Hawaii Reporter: Hawaii Reporter

Published on October 20, 2009 in General Ag News and Notes.

Jones Act Lawsuit Will Test Control of Hawaii’s Shipping Monopoly

By Malia Zimmerman, 10/20/2009 5:52:42 AM
Big Island small business owner Jim O’Keefe operated the O’Keefe & Sons Bread Bakers in Hilo, Hawaii for 13 years before shutting down his extensive operation in 2008. His popular bakery closure left 50 people out of work, retail customers searching for other restaurants to buy deli and baked goods from, and several area businesses, grocery stores and resorts scrambling for other local places to buy wholesale baked foods.

The cost of doing business in Hawaii was just too high for O’Keefe to continue operating. Through his own research, he discovered that a large part of his expenses were for shipping flour and other food ingredients to the island of Hawaii.

“I would buy a 50 pound bag of flour for $6 or $7 in the mainland, and by the time it landed in Hilo, it cost me $12.50 a bag,” O’Keefe says.

O’Keefe, like virtually every other business person in Hawaii, sees the cost of goods skyrocket by the time they reach Hawaiian shores because of the Jones Act, a federal law that says all products shipped between American ports must be shipped in American made vessels by a crew that is 75 percent American. That law limits competition from world shippers, and raises the cost of doing business here, in O’Keefe’s case, by six figures over the life of his business.

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Kula housing project gains a little ground – The Maui News

Published on September 15, 2009 in General Ag News and Notes and Sugar Cane.

Kula housing project gains a little ground

WAILUKU – Maui Planning Commission members were unable to agree where to designate growth boundaries in South Maui, but they did make some progress in Kula.
The Kula Ridge housing project had both supporters and doubters before the planning commission.

Part of the project is supposed to be affordable, but some wondered how to ensure that it really turns out that way.

"Don’t get into a project-review decision-making mode," advised Department of Planning Director Jeff Hunt, adding that downstream reviews of matters such as community plan designations can look at projects in detail.

"This is the beginning of a 125-hurdle process," said Chairman Wayne Hedani.

When it came to a vote, the controversial portion of Kula Ridge cleared its hurdle, with commission member Warren Shibuya dissenting over concerns about water and the adequacy of Lower Kula Road.

However, A&B Properties’ bid to add 80 acres to 63 acres for residential development at Haliimaile failed.

Commission member Kent Hiranaga pointed out that the developer is going to provide water and sewage treatment anyway, so it would be financially helpful to expand the project.

"A&B is an agriculture company and a development company," he said. "If we want to allow them to continue the agricultural sector of their business, you need to allow some development. If you take away development, I believe you are jeopardizing the future of sugar cane.

"Then you will have lots of ag land to use for something."

However, farmers – organic and conventional – opposed taking prime agricultural land out of production, and on a split vote the 80 acres were excluded from the designated growth zone.

That Hiranaga moved to support an A&B proposal was ironic in light of earlier testimony.

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State Energy Officials Convene in Annapolis to Tackle Green Jobs, Energy Efficiency… | Reuters

Published on September 14, 2009 in General Ag News and Notes.

State Energy Officials Convene in Annapolis to Tackle Green Jobs, Energy Efficiency and Other Stimulus-Related Issues – Zoi, Rogers of U.S. Department of Energy Address National Association of State Energy Officials –
ANNAPOLIS, Md., Sept. 14 /PRNewswire/ — The largest-ever meeting of State Energy Officials convened in Annapolis, Md. today to discuss state and federal efforts to create green jobs, increase the nation’s energy efficiency and use of renewable energy, and tackle other issues related to the American Reinvestment and Recovery Act. Over 200 participants are attending the three-day Annual Meeting of the National Association of State Energy Officials, whose members typically are designated by governors to run their state and territory energy offices.

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Haku Mo’olelo – The Maui News

Published on September 12, 2009 in General Ag News and Notes.

By EDWIN TANJI, For The Maui News
POSTED: September 11, 2009

Sonny Kaniho was a Native Hawaiian. He was also a loyal citizen of the United States, an Air Force veteran, a Pearl Harbor shipworker.

As a Native Hawaiian, he recognized injustices perpetrated on Native Hawaiians. As an American, he believed the government could be pushed into reversing the injustices. He knew it would take effort and it would take time. He committed himself to the effort. It’s taken more time than he had, but the injustices he strived to correct had been in place for most of the century.

His effort also was mostly personal but it ran parallel with and enhanced other efforts by many groups to revitalize Hawaiian culture and restore Hawaiian rights. In the 1970s, efforts at restoring Hawaii as a place reflecting its indigenous people included the Aboriginal Lands of Hawaii Association, Hawaiian musicians, kumu hula, the Polynesian Voyaging Society, the Protect Kahoolawe Ohana, and Dr. Terry Shintani, who established the nutritional value of the Hawaiian Diet.

Kaniho’s effort gave a synergistic boost to the 1978 debate that led to formulation of Article XII of the Hawaii Constitution – the Hawaiian Affairs section mandating state funding for Hawaiian Home Lands and establishing the Office of Hawaiian Affairs.

Sonny Kaniho was an unlikely protester who conducted unlikely protests, a soft-spoken man engaging in nonviolent acts of civil disobedience in the spirit of Mahatma Gandhi and the Rev. Martin Luther King. His peaceful protests were not angry confrontations. They were designed to draw public attention to what he viewed to be unjust decisions of the Department of Hawaiian Home Lands.

The department didn’t agree, but it based its actions on 50 years of inertia. Kaniho knew the excuses. He didn’t accept them.

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Monsanto Plowed Down (MON)

Published on September 11, 2009 in General Ag News and Notes.

It’s becoming increasingly harder to figure out whether Monsanto (NYSE: MON) is a bargain or a value trap. Yesterday, the agriculture giant announced less-than-stellar guidance for its 2010 fiscal year, which started at the beginning of the month.

It’s really a tale of two product lines for Monsanto. The seed and trait business is growing and competing well against — and sometimes with — DuPont (NYSE: DD), Dow Chemical (NYSE: DOW), and Syngenta (NYSE: SYT).

Its Roundup product, on the other hand, is headed in the wrong direction. Once a cash cow, Roundup now faces generic competition, and a glut of chemical herbicides in the supply chain is pushing down prices. Unlike drug companies such as Pfizer (NYSE: PFE) and Merck (NYSE: MRK), which can pretty much kiss off most of their sales once generic competition starts, Monsanto does expect to bring in $650 million to $750 million in gross profits from Roundup in the coming year. Still that’s a long drop from the nearly $2 billion in gross profits that the herbicide brought in during fiscal 2008.

In a couple of years, it’s not going to matter much: By 2012, the company expects that seeds and licensed traits will make up 85% of the company’s total gross profit. But in the meantime, the drop is hurting the bottom line.

Earnings per share, after adding back restructuring charges, are expected to come in between $3.10 to $3.30, a sharp decline from the $4.40 or so that’s expected from the recently completed year. Trading at a forward price-to-earnings ratio of more than 24, Monsanto is a little cheaper than we’ve seen in the past, but it doesn’t leave investors much breathing room, if Roundup sales continue to fall faster than expected.

Monsanto Plowed Down (MON)

The efforts to produce Macadamia Nuts in Brazil

Published on September 11, 2009 in General Ag News and Notes and Macadamia Nuts.

by Dan Vallada – FoodBizDaily.com Sao Paulo
The macadamia nut has been cultivated in Brazil for four decades. Researchers are trying to increase its productivity and resistance.

The commercial cultivation of macadamia nuts in Brazil is recent, started only 40 years ago and productivity is still low. The country, the seventh in world production (2,400 tonnes in 7 thousand hectares), has about 250 producers, 160 of them in the State of Sao Paulo. The biggest Brazilian harvest happened in 2006, with 3,500 tons. Therefore, technicians and researchers are joining forces to study its varieties, nutrition, genetic improvement and phytosanitary control.

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Lawrence Berkeley Lab gets $1.8M for government energy efficiency – San Francisco Business Times

Published on September 10, 2009 in General Ag News and Notes.

Lawrence Berkeley National Laboratory will help the federal government save energy with expert help paid for by $1.8 million in stimulus funding.
The grants — most of them from the Department of Energy’s Federal Energy Management Program — will be spent on advice and assistance to various federal agencies about how to use energy-efficient heating, ventilation and air conditioning.

The Department of Defense chipped in $445,000 of the $1.8 million.

Arun Majumdar, who runs the lab’s Environmental Energy Technologies Division, said the money will be spent on “advanced energy assessment tools” to help the agencies improve energy use “for years to come.”

Specifically, this money will pay for help to:

Federal data centers for the DOE, the U.S. Marine Corps and the military’s Pacific Command in Hawaii.

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Pacific Rim Summit to Highlight Biotechnology Tools for the Green Economy | Reuters

Published on September 10, 2009 in General Ag News and Notes.

WASHINGTON–(Business Wire)– Developing and developed countries across the Pacific Rim are adopting biotech solutions to cut greenhouse gas emissions, efficiently utilize resources, and jumpstart economic growth. The Biotechnology Industry Organization (BIO) today announced the sessions and speaker presentations to be delivered at the 2009 Pacific Rim Summit on Industrial Biotechnology and Bioenergy, to be held Nov. 8-11, 2009 in Honolulu.
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Industry fights for inspectors – Starbulletin.com

Published on September 8, 2009 in General Ag News and Notes.

Agricultural groups fear state layoffs will backlog shipments

By Erika Engle
POSTED: 01:30 a.m. HST, Sep 08, 2009

Agricultural industry executives worry that Hawaii businesses will wither on the vine and incoming food will rot on the docks if the state goes through with massive layoffs of agriculture inspectors.

Plans call for laying off 50 of the state’s 78 agriculture inspectors, 64 percent of that specialized work force.

Diminished inspection capacity could also cost hundreds of millions of dollars each year if additional invasive species get established, industry officials say.

State inspectors both certify products to be exported out of Hawaii and inspect food and plants being imported into the state.

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Hawaii law may hurt farmers | The Honolulu Advertiser

Published on September 7, 2009 in General Ag News and Notes.

Bid process could bring more outside competition

By Sean Hao
Advertiser Staff Writer
Hawai’i taxpayers will likely be paying more to buy agriculture products under a new state law aimed at supporting local growers.

Act 175 hopes to use government purchasing power to benefit local agriculture. The law, which took effect July 1, requires state agencies to gather competitive bids before buying food and other agricultural products.

It gives up to 15 percent preference to locally grown products in the bidding process. So if a Mainland grower can supply the food for $100, and a local grower bids $114, the local grower gets the contract.

"What this bill allows is for the state to use its purchasing power to procure these local products to really enhance local agriculture by giving them viable market opportunities," said Elizabeth Haws Connally, who lobbied for the change on behalf of the Hawaii Farm Bureau Federation.

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Agricultural inspector layoffs slammed – The Maui News

Published on September 5, 2009 in General Ag News and Notes.

KAHULUI – Environmentalists and farmers lashed out Thursday night at the announced layoffs of state agricultural inspectors, arguing that the move planned by the Lingle administration would uproot efforts to preserve the island’s agricultural industry and pristine environment.
Close to 100 people turned out at a Senate Ad Hoc Committee meeting held in the Maui Waena Intermediate School cafeteria. The crowd applauded those who spoke against the layoffs, some even attacking Gov. Linda Lingle.

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County of Hawaii Issues: Emergency Senate Hearing on Dept. of Agriculture layoffs.

Published on September 3, 2009 in General Ag News and Notes.

From Jeffrey Parker and Masako Cordray Westcott of the Hawaii Agriculture & Conservation Coalition

Emergency Senate Hearing on the Dept of Agriculture layoffs – please testimony today!

Thursday, Sept 3rd, 5-9pm, Maui Waena School, 795 Onehee Ave, Kahului

governor.lingle@hawaii.gov

reps@capitol.hawaii.gov

sens@capitol.hawaii.gov

Sample Testimony

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Funds Located May Prevent Agriculture Cuts – KITV Honolulu

Published on September 2, 2009 in Christmas Tree and General Ag News and Notes.

HONLULU — The head of the state agriculture department said Wednesday she’s located funds to cut in half the number of agriculture inspectors who may be laid off because of the state’s budget crisis.
The Lingle administration plans to use money from a new user fee that the governor tried to veto two years ago.

In August, the state notified 50 agriculture inspectors they could be laid off — that’s two-thirds of the staff who check Christmas Trees and incoming produce for invasive pests like snakes and insects.

The farming industry is upset, because a lack of inspectors will slow down outgoing shipments of everything from corn seed to fish grown in aquaculture operations.

The Chairperson of the State Agriculture Department said she plans to use money from two funds to cut the amount of layoffs in half to 25 inspectors.

"That would give us some breathing room as we continue to look for more funds and at least to stave off the initial layoffs during this period," said state agriculture chairwoman Sandra Kunimoto.

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There’s something about Ho’opili – Honolulu Weekly

Published on September 2, 2009 in General Ag News and Notes.

Proposed ‘Ewa development defies snap judgments

[youtube]http://www.youtube.com/watch?v=aVuo4R3tE4g[/youtube]

Kevin O’Leary
Sep 2, 2009

Last Friday’s daylong meeting of the State Land Use Commission, to rule on a petition by mega-developer D.R. Horton-Schuler to change the current zoning on 1,500 acres of prime ‘Ewa farmland from agriculture to mixed-use residential and commercial, was anything but boring.

Here’s Kioni Dudley, intervenor in the case, whom some have called the leader of the opposition: “In the beginning, over two years ago, this was just a gut feeling I had.” Now, it is more than a feeling, as Mr. Dudley–and everyone else with a sore gut over the proposed zone change–has picked up some unexpected allies, in the form of at least three State agencies and several local politicians.

Listen to Bryan Yee of the Attorney General’s office, speaking for the State Office of Planning: “We now know that if the petition [for the zoning change] goes through, H-I will be a parking lot from Waiawa to Makakilo. And the petitioner (Schuler) isn’t proposing any solutions.”

Continue reading ‘There’s something about Ho’opili – Honolulu Weekly’

Further study on irradiator ordered | The Honolulu Advertiser

Published on September 1, 2009 in General Ag News and Notes.

The Nuclear Regulatory Commission has ruled that more work needs to be done on an environmental assessment for a produce irradiator that’s proposed for a location near Honolulu International Airport.
The commission’s Atomic Safety and Licensing Board issued a ruling last week saying the NRC staff needs to consider alternate technology and sites in producing the assessment. The board’s decision said it expects the staff to give meaningful consideration to transportation accidents in preparing a final environmental assessment.

The ruling came after almost three years of discussion at the NRC, which has been considering Pa’ina Hawaii LLC’s request to build an irradiator that would use up to a million curries of cobalt-60 to treat local fruits such as papayas, vegetables and other items so they can be shipped to the Mainland insect-free.

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Washington wants RP to allow entry of US vegetables – GMA News and Public Affairs

Published on August 31, 2009 in Banana, General Ag News and Notes and Vegtables.

This is a terrible time to start importing foreign bananas due to the proposed layoffs of agricultural inspectors. The domestic crop could easily be devastated by invasive pests including banana rasp snail, red palm mite, two-spotted mite, banana root borer, banana aphid and the mealybug.

Bannana Crop could be ruined?
Click to View Larger Image
Manila may agree to Washington’s proposal to allow the entry of cold climate vegetables in exchange for the export of Philippine bananas in the US.

Agriculture officials said this may be the only way to secure the approval of the US Department of Agriculture for the Philippines’ formal request to penetrate the lucrative US market for fresh bananas.

“They are asking us if they can export temperate vegetables to the Philippines. We haven’t responded yet, but the arguments will always lead to a counter-trade arrangement," said Bureau of Plant Industry director Joel Rudinas.

The US government, Rudinas said, has expressed its interest to export temperate vegetables such as broccoli and asparagus.

He said the Philippines must submit its position on the findings of the import risk assessment (IRA) conducted by the US government on Philippine bananas as a protocol in the processing of requests for fruit exports.

In its IRA last month, the USDA said Philippine bananas may be allowed entry into the US market if mitigating measures be undertaken to address the issue of the danger of potential pests.

An IRA reviews existing quarantine policy on the import of animals, plants and their products, identifies and classifies potential quarantine risks and develop policies to manage them.

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