Maui Land & Pineapple Co.: Look Past the Pineapple — Seeking Alpha

Land and Pineapple Co. (MLP)? HUH? That’s what I said, too, when I stumbled across the company a few months ago. Who would want to own this thing? A pineapple company? I hate pineapples.

Then I dug some more. Not surprisingly, the company’s pineapple business is mediocre at best. The company also operates another subsidiary, Kapalua Land Company, which manages the company’s scenic Kapalua Resort community. As per consolidated results, the company is generally profitable (although erratic in its earnings) and boasts AOL founder Steve Case as a large shareholder. But that’s not why I’m writing this.
pineapples
It turns out the company currently owns around 27,500 acres (or 1.2 billion sq ft.) on the Hawaiian island of Maui. That’s a lot of land. And here’s the best part: all of that land is recorded at cost between – you’ll never believe it – 1911 and 1930! Just to remind you: Hawaii wasn’t even close to being a state around that time.

So what does that mean? How much is the land worth today? Well, it doesn’t take a genius to realize that land values in Hawaii have gone up at least a little bit in the past century. Unfortunately, the vast majority (around 22,500 acres) of the land is either mountainous, preserved, or used for agriculture, so it’s not [necessarily] easily salable or, for that matter, developable (if this use of “developable” is not a word, credit me for coining it).

Nonetheless, I’d quite precisely estimate the value of the land somewhere between a little and a whole lot (how’s that for perfection?), but still far more than its cost. Investors can also take solace in the fact that the company still owns an additional 9 miles of beachfront (read: prime) real estate, several PGA toured golf courses, a happening resort community, and who knows what else.

A very good post on the company and some valuation metrics can be found here if you scroll down, so I’ll save you from the technical discussion. The author, Clyde Milton, does as good a job as any in describing the company, and I highly recommend the reading (and the whole blog, for that matter).

Maui Land & Pineapple Co.: Look Past the Pineapple — Seeking Alpha

Hawaii Agricultural Labor

Hawaii?s agricultural hired work force totaled 7,000 during the October 8-14 2006 survey week, 3 percent more than a year ago, but unchanged from the previous survey week of July 9-15, 2006. Diversified agricultural workers accounted for 77 percent of all farm labor and at 5,400 workers, it was up 1 percent from July 2006. The sugarcane industry employed 650 farm workers (does not include mill workers) during the survey week, unchanged from July 2006. Farm workers in the pineapple industry decreased 5 percent from the previous quarter to 950 (does not include cannery workers).

Average wage rate up 6 percent

The average wage paid to all hired workers during the October survey period was a record high $12.47 an hour, 74 cents more than October 2005. The combined average wage for field and livestock workers also set a new record high at $10.69 an hour, 51 cents above a year ago.

Farms employing from 1 to 9 workers paid an average of $11.16 per hour for all hired workers, while the combined average wage for field and livestock workers was $9.78 an hour.

Full Report Here
http://www.nass.usda.gov/hi/speccrop/aglabor.pdf
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HAWAII SUGARCANE ACREAGE & PRODUCTION

U.S. SUGARCANE

Production of sugarcane for sugar and seed in 2006 is forecast at 29.8 million tons, 3 percent above the October forecast and 12 percent above 2005. Sugarcane growers intend to harvest 908,800 acres for sugar and seed during the 2006 crop year, unchanged from October but down 1 percent from last year Yield is forecast at 32.8 tons per acre, 0.9 ton above the previous forecast and 4.0 tons above the 2005 yield.

The acreage, yield, and production forecasts are unchanged for Florida, Hawaii, and Texas. In Louisiana, the acreage forecast is unchanged, but yield is forecast at 2.0 tons higher than the previous month due to beneficial rainfall during October.

http://www.nass.usda.gov/hi/speccrop/sugar.pdf

HAWAII SUGARCANE ACREAGE & PRODUCTION

U.S. SUGARCANE

Production of sugarcane for sugar and seed in 2006 is forecast at 29.8 million tons, 3 percent above the October forecast and 12 percent above 2005. Sugarcane growers intend to harvest 908,800 acres for sugar and seed during the 2006 crop year, unchanged from October but down 1 percent from last year Yield is forecast at 32.8 tons per acre, 0.9 ton above the previous forecast and 4.0 tons above the 2005 yield.

The acreage, yield, and production forecasts are unchanged for Florida, Hawaii, and Texas. In Louisiana, the acreage forecast is unchanged, but yield is forecast at 2.0 tons higher than the previous month due to beneficial rainfall during October.

http://www.nass.usda.gov/hi/speccrop/sugar.pdf

Hawaii Agriculture Employee Definitons

?387-1 Definitions. As used in this chapter:

?Agriculture? means agriculture as defined in section 3(f) of the Federal Fair Labor Standards Act of 1938, or as the same may be amended from time to time.

?Department? means the department of labor and industrial relations.

?Director? means the director of labor and industrial relations.

?Employ? includes to permit or suffer to work.

?Employee? includes any individual employed by an employer, but shall not include any individual employed:

(1) At a guaranteed compensation totaling $2,000 or more a month, whether paid weekly, biweekly, or monthly;

(2) In agriculture for any workweek in which the employer of the individual employs less than twenty employees or in agriculture for any workweek in which the individual is engaged in coffee harvesting;

Electronic File Date: 11/14/2006

http://www.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0387/HRS_0387-0001.htm

Hawaii-grown roasted or instant coffee; labeling requirements

?486-120.6 Hawaii-grown roasted or instant coffee; labeling requirements.
Electronic File Date: 11/14/2006
(a) In addition to all other labeling requirements, the identity statement used for labeling or advertising roasted or instant coffee produced in whole or in part from Hawaii-grown green coffee beans shall meet the following requirements:

(1) For roasted or instant coffee that contains one hundred per cent Hawaii-grown coffee by weight the identity statement shall consist of either:

(A) The geographic origin of the Hawaii-grown coffee, in coffee consisting of beans from only one geographic origin, followed by the word ?Coffee?; provided that the geographic origin may be immediately preceded by the term ?100%?; or

(B) The per cent coffee by weight of one of the Hawaii-grown coffees, used in coffee consisting of beans from several geographic origins, followed by the geographic origin of the weight-specified coffee and the terms ?Coffee? and ?All Hawaiian?;

(2) For roasted or instant coffee consisting of a blend of one or more Hawaii-grown coffees and coffee not grown in Hawaii, the per cent coffee by weight of one of the Hawaii-grown coffees used in the blend, followed by the geographic origin of the weight-specified coffee and the term ?Coffee Blend?; and

(3) Each word or character in the identity statement shall be of the same type size and shall be contiguous. The smallest letter or character of the identity statement on packages of sixteen ounces or less net weight shall be at least one and one-half times the type size required under federal law for the statement of net weight or three-sixteenths of an inch in height, whichever is smaller. The smallest letter or character of the identity statement on packages of greater than sixteen ounces net weight shall be at least one and one-half times the type size required under federal law for the statement of net weight. The identity statement shall be conspicuously displayed without any intervening material in a position above the statement of net weight. Upper and lower case letters may be used interchangeably in the identity statement.

(b) A listing of the geographic origins of the various Hawaii-grown coffees and the regional origins of the various coffees not grown in Hawaii that are included in a blend may be shown on the label. If used, this list shall consist of the term ?Contains:?, followed by, in descending order of per cent by weight and separated by commas, the respective geographic origin or regional origin of the various coffees in the blend that the manufacturer chooses to list. Each geographic origin or regional origin may be preceded by the per cent of coffee by weight represented by that geographic origin or regional origin, expressed as a number followed by the per cent sign. The type size used for this list shall not exceed half that of the identity statement. This list shall appear below the identity statement, if included on the front panel of the label.

(c) It shall be a violation of this section:

(1) To use the identity statement specified in subsection (a)(1)(A) or similar terms in labeling or advertising unless the package of roasted or instant coffee contains one hundred per cent coffee from that one geographic origin;

(2) To use a geographic origin in labeling or advertising, including in conjunction with a coffee style or in any other manner, if the roasted or instant coffee contains less than ten per cent coffee by weight from that geographic origin;

(3) To use a geographic origin in advertising roasted or instant coffee, including advertising in conjunction with a coffee style or in any other manner, without disclosing the percentage of coffee used from that geographic origin as described in subsection (a)(1)(B) and [(a)](2);

(4) To use a geographic origin in labeling or advertising roasted or instant coffee, including in conjunction with a coffee style or in any other manner, if the green coffee beans used in that roasted or instant coffee do not meet the grade standard requirements of rules adopted under chapter 147;

(5) To misrepresent, on a label or in advertising of a roasted or instant coffee, the per cent coffee by weight of any coffee from a geographic origin or regional origin; or

(6) To use the term ?All Hawaiian? on a label or in advertising of a roasted or instant coffee if the roasted or instant coffee is not produced entirely from green coffee beans produced in geographic origins defined in this chapter.

(d) Roasters, manufacturers, or other persons who package roasted or instant coffee covered by this section shall maintain, for a period of two years, records on the volume and geographic origin or regional origin of coffees purchased and sold and any other records required by the department for the purpose of enforcing this section. Authorized employees of the department shall have access to these records during normal business hours.

(e) For the purpose of this section:

?Geographic origin? means the geographic regions in which Hawaii-grown green coffee beans are produced, as defined in rules adopted under chapter 147; provided that the term ?Hawaiian? may be substituted for the geographic origin ?Hawaii?.

?Per cent coffee by weight? means the percentage calculated by dividing the weight in pounds of roasted green coffee beans of one geographic or regional origin used in a production run of roasted or instant coffee, by the total weight in pounds of the roasted green coffee beans used in that production run of roasted or instant coffee, and multiplying the quotient by one hundred. [L 1991, c 289, ?2; am L 1995, c 103, ?1; am L 2002, c 258, ?1]

?486-121 Misrepresentation of quantity. No person shall:

(1) Sell, offer, or expose for sale less than the quantity -represented;

(2) Take any more than the quantity represented when the buyer furnishes the weight or measure by means of which the quantity is determined; or

(3) Represent the quantity in any manner calculated to mislead or in any way deceive another person. [L 1991, c 153, pt of ?6; am L 1993, c 54, ?12]

http://www.capitol.hawaii.gov/hrscurrent/Vol11_Ch0476-0490/HRS0486/HRS_0486-0120_0006.htm

HAWAII POINSETTIAS

SMALLER POINSETTIA INVENTORY FOR 2006

A smaller inventory of poinsettias are available for the upcoming 2006 holiday season according to USDA, NASS, Hawaii Field Office. Based on the October 2006 poinsettia grower survey taken earlier in the month, inventory is pegged at 342,000 pots, down 22 percent from the 2005 total.

Historically, October pot inventory represents 95-98 percent of total pots set and does not take into account culling for disease and quality, combining smaller pots into hanging baskets, and other factors that may affect the actual amount reaching markets during the peak holiday season.

http://www.nass.usda.gov/hi/flower/poin.pdf

Hawaii Seed Crops

The Hawaii Field Office of the National Agricultural Statistics Service estimates the value of Hawaii=s seed industry at a record high $70.4 million for the 2005/06 season. This preliminary estimate represents a 12-percent increase from 2004/05?s revised estimate of $62.6 million. Seed corn is expected to account for $68.1 million, or 97 percent, of the total value in 2005/06. A variety of other seed crops will account for the remaining 3 percent.

Outshipments of seed are anticipated to total a record high 8 million pounds during the 2005/06 season, up 16 percent from the previous record of 6.9 million pounds shipped during the 2004/05 season.

Acreage harvested for all seed crops is expected to total a record high 4,220 acres during the 2005/06 season, up 15 percent from the 2004/05 season.

http://www.nass.usda.gov/hi/speccrop/seed.pdf

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