AR-Cal inks Maui Gold deal

by Tim Linden

AR-Cal Distributing in Arvin, CA, has taken over as the exclusive North American sales agent for the Maui Gold pineapple, which is now being grown and packed by the Haliimaile Pineapple Co. Ltd. in Halliimaile, HI.

AR-Cal is the marketing and distribution arm of Trino Packing & Cold Storage Inc., which is also headquartered in Arvin and owned by longtime produce industry veteran John Trino.

Mr. Trino said that he has long had an affinity for Hawaii and became well acquainted with the Maui Gold pineapple when it was being marketed by the Maui Land & Pineapple Co.

That company, which owns and operates resort properties and golf courses in addition to its agricultural division, has had well-publicized financial issues during the past couple of years.

Maui Land & Pineapple Co. has sold off several golf courses and also sold the rights to the “Maui Gold” brand name.

Mr. Trino said that backers of the new pineapple company have pumped a good deal of money into the operation over the past year and have secured significant land for production.

Since Jan. 1, Haliimaile has been shoring up the sales of pineapples in Hawaii and has been mostly using Calavo for its mainland sales. Mr. Trino has been consulting for the firm on an informal basis since 2009 while it was under development, and recently agreed to the exclusive marketing agreement.

“I am basically going to be acting as a broker and a sales agent,” he said. “Haliimaile will do billing and invoicing.”

Mr. Trino said that the key to successful sales of the Maui Gold pineapple on the mainland is to limit supplies to the extent that there is demand.

“I told them to build up their sales in Hawaii and to grow slowly in North America,” Mr. Trino said. “You cannot flood the market. No longer will there be consignment sales. Everything will be an f.o.b. sale.”

AR-Cal’s agreement was slated to begin officially Oct. 1, but on Sept. 29, when Mr. Trino spoke with The Produce News, he said, “We have cans on the water and are taking orders.”

He said that the f.o.b. price Long Beach, CA, or Seattle, which are the two ports to which the product is being shipped and unloaded via ocean freighter, was $11.50 on that day.

“There has been about a five- or six-week gap in supplies, which has made for a good transition,” he added.

Although the Maui Gold has typically enjoyed better sales on the West Coast because of its proximity to Hawaii, Mr. Trino said that the company is selling nationwide and will air freight to the East Coast when appropriate.

But he added that Mexican pineapples are typically $2-$4 cheaper and enjoy a freight rate advantage to the East Coast, so the demand is limited.

“But it is the best-tasting pineapple there is,” he stated.

Handling sales of the product for AR-Cal is Harold Stein, another longtime produce sales veteran.

The Produce News AR-Cal inks Maui Gold deal

Ar-Cal becomes mainland marketer of Maui Gold pineapples

Ar-Cal Distributing has taken over the mainland marketing of Hawaii-grown Maui Gold pineapples.

Ar-Cal, a division of Arvin, Calif.-based Trino Packing and Cold Storage, inked a deal with HaliiMaile, Hawaii-based HaliiMaile Pineapple Co. Ltd. to be the North American sales agent for Maui Golds, which HaliiMaile has exclusive rights to, said John Trino, Ar-Cal’s president.

Santa Paula, Calif.-based Calavo Growers Inc. had been the mainland marketer for Maui Golds when the variety was owned by Makawao, Hawaii-based Maui Land & Pineapple Inc.

HaliiMaile, which became the exclusive marketer of Maui Golds effective Jan. 1, has cut production of Maui Golds from 3,000 to 4,000 acres to 650 acres, Trino said.

Rudy Balala, HaliiMaile’s vice president, said the company is focusing its marketing efforts on the mainland on high-end customers. He said the company can’t compete with pineapples from other countries on price.

“We know we have a superior product,” he said. “Our fruit tastes really good, and we’ve heard a lot of positive comments about it on the mainland.”

HaliiMaile expects to ship about 3,000 to 4,000 cases a week to the mainland U.S., Balala said.

Hawaii’s farm future: Fertile fields?

Introduction

In 2008, a report from the University of Hawaii-Manoa and the state Department of Agriculture estimated that between 85 percent and 90 percent of the state’s food was imported every year and concluded that there wasn’t much anyone could do to change the situation.

” … Even though Hawaii can conceivably grow anything that we consume, the quest to achieve 100% food self-sufficiency is impractical, unattainable and perhaps impossible, as it imposes too high a cost for society,” the researchers said.

Hawaii’s relatively small farms could never match the output or efficiency of the vast mechanized farms on the mainland, the report said. Island products would always be more expensive to grow and buy.

Still, the report was more a call to arms than a dark prophecy.

Pointing out that Hawaii’s geographic isolation left its food supply vulnerable to disruptions caused by forces and events beyond control, such as fuel costs, shipping strikes and farm production fluctuations, the report said it was of vital importance that the state not overlook the value of a small but thriving home-grown market.

A healthy agricultural base not only serves as a buffer against outside forces, it provides residents with fresher, tastier, healthier food and could put millions of dollars back into the island economy, the report said.

“I think we are at the crossroads,” says Dr. Matthew Loke, administrator of the state’s Agricultural Development Division and a co-author of the 2008 report with Dr. PingSun Leung of UH-Manoa’s College of Tropical Agriculture and Human Resources. “Whether we can seize those opportunities or not, that’s our challenge.”

Local farms in labor bind

In 2008, there were 202 requests (more than twice the number of requests in 2006 and 2007), and 137 of those were approved.

Across the nation in 2009, 5,177 workers entered the U.S. under the

H-2A program, according to U.S. Citizenship and Immigration Services.

The problem is supply versus demand.

“If Hawaii is going to increase its agricultural sector, somebody’s gonna have to do the work in the fields,” said Mae Nakahata, president of the Hawaii Farm Bureau Federation, which represents 1,600 members in the local agricultural industry. “A lot of the local people don’t want to do that type of work, so where is that labor going to come from?”

Nakahata said many farms are tiny, family operations that can’t handle the workload by themselves.

“A lot of our farmers are dependent on second and third parties to get their labor because they’re not large companies,” Nakahata said. “They depend on the contractor, and that the contractor is doing its job correctly.”

Many local farms relied on Global Horizons Manpower Inc., a Los Angeles-based recruiting contractor whose president and associates are now accused in what’s been called the largest human trafficking scheme ever prosecuted in the U.S.

Federal investigators allege that Global Horizons, headed by Mordechai Orian, hired Thai workers under false promises of high wages, but later revoked their traveling documents and violated their rights.

The Global Horizons case involves about 400 farmers who passed through Hawaii from May 2004 through September 2005. The case includes 14 farms around the state, including Maui Pineapple Farms, Aloun Farms, Del Monte Hawaii and the Kauai Coffee Co.

None of the farms is being accused of wrongdoing in the case. Aloun Farms’ owners face trial in a separate case involving 44 Thai workers who claim to have been abused.

“Local farms are in a tough situation now,” said Nakahata. “How do you evaluate whether the contract you’re going for is legitimate?

Grown on Maui Bus Tour, other Hawaii news

Mainland images of the fall harvest may not apply to Hawaii, where the growing season is year-round. But after the islands’ busier summer than 2009’s and before a Christmas break that’s expected to be even more robust, travelers may find that quieter autumn is the peak period to reap the benefits of new and renewed activities and accommodations.

For activities, the menu of agritourism options – an appetizing way to support farmers and rural landscapes – keeps expanding on the four major islands:

Maui: The new Grown on Maui Bus Tour lives up to its name by including a locally sourced continental breakfast at the Whole Foods Market in Kahului, a company tour and pineapple tasting at the Haliimaile Pineapple Co., a gourmet lunch and tour at upcountry Oo Farm (owned by PacificO and IO restaurants) and a walking tour and dessert at Alii Kula Lavender Farm, before returning to Whole Foods. The weekly Tuesday tour, open to ages 12 and older, costs $130 plus tax. (808) 879-2828, www.akinatours.com.

Pest appears in pineapple shipment

LOS ANGELES » Federal agriculture inspectors at the ports of Los Angeles and Long Beach have found a destructive pest in a shipment of pineapples that’s never been seen before in the United States.

The U.S. Customers and Border Protection said yesterday that the variety of leafhopper found late last month from Costa Rica can cause severe damage to crops such as grapes, potatoes, soybeans and corn.

The insect was the second first-in-the-nation pest that inspectors at the Southern California port complex have found in the last two months. Crews there found a type of aphid in late June.

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