PSP and Trinitas Accused of Greenwashing Hawaiian ESG Investment

Institutional Investor
by Julie Segal –

A Canadian pension fund and its private equity partner come under fire. –

Canada’s PSP Investments, which invests for the Public Sector Pension Investment Board, is under fire for greenwashing a sustainable investment in Hawaii. –

Responsible Markets, a 20-year-old consulting firm in Hawaii focused on the environmental, social, and governance impact of investments, has published a detailed case study arguing that PSP’s $600 million investment through a joint venture called Mahi Pono in a former sugar plantation in Maui, Hawaii is not in accord with PSP’s own ESG standards.

The findings from the year-long research project comes as a critical mass of pensions, endowments, and other institutions publicly commit to investments that meet comprehensive ESG and sustainability goals as well as financial returns. Asset managers, especially those in the U.S, are scrambling to keep up.

The allegations of greenwashing illustrate the complexity of sustainable and ESG investing, particularly when external managers are used.

Mahi Pono, a farming venture between the Public Sector Pension Investment Board and Pomona Farming, a subsidiary of private equity firm Trinitas Partners, purchased the 41,000 acres of farmland in Hawaii in December 2018. At the time, PSP said that, among other things, the deal would ensure that the land would continue to be used for agriculture, that green space would be preserved in Central Maui, and that the acreage would be a long-term source of revenue for the local economy. The project was also intended to create food security for residents and local jobs.

But Responsible Markets argues that Mahi Pono depends on securing water at rates that are exploitative to indigenous Hawaiians and diverts water from local farmland.

“Rather than creating local food security as the company has promised, the Mahi Pono business plan is dependent on export crops,” wrote Shay Chan Hodges, a co-organizer of Responsible Markets’ initiative, the Maui ESG Project, and co-author of the report. “Additionally, the company operates secretively and with little transparency, and has failed to generate the number of jobs promised.”

According to the report, called “From the Mountains to the Sea: When Big Money Moved in on Maui’s Agriculture,” PSP Investments and its external manager use the language of ESG and impact investments, but the results haven’t yielded benefits in line with that narrative.

Ryon Paton, president of Pomona Farming and Executive Chairman of Mahi Pono, said the project is enormously complex and still in its infancy. For example, the project involves investing $30 million to upgrade an old gravity-fed water system that was in disrepair. “The overarching goal is to provide clean foods to the local Hawaiian market and for export,” he said. Paton added that rates paid for water are determined in a public forum and the manager has filed an environmental impact statement. The manager is now in the process of responding to 500 comments it has received from the public. “The long-term lease rationalization process is public and anybody can bid on the right to the water. We don’t negotiate that directly,” he said.

[II Deep Dive: ‘I Will Get Very Serious About ESG — But Not Yet,’ Allocators Claim]

Responsible Markets wants PSP to meet with the community in Maui to understand the problems that the project is causing, as well as what it calls missed opportunities. It also lays part of the blame on PSP’s engagement of an external manager. “True community intelligence is invaluable and cannot be outsourced to investment managers and advisors,” according to the report.

The case study alleges that Trinitas has a history of making questionable sustainable investments, particularly when it comes to water. According to the report, “Trinitas Partners and their affiliates have shown themselves to be masters of sustainable investment rhetoric, [but] the on the ground realities of their agricultural investments show a much more complex picture.” The case study outlines a deal that the partners executed in California, which converted land from vineyards and other crops into almond farms. Almond farming has become a hot button issue in California as these farms use significant amounts of water. Paton stressed that its orchards in California have received the highest level of sustainable certifications.

“Capital markets have become so intermediated that it’s difficult for investment professionals within a large institution to understand what’s happening on the ground,” Delilah Rothenberg, founder of Development Capital Strategies, an advisory firm specializing in sustainable and responsible investment, told II. “A lot of investors do hide behind the excuse of using external managers until there’s enough of a backlash where they have to address the issues,” she added. Rothenberg isn’t familiar with PSP’s Maui investments and couldn’t comment on the case study in particular.

Mahi Pono purchases Alexander & Baldwin’s former HC&S Lands

  • Mahi Pono, a farming venture between Pomona Farming and Canada’s Public Sector Pension Investment Board, purchases approximately 41,000 acres of agricultural farmland from Alexander & Baldwin
  • Former sugarcane lands to remain in agriculture and become diversified, GMO-free farms

HONOLULU–(BUSINESS WIRE)–Mahi Pono, LLC, today announced the purchase of approximately 41,000 acres of former Hawaiian Commercial & Sugar Company lands on the island of Maui from Alexander & Baldwin. This agreement ensures the continued use of these lands for agriculture, the preservation of green, open space in Central Maui, and a consistent and long-term source of revenue for the local economy.

Mahi Pono (which means “to farm or cultivate morally and properly”) is a farming venture between Pomona Farming, LLC, a California-based agricultural group, and the Public Sector Pension Investment Board (PSP Investments)—a long-term investor and one of Canada’s largest pension investment managers.

Mahi Pono is planning a full range of agricultural operations and related uses. There are no plans to convert any of the lands to non-agricultural purposes.

“With our purchase of this fertile land, we want to help ensure that Maui’s residents can produce agricultural products for future generations,” said Ann Chin, President, Mahi Pono. “We want to expand Maui’s thriving and diversified agriculture industry. As we develop our plans, we will work closely with local stakeholders, including the agricultural community, our neighbors, government officials, civic leaders and the local community.”

“Mahi Pono is committed to sustainable agriculture,” added Chin. “We will be stewards of the land, and responsible users and protectors of Hawai?i’s natural resources and environment.”

“This agreement significantly increases the potential for a meaningful advancement in food security and a renewed pledge to growing agriculture on Maui, topics that continue to resonate with me since I initiated the ‘Aina Pono Hawai’i State Farm-to-School Program in 2015,” said Shan Tsutsui, former Lt. Governor of the State of Hawai?i, former State Senator from Maui and Mahi Pono advisor. “It’s my hope that the fruits of this agreement will have a lasting impact on our keiki (children), the agriculture industry, and the state’s ability to become truly sustainable for many years to come.”

Key elements of Mahi Pono’s plans include:

  • Production of high-quality, non-GMO foodstuffs for local consumption, with export potential.
  • Creation of jobs for local residents, with job training and educational programs for employees.
  • Providing land and water in an agricultural park for use by small, local farmers.
  • Providing local partners with resources such as farming expertise, farming resources and equipment, and development and farming capital.
  • Mahi Pono took over diversified agricultural leases, and purchased Kulolio Ranch and Central Maui Feedstocks, from A&B as part of this agreement.
  • A&B and Mahi Pono will form a joint venture to own and operate East Maui Irrigation Company.
  • All of A&B’s active agricultural personnel will be offered positions with Mahi Pono.

About Pomona Farming

Pomona Farming is committed to using natural resources responsibly, employing the very best farming practices, and acting as a positive contributor to local communities. It has significant experience farming diverse agricultural crops and managing cattle operations on over 100,000 acres. The company is focused purely on agriculture and has a track record of making long-term investments in farming projects.

About PSP Investments

The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with CAD$158.9 billion of net assets as of September 30, 2018. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York and London.

PSP Investments’ Natural Resources Group is committed to responsible, long-term investments in the agriculture and timber sectors globally. It partners with like-minded operators focused on best practices in health and safety, the environment and sustainability. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.

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A&B sells former sugar land on Maui for $262M

Pacific Business New
By Janis L. Magin

Alexander & Baldwin has sold 41,000 acres of former sugar land that made up the Hawaiian Commercial & Sugar Co. plantation on Maui to a farming venture of California-based Pomona Farming LLC and Canada’s Public Sector Pension Investment Board for $262 million.

As part of the sale, the venture called Mahi Pono LLC also purchased Kulolio Ranch, A&B’s grass-fed cattle project; Central Maui Feedstocks, A&B’s energy crop project; and all of A&B’s diversified agriculture leases. A&B said it will also partner with Mahi Pono in the ownership and management of East Maui Irrigation Co.

Mahi Pono plans to cultivate “a broad range of food crops” on the land, including coffee, fruits and vegetables for local consumption and export, and plans to expand the beef project at Kulolio Ranch, Honolulu-based Alexander & Baldwin (NYSE: ALEX), said in a statement. Former Lt. Gov. Shan Tsutsui, who also served as a state senator representing Maui, worked as an advisor to Mahi Pono.

Ann Chin, president of Mahi Pono, said the group was “committed to sustainable agriculture.”

“With our purchase of this fertile land, we want to help ensure that Maui’s residents can produce agricultural products for future generations,” Chin said in a statement. “We want to expand Maui’s thriving and diversified agriculture industry. As we develop our plans, we will work closely with local stakeholders, including the agricultural community, our neighbors, government officials, civic leaders and the local community.”

All current A&B agricultural employees will be offered positions with Mahi Pono, both companies said. A&B closed the HC&S plantation at the end of 2016 after holding the last sugar harvest; nearly 700 workers lost their jobs with the closure.

“A&B’s commitment, when we made the difficult decision to close our sugar operations, was to team up with qualified farmers and transition these lands to a diversified agriculture model,” President and CEO Chris Benjamin said in a statement. “We acknowledged that this transition would take time, but could support the important goals of food and energy self-sufficiency for Hawaii, preserve productive agricultural lands, and stimulate new economic activity on Maui and in the state.”

A&B, which talked about diversified agriculture after the plantation closed, said it has held discussions with “hundreds of parties,” most interested in farming a single crop on the parts of the former plantation land.

Pomona Farming, based in Redwood City, California, says on its website that it “has significant experience farming diverse agricultural crops and managing cattle operations on over 100,000 acres” and lists such brands as Sunkist, Kraft, Maui Cattle Co. and MauiGrown Coffee as among its partners and clients. It appears to be affiliated with Trinitas Partners, a private equity company at the same address.

The Public Sector Pension Investment Board is one of Canada’s largest pension fund investment managers. The venture registered Mahi Pono LLC with Hawaii’s Department of Commerce and Consumer Affairs on Dec. 6; Mahi Pono LLC and Mahi Pono Holdings LLC were also registered with the state of Delaware on Nov. 28. Pomona Farming LLC registered as a Delaware company on Feb. 28, 2017.

“In Mahi Pono, we have found a unique partner with proven farming expertise, established marketing channels, strong financial resources, and a long-term perspective,” Benjamin said. “Most importantly, they share our vision of seeing farming flourish across Central Maui for generations to come. This could be one of the most important advances for agriculture in Hawaii in many decades.”

Gov. David Ige and Maui Mayor Alan Arakawa each said the deal is important for maintaining Maui’s agricultural industry and for creating diversified food production.

“As a farmer myself, I understand the challenges of the business,” Arakawa said in a statement. “Alexander & Baldwin has found the right partner in Mahi Pono to continue our island’s long legacy of farming, while providing new jobs and economic activity for our Maui residents.”

With pineapple and sugar production gone, Hawaii weighs its agricultural future

Washington Post
By Brittany Lyte –

Tens of thousands of abandoned acres of farmland lie fallow on this island, cemeteries of Hawaii’s defunct plantation era, which met its end last year when the state’s last remaining sugar grower shut down an operation that had run for 146 years.

Hawaiian Commercial & Sugar Co.’s sprawling sugar cane fields used to provide visitors to Maui a rolling green blanket as they arrived at the airport, but they are newly stagnant, joining other growers in a long decline. Facing competition from cheap foreign labor, a shortage of farmworkers and some of the nation’s highest land costs, the sugar and pineapple plantations that used to be the state’s lifeblood are not redeploying into active agriculture, raising questions about the industry’s future here.

“Pineapple is lost, sugar is lost, and we now have one sole industry, which is a very dangerous position to be in,” said Maui County Councilman Alika Atay. “We have put all our eggs into one basket, and that is tourism. But not everybody who lives on this island wants to work in the hotel industry, and it’s almost impossible to feed a family here working as a farmer. We are now seeing drastic displacement of young people leaving Maui because of a lack of economic opportunity.”

The closure of Maui’s last sugar producer marked a pivotal moment in Hawaii’s agricultural production. Since 1980, Hawaii’s total land use for agricultural production has shrunk by about 68 percent, according to data from the University of Hawaii.

Sugar had, at one point, been Hawaii’s top crop. Now the corn seed industry is the state’s dominant agricultural land user, followed by commercial forestry and macadamia nuts. But none of those products, not even when combined, come anywhere close to filling the economic void created by the loss of sugar and pineapple.

The state’s Agriculture Department is working on the issue with a depleted staff — 122 of its 360 positions are vacant, including the entire branch responsible for market analysis and tracking the state’s trends in food imports and production. The agency is narrowing its focus to court outside capital for investments in Hawaii food production and is studying the possibility of allowing farmers to inhabit small family homes alongside their crop beds. Tenant farming is now restricted on state agriculture land.

“There are tens of thousands of acres of good ag land, at least, currently sitting fallow in Hawaii, where we have some of the most expensive land in the world,” said Department of Agriculture Director Scott Enright. “At the same time, we’ve got a group of farmers who are aging out of the business. The next generation is coming in and finding if you’re going to try and start up a farm when you’re a 20-something with no track record, the banks aren’t going to lend to you. That’s a problem for us.”

The sugar industry, which helped usher Hawaii into statehood, steered the state’s politics and economy for more than a century. It helped build company towns inhabited by multiethnic field laborers from Asia and Europe.

With statehood came U.S. labor laws, inspiring Hawaii’s biggest sugar and pineapple producers to embrace cheaper foreign labor. As monocrop agriculture declined, the state put its economic faith in tourism, which accelerated as jet plane travel became faster and more affordable. Plantation companies either vanished or transitioned into land-development firms.

Some swaths of farmland have been sold off and developed into commercial or residential real estate, inspiring fears that Hawaii’s agrarian past could one day be lost to a more citified future.

“We have and we will continue to lose ag land to urban development,” Enright said.

HC&S is a division of Alexander & Baldwin, one of Hawaii’s largest commercial real estate holders.

The passage of the plantation heyday has been slow but impactful. In 1980, Hawaii hosted 14 sugar and four pineapple plantations that farmed more than 300,000 acres. In 2017, these two crops account for less than 5,000 acres. Once the largest pineapple plantation in the world, the island of Lanai’s former crop beds are now parched and deserted.

Hawaii spends as much as $3 billion a year to import 90 percent of its food, and residents routinely pay some of the highest prices in the nation for staples such as eggs and milk. Even the grain that feeds the cows on the islands’ two dairy farms is shipped in. Should a natural disaster affect the ability for cargo ships to arrive, the state’s 1.4 million residents and nearly 9 million annual visitors could be vulnerable to crippling food shortages.

The shaky state of food security in the world’s most isolated group of islands has prompted Hawaii Gov. David Ige (D) to set a deadline of 2030 to double local agriculture production, a goal that some experts decry as unrealistic because Hawaii does not consistently track agricultural data about crop yields.

On an island chain that once was completely self-sufficient — before the arrival of Westerners in the late 1700s, indigenous Hawaiians thrived 2,500 miles from the nearest continent using sustainable farming and fishing methods — many believe a resurgence of agriculture is possible.

“There’s no reason why we should go to a grocery store and see a banana from Ecuador or Mexico. We can grow banana here,” Atay said. “Why do we go to the store and see mango from Chile, not mango from Maui, when Maui grows some of the sweetest-tasting mango in the world? Because in the last 200 years we never had the land and the water available — until now.”

HC&S has so far deployed 4,500 of its 36,000 farmland acres. A new grass-fed cattle operation aims to expand local beef production through a 300-calf management partnership with Maui Cattle Company. More than 95 percent of the beef consumed in Hawaii has been shipped in from the U.S. mainland. On Maui, HC&S hopes to cut that number to as low as 80 percent.

In addition to raising cattle, HC&S has dedicated 1,500 acres to grow sweet potato and crops that help produce energy. Hawaii’s eight main islands have the highest electricity prices in the nation, but a 250-acre orchard of pongamia trees, which produce biofuels, could help wean the state off its fossil fuel dependence, experts say.

Another 800 acres are being considered for an agricultural park for small-scale, local farmers.

“We’ve been talking about diversified agriculture and energy for 10 years, but nobody has found the magic bullet,” said Rick Volner, the former HC&S plantation manager who now oversees the company’s fledgling diversified agriculture program. “The hope was that we could launch right into it. Instead we’re trying to grow different crops to try and see what works.”

Elsewhere on the island, the shift away from agriculture is providing some immediate relief. Water diversions from hundreds of streams long fed the island’s sugar cane at the expense of the wetland taro crop cultivated by indigenous Hawaiians in rural east Maui. A storm of lawsuits over water rights coupled with the sugar industry’s gradual scale-back has led to some restoration of the natural water flow.

With water returned to the remote Wailua Nui Valley, a new program at a nearby public school is reintroducing local families to the culturally important practice of taro farming. Last year, more than 150 people in Maui’s Hana community pounded poi, the starchy Hawaiian staple food, for the first time in their lives.

“My grandchildren used to tell me, ‘Papa, what happened to the water?'” said sixth-generation taro farmer Edward Wendt. “King Sugar — that’s where our water went. Now that it’s flowing again, I must show and teach the younger generation as much as I can for as long as I can.”

Elsewhere on Maui, the Colorado-based land development firm Bio-Logical Capital manages an oceanfront cattle ranch and diversified organic fruit and vegetable farm on 3,600 acres formerly cultivated for sugar. The company’s goal is to invent a sustainable agricultural system that enriches the land, provides healthy, fresh food for the local population and lends itself to be duplicated as a model food-production system in communities across the globe.

“The land in Maui that was in sugar is some of the best ag land in the world,” said Bio-Logical CEO Grant McCargo. “But politically, how do you put that land back to good use?”

McCargo noted that the challenge for publicly traded companies is to manage risk with shareholder value.

“This really is a public policy question,” he said. “After all, we wouldn’t still be farming corn in this country if it weren’t for subsidies from the government.”

FIELD CROP PRODUCTION – PACIFIC REGION

P1050311SUGARCANE: The 2014 production of sugarcane in Hawaii is forecast at 1.43 million tons, up 2 percent from the previous year, but unchanged from the August forecast. Harvested acreage is estimated at 19.0 thousand acres, up 7 percent from last year. Yield is forecast at 75.0 tons per acre.

The 2014 U.S. production of sugarcane for sugar and seed in 2014 is forecast at 29.4 million tons, down 4 percent from last year. Producers intend to harvest 883 thousand acres for sugar and seed during the 2014 crop year, down 28.3 thousand acres from last year. Expected yield for sugar and seed is forecast at 33.3 tons per acre, down 0.5 tons from 2013.

COTTON: California Upland cotton production in California is forecast at 215 thousand bales, down 35 percent from the 2013 crop. Harvested acreage is estimated at 59.0 thousand acres, down 35 percent from a year ago. Yield is forecast at 1,749 pounds per acre, up 1 percent from last year.

California American Pima cotton production is forecast at 510 thousand bales, down 16 percent from the 2013 crop. Harvested acreage is forecast at 154 thousand acres, down 17 percent from last year. Yield is forecast at 1,590 pounds per acre.

U.S. upland cotton production is forecast at 16.0 million 480-pound bales, up 30 percent from 2013. Harvested area is expected to total 9.69 million acres, down 4 percent from last month but up 32 percent from 2013.

The U.S. American Pima cotton production, forecast at 578 thousand bales, is down 9 percent from last year. Expected harvested area, at 189.4 thousand acres, is down 5 percent from 2013.

RICE: California’s 2014 rice crop forecast, at 36.8 million cwt., is down 23 percent from the previous year. The yield forecast is 8,600 pounds per acre, up 2 percent from last month and up 1 percent from last year. Planted and harvested acreages are forecast at 433 thousand and 428 thousand acres, respectively. As of September 1, nearly all of the rice acres had headed.

The 2014 U.S. rice production is forecast at 218 million cwt, down 5 percent from August, but up 15 percent from last year. Area for harvest is expected to total 2.91 million acres, down 4 percent from August, but 18 percent higher than 2013. Based on conditions as of September 1, the average United States yield is forecast at a record high 7,501 pounds per acre, down 59 pounds from August and down 193 pounds from last year.

Sugar imports soar

Sugar imports shot up exponentially in the 11 months through May upon expectations of a lenient government policy on refined sugar exports and the zero-duty status granted to raw sugar imports.

Imports rose 87 percent to 15.77 lakh tonnes in July-May from the same period a year earlier, according to Bangladesh Bank that compiles data on letters of credit settlement.

Golam Mostafa, chairman of Deshbandhu Sugar, however, suggests that the total volume of sugar imports could be even higher than the LC data imply as payments are typically deferred by six months.

Mostafa attributes the spike in imports to the processing capacity of refineries, which were expanded in anticipation of relaxation of government restrictions on refined sugar exports.

While ASM Mohiuddin Monem, secretary general of Bangladesh Sugar Refiners Association, attributes the surge in imports to the zero-duty import facility bestowed upon sugar — both raw and refined — imports.

“All parties reaped advantage of the policy and imported sugar as much as possible,” said Monem, also the deputy managing director of Abdul Monem Group which runs AM Sugar Refinery Ltd.

For instance, the state-run Bangladesh Sugar Food Industries Corporation and Trading Corporation of Bangladesh imported more than 150,000 tonnes of refined sugar in fiscal 2011-12.

Mostafa expects the sugar imports to hit the 17-18 lakh tonne-mark for the 2012 calendar year, a significant rise from the 14.79 lakh tonnes recorded for 2011.

Health officials issue notice of violation for 2011 HC&S burn

WAILUKU – The state Department of Health Clean Air Branch has issued a notice of violation against Hawaiian Commercial & Sugar Co. for an unauthorized burn last year.

According to a news release, HC&S was cited for burning around 25 acres on Nov. 4 without prior written approval from the department. The company has an agricultural burning permit with the Health Department, but the field that was burned was not among those that were listed on the permit. The violation was self-reported.

HC&S has been assessed a $2,400 fine for the violation.

In a statement issued Wednesday, HC&S General Manager Rick Volner Jr. said, “HC&S takes compliance with its agricultural burning permit very seriously and has instituted safeguards to prevent a recurrence of this incident.”

Volner said the Kahului field was not supposed to be harvested until 2012. But about half of the field was burned in a malicious fire, and the burned cane was harvested immediately.

Very little sweet news for sugar producers|Nation|chinadaily.com.cn

LINCANG, Yunnan – “I can’t expect any profit this year and I don’t know what to do next year,” said Li Xiuzhong, a 65-year-old sugarcane farmer in Lincang, Southwest China’s Yunnan province.

“We have 180 hectares of sugarcane last year and actually the beginning of the growing season was good due to sufficient rainfall,” he said. “But after June, things got worse so quickly and now there is no harvest in 30 hectares.”

His expectations have also dropped from five tons of crops for each hectare to three tons.

“These are already the best drought-resistant seeds and I have ploughed another 40 hectares for next year, hoping to earn more money,” he said. “But now, I have lost confidence in growing them under current weather conditions.”

He said he had grown sugarcane for more than 20 years and this year is the worst in terms of weather.

He is living on income from previous years.

Lincang used to be covered with thick forests and has rich water resources, but since the 2010 drought, its water conservation facilities have been under threat and agricultural production has been challenged.

Lincang’s sugar and tea industries are two pillars of its economy. Sixty percent of sugarcane crops were affected by the weather in 2010 and there was a conspicuous reduction of total production.

Ganhua Company is a major sugar factory in Yunxian county, and is experiencing a hard time with this year’s harvest.

According to Wei Xuehua, general director of the company, the scarcity of water has handed the company, as well as sugarcane farmers and delivery drivers, a total loss of 19 million yuan ($3 million) so far.

In addition, rats have also severely affected the production of sugarcane in the region as water can only be found in the plants.

HC&S profits offset Matson, property losses

Alexander & Baldwin Inc.’s agricultural sector – led by Maui’s Hawaiian Commercial & Sugar Co. – produced a “strong performance” in 2011 while losses related to Matson Navigation Co. and the real estate sales division put a drag on company profits.

In reporting its 2011 and fourth-quarter financial results Monday, the Honolulu-based company said it logged a net income of $34.2 million, or 81 cents a share, for the year, down 63 percent from the $92.1 million, or $2.22 a share, in 2010 and down nearly 75 percent from the $132 million, or $3.19 a share, in 2008, as the Great Recession began roiling the national economy.

For the fourth quarter, A&B’s net income was only $1.6 million, or 4 cents a share, down from $20.2 million, or 48 cents a share, in the same quarter the previous year.

The company’s ocean transportation sector showed an operating profit of $74.1 million for the year, down from $118.7 million in 2010. This sector of the company suffered losses from the discontinuing of its second China-Long Beach service in the third quarter.

In addition, A&B said that the company continues to make progress on plans to separate its shipping and real estate/agricultural businesses in the second half of this year.

The agricultural sector, which includes HC&S and trucking and storage companies on Maui, Kauai and the Big Island, showed an operating profit of $22.2 million in 2011, up 264 percent from $6.1 million in 2010. This is a big contrast from three years ago, when agriculture lost $27 million and the board of directors debated shutting down sugar operations.