Hawai'i's pineapple growers convert fields to extra-sweet crop
By Sean Hao
Advertiser Staff Writer
Maui Land & Pineapple Co. will shift all of its Hawai'i production to its new premium "Hawaiian Gold" variety and is considering expanding its pineapple acreage to take advantage of growing consumption.
The company can expect competition from increased production of premium pineapples in Costa Rica as more farmers convert their crops to popular, extra-sweet pineapples that Fresh Del Monte Produce Inc. has fought hard to keep from competitors.
Despite a production increase in 2002, Hawai'i's slice of the U.S. fresh-pineapple market fell to about 21 percent, compared with nearly 24 percent in 2001, according to the U.S. Department of Commerce. The top foreign producers were Costa Rica, Mexico and Ecuador.
However, increased production in Costa Rica shouldn't hurt Hawai'i's pineapple production, said Howard Nager, vice president for fresh sales and marketing for Maui Land & Pine. Demand for so-called "gold" pineapple continues to rise and Hawai'i pineapples are still cheaper to ship to the western United States, he said. Maui Land & Pine also grows such pineapples in Costa Rica.
About 20 percent of Maui Land & Pine's locally grown pineapples are of the "Hawaiian Gold" variety, but plans are to convert entirely to the new pineapple within two to four years, Nager said.
"Every pineapple that we produce in the future is this new variety," he said. "We see that as the future of this industry and consumers have made up their mind that this is the future of this industry."
Nager said the decision was easy. During the second quarter, Maui Land & Pine's pineapple operations posted larger operating losses but higher revenues, based partly on increased sales of premium pineapples grown in Hawai'i and Costa Rica.
Hawai'i's other two major pineapple growers, Del Monte and Dole Food Co. Inc., also grow extra-sweet pineapples in Hawai'i. Officials for both companies were unavailable to comment.
The optimistic outlook comes amid increased demand for pineapple. Annual consumption of pineapple in the United States has increased from about 1.5 pounds per person in 1980 to more than 3 pounds per person in 2001, according to the U.S. Department of Agriculture.
And after suffering steep declines during the 1990s, farm-level sales of Hawai'i pineapple has risen, with 2002 revenues improving 4 percent to $100.6 million. Production of fresh pineapple rose 6 percent to 117,000 tons.
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
