Buy:VinVega
02-03-06, 11:48 AM
Yahoo link (http://news.yahoo.com/s/ap/20060203/ap_on_bi_ge/del_monte_pineapple)
By JAYMES SONG, Associated Press Writer
Fri Feb 3, 5:23 AM ET
HONOLULU - Pineapples have long been a proud symbol of Hawaii, along with hula dancers, palm trees, Diamond Head, surfers and the spirit of aloha.
The future of Hawaii's top agricultural product is now in question as Fresh Del Monte Produce Inc. announced it will cease pineapple operations here in a little more than two years.
Del Monte said it was no longer economically feasible to grow pineapple in Hawaii because it can be produced for less elsewhere.
"As a result of increased planting of pineapple at lower costs in other parts of the world, the company believes that it will not be economically feasible to continue to produce pineapples in Hawaii," Del Monte said in a statement. "In fact, today it would be cheaper for Del Monte to buy pineapples on the open market than for the company to grow, market and distribute Hawaiian pineapple."
Del Monte also cited difficulty in obtaining a long-term lease extension with landowner Campbell Estate.
Planting at Del Monte's Kunia plantation on Oahu was set to end Feb. 19 and the current crop will produce fruit through mid-2008, the company said.
The scene in Kunia this week, with a company executive announcing the planned closure to hundreds of plantation employees, was eerily similar to ones over the decades involving the dying sugar cane industry, which also cited the high cost of doing business in Hawaii.
Fred Galdones, president of International Longshore and Warehouse Union Local 142, said about 700 pineapple workers will lose their jobs. Galdones said he was also concerned with the future of the two remaining pineapple companies in Hawaii, Dole Food Hawaii and Maui Pineapple Co.
"I hope it's not a domino effect like it did with the sugar companies, where one had closed and the others followed suit," he said.
Hawaii's once thriving sugar cane industry is barely a presence now as companies found it cheaper to operate elsewhere.
Tens of thousands of acres of former sugar cane fields on the densely populated island of Oahu, where about 75 percent of the state's 1.3 million population reside, have since been developed into master-planned residential communities and shopping centers.
Dole, which produces pineapples on 3,000 acres it owns in Wahiawa, said it plans to continue its operations even though producing a pineapple in Hawaii is more expensive.
"The cost structures are higher to grow pineapple in Hawaii," Dole spokeswoman Marta Maitles said Thursday. "It's well known that there are less-expensive growing regions to source from. But still, Dole finds that there is demand for Hawaiian-grown pineapple and we plan to grow the fruit to meet that demand."
Pineapple is beloved in Hawaii. It is sold by the box at airport souvenir shops, and the Dole Plantation is one of the state's top tourist attractions.
The islands' red, volcanic soil and year-round sunny weather are ideal to grow pineapple, the top agricultural commodity in Hawaii.
Last year, Hawaii produced 212,000 tons of pineapples worth an estimated $79 million, according to the U.S. Department of Agriculture. Worldwide, the top pineapple producers are Thailand, the Philippines, Brazil, China, India and Costa Rica, according to a USDA report.
"I think that American workers everywhere, literally from Hawaii to Maine to Texas to Michigan, are vulnerable to outsourcing and that's really what this is about," said Hanan Kolko, a New York labor lawyer.
Del Monte said it will work with its employees and union representatives to "reduce the impact of this decision."
"Del Monte is mindful of the company's obligations to its employees and the local community, and is committed to making every reasonable effort to lessen the impact on all individuals involved," the company said in a statement. A company spokeswoman declined further comment.
Coral Gables, Fla.-based Del Monte began pineapple operations in Hawaii in 1916, when the company was called California Packing Corp.
Maui Pineapple has expressed interest in the Kunia property, while Dole said it was not.
I think I'm going to go out and buy a couple of nice Dole pineapples this weekend for the SuperBowl party. Del Monte can go suck it as far as I'm concerned. -ohbfrank-
By JAYMES SONG, Associated Press Writer
Fri Feb 3, 5:23 AM ET
HONOLULU - Pineapples have long been a proud symbol of Hawaii, along with hula dancers, palm trees, Diamond Head, surfers and the spirit of aloha.
The future of Hawaii's top agricultural product is now in question as Fresh Del Monte Produce Inc. announced it will cease pineapple operations here in a little more than two years.
Del Monte said it was no longer economically feasible to grow pineapple in Hawaii because it can be produced for less elsewhere.
"As a result of increased planting of pineapple at lower costs in other parts of the world, the company believes that it will not be economically feasible to continue to produce pineapples in Hawaii," Del Monte said in a statement. "In fact, today it would be cheaper for Del Monte to buy pineapples on the open market than for the company to grow, market and distribute Hawaiian pineapple."
Del Monte also cited difficulty in obtaining a long-term lease extension with landowner Campbell Estate.
Planting at Del Monte's Kunia plantation on Oahu was set to end Feb. 19 and the current crop will produce fruit through mid-2008, the company said.
The scene in Kunia this week, with a company executive announcing the planned closure to hundreds of plantation employees, was eerily similar to ones over the decades involving the dying sugar cane industry, which also cited the high cost of doing business in Hawaii.
Fred Galdones, president of International Longshore and Warehouse Union Local 142, said about 700 pineapple workers will lose their jobs. Galdones said he was also concerned with the future of the two remaining pineapple companies in Hawaii, Dole Food Hawaii and Maui Pineapple Co.
"I hope it's not a domino effect like it did with the sugar companies, where one had closed and the others followed suit," he said.
Hawaii's once thriving sugar cane industry is barely a presence now as companies found it cheaper to operate elsewhere.
Tens of thousands of acres of former sugar cane fields on the densely populated island of Oahu, where about 75 percent of the state's 1.3 million population reside, have since been developed into master-planned residential communities and shopping centers.
Dole, which produces pineapples on 3,000 acres it owns in Wahiawa, said it plans to continue its operations even though producing a pineapple in Hawaii is more expensive.
"The cost structures are higher to grow pineapple in Hawaii," Dole spokeswoman Marta Maitles said Thursday. "It's well known that there are less-expensive growing regions to source from. But still, Dole finds that there is demand for Hawaiian-grown pineapple and we plan to grow the fruit to meet that demand."
Pineapple is beloved in Hawaii. It is sold by the box at airport souvenir shops, and the Dole Plantation is one of the state's top tourist attractions.
The islands' red, volcanic soil and year-round sunny weather are ideal to grow pineapple, the top agricultural commodity in Hawaii.
Last year, Hawaii produced 212,000 tons of pineapples worth an estimated $79 million, according to the U.S. Department of Agriculture. Worldwide, the top pineapple producers are Thailand, the Philippines, Brazil, China, India and Costa Rica, according to a USDA report.
"I think that American workers everywhere, literally from Hawaii to Maine to Texas to Michigan, are vulnerable to outsourcing and that's really what this is about," said Hanan Kolko, a New York labor lawyer.
Del Monte said it will work with its employees and union representatives to "reduce the impact of this decision."
"Del Monte is mindful of the company's obligations to its employees and the local community, and is committed to making every reasonable effort to lessen the impact on all individuals involved," the company said in a statement. A company spokeswoman declined further comment.
Coral Gables, Fla.-based Del Monte began pineapple operations in Hawaii in 1916, when the company was called California Packing Corp.
Maui Pineapple has expressed interest in the Kunia property, while Dole said it was not.
I think I'm going to go out and buy a couple of nice Dole pineapples this weekend for the SuperBowl party. Del Monte can go suck it as far as I'm concerned. -ohbfrank-