By HARRY EAGAR, Staff Writer
Pierre Omidyar, who invested in Maui Land & Pineapple Co. stock when the company was being pushed in a greener direction, is now supporting a for-profit/charitable combination that is taking over ML&P’s Kapalua Farms, one of the largest organic farms in the state.
Since ML&P also closed its Maui Pineapple Co. subsidiary, then leased much of its land and equipment to the upstart Haliimaile Pineapple Co. this month, the handover takes ML&P completely out of agriculture.
On Friday, Ulupono Sustainable Agriculture Development LLC, a subsidiary of the Ulupono Initiative, announced it would be assuming operations of Kapalua Farms, which not only supplies vegetables and eggs to ML&P’s Kapalua Resort but also conducts research into new methods of producing food on Maui. Ulupono Initiative is a Hawaii-focused social investment organization founded in June with backing from Omidyar and his wife, Pam. He was a founder of eBay, and they now live in Hawaii.
Warren Haruki, chairman and interim chief executive officer of ML&P, said, "We are pleased to partner with Ulupono Sustainable Agriculture Development as they assume operations of Kapalua Farms. Our desire was to find an operational partner that would be able to continue organic farming operations and to maintain Kapalua Farms as a community resource, employer and provider."
By Rick Daysog
Advertiser Staff Writer
A group that plans to restore pineapple growing on Maui will pay $420,000 a year to lease agricultural lands held by Maui Land & Pineapple Co.
Haliimaile Pineapple Co. also will pay $680,000 to purchase ML&P’s farm equipment, supplies and customer lists, according to a filing with the Securities and Exchange Commission.
ML&P announced in November that it was shutting down pineapple operations after nearly 100 years of plantation-scale farming on the Valley Isle. The company harvested its final crop last month and laid off 206 workers.
But Haliimaile — whose principals include former ML&P executives Doug MacCluer and Ed Chenchin and Ulupalakua Ranch owner Pardee Erdman — said last week they plan restore pineapple farming on 950 acres of ML&P’s 3,000-acre pineapple operations .
The new company said it also will take over ML&P’s Maui Gold brand and will hire back 66 displaced pineapple workers.
The group that bought the assets of Maui Pineapple Co. paid a fraction of what the company’s equipment, materials, supplies and customer lists were worth, according to a filing with federal regulators.
The partners of Haliimaile Pineapple Co. acquired the equipment and other items for $680,000, to be paid over five years. The assets had a book value of $3 million, according Maui Land and Pineapple Co.’s filing this week with the U.S. Securities Exchange Commission
Haliimaile Pineapple will also pay ML&P (NYSE: MLP) between $20,000 and $30,000 a year to use the Maui Pineapple trade marks, trade names such as Maui Gold, and logos, and will lease 950 acres and 59,000 square feet of office and warehouse space at market rents, which is about $420,000 per year, for 20 years. The new company hired 66 workers of the 206 workers who were terminated by Maui Pine on Dec. 31, which will decrease ML&P’s severance costs, the company said in the filing.
A pineapple startup bought equipment from the shuttered Valley Isle operation for $680,000
Haliimaile Pineapple Co., the startup that is resurrecting the pineapple industry on Maui, purchased Maui Pineapple Co.’s operating equipment, materials, supplies and customer lists for a discounted price of $680,000, and also agreed to other financial terms to keep the agricultural business alive on the Valley Isle.
Financially ailing Maui Land & Pineapple Co., which sold its pineapple operations to Haliimaile Pineapple last month as part of a broad-based restructuring, said in a regulatory filing yesterday that the net book value (assets minus liabilities) of the equipment and other items—which are due to be paid by Haliimaile Pineapple over five years—was about $3 million.
Title: Calculationg costs of using farm machinery: a standardized procedure for Hawaii.
Personal Authors: Huang, W. Y., Marutani, H. K., Vieth, G. R., Keeler, J. T.
Author Affiliation: College of Tropical Agriculture and Human Resources, University of Hawaii, Honolulu, Hawaii, USA.
Editors: No editors
Document Title: Departmental Paper – Hawaii Agricultural Experiment Station (USA) 1979
Based on the recommended method of the American Society of Agricultural Engineering, a modified procedure for calculating the costs of using farm machinery in Hawaii is developed. This modified procedure can handle the situations of highly variable annual machine utilization rates of Hawaii’s diversified agriculture. An example illustrating the computation procedure and case study of a typical watermelon farm are presented. The procedure is also used to analyse the relation between costs and annual utilization. The analysis indicates that a farmer who has a low annual machine utilization rate incurs a high cost for using the machine, due mainly to the high interest charge. Authors’ summary. KEYWORDS: TROPAG | Economics | development and social sciences | agricultural equipment | costs | production function | Hawaii.
Calculationg costs of using farm machinery: a standardized procedure for Hawaii. | Huang, W. Y., Marutani, H. K., Vieth, G. R., Keeler, J. T. | Departmental Paper – Hawaii Agricultural Experiment Station (USA) 1979 |