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The Honolulu Advertiser
Posted on: Tuesday, November 21, 2006

Del Monte acreage should 'stay ag land'

 •  Union hopes workers won't lose homes

By Greg Wiles
Advertiser Staff Writer

The state and city want more than 5,000 acres being relinquished by Del Monte Fresh Produce to remain in agricultural use, though officials admit finding another large farmer for the Kunia land may be difficult.

Officials are talking about the future of the agricultural lands in the wake of last week's surprise announcement by Del Monte to end more than 100 years of operations in Hawai'i and close its pineapple operations two years ahead of schedule.

Yesterday, there appeared to be little chance of another pineapple operation taking over the land located along Kunia Road.

Hawai'i's storied pineapple industry, one that 45 years ago dominated the world market and produced some of the biggest technological breakthroughs, is losing ground to producers in Latin America and Southeast Asia where labor costs are significantly lower, said one industry consultant.

Government and elected officials said they believe the Kunia land, designated for agricultural use by the state Land Use Commission and zoned for agriculture by the city, will attract other farmers.

"It's our every anticipation that it will stay ag land," said Sandra Lee Kunimoto, chairwoman of the state Board of Agriculture. "As some of these former plantation lands open up, you've seen a wide variety of crops."

One last-ditch effort to preserve the pineapple operation has apparently failed.

On Friday, Maui Land & Pineapple Co., the state's largest pineapple grower, said it was willing to take over the operation to salvage the remaining crop. But yesterday Maui Land said it had been told Del Monte was not interested in its offer.

Del Monte, part of Coral Gables, Fla.-based Fresh Del Monte Produce, began to plow under its remaining crops on Saturday. The company did not return multiple telephone messages requesting comment.

Del Monte leased most of its land from the Campbell Estate, which is looking for a new tenant or a buyer once the lease expires at the end of 2008. Anyone who tries to lease or buy the land with the intention of developing housing would have to win approvals for land use and zoning changes.

"It would take some effort not only with the city, but the state as well," said Henry Eng, director of the city Planning and Permitting Department. "It's outside of the urban growth boundary."

There is also the issue of water. State Rep. Michael Magaoay, D-46th (Kahuku, North Shore, Schofield), said the rights to irrigation water may be lost if the land's agricultural use is ended. In 1997, for example, the state Water Commission decided that about half the water previously irrigating defunct Leeward sugar cane fields should be diverted to Windward O'ahu.

"The question is what other crops do you have now?" Magaoay said. "It's like a breadbasket waiting to happen."

He said the state Legislature could look at several options to promote agricultural use of the land, including agricultural parks or an agricultural business center where farmers could tap the knowledge of University of Hawai'i's agricultural experts without traveling to Manoa.

In announcing its accelerated timetable for exiting Hawai'i, Del Monte said production volume at Kunia had been lower than expected and that worldwide supply and prices forced the company to close the operation.

"Anybody who is close to the industry could see that Hawaiian pineapple is not just economic anymore," said Ian Greig, a Tampa, Fla.-based consultant with 36 years of pineapple experience. "It hasn't been for many, many years. That's why much of the production has moved overseas."

He said Hawai'i's remaining producers may be able to maintain niche markets such as selling to local customers or tapping West Coast markets.

Maui Land & Pine said its business continues to do well. The company has reduced the amount of canned pineapple it produces and has concentrated on marketing its Maui Gold premium brand, which it says is sweeter and less acidic than other fresh pineapple sold in supermarkets.

"Maui provides some very premium growing conditions for the Maui Gold pineapple and our consumers have responded," said company spokeswoman Teri Freitas Gorman.

Hawai'i's other producer is Dole Food Co., which is the last pineapple grower on O'ahu.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.