The state Office of Hawaiian Affairs is acquiring a Kaua'i poi mill for $185,000.

OHA's Board of Trustees last week approved the purchase of Makaweli Poi Mill in Waimea from Kaua'i resident John Aana.

"OHA looks forward to supporting a thriving poi business that will serve both commerce in West Kaua'i and poi consumers statewide," said OHA Administrator Clyde Namu'o.

In the deal, OHA also will assume the leases on 12 acres of land near the Makaweli River that the company uses to grow taro.

OHA said it will also support the establishment of a Waimea cooperative with other nearby taro farmers that will increase the mill's output.

Demand for poi has risen in recent years while production levels have declined due to bad weather and invasive pests.

OHA said the mill's taro fields, or lo'i, will have a secondary function as an "outdoor classroom" for raising cultural awareness of the value of taro in Hawaiian life.

OHA said the poi mill will operate as a subsidiary of OHA's nonprofit arm, Hi'ilei Aloha.

OHA said it will use its nonprofit status to secure grant funding from state and federal agencies.

OHA, led by Kaua'i trustee Donald Cataluna, has worked on the purchase of Makaweli Poi Mill since 2006.

The acquisition is the second subsidiary operated by OHA's Hi'ilei Aloha arm. A separate unit of Hi'ilei Aloha joined several partners to purchase Waimea Valley in 2006.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.

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