Meat firm likes view from Kapolei
By James Gonser
Advertiser Leeward Bureau
KAPOLEI — Operating out of its new Kapolei meat processing, packing and distribution facility, Palama Meat Co. expects to expand its business base by $25 million by 2006.
Cory Lum • The Honolulu Advertiser
"Our projections for the next five years are to go from $75 million to $100 million in annual sales," said company president Joe Azzaro Sr. "I think we are going to see steady growth in sales in both retail and food service.
Joe Azzaro Jr., vice president of Palama Meat Co., now works in the family-run business's new plant in Kapolei.
"We have over 100 new items slated to come out in the next four years on the retail side for the processed meat items."
Palama Meat, Hawai'i's largest meat-packing business, opened its $8 million food-processing plant this month on 4.2 aces of Campbell Estate land in Kapolei Business Park.
Azzaro said the family-run business now has 800 food service accounts and about 500 retail accounts and expects those numbers to grow as new food items, including sliced roast beef and turkey, pre-cooked beef patties and chili, are offered.
The 90,000-square-foot facility, located on Lauwiliwili Street across from the Kapolei fire station, is three times the size of Palama Meat's old packing plant on Waiwai Loop near Honolulu International Airport.
The company has increased its staff by 60 people for the move and now employs about 180 workers. Staffing is expected to be increased further — by 140 positions — over the next few years.
"There is a big shortage of meat-processing people," said Azzaro. "We have jobs in warehousing, driving, accounting, just about every area that goes into the type of business we have here."
Azzaro said $10 million in tax-exempt, special-purpose revenue bonds approved by the Legislature in 1998 allowed Palama Meat to build its plant.
"Kapolei was attractive for several reasons," said Azzaro. "Number 1 is a new slaughterhouse is going to be built in Campbell Industrial Park. That would be very convenient for us. Also, the folks at Campbell Estate presented us with the most economical ground lease we could possibly get.
Kapolei is where the land was available and at a price we needed it to be available at."
Azzaro said safety precautions were important when building the facility, and at least $2 million was devoted to making sure their meat products are safe.
On-site inspectors from the U.S. Department of Agriculture have access to the plant 24 hours a day, he said.
"We took many safety precautions," Azzaro said. "Everything from disinfecting boots, to double scrubbing of hands, and booties to cover shoes. It is very complete and comprehensive."
Donna Goth, Campbell Estate's director for Hawai'i Properties, said, "Palama Meat has joined the growing number of businesses that are discovering that Kapolei is the perfect place to compete both globally and locally.
"As Hawai'i's largest meat processor and packer, Palama has the ability to contribute greatly toward the development of Kapolei as a job center."
The 135-acre Kapolei Business Park is a light-industrial center that houses distribution centers for Neiman Marcus and Allegiance Health Care as well as Palama Meat Co. and the Kapolei fire station.
By the end of this year, there will be 13 projects completed or under construction in greater Kapolei.
