About 65 workers arrived at dawn yesterday for the first day of work at a new though much smaller pineapple company that will allow fresh pineapple farming and packing to continue on Maui.
Haliimaile Pineapple Co. began operations yesterday on 1,000 acres of leased land with some equipment purchased from Maui Land & Pineapple Co.
All workers were former employees of Maui Pineapple, which shut down last week after 97 years in operation. The company laid off about 285 employees and transferred 130 to partner companies.
Yesterday, workers picked more than 41 tons of pineapples in five hours.
"This morning was a real chicken-skin moment," said Rudy Balala, Haliimaile vice president, who worked at Maui Land & Pineapple for more than 30 years. He began talking with Darren Strand, a former Maui Pineapple operating director, about running their own operation a year ago.
"Our thing is trying to run as lean as possible and have everybody involved in the operations," Balala said. "We want everybody to be cross-trained."
Because volume is much lower than Maui Pineapple’s, the company needs a small crew that can do everything, he said.
Some workers who haven’t picked pineapple for more than 10 years were picking pineapple yesterday, Balala said.
"Everybody wants this company to succeed and they’re really showing it, especially on the first day," he said.
Tomorrow, all employees will go to Kahului to train and pack pineapples.
"There were a lot of smiles, a lot of happy people," said Doug Schenk, a shareholder in the new company. "A lot of people raring to go."
Fresh, whole Maui-grown pineapple will not be a relic of Hawaii’s past after all.
The World knows that Maui produces the BEST Pineapple! Click for larger imageA consortium of Maui-based investors on Thursday announced the formation of Haliimaile Pineapple Co. Ltd., a new company that would immediately continue farming and harvesting the sweet and juicy fruit on 1,000 acres of Maui Land & Pineapple Company, Inc. land.
By ILIMA LOOMIS, Staff Writer Modern Heros rescue Pineapple industry CLICK for larger imageAfter a century in agriculture, Maui Land & Pineapple Co. got out of the pineapple business for good as 2009 drew to a close.
About 285 workers lost their jobs when pineapple cultivation ended, but the shutdown was just the culmination of a long year of changes for a company struggling just to stay in business.
Early in the year, the company sold its Plantation Golf Course for $50 million to pay down some of its mounting debts. In February, ML&P eliminated 100 jobs at the Kapalua Resort and at its Kahului headquarters in yet another round of layoffs, with the remaining employees taking a 10 percent pay cut. Then in May, President and Chief Executive Officer Robert Webber resigned after just six months on the job, being replaced by board Chairman Warren Haruki as interim CEO.
The company continued to lose money through the year, reporting in October that it had lost $92.9 million in the first three quarters of 2009 – greater than the $71.6 million it lost for all of 2008. Much of the losses was attributed to the plummeting value of ML&P’s real estate investments, and the October report also revealed that the company had lost all of the money it had originally invested in its Kapalua Bay Holdings venture.
Still, nobody was quite ready to hear the news in November that the company was shutting down its pineapple operations.
Valuable agriculturable jobs rescued CLICK for larger imageJanuary 1, 2010 marks a new day for pineapple production on Maui, as a team that includes five former Maui Pineapple Company executives assume operations of Maui Land & Pineapple Company, Inc.
The five join Ulupalakua Ranch’s Pardee Erdman in running the newly named Haliimaile Pineapple Company, Ltd. The new company will officially assumes operations tomorrow, January 1, 2010 and will continue to grow and market fresh pineapple under the established Maui Gold® Brand.
HPC has purchased and licensed key assets, and leased farm land, equipment and buildings from ML&P with plans to serve the Hawaii market.
This is the sweetest, best tasting, Pineapple in the world.
Grown on Maui by Hali'imaile Pineapple Co.
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“We are proud to continue the 100 year legacy of pineapple on Maui,” said Darren Strand, president and CEO of the new company.
“Haliimaile Pineapple Company brings new hope for a new year by immediately saving 65 agricultural jobs with an expectation of adding more in the future,” said Strand.
Maui Mayor Charmaine Tavares responded to the announcement this afternoon saying, “I am extremely grateful to the company for their commitment to continue Maui Gold pineapple on Maui. I was excited to hear that nearly 70 employees will retain jobs associated with Haliimaile Pineapple Company and I’m confident that the new company will find success.”
“The company founders, shareholders and directors are to be commended for their work in making this happen. Since first learning about this effort, I’ve been very excited about the possibilities. The fact that jobs are saved and pineapple farming continues is absolutely great news for our county,” said Mayor Tavares.
Governor Linda Lingle also welcomed the news saying, “I can’t think of a better way to ring in the new year than with preservation of 65 agricultural jobs and the prospect of creating more jobs for our residents in the long-term. The new company and the ongoing cultivation of pineapple on Maui will help stimulate our economy and also inject a boost of confidence in what has been a challenging year.”
Key shareholders and directors in the new company include Pardee Erdman, owner of Ulupalakua Ranch; Doug Schenk, former president of Maui Pineapple Company; former vice presidents of MPC, Doug MacCluer and Ed Chenchin; and current operating directors for MPC, Darren Strand and Rudy Balala. The group brings over 150 years of combined expertise in growing and packing premium pineapple on Maui.
HPC will consolidate its plantation, fresh fruit packing facility, cold storage, and shipping operations in Haliimaile to maximize efficiency and product quality. Company officials say they will continue to provide the highest quality of fresh pineapple to local hotels, restaurants, and supermarkets while increasing its direct consumer business.
ILWU Local 142 Maui Division Director, Willie Kennison said, “We are grateful to Haliimaile Pineapple Company for saving these jobs to make this a happy New Year for so many Maui families.
In a news release today, company officials said they would hire existing ML&P employees and the ILWU will continue to represent the company’s workers.
ML&P Chairman and Interim CEO, Warren H. Haruki said, “We are gratified to see the continuation of pineapple farming on Maui. The new company’s simplifie3d business model and targeted local market, along with the flexibility and cooperation of the ILWU are key ingredients for their future success,” Haruki said.
New pineapple company to rise from ashes of Maui Land subsidiary
By Star-Bulletin staff
POSTED: 01:32 p.m. HST, Dec 31, 2009
Pride in Island! Pineapple on Maui FOREVER! CLICK for larger image
A group of Valley Isle residents plans to start operating a new pineapple company tomorrow to serve whole fruit customers of Maui Land & Pineapple Co.
The last pay day for Maui Land’s subsidiary Maui Pineapple Co. Ltd. was today.
The new business Haliimaile Pineapple Co. has purchased some of Maui Land’s pineapple equipment and leased 1,000 acres with an option of leasing more land, said Doug Schenk, one of the investors.
Schenk, an investor and a former president of Maui Pineapple Co., said the new company will be employing about 68 people, including about 60 who formerly worked at Maui Land and were ILWU members.
A group of Valley Isle residents plans to start operating a new pineapple company tomorrow to serve whole fruit customers of Maui Land & Pineapple Co.
The last pay day for Maui Land’s subsidiary Maui Pineapple Co. Ltd. was today.
The new business Haliimaile Pineapple Co. has purchased some of Maui Land’s pineapple equipment and leased 1,000 acres with an option of leasing more land, said Doug Schenk, one of the investors.
Schenk, an investor and a former president of Maui Pineapple Co., said the new company will be employing about 68 people, including about 60 who formerly worked at Maui Land and were ILWU members.
Item 2.05. Costs Associated with Exit or Disposal Activities
On November 2, 2009, the Board of Directors of Maui Land & Pineapple Company, Inc. (the "Company") approved the recommendations of the Board of Maui Pineapple Company, Ltd. ("MPC"), a wholly owned subsidiary, to immediately cease planting pineapple and to cease all other pineapple agriculture operations by December 31, 2009. The decision was made due to highly competitive fresh pineapple markets on the Mainland USA in which MPC was unable to recover the high cost of growing Hawaiian pineapple. The Company will eliminate approximately 208 positions, including 193 bargaining unit positions. Termination notices have been issued to employees with termination effective December 31, 2009.
Employee severance costs are expected to be approximately $3.1 million and will be primarily accrued in the fourth quarter of 2009. Severance payments for the non-bargaining positions are expected to be paid on the regular payroll schedules throughout most of 2010. The timing of the severance payments for the bargaining unit positions will be addressed with the International Longshore & Warehouse Union ("ILWU"). Additional one-time termination benefits will be negotiated with the ILWU and MPC is not able to estimate the amount of such benefits. Payments of approximately $0.5 million for accrued vacation balances are expected to be paid before December 31, 2009. The Company has not yet determined the effect on its pension and post retirement plans.
The estimated clean up and other costs related to termination of use of the various properties previously used by pineapple operations are estimated to be approximately $1.3 million, which is expected to be incurred primarily in 2010. Non-cash charges in the fourth quarter of 2009 for fixed assets and materials and supplies, net of estimated sales proceeds, are expected to be approximately $12.5 million. MPC is not currently able to estimate the cost of termination of its private grower pineapple supply contract.
In summary, the estimated total cost of this action (for items currently estimable) is expected to be approximately $16.8 million and the total estimated cash outlay for these items are estimated to be approximately $4.9 million. The Company’s Agriculture segment will be reported as discontinued operations in its next periodic filing.
Hawaii’s once-rich agricultural industry, renowned throughout the 1900s for its pineapple and sugar crops, has suffered another devastating blow.
With the last remaining sugar company hanging on by a thread, Maui Land & Pineapple Co. said yesterday it would stop planting pineapple immediately, cease all pineapple operations by the end of the year, and lay off more than 45 percent of its work force amid a companywide restructuring that repositions subsidiary Kapalua Land Co.
The last Crop of Pineapple in Haiku Click for Larger Image
Up to 285 jobs will be lost
Maui Land & Pineapple Co. announced today that it will cease pineapple operations by the end of the year and restructure its resort and land development division.
Up to 285 employees will be laid off. This comes after 274 employees were laid off in July of 2008 and 100 more jobs were cut earlier this year.
The current work force numbers 624, and the company hopes to offer up to 133 employees positions at partner companies.
In a statement, ML&P Chairman and interim CEO Warren Haruki said:
"The painful decision to close pineapple operations at MPC (Maui Pineapple Co.) after 97 years was incredibly difficult to make, but absolutely necessary. We realize this ends a significant chapter in Maui’s history — an important part of many lives, over many generations."
Haruki said that Maui Pineapple Co. had lost $115 million in agriculture since 2002 while investing $20 million in capital expenditures for a new fresh-fruit packing facility.
"Realizing that these losses could no longer continue, we spent the last year exploring options to keep pineapple operations going on Maui," he said. "Despite our efforts, it became clear that there were no other financially viable options."
Changes were also announced in the resort operations for Kapalua Land Co., which until now had managed most phases of the Kapalua Resort.
According to the statement issued today, the company will "partner with ‘best in class’ operators in their respective fields who can manage select assets of the resort more effectively."
The arrangements to be concluded on or before Dec. 31 include:
— Appointing a management company to manage the 206-unit Kapalua Villas.
— Leasing the equipment and to license operations of Kapalua Adventures to a "well-respected zipline activity company."
— Choosing an operator to provide resort shuttle and security services.
Maui Land & Pineapple Co. has reported a $25.5 million loss for the third quarter of 2009.
The loss includes $22.8 million in recorded losses on the company’s investment in Kapalua Bay Holdings. On top of previous write-downs, that means the company now has lost all of the money it originally invested in the venture, said Chief Financial Officer John Durkin.
"Unfortunately, we’ve now written down all our equity in Kapalua Bay Residences," he said.
The latest report brings ML&P’s total losses for the first nine months of 2009 to $92.9 million – larger than the $71.6 million loss the company recorded for the entire year in 2008.
