HomeMy WebLinkAboutCOM 0371.001 2000-2002 Hawaii Gold Cacao Tree, inc. _
Post Off ce Box 4939, Hilo, Hdwdii 96720
Tel: (808) 969-9484/Fdx (808) 935-8946
E-Mail - HawdiichocofateC~dof.com
~J
November 13, 2001
Ms. Nancy Pisicchio
Chairperson
Committee on Human Services and Economic Development
Hawaii County
25 Aupuni Drive
Hilo, Hawaii 96720
Dear Chairperson Pisicchio:
Hawaii Gold Cacao Tree, Inc. looks forward to presenting in front of the Committee on Human
Services and Economic Development on November 20, 2001. Please accept the attached 15
copies of supplemental material that HGCT will refer to during its presentation.
If there are any questions, please contact HGCT.
Sincerely yours,
r
' and J. Oszu icz
hairman
Hawaii Gold cao Tree, Inc.
ffi. IJ~
$~f.
Hawaii Go~c~ Cacao Thee, Inc.
Index and Description of Submitted Documents to the Committee on I-lumen
Services and Economic Development for Hawaii Gold Cacao Tree's
November 20, 2001 Presentation
Attached are a series of documents that aid and support Hawaii Gold Cacao Tree, Inc. efforts in
sustainably and viably growing cacao, processing cacao and manufacturing chocolate in Hawaii. These
documents will be referred to during the November 20, 2001 presentation.
1. Hawaii Gold Cacao Tree, Inc. Corporate Philosophy ............................................I
2. A Partial Listing of Organizations/Persons Counsel, Information and Other
Services to Hawaii Gold Cacao Tree, Inc. Since August 1998 ............................................2
3. Act 188 -State of Hawaii Issuance of a $10 Million Special
Purpose Revenue Bond for Hawaii Gold Cacao Tree, Inc. ............................................3
4. Rural Economic Transition Authority -Hawaii (BETA-H) Approval
Letter for Hawaii Gold Cacao Tree, Inc. ............................................4
5. Cacao Processing ............................................5
6. Chocolate Manufacturing Process . ...........................................6
7. Hawaii Gold Cacao Tree, Inc. Cacao Site Assessment Work (SAW) ...................................7
8. Hawaii Gold Cacao Tree Inc. Employee List ............................................8
9. House Resolution 82 -Urging the U. S. Congress and the U. S. Department of
Agriculture to Establish and Fund a U.S. Department ofAgriculture -Pacific
Basin Agricultural Research Center -Managed Cacao Germplasm Center in Hawaii ..............10
10. Comment About Additional Information Relating to the Statement by
Janice Y. Uchida, Plant Pathologist, University of Hawaii ...........................................16
11. Communication by B,K. Matlick, Agribusiness Consultant
for American Cocoa Research Institute l 9
12. Communication by David Lim, American Cocoa Research Institute .................................21
13. Communication by B.K. Matlick, Agribusiness Consultant
for American Cocoa Research Institute ...........................................22
14. Communication by Mark Guiltinan, Associate Professor of Plant Molecular
Biology, Director, American Cocoa Research Institute Penn State Program
in the Molecular Biology of Cacao Department of Horticulture
The Pennsylvania State University ...........................................24
15. Communication from Eric Rosenquist, National Leader
International Programs, USDA/ARS ...........................................26
16. Communication from Myron Isherwood, Jr. Plant Quarantine Manager,
State of Hawaii Department of Agriculture, Plant Quarantine Branch .................................28
17. Hawaii Gold Cacao Tree, Inc. Policy State -Relating to Food Labeling
of Chocolate, Cocoa and Cacao Beans ...........................................29
18. State of Hawaii Law pertaining to "Misbranded," "Misbranding"
and "Hawaii-made Products . ..30
l9. Testimony of Adam J. Oszustowicz, Vice President of Hawaii Gold Cacao Tree, Inc. Before the
House Committee on Agriculture relating to Chocolate and Cacao Labeling ........................31
20. Communication by Yorkville Management Services, Inc. (Hans Schue -
President of The Cacao Merchant's Association of America) ..........................................32
21. Hawaii State Legislature 2001 Regular Session HB1584 relating to
Chocolate Labeling ..........................................34
22. Communication from Richard J. Oszustowicz, Chairman,
Hawaii Gold Cacao Tree, Inc. regarding H.R. 1584 ..........................................39
23. Communication from Samuel G. Camp, III, Administrator,
Quality Assurance Division, State of Hawaii Department of Agriculture .......................40
Hawaii GoCd Cacao Tree, Inc.T
Co~por~-ale Philosophy
In seeking to balance Hawaii Gold Cacao Tree Inc., ("HGCT") commitment to profitable, sustainable and Long-term
growth and community service, HGCT shall strive to:
• Protect and enhance HGCT's high level of integrity, ethics, conduct and personal leadership.
• Lead a product focused approach to business by efficient and effective alignment and refinement of human, land,
capital and other resources to deliver measurable and superior results orientated work.
• Deliver total commitment to continuous quality of work improvement as an HGCT-wide central operating strategy.
• Maintain and encourage a strong interactive, trusting, responsive, team building, people caring, community service
and environmentally conscience management style and work ethic.
• Produce consistent superior quality cacao, cacao products, chocolate and chocolate products while also incorporating
other Hawaii agricultural products and services into HGCT product lines to advance significant market share targets.
HGCT will meet this commitment by efficiently and effectively managing knowledge information quality and
velocity requirements and by being actively commit\ed to state of the art disease and pest management and
prevention. Integrated data, text, image and voice information systems over the continuum of work will enable all
aspects of HGCT to better manage its activities to meet company objectives. These specially modified information
systems will enable HGCT to quickly, competently and consistently better serve the unique needs of its customers,
partners, alliances, employees and local, state and federal government.
• Advance and leverage the skills, knowledge, talent and abilities of the Hawaii Gold Cacao Team. Such work is
aligned through interdependent, cohesive and team oriented organizational structures and system operations that
together produce superior chocolate and confectionery products, exemplary managed and operated plantations further
supported by a passionately maintained company-wide and clearly focused customer satisfaction policy.
Vision Statement
The Vision of Hawaii Gold Cacao Tree, inc. is to develop and grow a high quality and high yielding cacao on Hawaii
plantations, to construct and efficiently operate cacao processing and chocolate manufacturing factory and a Visitor and
Education Center, to employ and educate Hawaii labor in the plantation, factories, and administrative offices, to build a
strong chocolate and confectionery business in I Iawaii and selective markets worldwide, to create a sustainable value-
added product and service, to advance value-adding cacao business opportunities throughout
Mission Stateryleht
The Mission of Hawaii Gold Cacao Tree, Inc. is to be the leading Hawaii cacao focused food company in North America
and selected international markets and to be the leading Hawaii cacao grower and processor, chocolate manufacturer and
chocolate products supplier for both consumers and confectioners. Our Mission goals are to align work opportunities with
other Hawaii agricultural producers and their products, to build strong strategic alliances with other Hawaii services and
goods, to produce the finest quality Hawaii chocolate product offerings in the world, to create a world model for efficient
and effective plantation practices that will grow the highest quality cacao beans, the highest yielding cacao trees and to
proactively present Hawaii cacao farming and chocolate manufacturing as a significant engine of United States domestic
economic growth through HGCT's interdependent management philosophy in concert with environmental conservation.
Values
Hawaii Gold Cacao Tree, Inc. values the Aloha Spirit of Hawaii founded on mutual trust, respect for others and the
environment, continuous quality of work improvement, strong work ethics, teamwork, individual, family and community
service.
Copyright, 1998
I~awaii Gold Cacao Tree, Inc.TM
A Partial Listing of O~anizations/Persons Providing Counsel, Information and Other Services to
Hawaii Gold Cacao Tree, Inc. (HGCT) Since August 1998
• Agriculturallnstitutions
• Financiallnstitutions
• Other Farming Organizations
• Landotivners
• Cacao Farming and Chocolate Manufacttrrin~ Experts
• An Initial Representative Group of Hawaii Based Businesses Involved in HGCP Activity
Shipping and Freight Lines
• Communication and Marketing Companies
• Federal, State and Local Government Officials, Government Organizations and Toarrism Bureaus and
Departments
• HGCP 's Commitment to Community Service in Partnership with the Following Educational and
Medical Care Organizations
• Financial, Legal and Other Advisors
• Hawaii State Executive Officers and Elected Officers
• Senate Members
• House Members
Copyright, 2000
Hawaii Gold Cacao Tree, Inc.TM
sT~T~ .w 1~~
'I"~ent~etb. St~t~ ~~~islatur~
velar S~ssi®~ of Approved by the Governor on A'ed~day, Juaac 07, 2000
Adt~ Code: NIA
~ 2 5 3 Q ~ 1 ~ 1 ~ ~ 1 Effective ate: EUA.
Delivery of tl~ bill boon identa#'ied, co the Govsrnpr Introducer: I.olralnc R. InauyG
of Hawaii by i~ Ckrk of tbs Hours/Senats of r,~
I..cg~at~re in which t~ saw cuigi~tcd is ®creby Support:
a~knowledgcd ~ the dry and hour aot~d hereon; Haiku Farm and Nursery, Rural F~o,nom~ Trauswon
We~osd~p, M.ay 03, 2040 3:08 PM Assurance Hawaii, Hawall Smtll Bsasineas Develop~~
Ceratcr Network, and Hawaii Bold Cacao Trc~, ~
County of Hawaii suppnru the intes~r of tAis hill.
For the ~®vernor of Hawaii:
~y: David J. Rodriguez
TEI.: S 86-0001 FAX: S 86~~0445
~ ~ tansc~w ~ pPpp Se
Title: Nona.
RI~LATINCa TO AG]tICULTURB.
Puurpo ae(I3eserip tion
T'o suL~lliiSG issua?~ of special purpose rcvcriuc boAGs No Votes:
in a total a~unc nat tD txsccd X10,000,040, to assist
Hawaii Gold Casao'IYet, lnc., is i'laancia$ nc~ Nonc.
~stabli~sh>~,t of facili~ in the County of Hawaii to
process cacao brans and ~ ~anuiasnue and produce
cacao a~ chncolate produce.
r x~
1~'_RRRtl TQ: IJEPAX~TI~NTA~[, ~coMATr~x:
BT.JF _
A1'G .
DOA
Caa~tisu~mt(s)
Wedncsday,1June 07,, 2000 Dept ~~ue Date: Wednesday, May 17, 2000
Hawaii Gold Cacao Tree, Inc.
Copyright, 2000 ~ 12
Ilawctii Cold Cacao Tree, Inc.TM
July 20, 1999
' ~ '
Richard J, Oszustowi~z
1z0 ?'ennysoil Drive
Longmasdow, MA 0 t 106
~w~~i
RE: Hawal'1 Gotd Cacao Plantation, Inc., .5400,OOQ
~TA~ Pro~aa,
~7ear Mr. Oszustowicz: ~ Haerai'i
+ Siseal
. Ce~tea
The Oversight Committee, at its 7uly 16, 1999 tnceting, has recomt~tended approval of your re~ori{
Concept Statement and will consider a full proposal if it is submitted within the next nine ~ow•
months, Please provide the following information in the full proposal: H"'"''
Ana-~oei
Wit: sos ~r~tsts
• Industry support front exist7n~ growers snd chocolate product'manufacturcrs; s~ ~+-~t3 .
• Proof of secured debt and/or equity financing for tjje entire project; ,
Finalise land leases;
• Identifjf permit requirements and secure thcsC permits;
• ®btain ~por~ng statements for viability of cacao production and controllabilitx of disease -
and pests in .the proposed areas for planting; and
• Provide t(ze re~ume~ of your field operations supervisor(s) and. details •on how you will ensure
that your Feld program will progress as required, ~
The tact Oversight CotnYnireee meeting will be scheduled in October 1999: Full Proposals are
due at the Hawaii SBDC Network office no later than four weeks before the meeting date. ,
Please note that this approval does not connote fingl project acceptart~e or an agreement to
contract. 'his is simply~a validation of your con~epC for further discussion and development.
Enclosed is an application dorm and guide to assist you in this process. Plcasc contact Becky
Winters (969-1814) at the Hawai'~ Small Business De~clopment Center Orficc in Hilo if you
need any information or assistance.
Sincerely, '
Herbert M. Richards, hairman ~
_ RETA-H Oversight Committee
cc: Darryl Mleynek, State Director, Hawaii S1~DC Network
Dr. Daniel E. Kugltr, Section Leader, USDA.
Dr. Robert Chase, Programs Director, Hawai.`i SBDC Network
Paula Helfrich, Executive Director, HI];DB ,
Jeff Johnson, Technical Consultan[ '
Becky Winters, Hawaii SBDC Center Director
f
t
,
/ ~
7•
ria~eau voi? cacao free, inc.
1 3 ~ Copyri¢ht 200
Hawaii Gold Cacao Tree, Inc.T'~'
Once the pods are opened, and the beans and their surroundinging pulp extracted, there are four principle
steps which must be taken to produce the cacao "nibs" (kernels) which are to be ground into chocolate.
These are: (1) fermentation, (2) drying, (3) roasting (or roasting), and (4) winnowing. No matter what the
level of technology, this sequence has been in force for at least three millennia, and still is followed in the
modern world.
.
~
y ~ ~ Z
A split cacao pod _,r .y~~
~ (1) Fermentating cacao beans
1-
Li " + z
5.
(2) Dried cacao beans
f:- .
I ~-'S3.'i
¦
. ti ^re ~ 'T r «,l ,
:;;a,=
(3) Roaster
~ / 'b
(4~) "nibs"
~3 }la~~aii Gold Cacao Tree. Inc.
Cop}rieht~ 2000 ;
CONFIDENTIAL
Hawaii Gold Cacao Tree, Inc.TM
The Processing of Cocoa Beans to Make Chocolate
Chocolate Manufacture
Cacao, beans
Cleaning
Roasting
Cracking and Fanning
(Winn wing)
Fertilizer
Shelh Mulch
Fuel
N~bs
Dutching/Alkalizing
Liquor rinding
Chocolate Liquor
A B
A Chocolate Manufacture Chocolate Manufacture
lizing
Pressing Mixing Ingredients
Cocoa Cake, & Cocoa Butter Refining
Pulverizing Coaching
Sifting Standardizin
Cocoa Powder Molding
Storage
Liquor /Cocoa Blends Shipping
Confectioner's Coatings To Column B
Ice Cream Coatings
Storage
Shipping
A-18
Cp•
Hawaii Gold Cacao Tree, Inc.T"'
Cacao Site Assessment Work (SAW)
HGCT's initial land selection work is substantially completed by HGCT with advice and counsel from f{awaiian and
international site soil, disease and pest experts. Worldwide cacao cultural practices and studies help HGCT efficiently and
effectively manage land assessment, land use and farming work. In this regard HGCT is working with the Pacific Basin
Agricultural Research Center, American Cocoa Research Institute, Chocolate Manufacturers Association, Hawaii
Agricultural Research Center and other government and private industry organizations. All of this of this work aligns and
refines land leases with landowners, independent farmer arrangements and other land deals to specific cacao farming
requirements. Types of cacao being studied include varieties of Criollo, Forestero, Trinitario and other cacao groupings.
HGCT is currently looking in such Site Assessment Work (SAW). SAW includes among other things such land
assessment work includes:
• volcanic soils
• active volcanic dust implications
• mulch
• rainfall
• irrigation and drainage capabilities
• temperature
• shade
• wind
• wind breaking foliage
• sun exposure
• site elevation
• site slope
• existing and prospective cacao tree diseases, if any, such as phytophthora (black pod), swollen shoot, monilia
and witches broom
• availability and adequacy of midge breeding environments which include networks of cacao tree ground floor
sites containing debris that is characterized by unique midge friendly cavities and/or compartmentalized
structures that retain moisture and efficiently cradle eggs and larvae of various kinds of midges
• existing and prospective cacao tree pests, such as, rose beetle, rats and mealy bugs
Operational audit of all cacao nursery and farm operations by independent and HGCT experts will be conducted.
Copyrieht, 19~9-75
Hawaii Gold Cacao TYee, Inc.T
Employee List
Cacao Nursery ar~d Farrar Di>>isiorr
• Seedling Division -Manager
• Seedling Workers (potters, planters, irrigators, etc.)
• Cloning Division Foreman
• Grafters
• Farm Manager
• Supervisors for Maintenance, Harvesting, Irrigation, etc.
• Crew Chief
• Field Employees
Chocolate Factory Divisivrt
• Bulk Chocolate Processing Operator
• Molding Machine Operator
• Molding Machine Take-Off
• Product Wrapping (Molding)
• Boxing of Wrapped Products
• Wrapping Machine Mechanic
• Enrobing Machine Operator
• Enrobing Machine Helper
• Enrobing Machine Boxer
• Chocolate Chip Machine Operator
• Chocolate Chip Wrapping
• Warehouse/Storeroom
• Electrician
• Mechanic
• Production Planning Supervisor
• Janitor Factory Floor and Varehouse
• Quality Control Analyst
• Purchasing Agent
• Maintenance Foreman
Cocoa Processing Factory Dh-isior~
• Warehouse/Store Keeper
• Bean Cleaning
• Preroasting/Winnowing
• Final Roasting
• Grinding All Stages
• Pressing (mechanical knowledge)
• Cocoa Butter Processing
• Cocoa Powder Milling/Packaging
• Boiler Operator (State Certified/Mechanical and Electrical Knowledge)
• Supervisor Cocoa Plant (Production and Planning Skills)
• Purchasing Agent
• Stock Clerk
• Maintenance Foreman
Copyright, 200x0
Z/
Finrn7cial and General R-Tcmagemen!
• Controller
• Internal Auditor
• Accountant
• Assistants
• Tourist Coordinator
• Human Resources
• Manager of Information Systems
• Government Liaison (federal and state)
• General Counsel
• Business Officer Manager
• Accounts Receivable Clerk
• Cashier
• Receptionist/Secretary
• Training Officer
• Job Analyst
• Cocoa Commercial Officer
• Procurement Manager
• Logistics Manager
• Supplier Relationships
Information System
• Manager/Website manager
• Website Monitoring Associate
• Technical Assistant (internal or external)
Marketing and Sales
• Marketing and Sales Manager
• US Mainland and Sales Manager
• Product Manager
• Marketing and Sales Analyst
• Sales Team (Ha«~aii, US Mainland and International Markets)
• Design/E3rand Consultant
• Distribution Coordinator
Customer Serl~rce
• Manager
• Assistants
Visitor Center
• Sales Associates (multi-lingual)
• Floor Manager
Operational and Financial Audil~c
• Internal Auditors
• External Auditors
Copyright, 2000
9
I
HAWAII State Legislature
2001 Regular Session
T-~R8?
Generated on 4/G/O1 2:08;13 PM
'.Measure Title; URGING TI~1? C.1.S, CONGRESS Al'VD THE U.S. pEPARTMENT OF
AGRICULTURE 'I'O LSTABLISI-I AI~'I~ FUNIa A U.S. DEPARTMENT OT'
AGRIGUI,`T'URL -PACIFIC BAS1N AGRICULTURAL, RESEARCH
CENTER -MANAGED CACAO GERA~LASM CENTER TN HAWAII.
Report Title: Managed Cacao Germplasm Center in Hawaii
Description:
Package; None
Cota~panion: HGR87
Introducer(s): CHANG, Abinsay, Kawakami., Cabreros, B. Oshiro, Takumi, Hiralti,
~ Magaoay, Suzuki, Case, Schatz, Kanoho, Yonaaninc, Souki, Hamalcawa,
Arakaki, Morita, Abu Isa, Iruke, Takai, Saiki, Say, Hale
Current RefcrrAl: AGR
~flte ir- -
i, Status Test ~
3~14i0! ; H j Offered - _ ~
I~3115/O1 ~~(Referred to the committee on AGR, referral sheet 32.
~I23~01 ~ HResolution scheduled to be heard by AGR on ~'~'ednesday, 03-28-01 at 9;00 AM in
ICI-louse conference room 325. i
u i~ I The committees on AGR recommend that the measure be PASSED, UNAMENDED. ~
~ 3/28/01 ~ I~ The votes were as follows; 8 Ayes; Rep,(s) Abinsay, CaUreros, Chang, Magaoay, ~
i I Suzuki, Dsvis, Gomes, Whalen; Ayes with reservations; None 0 Noes; None; and 4 i
~ I _JI_ I~Excused: Rep.(s} Ahu Isa, Case, Taltumi, I~alford. !
$ ~ Appropriation ~seasure
Gon,Am =Constitutional Amendment.
httpJ/t~~~RV2/reports/measu.re~ndiv2.asp?type=HR&number
=82 4/b/01
is
TWENTY FIRST~EG~S ATUI RE~2001 ~ t 82
STATE pF HAWAII I ~
1
URGING TH1~ U . S . CONGRESS AND THE U. S . pEPP.RTMl~NT QF AGRIGULT?JRE
TO ESTABL,ISI-I AN7~ FUND A U. S . DEPARTMENT OF AGRTCU?,TURE -
PACIF'IC BASIN AGRTCUT,TURA>a RESEARCH CEN'll~R - MANAGI~D CP_CAO
GERMPLASM CENTER IN HAWAII.
i WHEREAS, the Legislature in partnership with local
z citizens, the I,~epartment of Agriculture, the University of
3 Hawaii, the United States department of Agriculture, certain .
~ l~awaii and other states' congressional offices, the United
S States Army, through the Hawaii office of the. Small Business
6 Administration, the Rural Economic Transition Assistance -
7 I~awaii Program, and after reviewing selected farming and
8 kauainess research Aver the last several years concluded that
9 Hawaii's physical, biotic, cultural, and social environment is
to capable of serving the country's chocolate food needs by
11 establishing a uniquely aligned full continuum of cacao farming
12 and. chocolate industry in Hawaii; and
13
14 WHEREAS, work by the private industry and state and fedez~al
is govez'nments to date has resulted in the scientific selection and
16 p~.anting of cacao trees of different varieties to match Hawaii's
17 unique multi•climate environment and soil conditions that is
18 conducive to growing high quality varieties of cacao trees all
19 year ? crag; and
20
21 IN~IaREAS, it is recr~gnized that Hawaii' s unique geograr~ai c
22 location, climate, and biotic environment qualifies it as tee
23 r_ation's only state that can grow different varieties of cacao
2a all year long; and
25
26 WHEREAS, there are forty seven cacao growing countries
27 worldwide that currently harvest 3,000,000 metric tQna of cacao
28 beans annually to supply the world's growing chocolate industry
29 worth $50,000,000,000 in annual sales; and
30
31 WHEREAS, our nation's current anc~ growing dependency or
32 foreign cacao sQUxcee will now be partially relieved by Hawaii's
HRS2 '~~9~2~
Page 2 ~ 82
1 high qual~.ty, subs-sector premium commodity priced cacao beans;
z a :d
3
4 WHEREAS, the United Stares is domestically growing a new
S agricultural product that is an important .food for aux nation s
6 oitizens and a food that incorporates other tT.S. farm products,
7 such as sugar, milk nuts, and others, to manufacture chocolate;
8 and
9
10 ~ WHEREAS, the United States Departrr;ent of Agriculture
11 historically and currently funds foreign cacao farming research,
12 including cacao germp~.asm centers, pests and disease control
13 wox'k, and flavor testing'; and
14
15 ~ WHEREAS, by virtue of this Resolution, Hawaii announces its
16 intent to compete for such federal Lunde to shift certain
17 existing funding and other support try Hawaii; and
18
19 ~ WHEREAS, Hawaii wi~,l af.tract world attention to its cacao
20 farming practioee and its ehocolal-.e manufacturing work, which is
21 aligned with its growing recognition as a high technology,
22 knowledge-based industry state with a broad range of unique
23 human, capital and other resource capabilities; and
24
25 WHEREAS, cacao farming in Hawaii provides a new domestic
26 farming opportunity for Hawaii-based private industry to
27 establisr a full continuum of chocolate production including
28 manufacLUr~,nq, marketing, selling, and commodity trading of
29 cacao beans and chocolate products far Hawaii, the mainland, and
30 the rest of the world's markets; and
3I
32 WHEREAS, the enactment of Act 188, Session Laws of Hawaii
33 2000 that provided $10,G00,000 to facilitate construction of new
3+6 manufacturing facilities in Hawaii county significantly helped
35 launch a new Hawaii-based $22,000,000 tinitial capitalization),
36 high technology chocolate manufacturing industry that is fully
3? integrated with multi island private sector cacao nursery and
36 canning operations located on foxtnez sugar cane lands in
39 communities where there is high unemployment and underemployment
4U qz farmers and manufacturing workers; and .
41
42 WHEREAS, these displaced plantation workers are ideally
43 suited for the continuing employment available through the cacao
44 Indus pry; and
I
HR82 IiUl~i~~8~!9G
PGge3 ~ $2
1
3 Yv"HEREAS, Hawaii. recognizes the establishment of the new
3 X55,000,000 investment in the Pacific Basin Agricultural
4 ?research Center in Hilo, Hawaii, wh~.ch significantly advances
5 t:~ie work by the Center in the following areas:
0
7 (1) ~'ropical plant genetic resource management;
8
9 (2) Tropical plant physiology, disease and production;
1G
11 (3) Tropical plant pests research;
u
13 (4) Poat harvest tropical ccammodities research; azld
14
is (5) Tropical aquacul.ture management;
16
17 d'i~ C1
18
i9 WHEREAS, cacao farmir_g and chocolate manufacturing in
2Q Hawaii is a generational opportunity given the thirty-plus year
zl l,if~: of the cacao tree coupled with the additional value of
22 cacao processing and Chocolate manufacturing facilities; and
23
24 WHEREAS, cacao Farming is a globally valuable food industry
1s t:zat can contrik~ute to a healthy commercial economy that in turn
26 materially contributes to the overall health and well-being of
2S
29 ;~:iyREAS, continuous quality improvement ixom cacao seed to
3o Ct10001aLe sale, over the £ull continuum of cacao farming,
31 chocolate manufacturing, marketing and sales work, is at the
32 center of Hawaii's national and global private and public
33 operating strategies; and
34
35 WHEREAS, both the United States and Europe each annually
36 consume about one-third of the $50,000,000,000 in global
37 chocolate industry production with the remaining third consuYned
38 in the growing Asian Faci.fiC, South and Central American and
39 other Countries; and
40
41 k~-iEREAS, except for _I~iawaii, mayor world chocolate
42 manufacturing facilities are located in temperate climate zones
43 ~hac cannot. Farm Cacao; and
4;
z I~F~DC11~l~~fi
- t
Fag~4 ~ 8?_
i WHEREAS, only fQrty•seven countries Located within twenty
z dagrees or the e~ruator can grow cacao with Hawaii predicting
3 cna~ iL can grow appro~timately five per cent of the world's
q oacao production within a decade at which time it wi].1 rank in
5 tze top ten of cacao producing countries in the world; and
6
7 WHEREAS, certain cacao growing foreign countries also farm
S plants zhac supply the raw material far the growing worldwide of
5 illegal drug crops; and
IO
li WI-ir^,REAS, the federal government funds initiatives to
12 ealcourage these foreign countries to concentrate theix farming
13 efxorts oa new crops such as cacao farm~.ng instead of illegal
14 drugs ; and
15
i6 WI-~~R.RAS, the county of Hawaii, the State, the United States
17 Department of Agriculture, the Pacific Basin Agricultural
i$ Research Center, and Hawaii's congressional delegation have
19 received solid synergistic encouragement and endor.setnent from
24 the Chocolate ~ianufacturerB Association, the National
21 Confectioners Association, and the American Cocoa Research
22 Institute to establish a world class U.S. Department of
Z3 Agriculture - Pacific Basin Agricultural Research Center managed
24 cacao germplasm center in Hawaii; and
25
z6 WHEREAS, all of these organizations note that a Hawaii-
z7 based cacao germplasm center will provide high quality and
z8 processional cacao research in Hawaii, w2:ich is environmentally
2H sound and Listorically safe from natural disasters and socal
3u .u_r~oi 1 ; and
31
32 WHER rAS, s~;pport from the chocolate industry for Hawaii ~ s
33 cacao farming and chocolate enterprises was significantly
3a advanced as a result of the issuance of $5,000,000 in state
35 special purpose revenue bonds to assist Hawaii Gold Cacao Tree,
3b Tnc., with the construction of its chocolate and cacao
37 :manufacturing facility in Hawaii; and
38
34 ~ WHEREAS, the special purpose revenue bonds demonstrated
40 Hawaii's commitment to cacao farming and to securing a U.S.
41 Department of~_Agriculture - Pacific Sasin Agricultural Research
42 Center-managed cacao germplasm center; now, therefore,
Q3
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3 0~ 200;x, that the Congra~~ and ,tha'U.~. ~D~pzrtm~rit of
4 Agz~icultu:~ ~r1~ llxgect to iet~~l.i~ri •and ~uri~ ~ U . S , DepartmQrt of
5 Ag~cicul.ture - FaCatic ~~a~n agricu~tur~T Reema?r~h Canter-managed,,
~ C~^a~ ~~rmpl~sm cet;~er in ~uawai~,; and ~ ~ .
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io the ~~e~ke~ ~4f Gha U,~. H®uQe nf' R~pra~entr~tiv'ea, the SeCraLary
St ~ of the t1.9 . ~ Department Of Acriculc~ure, and to th® ~ir~tr~ers o~
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1
Couunent About and Additional Information Relating to the Statement:
(August 2001)
New Diseases of Cacao and Impact on Hawaii's Emerging Chocolate Industry
Janice Y. Uchida
Plant Pathologist
Department of Plant and Environmental Protection Sciences
University of Hawaii
Honolulu, Hawaii 96825
Hawaii may, or may not be a paradise for growing cacao as stated, but all that is possible should
be done to allow the culture of cacao (Theobroma cacao L.) to flourish in that so-called paradisiacal
environment.
The subject discussed in the first paragraph of the Uchida statement, Phytophthora Pod Rot (aka,
Black Pod), brings up at least three possibilities that do not necessarily apply to the remainder of the
statement.
(1) The gerenplasm (planting materials) imported into Hawaii in the 1980s contained plants
infected by the cacao strain of Phytophthora palmivora that introduced the cacao strain of the
pathogen into Hawaii.
(2) Strains of Phytophthora palmivora that can attack cacao were already in Hawaii.
(3) Development of variants within the populations of the Hawaiian papaya strain of
Phytophthora palmivora with the capability to causes disease in cacao occurred frequently but
did not survive because of the absence of a suitable host. The introduction of cacao provided
the susceptible host on which cacao-specific variants survived resulting in the establishment
in Hawaii of the cacao strain of Phytophthora palmivora.
According to the Uchida statement, cacao in Hawaii suffers from Phytophthora Pod Rot for which
effective control practices may be needed. Fortunately this pod rot disease can be managed effectively
using eflficacious fungicides, such as formulations of copper. The fungicidal activity of copper can be
increased by the addition of mancozeb to the spray mixture.
The FAO/IBPGR Technical Guidelines for the Safe Movement of Cocoa Germplasm (1989) must
be followed whenever cacao germplasm might be introduced for the propagation of cacao. But those
guidelines do not apply to dried cocoa beans for processing into chocolate.
The witches' broom disease of cacao that is caused by the fungus Crinipellis perniciosa is not
present in Hawaii, and its introduction can and should be prevented. Some corrections are needed for the
information in the statement about the witches' broom disease of cacao. The witches' broom disease of
cacao occurs in all countries of South American where cacao is grown, as well as in Panama where the
disease is restricted to the South American side of the Panama Canal. Witches' broom is present on several
islands of the Caribbean Region, but witches' broom is not present in any Central American country.
Witches' broom was the primary, but not the only, cause for significant reductions in cocoa bean
production in Bahia, Brazil.
The term, "proper and continuous management of the crop" is used and questionable practices
appear to be included, such as "cleaning" that is nonspecific but might refer to weed control. "Removal of
diseased branches" is part of the recommended phytosanitation management tactic proposed as a result of
the 1WBP (International Witches' Broom Project) that should be used, but so is the removal of diseased
2
pods that is not mentioned in the statement. "Drenching the ground with petroleum" seems drastic in as
much as petroleum represents a wide range of chemicals, some of which are phytotoxic. Perhaps the
intended activity might be the application of agricultural oils to diseased plant parts, such as vegetative
brooms and diseased pods on the soil surface, aka, ground as used in the statement.
Fungicides for effective management of witches' broom include copper formulations, such as
Bordeaux Mixture, tribasic copper sulfate, Kocide, and others. In the United States cacao grows only in
Hawaii, Puerto Rico, and possibly the U.S. Virgin Islands, but cacao does not grow elsewhere within the
country.
Basidiospores, the infective propagale of the witches' broom pathogen, Crinipellis perniciosa,
develop in small mushrooms called basidiocarps (also basidioma), and are wind-borne. Spread of the
disease can be rapid as it was in Bahia, Brazil. The pathogen can also be seed-borne, although the
incidence is low. Importation of viable cacao seed must follow the FAO/IBGPR Gudelines cited above to
insure that any seedlings infected by Crinipellis perniciosa can be identified and destroyed.
The statement that, "Water leaving the cacao factory, contaminated equipment and clothing, or air
blowing over contaminated seed will release the pathogen to the Hawau ecosytem.", is not correct. There
will not be any viable basidiospores of Crinipellis perraiciosa on any surface, in the water, or elsewhere in
association with shipments of dry cocoa beans. Basidiospores of Crinipellis perniciosa are fragile and
muse land in liquid water to germinate and infect a susceptible host, a process that occurs in 1 -2 hours. If
the spores land on any dry surface they immediately lose their viability and will not germinate thereafter.
Basidiocarps of Crinipellis pemiciosa in which basidiospores are produced develop on vegetative brooms
or diseased pods only during alternating periods, hours, of wet and dry, and such conditions do not occur in
shipments of dry cocoa beans.
In order to be stored or shipped, cocoa beans (dry cacao seed) are dried by some means until their
moisture content is low enough to allow their storage. Seed viability is destroyed at the low levels of
moisture compatible with cocoa bean storage. For this reason, dried cocoa beans destined for processing
into chocolate would not be used to plant cacao, and dried cocoa beans do not constitute a threat for
importing the witches' broom pathogen (disease).
IMPORTATION OF DRIED COCOA BEANS
Accompanying trash, debris, plant parts, especially pieces of pod husks, shells from cocoa beans,
and any other contaminating items associated with dried cocoa beans destined for processing into
chocolate, may be possible haaards relative to the threat of introducing hitchhikers such as Crinipellis
perr?iciosa. Therefore, ALL items removed from the cocoa beans during the cleaning process, the shells
removed from the cocoa beans, and the sacks in which the cocoa beans were shipped must be incinerated
on site. If incineration cannot be done on site, EXTREME caution must be exercised to insure that none of
the items to be incinerated escape into the local environment. Items removed from the tacos beans MUST
never be discarded into the open areas around a processing plant or within the plant itself.
There is no reason to inspect the dried cocoa beans before they are shipped for the presence of
internal seed-borne fungal diseases because there is no established threat from fungal diseases either on or
in the cocoa beans. The handling of contaminating plant parts must be handled as outlined above.
SUIvA~fARY
It seems that the author of the statement has confused viable seed of cacao, used to propagate
Theobrorrrca cacao, with dried cocoa beans (dried nonviable seed of cacao) from which chocolate will be
made.
3
Any importation of viable seed for propagation of cacao must be done according to the 1989
guidelines published by FAO/IBPGR, that when followed will increase the probability that pathogens and
insect pests will not be imported along with the cacao seed.
There is no threat of introducing pathogens or insect pests with dried cocoa beans, providing that
all plant parts especially pieces of pod husks, and any other items removed during cleaning of the cocoa
beans, as well as the shells that are removed from the cocoa beans, and the bags in which the cocoa beans
arrived be incinerated on site.
Moniliophthora Pod Rot (aka Monilia pod rot, Frosty pod, and others) caused by the fungus
Muniliophthora rorerr that produces spores that are air-borne, causes disease only in cacao pods of any age.
Spores of the fungus develop on pod surfaces, are dislodged by light breezes, and may remain viable for an
extended time, even on dry surfaces. All items removed from the cocoa beans during cleaning, as well as
the shells removed from the cocoa beans must be incinerated along with bags in which the cocoa beans
were shipped. Adherence to such procedures will remove the possibility of introducing Moniliophthora
Pod Rot with shipments of dry cocoa beans.
Insects associated with cacao and the threat of their introduction with cacao seed for the
propagation of cacao is discussed in the FAO/IBGPR Guidelines named above. Incineration of plant parts
removed from dried cocoa beans, discussed above, will remove the threat of introducing any insect pests
associated with the dried cocoa beans.
FINAL COMMENT
In my considered opinion, importation of dried coca beans for processing into chocolate does not
constitute any threat of introducing pathogens or insect pests of Theobroma cacao or other plants grown in
Hawaii or elsewhere.
Prepared by:
L. H. Purdy
1519 NW 2S`~ Terrace
Gainesville, FZ 3260S-S 120
(352)373-7204
e-mail: bpurdy@ufl.edu
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Paltslyra, PA 17078
R~.cJ~rd J. Oszust.owicz
C1-..airnn an
Ha~+ari Gold P lansa~i on, Inc
tiir. Osauscowica., .
I wes izivolved ra~ith the most rcceflt pz'oject, 1t4S7-9~0; to gvA~ ~cao in
Ha~.ii as Direc°t,or o f A~ribusIDCSS, He:-sh~ Food man. 'ihe proje~
dad not cnca~tcr zruy pest oc discasc problems at t~t.tiQa~ were
co~si.e'emd 7ic:d limiti~lg, The project ~d aQt procxed.an~ eXp~ due to
_ pest or di.9esse grob?ems b~.it due to other carnpc.-ting ~+orid s~id~ co~lpany
. ~ situatioas t3~ar e~xrged duriab the period. Pest problcins to ~ticipaze are
' ~ norrn.al nLC;Scr'y pose cc~rasideced easily con~allable by available
trshnologics and expcaienced pet5oiine: in Na~razi. ?°b~ rtase beetle was a
probaezu sa~ith ziewl~ establish~-c: cacao cecd,.n~ in fire field box not z
protrLezn on °.T.8~1:1~A trees.
Yi.abilrry of cocoa produclior and controL.abilit~ oP disease ~n.d pest9 in
Hs~raii is rn.uy C~lha~ced t>rrou,gh c~rrertt~a~,d ptc~pe~'tiv,e wariC of t~
Hilo ba_se~ Pacific Basin Agz'icu)tua-zl Rese~.h Cent-~.~'BARC). Tkzc
fo~d~io[1 of P~ARC ~+orflc is clearly drseribtei~ia its~~h~sozz Seate~.t
Haw~;i Gold Cacao Pl,arrtaxion, Inc., has actzvely woa~;cd will .PBARC
officials arld Washington, DC based ARC and his ~w~rpz,'ta~ed ~ttltaes of
dtexz' aagoin~ ~d fvci<s'a5t a~tlvieies into ~-IC~P ~o~; Fat°~p1e, HGtTP
anal PB¢,.RC ire si,gui#icant;yrnvolvcd is o tttuely~ar,d Wiled
~formaaao~ for cas~o faam.in~y and cAocola:e ~d z
dises~e aad pest ~d rnanagaz~enc resca=~c.~. Such ~-iC~,7''actiwiries w~
ia~iti:ally reporud i;a HGCA's Junc 2, 1959 Coa.ccglt Stai~al For
e.dd-dL1n,[1al PBARC rofcat~lca See at~a~hed ? paw exh~ii.ticled; Progr~.n~ end
lr~~ti~s tn~ P~ifiG aas;n ~t1Cl1,tI1.lI~1 Cam'. PB~C
H('.f°P err. ~~.Nvrly tivarlcirtig to~'~~,r w u~ic~taol)~~rsanc~ ~i;.~uiti~1
cam Far~n;ng and cbocolatc ~anu.tact ~'k tbus~pttrvidictg s~li'd
ogporttlaities ixl cacao ugriculrurc l~ eeneration~ to comic.
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F~ai rtf'all aad t errrpcr~u•e ate we l1 wi th iu the normal grv~a~g ~.~es for ~
c.~.cao. ~1vlc~.ac soils arc the most desirable far cas.~a ~ they crnotain axost
tr~.ce ele~aents required Dy the cacao esne. Poll~agiilg ~id~s era in
~butadatat supply as ~+as well reseatcbcd end doc~t'nen,t~d byDr: /Ule~n
Young. Dise~es w ~rpca ,ari]l be• Blar,3cc Yod, (phyropoaa~ as it is Fresern
• in every cases ~roro+ri.ag country in the world. Chou cacao diseases in th,;.
~estcxu ~zxispbcYc such as Monilia ~d Vditrhes ~;bra ~au1d not b~.
• presesit and existiAg stzi.ngent qu.~a~e regl~.ir~a~cs:a-nd~oee~es
shou:d prt-vcnt their ap~x.°at~e. Hoere'vex, if try sh~otl?d ~P~' ~iGC?
vorallld be prcp®.ted co cx~.tzo1 them using cultua~l p~ Aev~lcsp~ed i~ Peru
an d Brazil ~rld B io-Control ~.~t.hoc~ logy curx~n.~Y .t~.d~, ~~e} Bx tie
• USDA Hire-Cox~~l LabotsCory in Bzltsvil:c, Md. .
t-tz~vau is a sane s ot~ m i cracli~e s aid I-i G(:P i~ prtpsa~d t~ 6vm.~pe~sa~ f o~
low rainfall with irri~.tioA ar~d high ra.irtfall with grt~rr~f~:Id drainage,
HGC:P will be Y~y careful its the selection ~ro~eess ofi #'yla{~a la~+d with
prop ex soil mad rainfall to rninlmi.ze the need for acld~i~it~rlal•dtvelcrp.m,~lt
. oost:s. Field Fr~Pa.rarian will be critical Fad ~iGCP v~,t, cra.ll o~ local
. cxprais~sc ~d technology to insure that axty barel,pau;i.s,ripped as cacao
trees have °O~ has wiA go dam 2-3 alct:cr's. `Find is a wn.cam and
~+indbr~aks bvill be plated ~ n~rssary cspeci8.1,1y ~c.~~ .
It u znyp;ofessinnal opixlial lh~t with the co~pera~ion ofPBRRC, pests
diseaxs w~7.1 not ~ a yield-limiting factor ~ kiC~P's•prograui to d,e~relop
c~caa f~tz~~ a.s,d chocolntn manufa,ct~,g i>, Ha~ai~ .
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Da ~ B.K. •M.~1~Elz~ .
. • Cocoa C;vtu~llta;lt A-grilnzsiness C~~lta~c
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13^~f~l ~Yf ll:lt (Ran OD~I-NOtT~CUIT~RAL )1•-~+ 70 X1171 ~/J21~13 P•0j
I~roe~, Gavial Lim <dalim~tm.nat.my>
~.K.Mai1i~ <bmatli~spr)rnet.c~m>
Gc: Richard ,1. +~ustcenric~ <adscam~•aol.corr~y •
~alt~: W®dn~sday, S~pbemb®r 15, 1998 10:2 ~tM
~~abje~t: l~la~raii Gold CacSa Plantations
Clear ~.KMatiid~
Th~nk~ for your e-rnaii crf S~t~rnber 08, 1599 on the ab~e~ r~+rth ttta at4actycd t~ttet avt~i~'~ I
have cxs-a;gned an4 ~ax®d back !a you toCay.
' I ~rourQ ~ t>7at data and dl~ses should nat ba a yd~,irt'tr~t,~,g f~r.for oow~
~rming In HaVraii. l"P~ lovvor than normal rainfall n:~gtrir~c~ent f~;r'a1t~>*~d cA~Da rind the fry
. drairvnage r of tt~ vofc~nic soils may ba ed~d aas++ant ega}cre~ d" ash as
bl~c~ poc R rt ac~$ oc~af, Chaffee o~ plarning maierisal G'~n help ~ 8bb~d txrtbrtaak i{
• cx~rrtin~aot,ts wit weati~t prevails. Ccmmon dis~e~ases such as f~ortiys ana~VYr~hes Brmrr~ in
t11e Westeen Memispher~ ooco~ ergs should not b~ a pr~b~m if Wert allv~ved into the i~nQ
~~e. •
I am looking forward to tha vlsrt and will ~ able tv f~vs a ma~•prv~sbnal opanfo~ or1 ~ffi
David Lim ~
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I3.]K. Matlack
Agribusiness Cotlsultaut
309 W. orchard Drivc
Palmyra, PA 1078
lair. James J. Nakatat~i a/7/D
I,hairpccyon
1loard of Agriculture
:(fate ofl~awaii
! 428 S. King Sttcet
1'.O. Box 22159
F lonolulu, HI 96823-2159
February 5, 2000
Lear yfr. I~ ulcataai
1 want to relate to you and your associates my experience a*~d lutowledge cor,ccrning the
it iportation of dried cacao bea,n.9 into Hawaii for chocolate manufacturing. Dried cacao beans
~ c imported into the United States through both coasts and the Great Lekes and are distributed
throughout the United States to chocolate manufacturing factories.- The United States
D apartment of Agriculture Animal and Plant Health Inspection Service (API"i1S) ovezsees and
_ sets standard9 far importation of agricultural commodity products such as dried caeca beans.
A PHIS dots cot treat dried cacao as a probleru agricultural product since the cacao bean is dead
acd inert. Agricultural products that arc dead and inert do not have the ability to carry and spread
lip c diseases to surrounding farms, uvrseries or other areas because the beans cannot gerrn.inate
and do not have a lime host to feed on- In this condition cacao pasts and diseases, such as black
pad monilia or witches broom cannot be present.
AI'I°IIS inspeccio? standards for dried cacao beans are the same as far other dried or dead
ag ~icultvtal products. A3'k3IS checl~ the dried agricultural products for any debris, such as husks
any! steals, and pathogen diseases. All of these are easily controlled and erae~ica'cd.
Hawaii Gold Cacao Tree, inc, plans to import dried cacao beans for its choco?ate manufacturing
facility. All afthe dried cacao beans that HGCT will be imparting will be inert agricultural
products and will be inspected by s~tc authorities for any possible pests or discase9, I-1GC-f will
tak: all required precautions in importing dried cacao beans including fwzt.lgztion as required by
the State of Hawaii.
It is my professional opinion that HC~CT's plans for irnportatiori of dried cacao beans into
Hawaii should not be a limiting factor since the dried beans do not carry diseases and pests are ~ ~ '
easily controlled via funvgation.
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- 17
Sincerely,
~r
f~ /f~
g.K. Matllck
4gribusiness Coasultsnt .
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1 ~I 1 AAX: 514.863-6139
~{atk Ge+ld~ms TEie ~ 5'ess~ ttAdvasary
A~„;•~. t4afa~soc oC Ptx:t Mobervl.~v Eictogy 306 wac~7c da6am~orx
C)izecmG Anseci~ Cows t'tc~csteh It?sdnra~ Pcott
SI VP PtO gtTtln In the Molccskr Biglogy CBCan ~~'~~31L0~ YA..-r61R2~4200
ncpar~nau of Elocucula~
ZTtc Bicrrchaolo~y tariiluta
'I~.esd.ay, February 29, 2040
Mr. Richard Oszustovsricz
Chairman,, I~waii Gold Cacao Plantation, I~ac.
Dean Mr. Oszvstowicz,
Y have reviewed your cotrespondcnce wztlt others as to provisions for i.rnportatioo
into Hawaii of dry cacao beans, and of live cacao seeds anal budwoad in support of the
development of your agricultural diversification Flan. I support the opinions of B.K
Vlatlik and Dr. DavidLim in tftci.r assessment of the efiectiveuess of the standardpractices
used in the importation of such materials is relation to limitiAg the spread of disr3ses and
pests.
SpeeiFeally, dried cocoa beans pose no t3lreat as they ace dead and dried to very
]ow water content and thus do not s~ipport plant pathogens, and are routinely Cutnigated
daring shipment and storage by methods which have been carefully designed and ~ •
imp).etT?entad for all domestic importation.. The system in place for inspc~tion wodcs well
on the continent, and should work equally welfaxe Hawaii
Importation of live seeds has be.-n done for ovex 100 years, andif done co~trectly,
poses no threat to agriculture. First, in disease free pods, taken front arras known not to
contain. cacao Swollen stsoot virus (only found in 1Nest Africa, and you should not izztport
5eec1S from this sotucc) are e5tientially str,~i!e ials;:i>'. A~l,en the seeds are removed, and. the
mucilage cleaned, this can be done in a clean environment, resulting in very clean seeds for
shipment. 'T'hese seeds ca.u be safely shipped to any poet, and this is specifically allowable
under USDA regulations. Similarly, if live budwood is imported from. disease free
material, and grown in quat-ant7ne, it is possible to visually identify ttwst cacao pathogens
effectively. These materials should only be imported hotzlYntermediare quarantine stations
adding ar ~ulditional safeguard in their evaluation-
, Past-it' Fax Note 7671 ~°q~D'
Ta Fsnm .
I.a JOCCf. ~ C0.
Phones C.d Q7 P"~. Phone+r,~j G' J~ i
nnn-ern-n. n ~nrC 1fi1 I
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~~;4 R63 1133 E3~~I~Oi.T~l3~ .:,.:r~JJ ;l:ll 1'.Ul
I would also add that it is not possible to usa modern blotech.nological methode to
fua-tber en,bance the safegua_*dittg of gesmplasm importatiotL These include ;issue culture,
viral indexing, and PCR amplir'tcati,oA for detection of. planC pathogens. I would be happy
to discuss further with you the development of t}~se : pplications .or the Future of your
company.
Finally, I would add that 7 agree with Dr. Liens assessmeat of the advantage against
diseases the low rainfall and good drainage offered in terrain azeas of Hawaii. ~loderu
irrigation systems will allow the use of rn.inimai amounts of wafer to suppon optimal cacao
growth, without the associated high rain Fall and humidity associated with black pod and
other cacao diseases. This idea has been verified in Lir~a,-us, Br..zil, which experiences
low cungal iacidence as a result of less rainFal[ than their neighboring stazc of Bahia.
Combined with excellent genetic stock and sound t;oztic~iltura] and business managemeat
practices, I believe your project wi ll be exciting and profitable venrare.
Tf I can be of further help, please call.
Sinc.eraly,
Mark Gwltinan
- t
CC; l~/ LGLi ii, „J 00070 .~U Jy-.
03/02/00 T1iU 11:25 FAX 301 50d 8181 ~
L'SD:I/r1R5/1p$
- T" ~ 0 01
United States Agricuhural hlatlona! Beltsville, Maryland
Deperun®nt of Research Prt~gram 207Q5
Agricu hu re S e Writ e S left
March 1, 2000
SLTHJECT: Cacao Propagation in Hawaii
TO: Richard Oszustowicz, Chairman
Hawaii Gold Cacao Plantations, lnc.
Honolulu, Hawaii
FROM: Eric Roscnquist
National Program Leader
International Programs
I refer to our discussion of February 28 and 29, 2000, regarding the rehabilitation of the cacao
i.xtdustry in Hawaii.
From an agricultural point of view, Hawaii possesses optimal climatic and soil conditions
(volcatlic) for the cultivation of cacao, closely resembling conditions found in the Northeast of
Brazil and certain West African Islands, e.g., Sao Tor;lr, Cape Verdes, etc. Ln some cases,
iszigation tray be required in Hawaii, althutgh this will not generally be the case on the leeward
side of all islands in thz chain.
As you are aware, Hativaii already possesses cacao plantings, generally of the Tritutario strains,
roost likely resultant from importations from the Caribbean and Ecuador. The island is cacao
disease free, except for Phytopthora, a fact v.~hich should be recognized ~n relat7on to the
importation ofbudwood material, live plants and pods, as well as cuttings. The importation of
dried besns should pose no disease probler,~, provided adequate fumigation is provided, although
packaging material should be burned. -
'Chis Agency received an increased appropriation last year in tkte amount o£ 5800,000 for both
genetic improvement and integrated pest management of cacao. Hopefully, this increase will be
continued in this year's appropriation process, 1~Ve currently have aggressive programs in place
for the biological control of all major cacao diseases including Crinipell:s (witches broom),
I~ioniliopthora (frosty pod), and Phytopthora {black pod). We have also initiated systematic
evaluation of integrated pest management techniques for cacao.
Our overseas cooperative programs are being conducted in cooperation with the U.S.
Departruent of State due to the nexus between South Annerican agriculture and the illicit
narcotics production in certain Andean countries. In this context, with last year's increased
appropriation we have initiated a selection and breeding program, focuased at our Miami and
Mayaguez, P.R. facilities. We currently maintain a cacao accession repository in Puerto Rico
which we can certify as disease free. The most valuable of ttlese accessions will be replicated al
ApflNhte7'ol
rte, {
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~l~~u~~uu inu i1 : Yff I'AY 301 5oa 8191 L!SI)A/AR5/BPS
- - - Qloo2
Richard Oszustowicz 2
the USDAIARS Pacific Basin Agricultural Research Center. We recommend that any graftings
and/or budwood materials be taken fxom these sources.
As recommended by Dr, Mark Cfu.iltnaa of Pennsylvania State University, you should seriously
consider alternative propagation techniques, including tissue culture and somatic embr}'ogenests,
both of which have been advanced by the Universityva cooperation with [his Agency and the
American Cacao Research Instigate (ACRD. Dr, Guiltnan is well recognized in leis field and
Pennsylvania State University has been the recipient of long-term grants from both the Hershey
Foundation and the Anrlerican Cocoa Research Institute.
Should you have any questions, please do not hesitate to contact me on (301) 504-4789; fax:
(301) 504-6191, email: emr@ars.usda.gov.
cc:
St. John, NPS
P. Bretting, NPS
C. Knight, ACRI
R. Schnell, SAA
R. Goenaga, SAA
7. Quisenbetry, PWA
7. Balk-Tuna/]. Lunde, N1&1b1 Mars
M. Guiltnan, Penn. State
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Hawaii GoI~ Cacao Tree, Inc.
POLICY STATEMENT
January ?000
Relating to Food Labeling of
Chocolate, Cocoa and Cacao Bean Products
It is Hawaii Gold Cacao Tree, Inc. (HGCT) Policy to fully comply with existing State of Hawaii and
Federal Laws and Rules pertaining to truth in labeling. To this effect HGCT will not bring into
commerce any food product labeled, advertised, marketed or described as "Hawaiian," "Made in Hawaii,"
or terms of similar import indicating Hawaii as the source of the product, unless at least fifty-one percent
of the added value of the finished product is entirely of Hawaii origin as calculated by using the wholesale
price exclusive of all taxes for chocolate and cocoa products. As regards to cacao beans, one hundred
percent of the value of the finished product shall be entirely of Hawaii origin as calculating by using the
wholesale price exclusive of all taxes and packaging costs.
~q
"Misbranded" incladss:
False, lncossiplete, iascosrect, or misleading labeling;
~ (2) Misrepresenradon as m the identity, quantity, quality, oe point of arigin;
(3) ~'1~ eon at~ to tbb pranci~aa! place of busi~aaf t~ taanufa~s-
tbaeer, packer, or distributor,
(4) Mlsrepr~enta?tion by vignette, pictorial tit:play, idesstifsable geograPtaical
location, or by say term, word, or phrase in juattaposidoa t® any other
iafosynadon associated with, labeled on, or accompanying the cot~sas~r
co~odary v+hicb falsely allsadsa to a specific point of ®sig~, a gesaet~l
locale such as a :rase, or to historical usage by a people:
(5) ldlisreprese~tion as to origitaality or creativity: "
Iviisrepresentadon of the consmner commodity at as maxi®s of artottser .
or as a.n imitatloa of a g~:aeric prods sand
(7) IvTisrop~r:nta~ion it, a?oy offer o~:naing to cow the pr+osive
purchases.
[$456.128] lbgeeteiias~. (a) No pennon :ball deliver for is n, hold
for i neroduetion ar introdssoe into ~e State; or keep, offer, or eatpose foe sale; or sell
" ~y cansur conassodaty which id snistepsescnted or raiabr in easy r.
(b) `The board, pursuant to secoion 486-7 a!nci chapter 91, shall adopt s~le~a
relating to misbranding. else soles rnay:
(1) Requite any person involved in the ntanufactttre, procxssisg, Production,
assembly, fabric~on, or isnpoa~tation of a specified costumer eomanodity
to keep and steaks available for inspection ar copyitng by the 'strator
adequate recoads to substasntiate the source of flee constaa~r 'ry,
or in the case of blends, the source of such oe~taeueast, as traay be
required by the board;
(2) Establi:h fanciful sasses or terms, and in ~ case of breads, sssisirstum
consdeuent content by eveigbt, to be used in labclitag to diffesesatiase a
specifc consursser conaxsaodity from as imitation or loopalalcc; sad
(3) >dstablish requi.terraen~ to reconcile the sespesdve volsssaaes of specific
consumer cottussodaties r~eived versus.the total otatpa~i, eitt~r ~
whole ar ptoces~l product or as blends.
In addidots, the board nsey adopt other soles as it d~~ necessary for
C° and ~f®rmatave labelitsg of co~ur cos~oditiea. [L,1991, c 153, pt of $6]
[$45fi,119] l~e~l-saesde pr~duct~ No peraoa shall keep, offer, display or
expose for sale, or solicit for the gale of any item, product, souvenir, or any other
tserclsaadig+e which is labeled "tom in Hawaii" or which by easy otter rnea~
misrepresents the origin of the itetrt as being from any plxe wider flee State, which
not been n~srsufactured, asaernbled, fabricated, or pa®duced wft~s the State tnd
which has not bad at least fifty-os~ per cent of its wholesale value d by
manufacture, asseatsbly, fabrication. or production within the State. [L,19~1, c 153. pt
of §6]
i .
TESTIMONY OF ADAM J. OSZUSTOWICZ, V1CE PRESIDENT OF HAWAII GOLD CACAO TREE, INC.
BEFORE THE HOUSE COMMITTEE ON AGRICULTURE
On February 10, 2001
Mr. Chairperson and Members of the Committee:
My name is Adam Oszustowicz, Vice President for Hawaii Gold Cacao Tree, lnc. Also representing Hawaii Gold
Cacao Tree is my Mom, Karen Oszustowicz and my sister, Melissa Oszustowicz.
I would like to thank Representative Chang, Representative. Abinsay, Representative Oshiro, Representative Magaoay,
Representative Cabreros, Representative Morita, Representative Takai, Representative Schatz, Representative Kanoho,
Representative Souki, Representative Suzuki, and Representative Ahu Isa for introducing House Bill 1584 and
Chairperson Abinsay and Vice Chairperson Cabrersos for the opportunity to testify today.
Hawaii Gold Cacao Tree has received and continues to receive excellent input from Chairperson Nakatani and the
Department of Agriculture regarding HOUSE BILL 1584 and other related matters. The Department of Agriculture
advised Hawaii Gold Cacao Tree that Hawaii Gold Cacao Tree's Policy Statement on Food Labeling complies with
Chapter 486 of the Hawaii Revised Statutes. As such, Hawaii Gold Cacao Tree respectfully requests that HOUSE
BILL NO. 1584 be withdrawn with potential consideration at a later date.
Hawaii Gold Cacao Tree's Policy Statement Relating to Food Labeling of Chocolate, Cocoa and Cocoa Bean Products
is as follows:
h is Hawaii Gold Cacao Tree, Inc. Policy to fully comply with existing State of Hawaii and Federal Laws and Rules
pertaining to truth in labeling. To this effect HGCT will not bring into commerce any food product labeled,
advertised, marketed or described as "Hawaiian, " "Made in Hawaii, " or terms of similar import indicating Hawaii as
the soatrce of the product, unless at least fifty-one percent of the added value of the finished product is entirely of
Hcnvaii origin as calculated by using the tivholesale price exclusive of all taxes for chocolate and cocoa products. As
regards to cocoa beans, one hundred percent of the value of the finished product Shull be entirely of Hcnvaii origin as
calculating by using the wholesale price exclusive of all tuxes and packaging costs.
The Department of Agriculture understands Hawaii Gold Cacao Tree's strong interest in having a State of Hawaii
Food Labeling Law to be specific as to chocolate and cocoa products and cocoa beans and as a result Hawaii Gold
Cacao Tree has been invited to participate in such food specific labeling.
Thank you for your time.
YORKVILLE MANAGEMENT` SERVICES, INC.
32 Starr Drive, Rhinebeck, NY 12572-1508
Tel. (845)876-5711 /Fax (845)876-8728
e-mail: yomaser@@aol.com
February 8, 2001
Representative Felipe P. Abinsay, Jr,, Chair
House of Representatives
Agriculture Committee
Hawaii State Capital
415 South Beretania Street
Hawaii State House of Representatives
Honolulu, HI 96$13
Representative Cabreros, Vice Chair
House of Representatives
Agriculture Committee
Hawaii State Capital
415 South Beretania Street
Hawaii State House of Representatives
Honolulu, HI 96813
Dear Representative Abinsay and Representative Cabreros:
. I am testifying on behalf of HOUSE BILL NO. 1584, which aims to clarify certain product
identification on Hawaii procured cocoa.
I am a retired executive of the cocoa and chocolate industry. My background includes executive
positions with Nestle W.R. Grace & Co., International Inc., and as Chief Executive of The Cocoa
Merchants' Association of America, Inc. However, my testimony reflects only me opinion and is not
necessarily the same as that of my former employees.
I believe that HOUSE BILL NO. 1584 will be beneficial to Hawaii's cocoa community on a
whole, from farming to the ultimate consumer. It will prevent confusion in the public's mind as what
may properly be identified as a Hawaii product.
It is common national and international practice to identify a product as "made in xxx." If a
substantial portion of its wholesale price consists of items added in that area. International practice after
defines "substantial" as being over 51%. It is also common understanding that raw ingredients, such as
cocoa beans, fruit and other agricultural raw materials our deemed to originate fully in the area stated as
being the one of their production, as for example, "Chilean grapes," New Zealand kiwi," "Columbia
coffee," Ghana cocoa beans," etc. The buyer assumes based on this origin claim that no foreign product
has been mixed in with it.
HOUSE BILL NO. 1584, therefore, correctly separates the two concepts, in that it allows cocoa
items manufactured in Hawaii to be ide~ttified as "Hawaii," even if some ingredients are of other than
Hawaii origin and it assures that Hawaii cocoa beans are truly of Hawaii origin without any mixture of
beans from other countries.
In this fashion HOUSE BILL N0, 1584 enhances the provisions of existing truth in Hawaii
labeling legislation, which it protects the interests of the Hawaii confectionary community, Hawaii
growers as well as the ultimate consumer.
~o~
~ - r
The Conceit of "Added Value"
"Added value" is a relatively new buzzword for an age-old practice whenever one transforms an item into
a more desirable one, value is added. For example, pineapple may be canned to make them more suitable
for transport, storage and distribution. The canning process is thus added value.
Added value can consist in both material and services. The cost of the additional material cost, labor,
factory overhead and other items, such as interest, royalities and even anticipated profit constitute such
added value under HOUSE BILL NO. 1584, the total value so added to anon-Hawaiian ingredient must
be more than 51% of the added price.
The cost of bringing it from the port to the factory, warehousing and preparing it for production, the other
ingredients (sugar, nuts, etc.), labor, packaging, factory overhead, selling expenses and profit constitute
all Hawaii value, The sheer comparison between the purchase price paid by the confectioner for this
chocolate and the selling price for this finished produce will indicate that more than S 1 % of the value has
been added greatly.
In other words, a confectioner typically pays $1.30 for a pound of couverture to a United States Mainland
chocolate maker. He adds local Hawaii produce such as nuts, vanilla, etc. and sells his finished candy at
more than $2.40 per pound. He will have met the criteria for the "made in Hawaii" label.
Feb-06-01 11;11 Fram-REP JERRY CHANG
+6085666121 T-804 P.05/05 F-249
F Measure History
kia~`'aii Mate Legislature
2001 T~egular Session
~iBiS$4
Generated on 2/6/U1 lU:S~:59 AM
l~ieasure Title: R~LATCI~IG TQ F'QQIa LA,I3ELYI~'G.
Report Title: Chocolate, Labeling, Madc in Hawaii
Iaescription; Prohibits chocolate and. cocoa from being labeled "made in Hawaii" unless at
least 51 °,io of the added value of the finished product's value is entirely of
Iiawaii origin. Prohibits cocoa (cacao) beans labeled "made in Ha~vazi"
unless The product is 1 OQ°~o of Haw'aix origin.
Package: None
Companion:
Introducer(s): CHANG, ABI1~rSAY, QSI.IIR(~, .MACrAOAY, CABI2ER(~S, MURITA,
Tr1KAI, SCHAT~, I~ANaHt), SOtJiCI, Suzuki, Ahu lsa, Takurni
Cuz'rent Referral: ASR, C~'C
Date ;i Status Text ~
+'-li~6f01- H~i! Introduced and 'Pass First Reading .-T^ ~ - - - - ~
1~'29,'O1 ~ H ~ Ptef~rxed to the commietees pn ASR, CPS, referral sheet S.
S = APprapriatiUn pleasure
GonAm =Constitutional Amendment
htt ~'10.0.14.99!REPORTS/measure_indiv2,asp?type=hb&numberi584 2iG/U1
p:, .
_ .
• I
_
Report title:
Chocolate, Labeling, Made in Hawaii
~~sc~°iptio~:
Prohibits chocolate and cocoa from being labeled "made in
Hawaii" unless at least 51% of the added value of the finished
product's value is entirely of Hawaii origin. Prohibits cocas
(cacao) beans labeled "made in Hawaii" unless the product is
100% of Hawaii origin.
.
l~
.
FiH LRB 01-1212 - 2 . doc 1B~?lI~V ~~?IVIIB I~~IU~I?Bl~U~llIEB!B~~?B?!~l~~
f Fab-O6-O1 11:08 From-REP JERRY CHANG +8085866121 T-604 P.02/05 F-Z48
_ HC~US~ C?F R)=PRESENTATIVE;O
TIIVENTY-FIRST 1~~~lSI~TURE, 2001 ~1
1 ~
STAT{~ QF HnWAII
REI~TIN~ TO FQQD I~~iBELING .
ICE I'f IIYNACTI~I) ~Y THE LEGISLATUI2~ OF THE STAZ'~ OF IiAWAII:
1 SECTIQN 1. Chapter X56, Hawaii Revised Statutes, is
Z amended ley adding two ~1ew sac>r1,Qns to be appropriately '
3 designated and to read as fo2laws:~
4 $6 Chocolate end cocoa produces s ~.tni~uat easzt~nt and
5 laheliria r~irea~ents. (a) In addition to all other label~,z~g
^+!+_f requiremzr_ts, all chocolate and cocoa products can be lgbaied
7 advzrtised, marketed, or described as:
$ (1) "Hgwai~an"
9 (2) "Made in Hawaii", or
10 (3) Terms of similar import indicating Hawaii as the
1Z source of the product,
12 only if at least fifty-ape per cent of the added value of the
13 finished, product is' enta.raly of :~awaa.i ox~.~Tn, as calculated by
14 using the wholesale price exclusive of all taxes.
13 (b) Each word in the identity statement in subsection (a)
1b shall be_contiaurus and conspicuously displayed without any
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Fab-06-01 11:10 Pram-REP JERP,Y CHANG +8085866121 T-894 P.43l95 F-249
Pale 2 ~ - j
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intervsnin~c material~Upper_ dnd lower case let'tere maY be used
2 interchange~abl~in the identity statement.
3 (c) A violation of this section shall constitute
~ mzsbran_dinc~ under section 486--11~ .
a (d) For ehe pur~ases of this section, "chocolate and cocoa
6 ~roclucts" includes chocolate, cocoa, cocoa'~iibs, cocoa ~.iquQr,
7 and cQCaa butter.
S §486 ~oac~a bea.~a; zn,inimta~ cQr~C~sat aid la~eling
9 rec~uiremeats f a? In addition to all other la}~elinq
1Q requirements, all Cocoa. beans can_ be 1ab~led, advertised,
.1 marketed, oxdescribed as:
12 (1) "Hawaiian",
13 (2) "Made in Hawaii", Qr
14 Terms of similar imFOrt indicating' Hawaii as the
IS source Qf • the ~raduct ,
16 only if cane hundred per cent of the value of the finished
27 produce is encix'ely a~ Hawairic~in, as calculated by usiric~ the
wholesale prig exclusive of all. taxes.
19 (b) Each ward i.n the identity statement ~.n subsection (a)
2Q sha11 be cant~iguc~us and conspa.cuously dis~,laYed without an4
2I interveningmaterial. User and lower case letters may be used
interchancteab.lY~ir thaw
dentitY statement,
xE LRa a 1- 2 I2 - ~ . dac I~~qt ~~¢Aq !~@~~IG~I~i
~~~~iq~q~!~t~
,
f
' Feo-Oo-G1 11:10 From-REP JERRY CHANG +8085866121 T-804 P.04/05 F-249
Page 3 /
2 (c) A violation of this section shall cQnsti>rute
Z mi.sbrandinq under section 486-118.
3 (da As used iz~ this section, "cocoa beans" are >"he dried
4 or fermented seed or both of the clenus Theobroma cacao L,.
5 S~C;TION 2. New sta.tut®ry material is underscored.
6 SECTION 3. This Act shall >rake effect upon its approval.
7
zNTRODUCEI~ ~ BY
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2 6 2001
111HIIt8&{ {f f1111~f1 .if~R{PI Rif'iRL fff~W!t Rt 4tf:tRfAlf GftS!BBI FIRI
Hawaii Golc{ Cacao Tree, Inc.
Post O~Fice Box 493), Hilo, Hdv~,~dii 96720
Tel. (808) 969-9484/Fdx (808) 935-8946
E-Mail - HdwdiichocoldteC~dol.com
February 9, 2001
Representative Jerry L. Chang
House of Representatives
State Capital, Room 435
415 S. Beretania Street
Honolulu, HI 96813
Dear Representative Chang:
Thank you for all of your work regarding HOUSE B1LL NO. t 584. Hawaii Gold Cacao Tree, Inc.
(HGCT) has received and continues to receive excellent input from our Department of Agriculture
regarding HOUSE BILL N0. 1584. See, attached communication. The Department of Agriculture
advised HGCT that HGCT's Policy Statement on Food Labeling complies with Chapter 486, Hawaii
Revised Statutes (§486- l 19). The Department of Agriculture understands HGCT's strong interest in
having a State of Hawaii Food Labeling Law to, be specific as to chocolate and cocoa products and cocoa
beans. The Department of Agriculture also advised HGCT that special attention is developing to consider
such food specific labeling and that HGCT will be invited to participate.
Given this good information at this time, HGCT respectfully requests that HOUSE BILL NO. 1584 be
withdrawn with potential consideration at a later date. Thanl: you for your support.
Best regards,
l-~ , ~
Richard J. Oszust~vicz
Chairman
Hawaii Gold Cacao Tree, 1nc.'
Enclosures:
~
~ h" JAktES J. NAKATAf,il
BE.NJA~4INJ.CAYETANG
~iavilfnGf Ch>~irpereon, BoardolA~riculoara
~ L~71TIA N. UYEHA~LA
p•puty to the Chairperson
' rVtitlling Address:
State of Hawnli P. O.Boz22169
DEPARTMENT QF AGRICULTURE Honolulu, Hawaii g6b23~2t69
1 Q28 So, King Strout FAX: (848} 973-4613
Honolulu, Hawaii 56814-2512
l~ebruary 9, 2tJOl
QAU-01-004
Richard 1. Oszustowicz, Chairman
Hawaii Gold Cacao Tree, lnc,
P.Q. I3ox 4939
Hilo, Hawaii 96720
Dear Mr. Qszustowicz~
Thank you tar sending me your cauipaliy's policy on geographic origin labelinp; of your
chocolate, cocoa and cocoa bean products, dated Febntftry 9, 2001.
1 have reviewed yaur policy statement and it is in ct~mpliance with §48Ci-119, 1-~awaii
Revised Statutes, entitled "1-fawaii-made products," and other Sate gnobraphic lat~eling
laws, It is very encouraging; to see a new company starting with such a commitment to
complying with State laws and supporting the fine reput~tiati of products that are
manufactured or brown in Hawaii.
There is currently amarketing/'branding organization in the final sk~ages of arg>~nization
whose intent is to develop the infrastructure altd marks for a Made in Hawaii/Grown in
Hawaii logo and marketing plat. This new organization will base their criteria for the
use of their g~graphic origin logo on the Sate statutes covering Made in I-lawaii and
other geographic orit,in labeling requirements. To this ertd, they will be working closely
with the department to rune the current laws and submit legislation to the 2002
Legislature, '
I will keep you informed of the development of this arganizalion, as you appear to have
valuable information bn geographic labeling which can be shared with them. i'il send
you a contact nrarrto in the next few weeks, as soon as their organisational structure is '
firmed up. .
5' cerely,
4' -
Samuel Car, Camp 111, Administrator
Quality Assurance Division
v