HAWAIIAN SUGAR MANUAL 1989 HD9104 H39 1989 HAWAIIAN SUGAR MANUAL 1989 A Handbook of Statistical Information PUBLISHED BY Hawaiian Sugar Planters' Association © 1989 Hawaiian Sugar Planters' Association 99-193 Aiea Heights Drive• Aiea, Hawaii 96701, USA ii HAWAIIAN SUGAR PLANTERS' ASSOCIATION OFFICERS 1989 ·J.C.COUCH Chairman R. L. GRIFFITH Vice Chairman D. J HEINZ President-Director of the Experiment Station E. C. RAVNHOLT Vice President-Washington Representative R.D. WIEMER Secretary-Treasurer BOARD OF DIRECTORS 1989 J. S. ANDRASICK W. D. BALFOUR, JR. J. W. A. BUYERS T. K. L. CHANG J.C.COUCH G. B.FRASER R. L. GRIFFITH J. H. HEWETSON F. S.MORGAN J. A. WILLIAMS A~ociation & Experiment Station Headquarters 99-193 Aiea Heights Drive P. 0. Box 1057 Aiea, HI 96701 (808) 487-5561 (808) 486-5020 (FAX) Washington Office 1511 K Street, N.W., Suite 723 Washington, D. C. 20005 (202) 628-6372 (202) 628-2918 (FAX) iii HAWAIIAN SUGAR COMPANIES (Listed according to principal owners) ALEXANDER & BALDWIN, INC. C. BREWER AND CO., LTD. HAWAIIAN COMMERCIAL & SUGAR HILO COAST PROCESSING co.· co. E. A. Kennett, Pres. & C.E.O. R. F. Cameron, Gen. Mgr. P.O.Box18 P. 0. Box 266 Pepeekeo, HI 96783 Puunene, HI 96784 Phone: 964-5511 Phone: 877-0081 KA'U AGRIBUSINESS CO., INC. McBRYDE SUGAR CO., LTD. R. B. Cushnie, President D. P. Scott, Vice Pres. & Gen. Mgr. P. 0. Box 130 P. 0. Box 8 Pahala, HI 96777 Eleele, HI 96705 Phone: 928-8311 Phone: 335-5333 MAUNAKEAAGRIBUSINESS CO.,INC.b AMFAC/JMB HAWAII,INC. E. A. Kennett, President KEKAHA SUGAR CO., LTD. P. 0. Box 68 L. A. Faye, Jr., Pres. & Mgr. Papaikou, HI 96781 P. 0. Box 549 Phone: 964-1011 Kekaha, HI 96752 OLOKELE SUGAR CO., LTD. Phone: 337-1472 D. B. Cataluna, President THE LIHUE PLANTATION CO., LTD. P. 0. Box 156 M. H. Furukawa, Pres. & Mgr. Kaumakani, HI 96747 2970 Kele St. Phone: 335-5337 Lihue, HI 96766 Phone: 245-7325 CASTLE & COOKE, INC. W AIALUA SUGAR CO., INC. OAHU SUGAR CO., LTD. G. B. Fraser, Pres. & Gen. Mgr. W. D. Balfour, Jr., Pres. & Mgr. P. 0. Box665 P. 0 . BoxO Waialua, HI 96791 Waipahu, HI 96797 Phone: 677-3577 Phone: 63 7-6284 PIONEER MILL CO., LTD. HAMAKUA SUGAR CO., INC. J.C. Hance, Pres. & Mgr. P. 0. Box 727 J. H. Hewetson, Vice Pres. & C.0.0. Lahaina, HI 96761 P. 0. Box 250 Phone: 661-0592 Paauilo, HI 96776 Phone: 776-1511 GAY & ROBINSON, INC.c W.S. Robinson, President P. 0. Box 88 Makaweli, HI 96769 Phone: 338-1012 • Sugarcane milling company cooperatively owned by United Cane Planters' Cooperative and­ ~fauna Kea Agribusiness Co., Inc. Mauna Kea Agribusiness Co., Inc., is a grower that delivers its cane to Hilo Coast Processing Co. c Gay & Robinson. Inc., is a grower whose cane is milled by Olokele Sugar Co., Ltd. iv CONTENTS HAWAII'S SUGAR INDUSTRY Sugar in Hawaii ..... ... .... ...... ..... .. .. ......... ..... .. .1 Sugar Production for 1988 . ...... ... ....... .. .. ..... ...... ... .. .4 Sugar Lands ........... ... ............... .. ........ .....5 Wages and Working Conditions .. ... .... .. .. ... .. .. ... .... .5 Industry Organization .... ·. .. .. .... .. ... .. ...... .. ........ .... 9 Hawaiian Sugar Planters' Association . .......... ... .. .. .. .. 9 The Association . .. .... ... .... .. ... ... .. ...... .. .. ... .9 The Experiment Station ...... ......... .. .. ......... ... ...9 California and Hawaiian Sugar Company . ... ... .. .... ...1O U.S. SWEETENER AND SUGAR INDUSTRY Sweetener Industry ..... .. .... ... .... .. ... ....... ..... ... .. 11 Sugar Industry . ...... .. ... .... ....................... ..... .. .11 Cane Sugar Production . ... .. ... ... ... .. .. .... .. ...12 Beet Sugar Production . .... ... ... ... ... .. .. ..........15 Corn Sweetener Industry ..........................................15 Sweetener Market ... ..... .. ... ... .... ..... .. ....... ..... 15 U.S. Sugar Legislation ............. .. ................ ... .. 18 U.S. Sugar Act ........ ... .. .... ..... ..... ... .. .... ......18 U.S. Farm Act of 1981 ..... .. .... .... ... .... .. ........ .18 Food Security Act of 1985 ... .... .... ..... .. ... ... .. .....19 Farm Act Administration ... .................................19 WORLD SUGAR INDUSTRY Production, Trade, Consumption .... .. ... .. .... .... .. ...............23 World Sugar Market . .... ...... ..... .. .... .. .... ... .... ...24 World Sugar Surplus ... ..... ...... ...... ... .. .. ..... ....24 International Sugar Policy . ............ .. ... .................. 27 International Sugar Agreement ..... .... ...... ... .. .. .. .. 27 General Agreement on Tariffs and Trade ....... ...... .........28 Glossary . ... ... ..... ........ .......... .... ... .29 v HAWAII'S SUGAR INDUSTRY SUGAR IN HAWAII War II, labor shortages were eased by bringing in contract workers from Europe, Hawaii's sugar industry in 1985 North America, and Asia. Of the nearly observed its 150th year of commercial 385,000 workers that came, many raw cane sugar production. Sugar thousands stayed to become a part of production, more than any other activity, Hawaii's unique ethnic mix. helped create Hawaii as it is today. Pioneer sugar planters relieved water The first successful plantation was shortages in dry, leeward fields by build­ started at Koloa, Kauai, in 1835. Its first ing irrigation systems that included harvest in 1837 produced 2 tons of raw aqueducts (the first in 1856),artesian wells sugar, which sold for $200. Other (the first in 1879), and tunnels and pioneers, predominantly from the United mountain wells (the first in 1898). These States, soon began growing sugarcane on systems enabled the planters to grow the islands of Hawaii, Maui, and Oahu. sugarcane on more than 100,000 acres of Early sugar planters shared many arid land. problems - shortages of water and labor, The major trade barrier to Hawaii's trade barriers, and lack of markets for closest and major market for its raw sugar their sugar. Together with Hawaii's was eliminated by the 1876 Treaty of isolated oceanic location, these problems Reciprocity between the United States and created among the planters a spirit of the Kingdom of Hawaii. Through the cooperation that continues today. treaty, the U.S. received a coaling station Between 1852 and the end of World and Hawaiian sugar planters received 1988 Tons JIJIJIJ Island S1~::i;e T!~ ::;;Jc1! T!~ 1.11.11.11. Kaahuaui 41,904 23.6 227,831 24.6 ;;,,::;.;.,,,., 0 25,644 14.4 140,551 15.1 ttlt. III Maui 43,448 24.s 293,239 31.6 ::rninr ? Hawaii 66,697 37.5 266,574 28.7 .,,,,,,,,,::::::: :{' State Total 177,693 100.0 928,195 100.0 :::!!:f:!:]!::::_l_\.it...,.... 1:1:::i:::::::::::::::::::::\::t''\::i''':::,/L',:,,:,,,;,_,,,,,,,::::;:x,:,_,:,::::::::.:::::::::::::;.. ,:<:>:);::::;::;:;::::'\)\:<::::::·· .·:::: .. ... Facts & Figures 0 Sugarcane is a "monoculture" in 0 Replacement of the sugar Hawaii. Some fields have been in industry's water system - all of continuous production for more which was built without any than 150 years. government subsidy - would cost 0 Hawaii is one of the few sugar- $1.25 billion. producing areas in the world where 0 The sugar industry provides more the crop age averages two years at than 20,000 direct and indirect jobs the time of harvest. in Hawaii. 0 The Hawaii yields of sugar are 0 Direct industry payroll costs, among the highest in the world, · including employee benefits, about 11.8 tons an acre in 1988 totaled $166.4 million in 1988. (5.9 tons on an annual basis). 0 Hawaii's cane field workers have 0 About 105,000 of Hawaii's the highest standard of living of 178,000 acres of sugarcane land any agricultural workers in the are irrigated; drip irrigation, where world, with daily earnings used, makes more efficient use of (including benefits) averaging water. $107.02 in 1988. 0 The industry's water system 0 Principal products of Hawaii's includes about 115 fresh and sugar industry are raw sugar, brackish wells and 24 7 reservoirs molasses, and electricity (primarily with a total capacity of 10.3 billion from biomass fuel). gallons, as well as 11 hydroelectric 0 Hawaii's sugar industry generates installations, 350 miles of major about 10 percent of all electricity ditches, and 120 miles of tunnels. produced in Hawaii. duty-free entry into U.S. markets for their capital through the exports of raw sugar sugar. This market was confirmed with and other farm products. However, with the u:s. annexation of Hawaii in 1898 the attainment of statehood in 1959 and after the Spanish-American War. the almost simultaneous introduction of From 2 tons of sugar in 1837, sugar jet airplanes, the tourist industry began to production increased to only 13,000 tons grow rapidly. Within a decade the tourist by 1876. But the treaty and annexation industry became the state's largest changed this dramatically. By 1898, economic activity. production had grown to 225,000 tons and Today, agriculture - together with by 1932 to one million tons. Since then, tourism, federal activities, and annual cane sugar production in Hawaii construction - remains one of Hawaii's has been around one million tons. largest economic activities. The stability Because Hawaii has few natural of the state's economy would be critically resources, most essentials such as food, disturbed by a sudden change or reduction fuel, machinery, and building materials in any of these economic sectors. must be imported. Thus, activities capable In 1987, state tourist industry of bringing new dollars into the economy revenues were estimated at $6.6 billion, are vital to Hawaii's balance of trade as federal defense spending at $1.9 billion, well as to the standard of