A group of former Maui Pineapple Co. executives have teamed up with the owner of Ulupalakua Ranch to take over some of the pineapple operations of Maui Land & Pineapple Co.
Pineapple is BACK! YES, YES, YES! CLICK for larger imageML&P had announced in November that it would close its pineapple division after nearly 100 years of plantation-scale farming on the Valley Isle. The company last week harvested its final pineapple crop.
The new company, Haliimaile Pineapple Co., will continue to grow and market fresh pineapple under the established Maui Gold Brand, although on a smaller scale. The company said yesterday it will hire back 65 former Maui Pineapple Co. workers and farm about 1,000 of the 3,000 acres that were previously cultivated.
"We’re thrilled to be doing this," said Doug Schenk, former Maui Pineapple Co. president and member of the new management team.
"Maui Gold pineapple is a variety that no one else has. We knew that there was huge demand for it," said Schenk, who left Maui Pineapple in 2001.
Haliimaile has purchased and licensed key assets, and leased farm land, equipment and buildings from ML&P.
The other principals in the new company are Pardee Erdman, owner of Ulupalakua Ranch; former vice presidents of Maui Pineapple Doug MacCluer and Ed Chenchin; and the current operating directors for Maui Pineapple, Darren Strand and Rudy Balala.
Erdman will be the majority owner. The group brings more than 150 years of combined expertise in growing and packing premium pineapple on Maui, the company said.
"We are proud to continue the 100-year legacy of pineapple on Maui," said Strand, president and CEO of the new company.
"Haliimaile Pineapple Co. brings new hope for a new year by immediately saving 65 agricultural jobs with an expectation of adding more in the future."
HONOLULU – Governor Linda Lingle issued the following statement regarding Haliimaile Pineapple Company and the plan to continue pineapple operations on Maui:
This is the sweetest, best tasting, Pineapple in the world.
Grown on Maui by Hali'imaile Pineapple Co.
Please buy this product!!! PRIDE IN ISLAND!!!
“The formation of Haliimaile Pineapple Company and its plan to assume pineapple operations from Maui Land and Pineapple Company is welcomed news for Maui and the entire State of Hawai‘i.
“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.
“I want to thank the individuals who remained committed to finding an innovative way to revive pineapple operations on Maui. Their collaborative efforts will help preserve an important part of our culture and heritage, while charting a new course for the future of the pineapple industry in Hawai‘i.”
Hawaii set the standards for commercial pineapple, but that does not assure the islands’ standing in the world’s marketplace.
As with any other industrial producer, Hawaii’s pineapple industry needed to be competitive. Both in pineapple and sugar, Hawaii’s agronomists developed farming techniques and hybrid strains that improved productivity to keep ahead of operations with lower farming costs in competing countries.
But farming techniques and hybrid cultivars are transferrable; the better the Hawaii agricultural industry got in using technology to improve yields, the better the world got. What Hawaii could not transfer to regions competing with the isle-grown product were its agricultural wage scales and benefits.
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.
KAHULUI, Hawaii–(BUSINESS WIRE)–Maui Land & Pineapple Company, Inc. (NYSE:MLP – News) reported a net loss of $25.5 million or $3.17 per share for the third quarter of 2009 compared to a net loss of $8.7 million or $1.09 per share for the third quarter of 2008. The loss for the third quarter of 2009 includes $22.8 million equity in losses from the Company’s investment in Kapalua Bay Holdings, LLC, compared to $5.1 million income attributable to this investment for the third quarter of 2008. Consolidated revenues were $26.7 million for the third quarter of 2009, compared to $19.1 million for the third quarter of 2008. Revenues for the third quarter of 2009 include the sale of two properties that resulted in revenues of $11.7 million.
