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Maui Pineapple Ends Operations

After suffering severe financial losses, Maui Land & Pineapple Company announces the end of pineapple production on the Valley Isle. “This is very sad news for our community.”

Sarah Ruppenthal
POSTED: November 12, 2009

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For generations of Hawai‘i residents, pineapple has been regarded as a sweet symbol of the fruits of their labor. But for some, this iconic “cash crop” is now a bitter reminder of an economy gone sour, as Maui’s longstanding pineapple legacy comes to an end.

After nearly a century of pineapple production on the Valley Isle, Maui Land & Pineapple Company (ML&P) announced last week that Maui Pineapple Company (MPC) will end its Maui Gold operations by the end of the year, ending a significant chapter of Maui’s history and leaving hundreds of residents unemployed.

In a press release on Tuesday, Nov. 3, ML&P Chairman and Interim CEO Warren Haruki explained, “Since 2002, MPC has lost $115 million in this agriculture business, while investing $20 million in capital expenditures for a new fresh packing facility.” Indicating it was a difficult decision for the company, Haruki said, “Realizing that these losses could no longer continue, we spent the last year exploring options to keep pineapple operations going on Maui…. despite our efforts, it became clear that there were no other financially viable options.”

Immediately following the company’s announcement, Mayor Charmaine Tavares issued a statement: “This is very sad news for our community, especially for the employees and their families who will be affected… agricultural fields are part of our heritage and have been a foundation of our island’s history. For nearly a hundred years the company’s pineapple operations have made our community’s character unique.”

Recalling the Valley Isle’s longstanding relationship with the industry, the mayor said, “Working in our pineapple fields has been the source of income for many families, where high school teenagers spent their summers and where multiple members of a family worked in different parts of the operations. I have my own personal memories of summer work in the fields.”

The news of the closure was a devastating blow to more than 250 ML&P employees, some of whom can trace pineapple farming throughout their family trees.

Expressing his concern for the displaced ML&P employees, U.S. Sen. Daniel Inouye said, “I stand ready to direct whatever federal assistance the law allows and I will continue to do all I can in Washington to ensure that the federal government is supporting the local economy as best it can during these turbulent economic times.”

While ML&P said it plans to offer employment to approximately 130 of its displaced employees at partner companies, Mayor Tavares assured that the Maui County Office of Economic Development will provide immediate assistance. She said the office is already coordinating a range of services, including job fairs, career counseling and unemployment assistance.

Echoing the mayor’s concern for the welfare of ML&P employees, Gov. Linda Lingle responded, “This is a difficult time for the employees of Maui Land & Pineapple, and the state is ready to assist those who will be displaced through our multi-agency Rapid Response Team. The hard work and dedication of these loyal employees and those before them contributed to the cultivation of the pineapple industry and agriculture on Maui over the years.”

Acknowledging the historical significance of the company, the governor said, “Pineapple has been an integral part of Maui’s community, heritage and way of life for generations, and for many Maui residents, the plantation and cannery provided their first jobs. While the end of pineapple production on the island is a loss to Maui and the entire state, now more than ever, it is critically important that we work together to support agriculture in Hawai‘i to ensure our food security, as well as to provide jobs.”

As ML&P employees recover from the shock of the announcement, the company’s exit from pineapple farming caused many to wonder what will become of nearly 2,000 acres of agricultural land. While many may fear that the acreage will be sold off to commercial or residential developers, the company said it intends to use the land for other agricultural purposes—which could include ranching or the harvesting of another crop.

In a restructuring plan announced last week aimed to “improve operations,” ML&P said it intends to shift the management of some areas of the Kapalua Resort—a ML&P property—to a third party. In addition, the company will implement structural changes. “We realize this ends a significant chapter in Maui’s history and an important part of many lives, over many generations,” said Haruki. “We express our deep respect and profound appreciation to our employees for their many contributions to the company over the years.”

For more information about Maui Land & Pineapple Company, visit www.mauiland.com.

 
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