Hawaiian coffee production faces significant challenges including high labor costs ($25/hour for US workers versus $15-20/day in other countries), expensive inputs due to island isolation, and the need for farmers to diversify revenue streams through farm tours and direct sales to survive, while maintaining premium quality and adhering to strict labeling laws requiring 51% Kona content for Kona coffee.
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The Shocking Truth About Hawaii’s Coffee IndustryAdded:
Welcome back. I'm here with the Abby from Hawaii Coffee Association. Welcome.
Thank you. So, So glad you're here.
>> Yeah, how long you >> Crazy small world, right?
>> How long you've been involved with the coffee business? Uh I've been involved in coffee officially since 2017, but kind of unofficially since 2004 when my parents started a farm, a small coffee farm in Maui. Maui? Yeah, back in 2004.
So, how's the coffee in general in come from Hawaii compared to other parts of the world? How does it compare like in flavor or volume?
>> and volume. Yeah. So, it's uh really chocolatey and nutty, uh very smooth, some fruitiness to it.
Uh there are lots of different varietals that are growing in in Hawaii now.
Wasn't always the case, kind of new uh relatively in the history of coffee.
Uh originally just um we were growing most farmers were growing Kona Typica, which came from Guatemala, which came from Guatemala, right? So, really smooth, delicious. It's what we would call a heritage washed coffee, right?
Primarily, most of the coffees are washed processes. There are some farmers and producers who are starting to explore other innovations. Um like Kona Farm Direct is doing some fermentations and Greenwell's have been experimenting historically with new varietals.
Um and so, yeah, we have lots of different varieties that are coming out now, not just the Typica. So, let me ask you, what's the challenges you guys have?
Well, being located in an island in the middle of the ocean >> yeah.
>> the largest challenge, especially kind of the current environment of the climate of the globally, right? With uh ships maybe not making their way to us, price of gas and fuel, tariffs, That's why the gasoline price is a big one right now.
>> Right, but gas is really big. Everything has to come to us. So, cost of fertilizers, astronomical. Like, what's going to happen if if some of these pathways don't open up? Will we be able to continue to get fertilizer and the things that we need?
Um pest management is really difficult.
We have lots of I mean, coffee is growing wild on the side of the road and um maybe not everyone is treating their farm correctly. CLR made its way to us a few years ago and um That's That That's a huge challenge, right? So, We have an a a volcano that's going off. So, let me ask you, I know you are here. What's the main purpose of coming to World of Coffee? So, for me coming to World of Coffee, I'm here to represent our growers and producers in Hawaii um and to help connect them to global buyers, mainland roasters, um and just get the word out about Hawaii coffee. It's really fascinating how many people have come by the booth who have said, "Oh, I didn't even know coffee was growing in Hawaii." But when I say, "Well, have you ever heard of Kona coffee?" They're like, "Oh, yeah."
And you say, "Oh, well, that's Hawaii, right?" They don't They They They haven't been able to put that together.
And so, really um we want to get the word out that Hawaii coffee is is there, it exists, it's delicious.
Um and yeah. Is that true you can only buy 100% Kona coffee from Kona?
So, 100% So, any coffee Kona coffee that is labeled Kona has to come from Kona, right? So, you can't have coffee from um Maui or from uh a little a little a little town in south part of the Big Island, maybe like Puna, right? Like, you can't put it on there it's Kona coffee unless it's 51% Kona coffee. 100% Kona has to be 100% Kona. We have a new law that came into effect last year. Um it is now not just a state law, it's it's starting to make its way to the federal law that all coffee labeled as Kona must be 51% Kona.
>> 51% because you know, whenever you go to a grocery store, I see Kona coffee but has 20% Kona coffee or 30%.
>> Right. Right. So, I you know, originally the the law was 10%.
>> Oh, 10%.
>> And then we had that counterfeit issue that was going on and and I mean, pretty smart of them to bring coffee from another country into Hawaii and flip it out, right? But commands a price that other origins aren't command able to command. I mean, most I I know the price of coffee from Hawaii is pretty expensive. Relative to maybe Brazil, correct.
>> Correct. When Brazil coffee is like commodity, you know, in that commodity range predominantly, there are some amazing growers. I mean, there are some great communities um, who are trying uh, of other producers who are doing regenerative work in in Brazil who are raising the bar for that.
Um, but cost of land, cost of production, cost of labor in other countries is much much lower. Um, even in Panama, for instance, right? I mean, um, we have a joint friend, right? Who came and worked on our farm last year.
Um, and you know, like I there's just no way that I can get away with not paying him $25 an hour to come and work.
How how can you compete with that? You can't. You pay $25 an hour for US workers. Yep. And if you go to other countries, they're making maybe 15 if they are that lucky, $20 per day.
>> right? Right. And so, and then these farmers, in order to live, I mean, the average price of a one-bedroom uh, ohana, a home in Hawaii is about $2,100 a month, right? No, depending on where you get it. Like unless you have a Costco membership, you're paying $10 a gallon practically for milk. So, um it's all like relative to the country and and whatnot. And and there are laws and sort of and things that we have to follow because it's the law, not we can't go, "Oh, it's not the practices that we're going to have for our farm."
And so, we almost kind of have this natural organic fair trade thing. I mean, it's not, right? But it just kind of naturally self-certifies itself. Okay, so what must happen to survive in this climate?
Uh as a coffee farmer producer in Hawaii, well, uh first of all, most in order for our farm to there has to be multiple sources of revenue.
Right? Like so, you'll see a lot of our farmers um not only do they are they producing uh green coffee products, um their cost of production is probably right around the $19 to $21 a pound just for the cost of production.
That's not maybe their cost their operating expenses if they also have other revenue streams.
Um so, that's why we see a green coffee going for $28 a pound. I mean, so they're only earning $8 a pound.
Um how do you have health insurance and send your kids to college on that? Um so, it's big challenges. Yeah, so most of them have some other source of revenue. Um they're doing farm tours.
>> Yep. A lot you'll find a lot of our farmers um while they might not have a full seed-to-cup operation, uh they use third-party millers um and maybe a third-party roaster, but they then sell their roasted coffee, whether it's in the supermarket on island.
They might have a farm store.
Um an e-commerce store, something like that.
Yeah, they're working really hard all the time. Uh I'm definitely hearing you.
Thank you so much for your time, Abby.
Make sure you go out there and buy coffee. and go out there buy Hawaiian coffee.
>> Hawaiian coffee, that's right. All right, bye-bye. You guys.
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