pep- pers ($6,290) from 95 farms in 1950 to 14. Other items ranking in values in 1969 were cucumbers $3,800, lettuce $3,080, onions $3,215, okra $2,585, and carrots $2,070. Fruits were grown on 130 farms in 1969 and accounted for 180 acres of land, or 1.4 acres per farm. Only 60 growers had as much as ¥/y acre in all fruits. Fruits that can be grown in home gardens continue to be produced but the numbers of plantings have declined. In 1969 (as compared with 1949 data) farms reporting mangoes declined from 195 to 80, bananas from 186 to 75, and avo- cadoes from 124 to 52 farms. Very small quantities of citrus fruits, papayas, plantains, and pineapples are being harvested. The Virgin Islands Department of Agriculture currently is assisting interested vegetable growers in acquiring seeds of approved varieties, giving advice in planting, cultivating, disease-insect control, and in sorting, grading, and delivery to local markets. During the 1972—73 season, advice and counseling was given to many visitors to the Department, and 14 growers took advantage of services of the mar- keting center which generally included picking up the produce at the field, sorting (and grading), and delivery to local buyers. A charge of five per- cent of the gross returns is made for this service. The marked decline in attention given to truck farming occurred along with, and in large measure as a result of, the marked increase in population, growth in tourism, and general economic growth in the past decade. Total Virgin Islands resident population doubled between 1960 and 1970, and numbers of tourists increased some fivefold. In ad- dition, per capita incomes rose substantially, and in 1970 approximately a third of the resident fam- . ilies were receiving annual incomes of $10,000 or more. In this setting, and as of June 1973, farming in general, and especially crop enterprises, had possibly reached the lowest level in the history of the U.S. Virgin Islands. MAJOR CONSTRAINTS TO FRUIT AND VEGETABLE PRODUfTION Production of food crops on St. Croix depends on many factors. One is impressed first by the climate and how the total vegetative growth varies by seasons, but also by economic, sociological, and institutional restraints which are equally limiting. As is true elsewhere, climatic factors, specific- ally rainfall, winds, and temperatures, very def- initely dictate what can be accomplished each season. On St. Croix the sequence or pattern of weather is often only generally similar from one year to the next. Marked variations in amounts of rainfall in every month of the year, as well as be- tween nearby locations at a given time, might be said to be the only dependable aspect of the rain- fall pattern. Variation in rainfall cach month is such that one standard deviation each month is equal to 51 to 81 percent of the mean (Table 1). 1 A check of rainfall by weeks shows that in Sep- tember and November, the more favorable season, less than one inch of rain fell per week for more than half of the time during a recent 15-year period. Average monthly rainfall ranges from 4.26 to 6.08 inches during August through November, and then generally declines to a low of 1.71 inches in March. In late August and September, conditions generally are favorable for planting and rainfall and temperatures in the October-January period often are suitable for rapid development. How- ever, periods of 7 to 14 days without rain, coupled with high evaporation rates, are not unusual, mak- ing it necessary to plant a second time. Dry weather is the rule in February and March (1.8 and 1.7 inches of mean rainfall respectively) and frequently extends through May. These are important months for maturing some crops, espe- cially tropical fruits, and yields are often very much reduced. One farmer in the West end of St. Croix indicated that his mango orchard gen- erally suffers from drought in these months once every three years. Rainfall records at the Frederik- sted Station show that for 5 of the last 12 years (1959-72) less than one inch of rainfall fell in February, March, and May. Evaporation strongly influences the level of moisture in the soil at a given time. In the warm months it takes a heavy toll, especially from un- protected soil surfaces. Together with the moisture retention capacity, which seems to be relatively high for most of the soil types, the evapotranspira- tion rate may become rather critical. At a number of locations, evaporation loss is approximately equal to the precipitation received on an annual basis. However, on a monthly basis it often ex- ceeds the rainfall. This is particularly true in the January-April period, which corresponds with the maturing stage for a number of vegetable crops. It is generally recognized that a sustained vege- table production program is not possible without supplemental irrigation. The serious shortage of water on St. Croix for domestic, municipal, and industrial uses, all of which are of high priority, places unusual limits on availability and cost of water for vegetable production. However, irriga- tion technicians have made limited investigation of the problem and concluded that with advanced technology recently developed in distributing water, an economically feasible operation is pos- sible. It would necessitate, however, an island with water conservation-and-use program, includ- ing (1) extension of catchment areas and reten- tion. of water in well-located reservoirs; (2) re- cycling water where practical as a means of serving multiple purposes; (3) tapping any additional underground sources; and (4) installing devices or special measures which would reduce evapora- tion.* 1 Additional details on feasible irrigation systems and vegetable-fruit crops best suited to St. Croix soils and climate are available in unpublished reports of H. H. Bryan and S. E. Malo, Ag. Research and Education Center, University of Florida, Homestead, Florida. Table. 1—Monthly rainfall data for St. Croix, 1852-1970 One std.deviation from mean Average Highest rainfall Lowest rainfall Month Inches Inches Year Inches Year Inches % of mean Jan. 252 8.91 1937 37 1852 1.31 52 Feb. 1.84 9.48 1950 AS 1902 1.32 72 Mar. 1.71 7.34 1949 0 1952 _ 1419 70 Apr. 2.67 16.39 1919 .05 1920 2.16 81 May 4.20 15.48 1969 .36 1923 3.27 78 June 3.52 10.80 1889 39 1904 2.38 68 July 3.52 11.78 1901 53 1873 1.99 56 Aug. 4.26 19.79 1924 1.01 1911 2.70 63 Sept. 5.81 16.61 1906 1.33 1912 3.16 54 Oct. 6.08 18.62 1854 1.03 1960 3.24 53 Nov. 5.26 13.50 1915 81 1945 2.60 51 Dec. 3.51 11.24 1960 84 1958 2.13 61 The Soil Conservation Service has planned and supervised construction of about 212 reser- voirs over the past 30 years, almost entirely on livestock farms.* No information could be obtained as to whether any of these reservoirs are used for irrigating food crops. Numerous efforts have been made to tap under- ground sources of water with low amounts of minerals (non-toxic to food crops) but success has been very limited. One grower made five attempts at an average cost of $1,000 and got only one well with a capacity of 10 gallons per minute, which is scarcely enough to water a kitchen garden. Beyond the physical factors just discussed, there are a number of complex economic, social and institutional factors that have evolved over many decades. One of these problems is the secondary status of agriculture in the whole St. Croix economy. Rural youth of St. Croix, on their own and often with considerable assistance from their parents, have sought nonfarm careers and, it is said, feel some stigma attached to working in agriculture. Except in cattle ranching and dairying, most rural resi- dents do farming or truck growing only after hours from their regular jobs, or during periods when other employment is not available. The uncertain- ties attached to crop farming, under current man- agement practices, are such that no_ lending agencies (including ‘The Farmers Home Adminis- tration) will make loans to finance production. More specifically, the number one problem in starting a food production program is the scarcity of management experience. Limited contacts indi- cate that those who are crop farming either are regularly employed (in government usually) or are retired (natives or Continentals) and often have taken an interest in farming largely to occupy their time rather than as the principal means of earning a living. The amount of capital in their operation usually is minimal, and though they often make a sincere effort to be efficient, their liveli- hood is not at stake. ‘To cope with all the prob- lems will require much study and planning, as well as aggressive and innovative management. Among the labor-management aspects of the *The number of reservoirs reported are 212 on St. Croix, 54 on St. Thomas, and 11 on St. John, with a combined storage capacity of 500 million gallons. situation, a common ailment or complaint among farmers is the scarcity, poor quality and high cost of labor. Obviously, special provisions will have to be made to get more labor in agriculture, to hold them long enough to develop significant skills, and to provide opportunities for their economic advancement. The second aspect of the labor-management problem is the low level of technology associated with labor. Other than land clearing, plowing, and power spraying (only for growers with sizeable acreages) which is performed by the Virgin Islands Department of Agriculture at custom rates, all operations are done with hand tools such as hoes, machetes, knap-sack sprays, etc. It is little wonder that laborers would seek employment elsewhere, and unless more mechanical aids can be used in weeding, spraying, harvesting, and loading to re- duce drudgery, labor costs will continue to be high. Also mechanization is needed so that certain jobs can be done on a timely basis. No doubt there are small power units (12 to 18 hp.) available with attachments for light tillage, grass cutting, power spraying, and hauling. A farm with 12 to 15 acres of food crops possibly could provide 400 to 500 hours of operating time for such a unit. Unless vegetable growers can be stimulated to commit sufficient effort and capital to effectively use the latest technology, there is little chance for estab- lishing a viable production program. Agricultural agencies generally, and the Virgin Islands Depart- ment of Agriculture in particular, could give spe- cial emphasis to the mechanization problem. Pos. sibly the purchase and leasing of small power units with provisions for training in their operation and maintenance might be an appropriate starting point. This would be a means’ of assisting small growers. ENTERPRISE BUDGETS FOR SELECTED CROPS Enterprise budgets for selected fruits and vege- tables were developed in June 1973, when, because of an extended drought, truck crop production was at a very low level. (See Tables 1 through 9 in the Appendix.) Estimates of the amounts of labor, materials, services, and other items required were developed largely by staff members in the Virgin Islands Department of Agriculture, and were based 3 on limited records available and experience gained through working with farmers. Several farmers were interviewed about cost items for crops being grown and their major problems. Also records maintained at the experiment station operated by the Agricultural Research Service from 1952 to 1966 were gleaned for applicable information on inputs, particularly yields. In these calculations, specific operations and cost items were treated as follows: 1. Land clearing and field preparation are per- formed by the Virgin Islands Department of Agriculture at a charge of $15 per hour for bull dozing, $7.50 for plowing, disking, etc. and $3 to $4 for power spraying. 2. Cost of containers refers to boxes or lugs used in the fields and to haul to the Virgin Islands Department of Agriculture market center. These costs were amortized over the esti- mated years of life. 3. The 5 percent charge (of gross value) for grading and packing covers the service pro- vided by the Virgin Islands Department of Agriculture and includes delivering produce to major outlets. 4. The land charge of $25 per acre is included to reflect a return to land when priced at a nominal value based on crop agriculture. Obviously land in St. Croix could not be bought at such a price (about $400 per acre). See discussion of land values in text. 5. The estimated yields were derived after re- viewing applicable records maintained at the Federal experiment station, and by drawing on the experience of staff members of Virgin Islands Department of Agriculture who have given attention to such crops. To reflect the influence of frequent dry seasons, estimates were made of yields following an approximate average or normal rainfall season were com- bined with estimates of yields during an unfavorable weather or drought season and weighted on a 2 to | basis. This ratio of favorable to unfavorable years appears to approximate the real situation over the past 12 to 15 years. However, the sequence of occurrence is unpredictable. Tt is not unlikely that two drought seasons would occur in suc- cession, which further complicates the prob- lem of financing seasonal production opera- tions. 6. Wage rate assumed is $2 per hour. The cur- rent minimum wage for farm workers is $1.45 per hour. Some operators indicated they were paying $1.75, but others reported $2 per hour. In view of the difficulty of getting farm workers it was decided that a minimum of $2 per hour should be used for projecting costs 3 to 5 years in the future. INCOME ESTIMATES FOR A FRUIT AND VEGETABLE FARM To indicate an approximate level of income that would be feasible for a small fruit and vegetable farm, a “whole” farm budget is presented in Table 9. Based on 15 acres of cropland, of which 13 acres would be planted each season, total gross sales at prices prevailing during the 1972-73 sea- son, would equal about $43,000, total costs about $12,400, and estimated returns above costs a little under $31,000. This is a net above the specified costs of near $2,400 per acre of crops grown, which is quite impressive. The 3 acres of onions grown at a cost of $2,200 accounts for 48 percent of this income. These costs-income estimates reflect the unusu- ally favorable prices prevailing in 1973. These prices may not be sustained over time. Another factor that might be questioned is the risk of es- tablishing stands, having to replant, or of reduc- tions in yield of some of the crops that may exceed the levels assumed in the crop enterprise budgets. Records of planting experience, yields, etc. con- tinuing over a period of years would be required to more accurately evaluate these income estimates. To indicate the approximate net returns under varying levels of prices received, and with some- what higher wage rates for labor, calculations re- flecting different levels of prices and wages are shown in Table 2. If prices of the various items sold were 20 percent lower than in the 1972-73 season, net income to the farm would be reduced to $22,000. If substantially higher wages ($2.75 per hour) were paid to insure laborers when need- ed, but prices were the same as in 1972 73, the income would only be reduced to $28,500. If both of the above situations prevailed (20 percent lower prices plus higher wages) the net income would be Table 2.—Estimated gross sales, production costs and returns above cost for a 15-acre vegetable-fruit farm, 1972-73 season, St. Croix, V.I. Pine- Item Tomatoes Peppers Okra Onions apples Total Acres (number) 3 2 2 3 3 13? Production (tons) * 18.6 8.8 13.2 28.0 38.0 = Price rec’d. ($/ton) * 500 500 500 600 160 ni Dollars. Gross value 9,300 4,400 6,600 16,800 6,080 43,180 Production costs* Labor 1,764 768 744 1,128 1,542 5,946 Materials 216 116 98 141 2,229 2,800 Other 699 408 474 762 282 2,625 Fixed items 120 80 80 120 621 1,021 Total 2,799 1,372 1,396 2,151 4,674 12,392 Returns above costs Total 6,501 3,028 5,204 14,649 1,406 30,788 Per acre 2,167 1,514 2,602 4,883 467 eee Returns (prices rec’d at 80% of current level) Total 4,641 2,148 3,884 11,289 190 22,150 Per acre 1,547 1,074 1,942 3,763 33 me Returns (labor at $2.75 per hr.) Total 5,839 2,740 4,925 14,226 828 28,558 Per acre 1,946 1,370 2,462 4,742 276 ee Returns (prices at 80% and labor at $2.75) Total 3,979 1,860 3,605 10,866 0 20,310 Per acre 1,326 930 1,802 3,622 0 ates Returns with onions at 67% and other items at 80% of current prices Total 4,641 2,148 3,884 9,049 190 19,912 Per acre 1,547 1,074 1,942 3,016 63 ---- Returns with prices reduced to level of strongest competitor* ’ Total 4,715 670 2,722 2,889 4,598 15,594 Per acre 1,572 335 1,361 963 1,533 tee +Two acres allowed for nursery, home garden, and to permit flexibility in cropping program. *Per pound prices shown in Table 12. *Per acre production and itemized costs shown in about $20,000. If prices received for onions (ex- ceptionally high in 1973) were reduced by 33 per- cent, and for other items by 20 percent from the 1972-73 level (wages remaining at $2 per hour), the estimated net return would be only slightly under $20,000. Finally,. if prices received by St. enterprise budget tables. ‘Prices per pound for strongest competitor shown in Table 15. Croix producers were equal to the level of calcu- lated prices for supplies from the strongest com- petitor, estimated returns would fall to less than $16,000. The authors do not intend to imply that exactly any one of the above possibilities would actually 5 prevail. Rather, the intent is to show a number of alternative situations, all of which are within the range of what might result from economic changes which would not be foreseen when this study was made. PROBLEMS OF LABOR DISTRIBUTION One of the obvious problems with vegetable and fruit production, which must be concentrated in the high rainfall-cooler temperature months (Sept.—March) is the high labor requirements of this period in contrast to the minimal needs in April through August (Tables 3 and 4). The 15 acre vegetable-fruit farm, with acreages of toma- toes, peppers, okra, onions and pineapples would require about 2,400 hours of labor annually, or about 300 man-days. An additional 30 days or more likely would be required for general mainte- nance of the premises, care for the nursery, miscel- laneous plantings, and preparations for the next season. Of the 300 man-days used with these crops, about 290 days would fall in the September- March period and the remainder during the April- July period. If the operator could contribute the equivalent of half time for a regular worker, the minimum number of workers required would be 1.5 to 2.0 for the September-March period. These projections assume an average distribution of rain- fall during the weeks for planting, growing, and harvesting. However, because of the marked vari- ations in the rainfall pattern, the timing of crit- ical operations often would peak more than is reflected. To cope with this unpredictable demand on labor, the farm operator might (1) vary the acreages of the different crops grown as moisture conditions dictate; (2) extend the usual work days (possibly at the expense of overtime); or (3) introduce as much labor saving technology (power, equipment, chemicals, etc.) with the planting, weeding, and harvesting operations as can be effectively used. It is likely that some over-employment would be necessary to mect the peak loads caused by un- predictable weather. This problem confronts farmers in all locations, but for a vegetable grow- ing operation on St. Croix, it is somewhat ex- aggerated. DEMAND FOR FRUITS AND VEGETABLES IN THE VIRGIN ISLANDS Various factors influence the demand for any 6 one fruit or vegetable marketed, including those that might be produced on St. Croix. Four of the mest important variables are population, in- come, consumer tastes and preferences as reflected in per-capita consumption, and the availability of produce from other areas. Population According to the U.S. census of population for 1970, 62,468 persons resided in the Virgin Islands, an increase of over 94 percent from the 1960 cen- sus (Table 5).° The highest rate of increase oc- curred on St. Croix, which more than doubled its population between the two census years. Although census data more recent than 1970 is not available, the Virgin Islands Department of Health estimates a total population of 89,620 in 1973. By 1980 the Department of Health is project- ing a 37 percent increase in the 1973 population to 122,339 of which 62,035 would be inhabitants of St. Croix. This would indicate a substantial in- crease in the quantity of fresh fruits and vegetables needed in the Virgin Islands in the next 7 years. Tourists are an important part of the economy of the Virgin Islands, particularly in St. Thomas but also in St. Croix. The tourist trade tends to vary, depending upon the season of the year. A total of 1,215,550 persons visited the Virgin Islands in 1972, spending an estimated $109 million. Based on data available from the Virgin Islands Department of Commerce, from July 1, 1971 to June 30, 1972, the average number of tourists was estimated as follows: 1. Cruise ship passengers—average of one meal each, 3 meals=one tourist day. St Thomas 118,004 days, St. Croix 3,545 days, and total 121,549 days. 2. Air arrivals—average of 3 tourist days each (note the average tourist stay may be slightly longer, but this is partly offset by the fact that many Virgin Islands residents travel to other areas for business and vacation). St. Thomas 499,783 arrivals = 1,499,349 tour- ist days; St. Croix 243,067 arrivals = 729,201 tourist days; total Virgin Islands 742,850 ar- rivals = 2,228,550 tourist days. "Despite the increase, officials of the Virgin Islands Department of Commerce indicate there may have been serious undercounting of residents in the 197() census. Estimates of the undercounting have been as high as 22,000. “uuNpOo Ie] UE §[e1O} UE papnpour are ynq “aUI[ WoH0q UO s[e}0} UT papnfoUT Jou smoy asoyy , [88s 66E cor ITT cc 09¢ FC 99T 6F1 656 £01 £9 P9l GL sporied Aep PST 40] TOL 921 Fl +1 val vl val tI $1 al Fl WSOAIe HY sare ¢ o¢ r(Amf ysnosyy Ae~—smoy YC 01 Z moqy) Suimory — ay ddeaurg 48 L8 quelg G&G CC? ysoAlepyy sae ¢ cH 0G &%@ 46° — 8% So 0¢ Surmoisy uoluQ cE cEl yard Olé cH 09 09 cP ysoareyy sae Z 88 Or PS oS Ol SUIMOIL) PIO +9 66 Se weld cole él c% 9¢ SG ras ysoareH] solve Z 9LI ol 02 L& 8s Lg 0% ra SULMOID saaddag 06 ; 09 0¢ weld G&F Fol PBI vol qsaarepyy sae ¢ 886 OI Tg G¢ 89 69 og 91 Sumo sa0}eu0 J, CEL 06 ch quryg sanoy SINOY SIT] 8e-$l FI-l Té-S1 Fi-I 1&-$1 FI-l Of-$1 4I-l 1&1 PI-l = 0&-SI FI-l . yymoss SadID 72190. =: y2avpy dipnigay Civnuvf daquasag 4aquanon 4290190 4aquajyday fo asdnjg puv gos powad kop-¢] dq pasmbas soqvy ayourxorgdy TA ‘X1O1) “IS “Wey JMAJ-a]qGevJaBaa aioe-cy & OJ UOLNGIAySIP 10qe] payeMNSsy|—e¢ CLAD Table 4.—Estimated labor distribution for a 15-acre Navy vegetable-fruit farm, St. Croix, V.I. personnel 77,066 27,830 104,896 Full-time TOTALS 1,694.419 760,576 2,454,995 A i ) tourist Months Hours Days Number popula- September 239 30 2.0 = October 170 21 1.0 based on November 408 51 2.5 365 tour- December 404 51 205 ist days January ed 62 3.0 per year 4,642 2,084 6,726 February 216 27 15 . F , March 399 50 05 6. Average tourist population on St. Croix by April—July 50 6 1.0 months based on 1969-72 monthly average Total 2 381 098 _ occupancy rate of available rooms (St. Croix Hotel Association data) is as follows: Index of 3. Navy personnel—average of 2 days each, St. Tourist tourist Thomas 38,533 personnel = 77,066 days; St. population population Croix 13,915 personnel — 27,830 days: total (2084 = 100) 4. Ferry passengers and Antilles Air passengers February 3,253 156 were excluded from the analysis, since they Maich 2,822 135 tend to represent traffic which is offset by April 2.934 107 Virgin Islands businessmen and tourists visit- May 1,764 85 ; ing other areas. June 1,646 79 5. Total estimated tourist days: July 1,881 90 St. Thomas St. Croix Total August 1,921 92 Cruise ship September 1,294 62 passengers 118,004 3,545 121,549 October 1,411 68 Airline November 217 102 arrivals 1,499,349 729,201 2,228,550 December 2,234 107 Table 5.—Virgin Islands: population for census years, 1930-1970 with projections to 1973, 1980 and 1985+ Virgin Year Islands Urban Rural St. Croix St. Thomas St. John 1930 22,012 13,501 8,511 11,413 "9,834 765 1940 24,889 14,296 10,593 12,903 11,265 722 1950 26,665 15,581 11,084 12,103 13,813 749 1960 32,099 18,017 14,082 14,973 16,201 , 925 1970 62,468 15,240 47,228 31,779 28,960 1,729 1973 89,620 NA NA 43,904 43,447 2,269 1980 122,339 NA NA 62,035 57,277 3,027 1985 143,629 NA NA 73,820 62,287 7,522 * Source: Vital Statistics. NA: Not Available 1930-1970 US Census of population, projections 1973-1985 Virgin Islands Department of Health, Based on an increase of 110 percent in air ar- rivals between 1965 and 1972 and upon an in- crease of 234 percent in cruise ship passengers during the same period, it is estimated that the average tourist population of 6,726 will double by 1980. This would represent an average tourist population of 13,452. Assuming a distribution com- parable to the present time, this would result in an average of 9,284 tourists on St. Thomas and 4,168 on St. Croix. Several things stand out as a result of this pou- ulation study. First, the major food demand comes from permanent residents and is only modestly in- fluenced by the tourist trade. Second, the tourist trade hits a peak in February and a low in Sep- tember. Third, the population is increasing both through the birth rate exceeding the death rate and through a net immigration. The current pop- ulation of 89,620 residents and 6,726 tourists should increase to 13,452 tourists and 122,339 resi- dents by 1980. This will represent a 41-percent in- crease over the next 6 years and should result in a corresponding increase in the demand for fresh fruits and vegetables over the same period. Income The demand for fruits and vegetables in the Virgin Islands is influenced by the income level of the residents. According to the 1970 census, only 4 percent of the families had incomes of less than $250, while 31 percent of the families had incomes of more than $10,000 (Table 6). Statistics for St. Croix were comparable to the Virgin Islands per- centages. In 1950 the median income for persons reporting was only $460 for the Virgin Islands. In 1970 the median income for all families and un- related individuals was $4,583, which represents a significant increase of $4,123. Even if allowances Table 6.—Income in 1969 of families and unrelated individuals, Virgin Islands, based on 1970 census Virgin Islands St. Croix Number and Income level Total White Negro Other Total Families Total number 13,135 2,987 8,940 1,217 6,744 Percent with incomes less than: $250 4 2 + 3 3 $3,000 17 7 21 14 17 $6,000 45 19 55 48 47 $10,000 69 35 79 75 70 $25,000 95 84 98 97 95 Median income $6,612 13,373 5,912 6,272 6,442 Mean income $9,062 16,082 6,884 7,889 8,926 Unrelated individuals Total number 8,112 1,605 6,444 393 4,137 Percent with incomes less than: $250 20 9 22 21 19 $3,000 56 27 64 47 54 $6,000 82 51 91 - 81 82 $10,000 92 75 98 95 93 $25,000 99 97 99 99 99 Median income $2,479 5,845 1,948 3,221 2,637 Mean income $3,467 7,269 2,512 3,596 3,633 All families and unrelated individuals Total number 21,577 4,583 15,384 1,610 10,881 Median income $4,656 10,299 3,821 5,381 4,661 Mean income $6,873 12,996 5,052 6,841 6,914 were made for inflation, real incomes have risen substantially in the Virgin Islands over the past two decades. While the total income picture has improved, there still are major segments of the population that cannot afford to purchase fresh fruits and vegetables in large volume from local grocery stores and supermarkets. For example. 45 percent of the families have incomes of less than $6,000 and 56 percent of the unrelated individuals have incomes of less than $3,000. This would indicate that nearly half the households would be forced to limit their buying of fruits and vegetables to a considerable degree. The heaviest impact of low incomes falls upon Negro households which tend to be younger, larger in size, and with fewer years of schooling for persons 25 years and older than the population as a whole (Table 7). Although an in-depth income projection is not feasible as part of this report, it appears likely that the real median income for families and un- related individuals in the Virgin Islands could double between 1970 and 1980. The rapid growth of tourism and the development of retirement com- munities and industry in the area should bring incomes and living standards closer to those of the U.S. mainland by 1980. One result could be an increase in the demand for fresh fruits and vegetables of 10 percent by 1980. The portion of the population with low incomes can be expected to decline from the present 50 percent to about 30 percent, while higher incomes at all levels will make it easier to purchase fresh produce. If both population and income effects are con- sidered, a 50-percent increase in the total demand for fresh fruits and vegetables by 1980 appears likely. Assuming that supplies are available and relative prices remain about the same, total con- sumption would rise by about the same amount. Per Capita Consumption Total per-capita consumption of fresh fruits and vegetables in the Virgin Islands is about 61 per- cent of that of a resident of the U.S. mainland (Table 8). In 1972, per-capita consumption of the Virgin Islands was 176 pounds, consisting of 67 pounds of fruits, 8 of mel- fresh produce in ons. and 101 of vegetables. Consumption of citrus, deciduous fruits, melons and most vegetables is higher in the U.S. mainland than in the Virgin Islands, while consumption of tropical fruits is about 15 pounds higher in the Virgin Islands. One major difference in the diet is potatoes. The aver- age U.S. mainland resident consumed an average of 89 pounds in 1971 contrasted with 16.1 pounds for the Virein Islander in 1972. To some degree, substitutes including dasheens, tanya, and cas- sava serve as replacements for potatoes in the Vir- gin Islands diet. Availability of Produce from Other Areas It was estimated that only 4 percent of the total fresh fruits and vegetables consumed is produced in the Virgin Islands; 96 percent is imported from other countries, Puerto Rico and the U.S. main- land. Data on domestic production are extremely sketchy so should be interpreted only as approx- imate. Table 7.—Other population characteristics, Virgin Islands, 1970 Virgin Islands St. Croix Characteristic Total White Negro Other Total Median age 23.0 30.0 21.7 20.5 23.2 Persons per household 3.42 2.71 3.60 3.97 3.44 Median schoolyear completed (persons 25 years and over) 9.5 13.1 8.0 8.6 9.4 Fertility (number of children ever born per 1,000 women) Women 15-24 yrs. old 568 371 579 766 673 Women 25-34 yrs. old 2,247 1,535 2,373 2.755 2,340 Women 35-44 yrs. old 5223 2,247 3,492 3,520 3,286 10 Table 8.—Consumption of fresh fruits and vegetables in the Virgin Islands, 1972 and in the U.S. mainland, 1971 Virgin Islands, 1972 Per U.S. per Domestic capita capita produc- consump- consump- Commodity Imports? tion? Total tion® tion! Thousand pounds Pounds Citrus Oranges 684 7 692 72 16.2 Grapefruit 219 8 222 2.3 8.6 Lemons and limes 43 5 47 ny 2.4 Total citrus 966 15 98 10.2 293 ‘Tropical fruit Avocados 140 5 145 1.5 oO Bananas 857 100 957 9:9 18.2 Plantains 79 79 8 NA Mangoes 30 56 86 9 NA Total tropical 13,123 200 3,323 34.5 19.4 Other fruit Apples 446 446 4.6 16.8* Grapes 66 66 | 3.2 Peaches 4 4 ol 5.7 Pears 9 9 rat 2.3 Total other 558 558 5.8 S17 Total all fruit 6,230 215 6,445 66.9 80.4 Melons Watermelon 575 575 6.0 13.9 Cantaloupe 6 6 ‘l 7.8 Total melons 760 760 7.9 21.7 Vegetables Tomatoes 768 90 858 8.9 11.3 Onions 836 10 846 8.8 12.0 Cabbage 305 8 313 3.2 9.2 Lettuce 735 38 773 8.0 21.3 Potatoes 1,556 wits 1,556 16.1 89.2 Dasheen 203 NA 203 2:1 mp Total all vegetables 9,372 383 9,755 101.2 185.0 Total all fruits, vegetables and melons 16,362 598 16,960 176.0 287.1 *U.S. Virgin Islands Dvpartment of Commerce, Trade and Industry. * Domestic production statistics represent crude csti- mates based on acreage data for the 1970 Census plus observations on what is produced by local growers. * Based on a population of 96,346 including 89,620 . ew Over 89 percent of the 16.3 million pounds of imported produce comes from Puerto Rico and the U.S. mainland (‘lable 9). Most of this volume comes into the Virgin Islands via San Juan, Puerto Rico although some shipments are received direct from the U.S. mainland, particularly from residents and 6,726 tourists. “Farm weight, based on Food Consumption, Prices and Expenditures, Supplement for 1971 Economic Re- search Service, U.S. Department of Agriculture. * Retail weight. Miami but also from New York. U.S. produce that goes to Puerto Rico and is transshipped to the Vrigin Islands is recorded as coming from San Juan. Hence, there is no way to differentiate be- tween San Juan shipments from the U.S. main- land versus Puerto Rico. However, most of the 11 Table 9.—Fresh fruits, vegetables and melons imported into the Virgin Islands by point of origin, 1972* U.S. and Puerto Rico Domin- Leeward ican and New San Repub- Windward Other Total Commodity York Miami Juan Total lic Islands foreign imports ~-------------~- _Thousand Pounds_----~-------~- Citrus Oranges 7 61 616 684 684 Grapefruit 16 189 205 15 219 Tangerines 17 17 17 Lemons 10 10 10 Limes 32 32 32 Citrus fruit 3 3 3 NEC Total 7 119 824 951 15 966 Deciduous fruit and berries Apples 16 31 400 446 £46 Grapes 3 5 57 65 1 66 Pears 9 9 9 Peaches and nectarines 4 4 4 Prunes and plums 8 8 8 Cherries 5 5 5 Strawberries 6 6 5 11 Berries 8 8 8 NEC ‘Total 19 36 497 552 5 1 558 Tropical fruit Avocados 118 23 140 Bananas 766 86 5 857 Mangos 15 15 30 Plantains 50 28 79 Total 2,018 2,018 949 151 5 3,123 Fresh NEC 39 1,543 1,582 2 1,583 Total all fruit 66 155 4,882 5,103 996 151 21 6,230 Melons Watermelon 575 575 575 Cantaloupe 5 2 6 Melons, Fresh NEC* 101 49 150 27 2 178 Total 101 624 725 31 3 760 Vegetables Tomatoes 2 166 497 664 100 4 768 Onions 203 633 836 836 Peppers 11 11 4 3 18 Cabbage 46 299 301 4 305 Carrots 38 38 1 39 Celery 13 13 13 Lettuce 6 365 364 735 735 Beans 1 1 Corn 1 1 Cucumbers 2 2 4 Egg Plant 41 41 ‘Compiled from customs data supplied by the Virgin ? Not Elsewhere Classified. Islands Department of Commerce, Trade and Industry. ® Less than 500 pounds. “12 citrus, deciduous fruit, and imported vegetables originate in the U.S., while Puerto Rico would sup- ply a large proportion of the tropical fruits. The Dominican Republic supplied 9 percent of the total Virgin Islands imports or nearly 1.5 mil- lion pounds. Slightly over half of this volume was bananas. The Leeward and Windward Islands supplied 0.3 million pounds in 1972, tropical fruits dasheens being most important. Imports from other foreign countries were minor, the most important in terms of volume consisting of grape- fruit—inostly from Israel. The influflence of the tourist trade and climate on imports is illustrated in Table 10. Imports were and heavy through the first half of the year but declined in the late summer and fall consistent with fewer tourists and also better growing conditions in the late fall. A deviation in the data apparently oc- curred in December, 1972 since reported imports from San Juan were only 231,000 pounds or only about 20 percent of normal. Value—The value in the exporting country of produce shipped to the Virgin Islands was $2,664,000 in 1972, vegetables equalling 59 per- cent and fruits and melons 41 percent of the total value (Table 11). The United States and Puerto Rico provided 91 percent of $2.4 million followed by the Dominican Republic with $.2 million. Wholesale Prices—Wholesale price information for produce coming into the Virgin Islands was derived from the customs data of the Virgin Islands Department of Commerce and from other selected sources (Table 12). Considerable varia- tion between countries in part reflects differences in quality and the season of the year. Prices were generally less than 20 cents per pound for most produce. Prices received in the Virgin Islands tended to be on the high side relative to countries exporting into the Islands. This indicated that cur- rently there is a premium for locally produced produce, although this premium would decline if local fruits and vegetables were available in volume. Transportation Costs—Transportation rates to bring produce into the Virgin Islands were ob- tained from local transportation companies and importers. The June 1973 rates were 4.5 cents per pound for surface transportation from Miami or New York, 2.2 cents by water from Puerto Rico, 5.3 cents by air from the Dominican Republic, and 5.1 cents by air from areas such as Dominica in the British West Indes. Surface transportation out of Puerto Rico and the U.S. mainland consists of refrigerated vans loaded onto ships or barges for shipment to the Virgin Islands. Transportation rates were geared to full loads and importers are quite conscious of the need to fill out or squeeze in a load to take advantage of available equipment. One drawback in attempting to use local produce on a sporadic basis is the problems created in balancing out trailers with other types of produce. For example, Table 9.—Fresh fruits, vegetables and melons imported into the Virgin Islands by point of origin, 1972* (continued) U.S. and Puerto Rico Domin- Leeward ican and New San Repub- Windward Other Total Commodity York Miami Juan Total lic Tslands foreign imports oo Thousand Pounds seen soon pres Peas 3 a Parsnips 2 2 Garlic. 2 2 1 3 Potatoes 439 1,087 1,526 29 1 1,556 Roots or Tubers 12 4 16 16 Dasheens 90 113 203 Vegetables, Fresh NEG* 60 5 4,505 4,570 222 38 2 4,832 Total all vegetables 68 1,236 7,407 8,711 492 155 14 9,372 Total all fruits, vegetables and melons 7a | 1,493 12,913. 14,539 1,479 306 38 16,361 13 Table 10.—Monthly imports of fresh fruits, vegetables and meions into the Virgin Islands by point of origin, 1972' Leeward U.S. and Puerto Rico _ _and Dominican Windward Other Total all Month New York Miami San Juan Total Republic Islands foreign imports Sia! Thousand Pond sso Jan. a 92 1,293 1,385 175 swias 6 1,565 Feb. 42 200 1,051 1,292 134 6 2 1,434 Mar. 35 47 1,349 1,428 146 3 1,477 Apr. -- 160 985 1,146 141 14 -- 1,301 May a 72 1,375 1,447 127 11 3 1,587 June 130 116 1,732 1,977 73 2,050 July _ 156 1,522 1,678 172 25 _ 1,875 Aug. 67 90 1,009 1,166 111 6 4 1,287 Sept. wo 74 811 885 91 27 9 1,012 Oct. _- 113 727 840 118 69 _ 1,027 Nov. —_ 158 819 977 118 16 6 1,117 Dec. — 204 251 434 86 139 a 659 Total? 271 1,481 12,904 14,656 1,489 313 33 16,490 "Compiled from customs data supplied by U.S. Virgin Islands Department of Commerce, Trade and Industry. *'Yotal imports in Table 10 do not equal totals re- Table 11.—Value of fruits and vegetables shipped to the Virgin Islands by country of origin, 1972+ Fruits and Origin melons Vegetables Total ee Dollars____... New York 10,642 50,596 61,238 Miami 37,542 162,751 200,295 San Juan 881,890 1,272,680 2,154,570 Total U.S. and Puerto Rico 930,074 1,486,027 2.416,101 Dominican Republic 133,080 70,941 204,021 Leeward and Wind- ward Islands 15,144 20,190 35,334 Other foreign 5,203 3,105 8.308 Total all imports 1,083,501 1,580,263 2.663.764 *Wholesale value in the country of origin. Source: Virgin Islands Department of Commerce, ‘Trade and Industry. one firm manager said if Virgin Islands tomatoes are available for two weeks only it may not be desirable to cut a produce order by say 2,000 pounds of tomatoes simply because 2,000 pounds of onions or some other commdity would need to 14 ported in Table 9 due to minor statistical corrections: however, differences are generally small. be used to fill in the van. This could result in spoilage or in further loading problems the fol- lowing week. Generally, daily deliveries by water are available out of Puerto Rico, while less fre- quent schedules are maintained with Miami and New York. Air transportation is predominantly used to bring in produce out of the Dominican Republic and islands such as Dominica. Quoted rates are about $750 or $725 per planeload of 14,000 pounds. This activity apparently has been increas- ing; several planeloads per week are currently coming into both St. Croix and St. Thomas. In the future, it appears likely that transporta- tion services to the Virgin Islands will continue to improve and the relative costs of their service will decline. With increasing volume of product comes more frequent delivery, improved harbor facilities, and a generally more efficient distribution system. ‘To some extent this will make the produce of the United States, Puerto Rico, Santo Domingo and the British West Indes even more competitive with local produce. A large part of the decline in the Virgin Islands fruit and vegetable industry over the past 20 years Table 12.—Wholesale prices of imported and local produce, 1972* Puerto Dominican Leeward and Commodity Miami Rico Republic Windward Islands St. Croix? Sse eee eee eee Dollars per Pound ~~~ Oranges ATT -145 Grapefruit 161 .120 Apples 211 151 Avocado: «133 .169 Bananas .132 .102 .120 Papayas .150 Mangoes 158 .126 -200 Plantains i133 .091 Pineapple -100* .250" .080 Tomatoes .302 .247 .149 .250 Onions .093 068 125" .300 Peppers 1708 094 .219 tT -250 Cabbage .073 .048 .192 .130 Carrots .063" 081 -150 Okra .100 .250 Potatoes .070 143 091 .1307 Lettuce 153 161 150 Green beans .159* 081 * -200 Cucumbers .092* .092 156 .203 .160 Eggplant .088* .088 145 .150 Roots or Tubers .106 208 -2008 Tanya .050 ' Dasheens 184 128 "Source: Derived from data provided by Virgin Islands Departnent of Commerce, Division of Trade and In- dustry. Wholesale price in the country of origin. “Estimates supplied by staff of the Virgin Islands Department of Agriculture. 1972-73 prices were gen- erally high relative to prices received during the past few seasons. * Quotation of St. Croix firm. ‘June 21, 1973 prices provided by La Division de can be attributed to improvements in the delivery and distribution system of competing export areas. Delivered Prices—By adding transportation costs to the wholesale prices in Table 12, delivered prices to the Virgin Islands were derived for 1972 (‘Table 13). No customs duties are levied on fresh produce entering the Virgin Islands. The competitive picture for most items is in- tense. Generally one or more areas are able to provide a given commodity at prices below what St. Croix has received locally. This suggests that with increased production in the Virgin Islands, prices would tend to decline for most items depend- ing on quality and size. Items which would compete effectively with U.S. and Puerto Rican produce include pineapple, tomatoes and lettuce. Items that would suffer price declines include onions, peppers, cabbage, carrots, Mercadeo Agricola, Dependencia del Depto. de Econo- mia, Agropecuaria de la Secretaria de Estado de La Republica Dominica. *Florida prices Vegetables-Fresh Market. Statistical Reporting Service, U.S. Department of Agriculture Vg 2-2 (72). ° Texas prices, Ibid. * Sweet potatoes. “Yams. okra, green beans, cucumbers, and eggplant. It should be noted that prices for Miami and Puerto Rico include considerable marketing services such as grading, sizing, washing, and containers, while local St. Croix produce has less built-in services. An_ offsetting benefit of local produce may be freshness, since it may take a week or more to bring in produce from the U.S. mainland. Items where St. Croix could compete effectively against the Dominican Republic and the British West Indies include bananas, mangoes, pineapple, peppers, cabbage, cucumbers, and eggplant. For items such as tomatoes, onions, okra, and green beans, delivered prices from these areas are gen- erally lower than for domestic produce. When all competing supply areas are considered, bananas, papayas, mangoes, pineapple, lettuce and possibly tomatoes appear to bo possibilities for in- 15 Table 13.—Wholesale prices of produce delivered to St. Croix in 1972 from selected origins' . Dominican Leeward and Commodity Miami Puerto Rico * Republic Windward Islands St. Croix* seiner eaeareaeecrtie Dollars per Pound ~----~ wpe Transportation cost .045 .022 053 .051 0 Oranges 156 .167 Grapefruit .206 .142 Apples -256 173 Avocados .186 220 Bananas 185 WlhBB -120 Mangoes 211 177 .200 Plantains 186 .142 Pineapple 122 .303 .080 Tomatoes 347 -269 .202 .250 Onions .138 .090 .178 300 Peppers 116 272 368 .290 Cabbage 118 .070 2245 .130 Okra 153 250 Carrots 103 .150 Potatoes iS 165 144 .150 Lettuce .198 183 Green beans 134 .200 Eggplant 110 198 .150 Roots or Tubers ASL 230 Cucumbers lt3. .203 .254 .160 Tanya .103 Dasheens 237 .179 1Source: Derived from Table 12 by adding transportation costs per pound. 2 Gencrally U.S. produce transhipped in Puerto Rico. *See footnote 2, Table 12. creased local production without severe price declines. It was not possible to consider the seasonal price patterns for each commodity that might be pro- duced on St. Croix or the Virgin Islands but cer- tain periods of the year may present the best local marketing opportunities. For example in looking at monthly prices of lettuce and tomatoes, differ- ent patterns emerge (Table 14). At 15.0 cents per Ib., St. Croix producers could effectively com- pete in the lettuce market all year around. At 25.0 cents per Ib., the late fall, winter and spring months would provide local producers with an edge over shipments from Puerto Rico and the United States. However, tomatoes from the Dominican Republic, which currently tend to be of lower quality, would provide a potential lid on prices nearly all the year round. Complete price data and an analysis of seasonal 16 patterns can help to identify other marketing op- portunities for local Virgin Islands producers.* POTENTIALLY PROFITABLE ITEMS FOR ST. CROIX PRODUCERS An estimate of the potential profit that might be realized by St. Croix produce growers was made by subtracting production and marketing costs from possible returns (Table 15). On a per-pound basis, commodities such as mangoes, tomatoes, papayas, and okra appear to have the best pros- pects, pineapple and onions offer a smaller profit potential per pound. Peppers resulted in negative rates of profit with normal yields and onions were barely profitable. Returns to St. Croix growers were assumed to *See Appendix Tables 10 to 14 for monthly price in- formation on other fruits and vegetables. Table 14.—Monthly wholesale prices of lettuce and tomatoes in country of origin and delivered to St. Croix, 1972' Puerto Rico Florida Dominican Republic Month San Juan St. Croix Miami St. Croix Santo Domingo St. Croix Sone Cents per Pound ~.-~--+---~-=-=- Lettuce—local price 15.0 Jan. 15.3 17.5 21.1 25.6 Feb. 17.0 19.2 15.9 20.4 Mar. 15.3 17.5 12.1 16.6 Apr. 15.1 Th3 14.4 18.9 May 20.0 22.2 10.3 14.8 June 13.6 15.8 15.7 20.2 July 15.6 17.8 12:5 17.0 Aug. 14.3 16.5 13.9 18.4 Sept. 17.9 20.1 15.4 19.9 Oct. 16.1 18.3 14.1 18.6 Nov. 19.4 21.6 16.4 20.0 Dec. 23.1 25.3 17.3 21.8 Aver. 16.1 18.3 15.3 19.8 Tomatoes—local price 25.0 Jan. 30.0 33.0 35.5 40.0 10.5 15.8 Feb. 29.6 31.8 31.5 36.0 16.1 21.4 Mar. 29.6 31.8 20.8 25.3 10.8 16.1 Apr. 25,4 27.6 30.6 35.1 14.0 19.3 May 30.0 32.2 28.8 33.3 21,2 26.5 June 24.0 26.2 33.0 37.5 21.8 27.1 July 29.6 31.8 30.0 34.5 14.3 19.6 Aug. 20.0 22.2 33:7 38.2 34.7 40.0 Sept. 20.4 22.6 32.9 37.4 meee ee Oct. 25.8 29.9 27.1 31.6 — — Nov. 31.4 33.6 30.2 34.7 17.3 22.6 Dec. 38.5 40.7 27.5 32.0 21.2 26.5 Aver. 24.7 26.9 30.2 34.7 14.9 20.2 * Derived from data supplied by the U. S. Virgin Islands Department of Commerce, Trade and Industry. St. Croix prices include point of origin price plus transportation costs to the Virgin Islands. equal the lesser of the current St. Croix price or the delivered price of imports from the strongest price competitor. With increased production, St. Croix growers would be forced to meet the com- petition of other potential suppliers. It should also be pointed out that in particular months imported produce may be available at prices below those shown in Table 15. For example tomatoes in Jan- uary and March of 1972 were available from the Dominican Republic at 15.8 and 16.1 cents per pound respectively (‘Table 14), a price which would leave St. Croix producers with little or no profit based on Table 15. As indicated previously, imported produce usu- ally arrives graded, sized, and packaged. ‘These marketing services would have to be provided to market any substantial volume of St. Croix produce in the local supermarkets. Costs of these services were approximated in Table 15 to give an indica- tion of the effect of incurring marketing costs on grower profits. Actual marketing costs would vary considerably. In particular, efficient marketing usually requires specialized equipment, packages, and considerable water to provide a quality prod- uct. ‘he acreage of tomatoes required to meet the needs of St. Croix consumers, for example, might not justify the establishment of a packing plant on the island. However some reduction in grower 17 Table 15.—Potential margins for St. Croix producers: selected commodities St. Croix Potential profit Potential profit St. Croix import price St. Croix if marketing with 80% yields grower from strongest production Potential Marketing costs are or 25% higher Commodity price’ compelitor * costs * profit ' costs” incurred production costs eopeprcenepercsasion) Cents Per POURE eee eee Cucumbers 16.0 hiss" 11.7 —0.4 3.8 —4.2 —6.9 Onions 30.0 9.0" 3.8 52 3.0 2.2 1.2 Okra 25.0 15:3 * 5.4 9.9 9.1 4.5 3:1 Peppers 25.0 L168 7.4 4.2 3.9 0.3 —1.6 Tomatoes 25.0 20.2 * 19 12.7 6.7 6.0 4.1 Mangoes 20.0 17.7 ° 2.2 15.5 5.9 9.6 9.0 Papayas 15.0 NA 4.8 10.2 5.0 52 4.0 Pineapple 8.0 12.28 21 5.9 27 3.2 2:7 *See footnote 2, Table 12. *See Table 13. ®See Table 1 through 9, Appendix. ‘ Lower of import price or grower price minus production costs. © Assumed to equal 3 of lower of import price or grower price. ° Puerto Rico 7 Dominican Republic ®Leward and Windward Islands NA Not available. returns might be substituted for a lower quality with fewer built in marketing services. Finally, the data in Table 15 was derived from a normal yield basis. Lower yields or higher pro- duction costs could lower profits as indicated in the last column. An item of expense not included is transporta- tion costs. If St. Croix growers are going to take advantage of the demand for fruits and vegetables in St. Thomas, an additional 1.5 to 2.0 cents per pound would be required for transportation to Charlotte Amalie. With 80 percent yields, this would reduce profit margins for all the selected commodities except mangoes to very thin levels. MARKETING CHANNELS AND PRACTICES Retail outlets for the fruit and vegetable industry of the Virgin Islands include two regional chain stores, several intermediate size independents, and a sizable number of neighborhood or “mom and pop” groceries. Two local merchant wholesalers service the mom and pop groceries while three purveyors operating from five locations provide the restaurants and hotels with their produce. A few independent importers are also bringing in produce from Santo Domingo and the British West Indies. 18 The regional supermarkets account for 60 to 65 percent of the produce from Santo Domingo and other points in the West Indies. Supermarket sales are made primarily to year-round residents, usually those with middle to high incomes. Roughly 85 to 90 percent of the produce sold comes from the U.S. mainland or Puerto Rico. Local produce is handled infrequently if available. Overall qual- ity of produce handled is not as high as in the United States, but perfectly adequate for normal consumption. Hotels and restaurants buy their produce pri- marily from purveyors operating on both St. Thomas and St. Croix. About 18 percent of the total fruits and vegetables sold moves through the hotels and restaurants. Quality is of high priority to the hotels and restaurants and most produce used comes from the U.S. mainland. Local produce is used infrequently when available, especially items like mangoes and papayas. Primary outlets for the hotels and restaurants are tourists, although there is considerable “eating out” by middle and upper income residents. Independent and neighborhood groceries obtain their produce from three specialized merchant wholesalers and from purveyors. Their predomi- nant sales outlet is to middle and low income groups so that marketing services such as sizing, grading, and containers are not as essential as in the regional supermarkets. The local grocery stores handle about 14 per- cent of the total produce sold and rely more heav- ily on local produce than do the regional chain stores. It is estimated that 70 to 75 percent of their produce comes from Puerto Rico and the U.S. mainland, 20 to 25 percent from other for- eign countries and possibly 5 percent from local production, although this is difficult to pin down. It is estimated that about half the food needs of the low income segment of the population comes from the regional chain stores and about half from the intermediate and neighborhood groccrics. A number of roadside markets operate in the Virgin Islands plus a daily farmer’s market in St. ‘Thomas and a weekly market in Christiansted, St. Croix. Boats from nearby islands such as ‘lortola bring some produce to sell at dockside in St. Thomas. In total, the above outlets account for possibly 3 to 4 percent of total produce sales. They rely heavily on produce from the Dominican Re- public and the British West Indies such as Domin- ica and may obtain up to 75 percent of their fruits and vegetables from. importers operating from these islands. It is also believed that considerable local produce may be handled through roadside outlets, but again the volume of local produce is difficult to establish or find displayed. The main outlet for local produce apparently is home consumption and a small volume of sales through the neighborhood groceries and roadside stands. The Virgin Islands Department of Agri- culture assists in assembling, grading, sizing, pack- ing, cooling, storing, delivering, and selling larger lots of local fresh fruits and vegetables. Sales are to the larger supermarkets and to a few hotels and restaurants. A fee of five percent of the sales prices is charged for this service. While the total volume handled is not large, the present organization is a viable mechanism to enable local producers to market their produce. A few producers will make sales directly to hotels or supermarkets but the volume is small. If the volume of local produce can be ex- panded, the present storage and refrigeration facil- ities at the Marketing Building should be ade- quate up to a volume of 2,000 cubic feet of produce per day—about equivalent to one trailer lot. Three separate cooling units are available so different temperatures can be maintained. Grad- ing and sizing of produce is done by hand but given present levels of production, extra equip- ment does not appear warranted. Containers con- sist of cardboard boxes from local groceries and liquor stores, but again are sufficient for the pres- ent volume of produce. ‘The major problems encountered in marketing produce by the Virgin Islands Department of Agri- culture are in coordinating the flow of produce from growers to buyers. Growers may not provide enough notice in advance of their harvest to line up buyers for the produce. ‘Timing of harvests may be inconsistent with the weekend specials planned by the supermarkets. If advance notice is given, other priorities may prevent growers from harvesting, resulting in cancelled sales and un- happy buyers. ; ATTITUDES OF LOCAL FIRMS TOWARD VIRGIN ISLANDS PRODUCE In general, nearly all the local firms contacted were interested and receptive to the idea of mar- keting local produce. They find that local produce sells well and that residents are interested in what is produced in the Virgin Islands. The problems are availability and dependability. Uniform size and consistent quality were also cited. Supermarkets Local supermarket managers were unanimous in their interest in local produce. The comment by one firm manager was that “We don’t get much local produce, but what we can get sells well.” The major need cited is for a constant and de- pendable supply. Produce managers indicated they need to plan in advance, need supplies on a steady basis and find it difficult to interrupt normal mar- keting channels for short periods of time. For ex- ample, buying local produce without advance plan- ing interrupts marketing plans made 10 days to two weeks previous. This can cause financial losses and hard feelings on the part of more dependable suppliers in Puerto Rico or on the U.S. mainland. Managers indicated that minimum grading and sizing is important and that uniformity in appear- 19 ance is desirable. Consistent quality and freedom from rot were stressed, but minor defects can be tolerated. Standards do not have to be as high as would be demanded for, say, exports to the United States. Questions have been raised by local growers about retail markups by the local supermarkets. In general, markups on both St. Croix and St. Thomas were in line with practices elsewhere. Gen- erally 30 to 35 percent of gross sales is taken on produce by retailers to cover their labor and over- head. This means $1 worth of produce at whole- sale would be sold for $1.40 to $1.45 at retail. In- dividual produce items will vary considerably de- pending on their volume and movement. The main consideration should be the price received by the grower and not the price charged by the retailer for the produce. Purveyors Eocal purveyors or wholesalers predominantly servicing hotels and restaurants were more critical in their comments on local produce than were the supermarkets. They indicated they would like local produce such as bananas, lettuce, tomatoes and papayas if they could obtain a reliable supply of high quality produce. Sizing and uniformity was also stressed. One purveyor said he could use 100 crates of lettuce and tomatoes per week if avail- able but his previous experiences with the quality of local produce were bad. Scheduling problems were cited by some purveyors. Plans are based on filling out a full trailer load to minimize unit trans- portation costs. If supplies of produce are unde- pendable, problems can be caused by occasionally buying locally. The broker or exporter on the mainland will be left with excess produce if spo- radic local purchases are made. In addition, the local purveyor has to fill out the trailer with “hard- ware” such as onions or potatoes which may not be desirable. The problem is reversed when a local grower sells direct to a hotel or restaurant and the purveyor is left with excess produce. Local purveyors generally indicated they would take all the local produce they could get if the quality is good and the supply dependable. Merchant wholesalers selling dry goods, meats, and fruits and vegetables to local neighborhood groceries had mixed feelings about local fruits and vegetables. The problem of a consistent sup- 20 ply was mentioned, but quality was not stressed. There was also a lack of interest in local produce since it tends to cut into their business. Local grow- ers can easily arrange to sell extra produce at the neighborhood grocery, which might reduce the volume of produce handled by the merchant wholesalers. REQUIREMENTS TO MEET DOMESTIC CONSUMPTION A total of 229 acres of land would be required to grow enough of 9 selected fruits and vegetables to meet the needs of the Virgin Islands (Table 15). The major requirements would be for toma- toes, lettuce, onions and cucumbers. If St. Croix only was going to be supplied, the acreage required would be 109 acres or less depending on the possi- bility of double or triple cropping and year-round production. By 1980, supplying the annual needs of the Virgin Islands would require 343 acres and for St. Croix only 168 acres, based on an expected gain of 50 percent in the quantity of produce demanded from increases in population and real income. The possibility of improved vari- eties and increased yields would modify acreage requirements by 1980. Although the selected commodities could be pro- duced all the year around with proper irrigation and cultural practices, a favorable production period was designated for each consistent with growing conditions on St. Croix. A total of 130 acres of the 9 crops would be required to meet the current needs of the Virgin Islands during favorable production periods. This would include 62 acres to meet St. Croix requirements (‘lable 16). By 1980, 196 acres would be necessary to grow the Virgin Islands needs and 96 acres for St. Croix alone. In terms of small farms of 12 to 15 acres, the 1973 requirements translate to some 9-11 farms for the total Virgin Islands and 4 or 5 farms for St. Croix for favorable production periods only. By 1980, 13 to 16 farms would be required for the Virgin Islands and 6 to 8 farms for St. Croix. ‘his assumes, local producers could adequately meet the needs of the supermarkets, hotels and restau- rant trade. If this were not the case, the number of farms required would be much smaller. Assuming sufficient production of 9 commodi- Table 16.—Acreage of selected fruits and vegetables required to meet annual Virgin Islands consumption requirements, 1973 and 1980 Consumption requirements Acreage requirements 1973 1980 1973 1980 Estimated yield per Virgin St. Virgin Virgin St. Virgin St. Commodity — acre! Islands Croix * Islands* St. Croix * Islands Croix Islands Croix oe Thousand pounds ~------------- ---------------~ Acres reacts Tomatoes 14.0 858 409 1,287 627 61.3 29.2 91.9 44.8 Onions 18.6 846 403 1.269 618 45.5 QF 68.2 33.2 Cucumbers 5.8 193 * 92 289 141 33.2 15.8 49.8 24.3 Peppers 10.0 145 69 217 106 14.5 6.9 7A | 10.6 Okra 14.0 48 23 72 35 3.4 1.6 5.2 2.5 Lettuce 15.0° 713 369 1,159 565 515 24.6 77.2 Ye | Pineapples 28.0 289° 138 434 211 10.3 4.9 15.5 7.6 Papayas 22.0 96° 46 145 70 4.4 2.1 6.6 3.2 Mangoes 16.6 86 41 129 63 5:2 2.5 7.8 3.8 Total 9 crops 5/333. 1,590 5,000 2,437 229.3 109.3 343.9 167.7 ‘Estimated in cooperation with the Virgin Islands Department of Agriculture. 2 Based on 47.7 percent of total Virgin Islands population on St. Croix. ° Based on a 50 percent increase in quantity demanded by 1980 due to gain in population and income. ‘Based on 48.75 percent of projected 1980 Virgin Islands population on St. Croix. 5 Based on estimated per capita consumption of 1.5 Ibs. cucumbers, 2.0 Ibs. peppers, .9 lb. okra 1.0 Ib. papayas. °75 percent of U. S. winter crop average, 1972. ., 30 Ibs. pineapples and Table 17.—Acreage of selected fruits and vegetables required to meet Virgin Islands consumption requirements during favorable production periods, 1973 and 1980 Acerage required to meet consumption requirements during production periods * 1973 1980 : Total Virgin Virgin St. Commodity Season ' months Islands St. Croix Islands Croix meee ees MC KER ae re Tomatoes Oct.—Mar. 6 30.6 14.6 46.0 22.4 Onions Oct. May 8 30.3 14.5 45.5 221 Cucumbers Oct.—Mar. 6 16.6 7.9 24.9 12.2 Peppers Oct.—Mar. 6 7.2 35 10.8 5.3 Okra All year 12 3.4 1.6 5.2 2.9 Lettuce Oct.—Mar. 6 25.8 12.3 38.6 18.9 Pineapples All year 12 10.5 4.9 155. 7.6 Papayas All year 12 4.4 21 6.6 3.2 Mangoes Apr.—July 4 Lif 8 2.6 1.3 Total 9 crops 130.3 62.2 195.7 95.5 1¥Estimates supplied by officials of Virgin Islands Department of Agriculture. “See footnotes Table 16. 21 ties to meet local needs on St. Croix were produced, present marketing facilities appear adequate. Aver- age daily needs would equal 4,356 pounds, which could be handled through existing cooler capaci- ties. With an annual budget of $32,000 (1972 fis- cal year) the Agricultural Marketing Program would cost two cents ‘per pound of produce mar- keted. Some shifting of the assembly, grading and sizing functions back to the producer might be necessary as volume increases. If total marketings approach 10,000 pounds per day, then additional storage and refrigeration facil- ities would be requred to provide space for two days of production. With enough production, the 22 agricultural marketing building could be operated as a cooperative on a self-sustaining basis. Under the present 5 percent fee, a volume of 3,200,000 pounds of produce would make the present program self-supporting, assuming a sales value of 20 cents per pound or $640,000 of gross sales annually. An improved market information system would be desirable such as wholesale reports from Miami, New York, Puerto Rico, and Santo Domingo. The present phone system is inadequate for easy com- munications with buyers and growers. A system of gathering retail prices sporadically, say, every three months would also be helpful. APPENDIX Table 1.—Estimated cost per acre for growing mangoes, St. Croix, U.S. Virgin Islands Quantity Item and/or hours Cost Labor Dollars Pruning (2 hours per tree) 100 200.00 Picking 2500 fruits per 8 hrs. times 50,000 fruits 160 320.00 Sub-total 520.00 Material Boxes, ladders, poles, etc. 35.00 Other Spray—custom 4 hrs., including chemicals 80.00 Hauling 40.00 Fixed Cost Land charge 25.00 Bookkeeping and misc. 50.00 Amortization cost 110.00 Annual interest on investment 97.00 Total $957.00 Estimated production 44,167 * fruits Cost per fruit—cents ‘Yield with average rainfall is 1 in drought year about 650 fruits Table 2.—Estimated cost per ae 000 fruits per tree, and acre for establishing mangoes, St. Croix, U.S. Virgin Islands Item Labor Dig and prepare holes Plant trees Mulch around trees Water and care for trees twice week Spray trees—2 limes by hand Second year Water trees Spray—hand Third thru fifth year Water and care (80 hrs. annually) Spray—custom ($10 per hour for 8 hours.) Materials Plants—$4 each Spray (Ist and 2nd ycars) Mulch Quantity and/or hours Cost Dollars 50 hrs. 100.00 15 hrs. 30.00 15 hrs. 30.00 164 hrs. 328.00 16 hrs. $2.00 Sub-total 520.00 164 hrs. 328.00 16 hrs. 32.00 240 160.00 Sub-total 520.00 400.00 8.00 60.00 Table 2.—Estimated cost per acre for establishing mangoes, St. Croix, U.S. Virgin Islands—Cont. Item Other Land preparation Fixed Costs Land charge (5 seasons) Misc. (5 seasons) Interest charge at 8% on $1200 for 5 years Total establishments costs Annual amortization charge—5% Quantity and/or hours Cost Dollars 34.00 125.00 50.00 480.00 $2,197.00 110.00 Table 3.—Estimated cost per acre for growing pineapples, St. Croix, U.S. Virgin Islands Quantity Item and/or hours Cost Labor Dollars Apply fertilizer, mulch, and fumigate 46 hrs. 92.00 Preparation of slips for planting 16 hrs. 32.00 Plant 35 hrs. 50.00 First Season Fertilizer, by hand—2 times 8 hrs. 16.00 Spray, by hand—2 times 6 hrs. 12.00 Harvest Cut and load (3 times over) 32 hrs. 64.00 Prepare fruit for market and haul 16 hrs. 32.00 Second Season Fertilizer and spray 14 hrs. 28.00 Harvest etc. 42 hrs. 84.00 Third Season Fertilizer and spray 14 hrs. 28.00 Harvest etc. 38 hrs. 76.00 Sub-total 514.00 Materials Slips—5 cents per slip for 9,400 470.00 Mulch paper—5 rolls, $30 each 150.00 Sprays for 3 seasons 18.00 Fertilizer for 3 seasons— ; 1500 lbs 90.00 Containers 15.00 Sub-total $743.00 Other Land preparation ete. Truck operation (3 seasons) Fixed Costs Land charge (3 seasons) 34.00 60.00 75.00 23 Table 3.—Estimated cost per acre for growing pineapples, St. Croix, U.S. Virgin Islands—Cont. Table 5.—Estimated cost per acre for producing okra, St. Croix, U.S. Virgin Islands Quantity Quantity Item and/or hours Cost Item and/or hours Cost Dollars Labor Dollars Bookkeeping and Misc. Plant, by hand 20 hrs. 40.00 (3 seasons) 50.00 Apply Fertilizer by hand 12 hrs. 24.00 Interest charge 8% Hand weed—2 times 32 hrs. 64.00 on $1400 for 2 years 112.00 Spray—6 times 12 hrs. 24.00 Total $1,588.00 Harvest Labor Pick 96 hrs. 192.00 Estimated production 38 tons * Sort and haul 14 hrs. 28.00 Cost per ton 42.00 Sub-total $372.00 Cost per pound—cents 24 Materials : . : ; Seed 8 Ibs at $1.25 per pound 10.00 "Yield with average rainfall about 14 tons per acre and Fertilizer 21.00 in drought year about 10 tons. Spray 12.00 Containers 6.00 Sub-total $49.00 A : Other Table 4.—Estimated cost per acre for growing ; papayas, St. Croix, U.S. Virgin Islands Land preparation 34.00 anid ao Truck operation—14 trips, i 350 miles 8 cents per mile 28.00 hay stor heute oe Grading and_ packing 175.00 : Fixed Costs Labor Dollars Land Charge 25.00 Nursery 51 hrs. 102.00 Bookkeeping and misc 15.00 Field Total $698.00 Lay out hills and plant 25 hrs. 50.00 Estimated production * 6.5 tons Mulch 20 hrs. 40.00 Cost per ton 107.00 Screen and thin 10 hrs. 20.00 Cost per pound—cents 5.4 Hand Weed 45 hrs. 90:00 ipitinaeedl yield with average rainfall a9. :tony and for Harvest a drought year 5.6 tons. Picking 80 hrs. 160.00 Sort, cull, and size 40 hrs. 80.00 Haul 40 hrs. 80.00 Sub-total $622.00 Table 6.—Estimated cost per acre for producing Material tomatoes, St. Croix, U.S. Virgin Islands Seed 6.00 Spray 33.00 Quantity Fertilizer 26.00 Item and/or hours Cost sae ican 700 Labor Dollars : Nursery 9 hrs. 18.00 Other 7 Land preparation 34.00 7 “Teak seaifonr a Plant 30 hrs 60.00 Eeotieg ean packing . Water—2 times 15 hrs. 30.00 - ° Hand Weed—3 times 48 hrs. 96 00 5% of 3500 Ibs. 84.00 Analy Ielises 3. G as pply fertilizer times 24 hrs. 48.00 oes OSes Spray—10_ time 24 hr. 48.00 Land charge 80.00 “pray mmes ° * , Bookkeeping and misc 20.00 Hiawrest : pie Picking 120 hrs. 240.00 Interest on prod. cost ($800) 64.00 S 5 . Sort and haul 24 hrs. 48.00 Total §1,055.00 Sub-total $588.00 Estimated production—22,000 Ibs. ' : ; Cost per pound—cents 4,75 Materials , Seed 2.00 “Yield with average rainfall is about 26,700 Ibs. per acre Fertilizer (nursery) 5.00 and drought year about 13,000 Ibs. Field—500 Ibs 35.00 24. Table 6.—Estimated cost per acre for producing tomatoes, St Croix, U.S. Virgin Islands—Cont. Quantity Item and/or hours Cost Dollars Spray 20.00 Containers 10.00 Sub-total $72.00 Other Land preparation —custom 34.00 Truck operation—12 trips 300 miles at 8 cents 24.00 Grading and packing 5% of gross value 175.00 Fixed Cost Land charge 25.00 Bookkeeping and misc. 15.00 Total $933.00 Estimated production ' 6.2 tons Cost per ton 150,00 Cost per pound—cents 1 ‘Estimated yield with average rainfall is 7.0 tons and for a drought year is 4.6 tons. Table 7.Estimated cost per acre for producing peppers, St. Croix, U.S. Virgin Islands Quantity Item and/or hours Cost Labor Dollars Nursery 9 hrs. 18.00 Field Plant 39 hrs. 60.00 Water—2 times 15 hrs. 30.00 Hand Weed—3 times 48 hrs. 96.00 Apply fertilizer 16 hrs. 32.00 Spray—10 times 24 hrs. 48.00 Harvest Pick and haul 50 hrs. 100.00 Sub-total $384.00 Materials Seed -Y% Ibs at $10 2.00 Fertilizer Nursery 5.00 Field 25.00 Spray 20.00 Containers 6.00 Sub-total $58.00 Other Land preparation—custom 34.00 Table 7.—Estimated cost per acre for producing peppers, St. Croix, U.S. Virgin Islands—Cont. Quantity Item and/or hours Cost Other—Cont. Dollars Truck operation 20.00 Grading and packing 150.00 Fixed Coasts Land charge 25.00 Bookkeeping and misc. 15.00 Total $686.00 Estimated production ' 4.4 tons Costs per ton 149.00 Cost per pound—cents 74 ‘Estimated yield with average rainfall is 5.0 tons and for a drought year is 3.8 tons. Table 8.—Estimated cost per acre for producing cucumbers, St. Croix, U.S. Virgin Islands Quantity Item and/or hours Cost Labor Dollars Plant by hand 20 hrs. 40.00 Apply Fertilizer by hand 12 hrs. 24.00 Hand weed—3 times 48 hrs. 96.00 Spray —8 times 16 hrs. 32.00 Harvest Pick—3 times for 8 wks 120 hrs. 240.00 Sort and haul 24 hrs. 48.00 Sub-total $480.00 Materials Seed—3 Ibs at $3.00 9.00 Fertilizer—350 lbs 21.00 Spray—$2 per time 16.00 Containers 6.00 Sub-total $52.00 Other Land Preparation 34.00 Truck operation— 24 trips 20.00 Grading and packing 52.00 Fixed Costs Land Charge 25.00 Bookkeeping and misc. 15,00 Total $678.00 Estimated production ' 2.9 tons Cost per ton 234.00 Cost per pound—cents 11.7 ‘Estimated yield with average rainfall is 3.5 tons and for a drought year is 1.8 tons. 25 Table 9—Estimated cost per acre for producing Table 9—Estimated cost per acre for producing onions, St. Croix, U.S. Virgin Islands onions, St. Croix, U.S. Virgin Islands—Cont. Quantity 7 — Item and/or hours Cost Item and/or hours Cost Quantity Labor Dollars Dollars Nursery 9 hrs. 18.00 Other Field Land preparation—customs 34.00 Plant 45 hrs. 90,00 Truck operation 10 trips Hand weed—2 times 32 hrs. 64.00 250 miles at 8 cents 20,00 Apply fertilizer 12 hrs. 24.00 Grading ctc.— Spray—2 times 5 hrs, 10,00 59% of gross value 200.00 Harvest Fixed Costs Pull 45 hrs. 90.00 Land charge 25.00 Remove top and haul 10 hrs. 20.00 Bookkeeping, and misc. 15.00 Haul 10 trips 30 hrs. 60.00 Total $717.00 . Sub-total $376.00 Estimated production 9.3 tons * Materials 1 Seed__1 Ib 5.00 Cost per ton 77.00 eed— D Cost d—cent 3.8 Fertilizer—Nursery 5.00 ecieieeentall nasi Field 26.00 Spray—2 times 9.00 ‘Estimated yield with average rainfall is 10.0 tons and Containers 6.00 for a drought year 8.0 tons. Table 10.—Monthly wholesale prices of potatoes and onions delivered to St. Croix, Virgin Islands, 1972! Puerto Rico Florida Dominican Republic Month Santo San Juan St. Croix Miami St. Croix Domingo St. Croix Senne ay pee ~-. Cents per pound _--_-------- Potatoes January _--____________ 13.5 15.7 = __ 9.9 15.2 February _--___-_ > a 14.6 16.8 5.4 9.9 13.0 18.3 1 Cr; ee 16.2 18.4 4.7 9.2 5.0 10.3 April ~------___________ 13.4 15.6 4.1 8.6 11.9 A May __--------- - 174 19.3 6.1 10.6 _ _- June ~~~-------________ 15.4 17.6 TA 11.6 aa a July 13.1 15.3 17 12.2 __ _ August ~__--____ _ 12.9 15.1 8.6 13.1 =u ae September 22-2222 16.4 18.6 6.6 Wid id _- _- October ~~----___ 14.8 17.0 9.7 14.2 mus ss INGVEMBER see 12:5 14.7 8.0 12:5 -- -- December ~_--__________ __ __ 8.2 12:7 6.0 11,3 Avefagé —.. 22s 14.3 16.5 7.0 11.5 9.1 14.4 Onions Jatiiiaty ees es 5.4 7.6 _- _ February —-_______- — 7.4 9.6 9.6 14.1 Maren soe 6.1 8.3 6.3 10.8 April ~------------_____ 8.0 10.2 6.7 11:2 May sceeee a 5.0 7.2 _- -_- June 6.8 9.0 12.6 17.1 July —-----------_-_____ 8.4 10.6 13:2 17.7 TAC) 35 | ee 6.3 8.5 12.4 16.9 September ______________ 6.6 8.8 12.3 16.8 (0 )c\ (0) | ae ee 9.9 1234 10.0 14.5 November _------ 9.6 11.8 8.0 12.5 DeGGMAbEr eee 5.0 7.2 72 11.7 Average ______________ 6.8 9.0 9.4 13.9 26 ‘See footnote Table 14. Table 11.—Monthly wholesale prices of cabbage and melons delivered to St. Croix, Virgin Islands, 1972* Puerto Rico Florida Dominican Republic Month Santo San Juan St. Croix Miami St. Crotx Domingo St. Croix PS a an fe ee Cents per pound SS Bee ee ne Cabbage January tee ae eer te es 4,7 6.9 — February Saas Ses 6.1 8.3 — = 15.0 20.3 March —--- —— aio ee 25.0 30.3 April 11.3 13.5 -- es =a eens i pl pasecinies 3.9 6.1 6.4 10.9 — mnie: May June === = -- 4.2 6.4 7.8 12.3 — eases July SSS ew er ee es —— as 7.9 12.0 ie — Ne — ow — —— — eis August September ee 3.9 6.1 ies sree | October ee eee 5.4 7.6 — — — -— — November _-.__-__-_ oe es — 8.2 12.7 — December — — 6.8 11.3 a" Average a= ee 4.8 7.0 “3 11.8 19.2 24.5 Melons January os 13.3 15.5 6.0 10.5 — ee February ee een eee 13.3 15.5 6.0 10.5 —— - SS a ome March SS 13.3 15.5 26.2 30.7 April a i ans Sa nea a iam ae RAE aes eee sete _ paren) == May oom — =—— = =a — JUNG) ne eater 13.3 15.5 36.1 40.6 — _— July 13.3 15.5 21:5 26.0 =a —s-- = 13.4 15.6 — carbs 21:5 26.8 August September ________-_____ — ~— 16.8 21:3 2133 26.6 October = ee we eS 2S 15.8 20.3 November 23.9 17.9 23.2 ee eee one aca 19.4 December aS oe SED, re as 28.1 32.6 — —— 15.3 19.8 20.0 25.3 Average ——-----—-—~—~--—~— 13:4 15.6 *See footnote Table 14. 27 Table 12.—Monthly wholesale prices of selected fruits and vegetables delivered to St. Croix, Virgin Islands, 1972' Dominican Republic Dominican Republic Dominican Republic Month Santo Santo Santo St. Croix St. Croix Domingo St. Croix Domingo Domingo ai giro SS SSS _... Cents per pound Plantains Dasheens Eggplant January fs eh a oe 12.1 17.4 24.3 29.6 ————— 13.8 19.1 25.6 30.9 February March Re Se eS ee 14.0 19.3 19.7 25.0 April po ee cee eam gm sa ee sn ep a yn 12.5 17.8 18.5 23.8 13.0 18.3 $e ee ee 17.0 22.3 12.1 17.4 May June es me ee ee en ee om 16.0 21.3 TL 16.8 July 7.1 12.4 12.4 17.7 11.2 16.5 18.6 20.3 25.6 19.8 25.1 August Seer neseeetesigee renee 13.3 September wows oa October at a et ee ee ne -— 8.2 13.5 18.5 93.8 November See SSeS 14.0 19:5 18.6 23.9 December eee Sti aes Stee meee ar 15:3 20.6 13.3 18.6 18.4 23.7 14.5 19.8 Average Avocados Bananas Mangoes January a - - — 14.5 19.8 See ee eee 12:9 18.2 February 18.4 March as. 13.1 April: ssn 20.0 25.3 12.5 17.8 12.8 18.1 mae ee 13.3 18.6 May June =e ee 13.2 18.5 July 11.1 16.4 13.2 18.5 16.4 21.7 19.4 13.1 18.4 21.5 26.8 August SSeS Se 14.1 September i eg i pnt Sine 13.5 18.8 13.3 18.6 October tha 16.4 13.0 18.3 13.1 18.4 November 14.5 19.8 December --------------— 15.4 20.7 13.2 18.5 13.2 18.5 15.8 21.1 Average a a ee eee 13.3 18.6 1See footnote Table 14. 28 “PL Ve, aoujoo} vag , 9% le Et Vc] L'0¢ ool orl Osc! 9cT it £91 SRE Tn aseraay 9°9¢ 12 922 +02 a ~ ~ ~~ $91 OzI - _ eee Jaquiaoaq _ ~~ OT 8 Fl OlF GOS TSS 606 Ist 98 GLI egy We TaquIsAGNy ~~ ~ CLI SSI ~~ ~~ — _ ~~ ~~ CBr S99 Te wT A9qGOIIO, LG lS OzT 8 FT ~~ ~~ Shs Vos CIs OLI ZI POL ttt aaquiajdag ~~ _ OT SFI 626 Pst c9l €'rl ~~ ~~ 0'6T BOT Tn ysnsny 86 9EC Gor a Gor oct Vee 6°06 “Lt c's OL vGT Atnf _ a OLI Z°cT ~~ ~~ PIT o6 ~~ _ 691 2 rari) 1) bl — ~ 081 B'S] ~ - 66 LL ~ — Lut A) ew CFE 006 CLT €¢l ~ _ 981 VOL SF 86 VLT 641 Tedy _ a raat OST _ ~~ £06 [st ~~ _ 691 L41 ON yereyy OSs Csi POL Vl O'or CIT 981 $9l Pl 66 SLT Sf rrr Arenigay 9G Ile Sc 9°cT ~~ ~~ L4G CCS 61 FOI OLT 841 = acme: Arenas poten enn ene BGR A SSS ee pnileppig, HSCS Rees §g2unEG) HOOT ese RETR A TNT I ET I TE punog sag sjuan ~---7~ XIOL) “FH Tupi x104.) “1S upnf upg x01) “1g UDIpY — XIOLD “1G uDNf uvg xXtoL:) “1g wUuDIpPy—s XtOLT) 1G uDNf ung YyUow DpiUoly OY OVLaNg Dpliojy OTY Opand DpiL0O] OWN ojAand rOL6l ‘SPUR|S] UISATA ‘XIOID “7G 0} paraaljep Sajdde pue jimajadeis ‘saduvro Jo saotid apesajoym A[yyWoyy—e¢] 9[qUJ, 29 UVI Library Digitally signed by UVI Library DN: cn=UVI Library, c=US Date: 2002.07.07 15:04:37 -08'00' Signature Not Verified