HomeMy WebLinkAboutCOM 0023.004 2006-2008 T_estimonv to the Hawaii County Council
In Suanort of Resolution 18-06
20 Dec 2006
Aloha and mahalo for the opportunity to speak today in support of
Resolution 18-06, related to labeling of Kona coffee.
I am Chuck Moss and a North Kona farmer of land owned and fanned by
my parents for over 30 years before my wife and I took over almost five
years ago. My grandfather also lived and fanned coffee, mac nuts, and cattle
in North Kona on a different parcel of land for almost forty years. Like many
past and current Kona farmers coffee is part of our lifestyle, as well as
livelihood to one degree or another. In my opinion the current blend labeling
law of the State of Hawaii contributes to threats to maintaining the Kona
coffee culture, way of life, and economic contribution to Hawaii County
economy.
I'd like to focus my comments on some adverse economic aspects of the
current practice of allowing 10% Kona blends to be labeled with the word
Kona prominently displayed. The currently allowed but deceptive labeling
practice significantly impacts the economics of coffee in Hawaii County.
One can visualize these adverse effects in general terms by thinking about
the law of supply and demand. The supply of Kona coffee is limited and
each year the entire crop is sold. Much of it gets eventually retailed as 100%
Kona coffee, but part of the crop ends up being sold as the Kona part of 10%
Kona coffee blends.
The blend recipe for one pound of 10% blend Kona coffee is simple. Just
take 1.6 ounces of Kona coffee and add 14.6 ounces foreign coffee that is
not required to meet any governmental grade standards. VOILA! Ten to one
quantity expansion for an adulterated Kona blend, but for the blender that's
OK because they can now use the magic word Kona on their label in large
print.
Now, let's do a little simple math. With this ten to one expansion factor, it
would only take 10% of the Kona coffee crop to virtually double the supply
of Kona labeled coffee. You now have nine parts of 100% Kona coffee, and
Comm. No. 23•~
Ref. 70: P?~~-~~"
Ref. Uate_~EC 20 20U6
ten parts of Kona blend! More blend than true Kona and almost twice as
much coffee to sell with name Kona on the label.
I think it is well accepted that well over 10% of the Kona crop ends up in
10% blends, although the specific amount seems to be a trade secret of the
blenders. I wonder why they are so secretive about this?
The law of supply and demand dictates that the price point for true Kona
coffee is lower than it would be if the supply weren't being expanded by the
adulteration with foreign coffees. The demand is there, but is being satisfied
with an adulterated product.
But,,, this is only part of the problem, as much of the income derived from
the sale of the deceptively labeled Kona blends doesn't come to Kona. It
goes to buy the foreign coffees and a big profit margin to Honolulu and
mainland based business interests. The Kona coffee community and the
economy of Hawaii County are being ripped off, along with the consumer
who bought the blend thinking that they were buying Kona coffee.
In summary, there is a market with both supply and demand for Kona coffee
but much of the supply is being met with foreign coffee. The price for true
Kona coffee to the farmer is lower than it would be if this foreign coffee
supply was no longer legally labeled with the word Kona prominently
displayed. Furthermore, a good portion of the cash flow stream is being
diverted, perhaps I should say highjacked, away from Hawaii County! The
name Kona is being used to generate revenue that never comes to the island.
This is a situation that government can fix and this resolution is a good first
step in doing so, I therefore urge passage of Resolution 18-06.
Mahalo nui for your service and willingness to listen. I wish you success in
your county council terms that you are starting.
Chuck Moss
74-4993 Mamalahoa Hwy
Holualoa, HI 46725
Chuck a cuppakona.com