Decades of decline in Hawaii sugar operations foreshadowed Wednesday’s news that Hawaiian Commercial &Sugar Company (HC&S) on Maui will be closing by the end of this year. The company lost $30 million last year, and nobody saw a way to turn that around.
But inevitability didn’t make the end of the state’s last sugar plantation any less momentous: The industry that drove Hawaii history and shaped its ethnic diversity is now officially part of its past, not its future.
This jarring development for the 675 employees of Alexander &Baldwin Inc., the parent of HC&S, also leaves authorities with a heavy responsibility.
Company executives, as well as state officials and the union representatives looking out for worker interests, must collaboratively deliver an aggressive and effective transition plan for the employees, some of whom will be laid off in March.
How many will remain in agriculture is uncertain, as much as maintaining a sustainable ag industry is a desirable end. The economics of agriculture are so difficult that, at the end, A&B will leave about half the crop in the fields because it’s not worth staying in business to wait for it to mature.
Planning for the next chapter in Maui ag should follow, and A&B executives have said that it will work to convert the 36,000 acres sprawling over Central Maui into multiple small farms that can produce diversified crops.
However, the priority now, and as the Legislature convenes in the coming weeks, should be on skills retraining for those preparing to leave the sector to find employment with decent pay and benefits.
Sugar and pineapple plantations were once the anchors of Hawaii’s economy.
The growth of the sugar sector picked up steam in 1876 when the Kingdom of Hawaii won the ability to export sugar to the United States duty-free.
Alexander &Baldwin was founded 145 years ago by sugar growers who descended from Hawaii’s Protestant missionaries.
In the second half of the 20th century, much of its business shifted into real estate.
Plantation owners became even more influential in governing Hawaii after the U.S.-supported overthrow of the monarchy.
Sugar and pineapple were finally supplanted as Hawaii’s principal economic engine when tourism boomed after the start of passenger jet travel.
As urban sprawl had subdivisions encroaching on the fields, the conflicts between the residents and plantation operations mounted, especially at the time of cane-burning, the seasonal method of clearing the land for the next crop.
But the most lasting impact on the state was on its demographics. The plantation fields were staffed with immigrants from China, Japan, Korea, the Philippines, Portugal and other countries, and their descendants still give Hawaii its multicultural richness.
What happens next seems murkier than it should.
A&B executives have said the company has no plans for large land sales, though it may continue past practice of selling off small parcels. It plans to keep most of the land in agriculture, said President and CEO Chris Benjamin, but he wasn’t clear about which path seemed most promising.
The company previously researched some prospects; those studies now are shifting to field-scale testing. There’s potential for biofuel crops such as sorghum, Bana grass and Napier grass.
A&B also has signed a confidential memorandum of understanding with local and national partners to explore market opportunities for biogas, and discussions with potential partners in producing from sunflower, safflower and soybeans are in early stages.
Maui Cattle Co. will conduct a trial of producing grass-fed beef on fallow sugar lands as well.
This is all encouraging, but would be more so had it been advanced sooner. Maui farming is so integral to its landscape that urbanizing great swaths of land should be a nonstarter.
But the shift to new crops won’t happen without drive and direction from the landowners, who should be pressed to stay on task. True diversification of crops is what should be pursued.
Maui’s lawmakers, including House Speaker Joe Souki, have committed to crafting a transition plan for company employees. State Rep. Kaniela Ing (D, Kihei, Wailea, Makena) said his intent is to make incentives for hemp and biofuels production part of the blueprint, as well as food crops.
But success is not assured.
Last week also brought word that Hawaii island’s Hamakua Springs Country Farms is shutting down due to rising operational costs.
Whatever farming future is designed for Maui, it likely will require some help with costs from the state.
With nearly 675 people to be jobless soon on Maui, no more time should be lost in putting pencil to paper on that plan.