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The Honolulu Advertiser
Posted on: Tuesday, September 5, 2006

Coffee hits record sales

By Sean Hao
Advertiser Staff Writer

A bumper crop and record high prices pushed Hawai'i coffee sales to an all-time high of $37.3 million during the 2005-06 season.

That's up 88 percent from the prior season and also tops a prior record of $28.2 million in farm-level sales set during the 1997-98 season, according to a report released yesterday by the National Agricultural Statistics Service.

Growers benefited from above normal rains in late 2004 through 2005 in key areas such as Kainaliu, which is located in the middle of the North and South Kona districts. That helped lead to a 46 percent increase in production to 8.2 million pounds. Farm prices reached a record high average of $4.55 a pound. That was up 28 percent from an average price of $3.55 a pound in the prior season.

For growers, record prices coupled with a bumper crop is the best of both worlds, said Jim Wayman, president of both the Hawaii Coffee Co. and the Hawaii Coffee Association.

"The demand appears to be growing and even with the premium year of supply we still had a higher price," he said. "I think that tells us the Hawai'i coffee industry is in great shape."

Coffee is Hawai'i's seventh-largest crop in terms of farm sales. Coffee has been grown in Hawai'i for nearly two centuries, with the Kona variety commanding the highest prices due to the quality of the soil and the ample rainfall.

Big Island growers generated $31 million in sales, or 83 percent of state coffee sales. The combined farm value of Maui, Ho-nolulu and Kaua'i counties was $6.3 million.

This season Big Island millers expect production to dip about 5 percent from last season. This could be partially offset by a smaller increase from the combined counties of Maui, Honolulu and Kaua'i, according to the National Agricultural Statistics Service.

Reach Sean Hao at shao@honoluluadvertiser.com.

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