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The Honolulu Advertiser

Updated at 5:39 p.m., Monday, April 30, 2007

ML&P to end canned pineapple operations June 30

By Sean Hao
Advertiser Staff Writer

Maui Land & Pineapple Company Inc. said it will eliminate 120 jobs, or 27 percent of its work force, when it stops canning pineapple in Kahului on June 30.

The company will continue to process pineapple juice and sell fresh fruit. Maui Land & Pine is Hawai'i's only pineapple canner.

"This consolidation is necessary as we work to develop a profitable business model for our pineapple company," said David Cole, chairman, president & chief executive for Maui Land & Pineapple, in a written statement. "We are in a situation where we need to cut some jobs to save many others. Fortunately the bulk of our agricultural work force is concentrated in our fresh fruit segment."

The job cuts follow the elimination of 551 O'ahu jobs last year when Del Monte Fresh Produce ceased its more than century-old Hawai'i operation. The pineapple industry's decline comes amid intense competition from farmers in foreign countries who can produce similar goods at a lower price. That has hit Hawai'i's pineapple and sugar cane growers especially hard. Even before Del Monte's shutdown, sales of Hawai'i pineapple — the state's biggest single cash crop — were in decline, falling nearly 5 percent in 2005 to $79.3 million.

Faced with high land and labor costs, Hawai'i pineapple growers are losing market share to countries such as Costa Rica, Mexico and Ecuador.

Maui Pineapple is looking to build profits by shifting from sales of canned fruit to fresh fruit.

"By discontinuing operations that are no longer competitive, we are able to concentrate on the fresh fruit segment where we have best chance for achieving and sustaining a niche market for Maui-grown pineapple," Cole said.

Shutting down selected operations at the Kahului facility could result in the elimination of approximately 120 jobs at the processing plant, though some of the affected workers may be transferred to fresh fruit packing operations, which will be adding another shift or to juice processing operations. All impacted employees will be encouraged to apply for openings in the company's other divisions. Maui Pineapple Company Ltd., a subsidiary of Maui Land & Pine, said it is working with the International Longshore and Warehouse Union to assist employees during the transition.

"At the local level, we are working diligently to ensure the affected employees are taken care of," said Willie Kennison, Maui division director for the ILWU. "We are working with the company to look at all available avenues to assist these employees."

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