The Importance of Sugar Across the State

This past Saturday I had the pleasure to tour the Hawaiian Commercial & Sugar Company here on Maui.  Rick Volner, the Plantation’s General Manager, was very gracious in hosting a grassroots discussion and comprehensive tour of their operations.

HC&S is the state’s largest agricultural operation with 36,000 acres in cultivation.  The company is Maui’s third largest employer, with about 800 employees, and an annual payroll of about $56 million.  HC&S expenditures consists primarily of local vendors, and the company puts over $100 million back into our local economy every year.

HC&S is also energy self-sufficient (not to mention always looking for renewable energy resources), and provides about 6% of the electricity to Maui Electric Company annually.

Alexander and Baldwin Inc., is recognized for their deep roots and being a  powerful influence in Hawaii since the late 1800s. A&B is the only member of the “Big Five” that still produces Hawaii’s original cash crop, sugarcane.

Sugar defines Hawaii, similar to how big time technology companies and start ups are currnetly linked with San Francisco and Silicon Valley in California.  Hawaii (in the late 1800s and into the better half of the 1900s) blossomed because of sugar, and the modern culture of our state has its roots in the “Old Hawaii” sugar plantations.

Many wealthy landowners employed native Hawaiians as well as imported workers from China, Japan, Portugal, Korea, and the Philippines to cultivate sugar. The workers were housed in plantation neighborhoods dotted across the island and all the migrant communites began to merge together, creating a foundation for the local culture we have now.

In 1905, the Big Five banded together and bought the California and Hawaiian Sugar Company; the profits from the sugar provided the capital necessary for each of the company’s shares to flourish. This is all culminated in 1962, when A&B bought out their partners and took sole control of the company.

Nowadays, A&B runs their sugar operation through one of their 5 diversified subsidiaries: A&B Properties, Inc. (a real estate and development company), Hawaiian Commercial & Sugar Company (sugar growing division), East Maui Irrigation Co., Ltd. (maintains irrigation ditches originally built in the 1870s), Maui Brand Sugars (unrefined sugar brand), and A&B Fleet Services (trucking and fleet-related parts and repair services).

Since 1962, Hawaiian Commercial and Sugar has been at the forefront of innovation and technology. HC&S has been a long time leader in the industry and has developed the reputation of being one of the most successful sugar companies in the world. They value a commitment to the well-being of Maui and its people, with a goal to maintain Central Maui’s  agricultural roots and foster agricultural growth throughout the island.

Still Leading the Way

In 2009, HC&S boldly designated 27,000 of its acres as “Important Agricultural Lands” (IAL), to ensure the protection of Maui’s natural beauty and the preservation of land for future use. HC&S is currently doing all they can to be as green as possible. Through a multifaceted effort, the company is developing and employing sustainable farming practices and technologies that improve farming viability, protect the land, conserve water, and boost the company’s energy self-sufficiency.

Beyond HC&S’s vast sugar cane land, they help manage 100,000 acres of watershed through another A&B subsidiary, the East Maui Watershed Partnership. This joint stewardship effort involves federal, state, and private landowners who want to preserve our native forests and ensure clean sources of water for Maui’s future generation.  HC&S supplies water to numerous Kula farmers and businesses, as well as to 36,000 upcountry Maui residents .

HC&S is a huge part of the Maui economy, representing one of the few companies in Hawaii that has the power, let alone assets, to do “Big Business” in Hawaii. Using the standard multiplier formula, the company’s total contribution to Maui’s economy is over $250 million, including payroll, benefits and vendor purchases.

Contact a Maui Real Estate Specialist

Please feel free to use me as your trusted Maui Real Estate Advisor. I was born and raised on the island, and spend a considerable amount of time to inform my clients about the best deals currently on the market. Please do not hesitate to call for your Maui real estate needs. I am more than happy to assist you in your home search.

Aloha,