Pineapple, sugar boost state's agriculture sales

By Sean Hao
Advertiser Staff Writer

Stacey Davis of Aloun Farms walked through the farm's apple banana grove. After strong increases from diversified agriculture in recent years, pineapple and sugar led the way upward in 2002, pushing the state's farm sales to an 11-year high. Richard Ambo • The Honolulu Advertiser

The upswing is in contrast to recent years when diversified crops drove the industry's growth. Diversified agriculture, which includes flowers, coffee, fruits and aquaculture, still posted a record $370.9 million in sales, though that was only slightly improved from 2001 sales of $370.2 million, according to figures released this week by the Hawaii Agricultural Statistics Service.

Meanwhile, sales of sugarcane last year rose 11 percent to $64.3 million while pineapple sales grew 4 percent to $100.6 million. The numbers helped push overall agriculture sales up 2 percent to $535.9 million in 2002 — the best year since 1991. The resurgence of pineapple and sugarcane — once the foundation of the state's economy — comes amid improved production techniques and a trend toward sales of higher-margin sugar products.

The strength in sugarcane should continue this year and next, said Steve Holaday, plant manager with the state's largest sugarcane grower and sugar producer, Hawaiian Commercial & Sugar Co. on Maui. HC&S said this year's farm-level sales of its sugarcane, excluding refined sugar sales, should be even with or slightly above last year's level.

"Prices have been a little bit better under the new (federal) farm bill and our production is up slightly," Holaday said. That bill sought to better control sugar production and prices.

The flat growth for diversified agriculture, considered the future of the local farming industry, is a result of weather and price changes, both of which can have a significant impact on returns, said said Donald Martin, state agricultural statistician.

Drought took a toll on coffee and macadamia nut sales in particular. Still, certain diversified agriculture sectors such as flowers and nursery products, seed crops and aquaculture all posted record sales.

During 2002, sales of flowers and nursery products rose 4 percent to $92 million — a dollar value that now rivals pineapple as the state's biggest cash crop.

Eric Tanouye, sales manager for Green Point Nurseries in Hilo attributed the growth to the health of the state's economy, which is benefitting from a strong construction and real estate sector. That has helped offset a year of recovery for tourism.

Additionally, the Mainland market for cut flowers from Hawai'i continues to rebound from post-Sept. 11 lows, Tanouye said.

"You have so many people that have come to Hawai'i and have seen the Islands," he said. "When they go home, people buy flowers from Hawai'i because it gives them good feelings and reminds them of Hawai'i and of their trip to Hawai'i."

Sales of Hawai'i's vegetables, the second largest diversified crop, fell 1 percent last year to $61.7 million, mainly on lower sales of ginger root and herbs and an onion crop hurt by drought.

Excluding ginger root and herbs, sales grew 5 percent as local growers such as Aloun Farms in Kapolei continue to develop the market for locally harvested crops such as bananas, sweet corn, sweet onion, lettuce and broccoli among other produce. Aloun expects sales this year to increase about 10 percent.

Fortunately for Hawai'i, the relatively level year for diversified agriculture came at a time when sugar and pineapple sales picked up the slack. However, that shouldn't overshadow strength in sales of other agricultural products such as flowers and aquaculture, Martin said.

"I think there's a lot of positives that can be seen in this data," he said. "Diversified agriculture has still been a good, steadily growing industry over the last decade or so."

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.