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The Honolulu Advertiser

Posted on: Friday, October 29, 2004

Only 41 Hawai'i sites left

By Sean Hao
Advertiser Staff Writer

This year's closing of one dairy and two chicken producers on O'ahu is part of a broader decline in the state's livestock industry, according to a University of Hawai'i survey.

Sam Kakazu stands before now-empty chicken pens on his Nanakuli farm. His broiler chicken operation was one of two to close down this year as part of a decline in the state's livestock industry.

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Overall 26 of 67 livestock operations tracked since 1999 have ceased operations, based on interviews conducted by the University's College of Tropical Agriculture and Human Resources. The survey, which only tracked major captive livestock businesses over that period, showed just 41 remained in operation this year.

The bulk of losses came in those operations that rely more heavily on feed shipped in from the Mainland, said Glen Fukumoto, a CTAHR extension agent for livestock programs.

While annual sales in Hawai'i's $536 million agriculture industry have increased modestly in recent years, much of that growth has come from non-food crops such as seed corn and floriculture. The loss of food-producing livestock businesses is problematic because it forces the state to rely more heavily on Mainland and other sources to meet basic needs, Fukumoto said.

In general, farming also provides economic opportunities in rural areas and helps keep areas free of development, he said.

"It's those issues — food security, keeping that infrastructure in place, the open space," that are important for the state, Fukumoto said. "Once it's lost we can't get it back. If you just build houses, the tourists won't come."

In general, Hawai'i's cattle sector has experienced stable or growing sales in recent years, in part because cattle operators tend to own their own land and graze cattle in open fields. Between 1998 and 2002 farm-level cattle sales rose 11 percent to $18.72 million, according to the Hawaii Agriculture Statistics Service. Over that same period sales of locally produced hogs, milk and eggs fell 28 percent to $35.98 million.

The survey also found that between 1999 and 2004:

• Dairy operations statewide dropped 40 percent to six businesses. (That excludes a dairy farm recently opened on the Big Island).

• The number of hog farms fell 29 percent to 21 operations.

• Egg-producing businesses declined 18 percent to nine farms.

• The number of farms producing broiler chickens dropped from 4 to zero. Medeiros Farm on Kaua'i, which is the only remaining farm raising and processing chicken, was not included in the survey.

Changing industry

Among the livestock operations that closed this year were Wai'anae's Evergreen Hillside Dairy, and the broiler chicken portion of farms owned by the Kakazu and Shigeta families in Nanakuli.

While UH did not conduct a survey of all livestock operations, the new figures provide a snapshot of how the industry is changing. Those in the industry said the decline illustrates the need to address certain issues raised by farmers, including a lack of local consumer demand, tax incentives and locally produced animal feed, as well as high shipping costs.

Ed Boteilho Jr., president of Clover Leaf Dairy on the Big Island, says rate hikes and fuel surcharges have raised the cost of shipping cattle feed to Hawai'i each month by $4,500.

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Ed Boteilho Jr., president of Clover Leaf Dairy in North Kohala, said rate hikes and fuel surcharge increases have raised his cost of shipping 20 containers of feed to Hawai'i each month by $4,500. Efforts to subdivide agricultural-zoned lands to create homes with covenants preventing farmers from conducting legitimate farming activities also are to blame, he said.

"It's a whole bunch of things" hurting livestock farmers, Boteilho said. "Designate areas as agriculture areas and stop the encroachment of homes."

Fall of farmed land

Recently released figures from the 2002 U.S. census of agriculture showed the amount of land farmed in Hawai'i fell 10 percent between 1997 and 2002 as sugar-cane acres went fallow or were converted to housing. High land costs and the encroachment of homes have driven many remaining operations to Wai'anae and other rural areas, said Chin Lee, a dairy extension specialist at UH who also worked on the survey.

"Unless there are ways to address the preservation of agricultural land the next move is into the ocean, basically," he said.

Exacerbating the problem is the aging of livestock farmers, Fukumoto said. In 1999, 6.9 percent of livestock farmers were younger than 30. Nearly 27 percent were older than 60. More recent figures on the age of livestock farmers were unavailable.

Boteilho, 60, said he's in the process of succession planning for his 650-cow dairy.

"That's what I need to try and establish," he said. "We have very talented people in my family.

"The question is, are they willing?"

In the end, Hawai'i farmers always will face disadvantages compared with their Mainland counterparts. In response, some farms are adopting innovative techniques such as composting animal waste for use as fertilizer, said Diane Ley, deputy to the commissioner of the state Department of Agriculture.

Other solutions include providing state and private sector agricultural land for long-term lease and urging Hawai'i consumers to support local farmers by buying their goods. For example, local milk carries an Island Fresh logo. The state also is still in the process of developing a logo program to certify the quality and origin of food products.

"Low-cost imports are definitely affecting the industry," Ley said. "Certainly we need to encourage people to buy local products whenever possible. Is it worth it to keep our dollars within the state?," Ley asked.

"Every dollar spent here multiplies more quickly compared to a dollar that goes to the Mainland or China."

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