Persistence and perseverance are among the key factors that have led to Hamakua Macadamia Nut Co.’s success and survival, said President and Co-Owner Richard Schnitzler.
More than 15 years ago, Schnitzler started the company with the goal of helping local macadamia nut growers get a fair price and more profit for their crops. The focus has been on providing a future for local farmers, creating high-quality sustainable local products and generating local jobs, he said.
Hamakua Macadamia Nut has grown, processed and marketed 100 percent Hawaiian macadamia nuts since its inception. It’s more than a simple business practice; it’s a commitment and source of pride, as well as now a demand by customers, Schnitzler said. The company’s strong and loyal customer base has also helped make things easier, he added.
Schnitzler has met and tried to convince many nonbelievers over the years about the worth and viability of his business. He remains an opponent of importing nuts, despite dealing with increased international competition from countries such as Australia and South Africa.
Schnitzler said he had two instant supporters — the late Sen. Daniel Inouye and Congresswoman Patsy Mink — in the beginning. Because of their help, Hamakua Macadamia Nut received a low-interest loan from a federal rural development program. That approximately $1.1 million loan helped him build a processing plant and develop new product lines, he added.
Another important supporter and partner has been Big Island businessman Ed Olson, who joined Hamakua Macadamia Nut three or four years ago. Olson provided the financial resources needed to help the company reach the next level by expanding to other markets that weren’t being reached, Schnitzler said.
Conservation continues to be key, which is why Hamakua Macadamia Nut recently installed a 30,000-square-foot, $1.5 million photovoltaic system that will generate 75 percent of its electricity. The company has used biomass to generate energy for years by crushing and burning discarded macadamia nut hulls in a boiler to produce steam and heat that’s used to dry nuts before packaging.
Hamakua Macadamia Nut has wanted to incorporate solar, especially considering the benefits and the advancement of technology over the past two decades. However, it wasn’t until recent 65 percent state and federal tax credits made such a system a reality.
Renewable Energy Services, a 20-year-old family-owned and -operated business in Paauilo, began installing the system in August. The entire process took about three months.
Schnitzler said the average Hamakua Macadamia Nut electric bill was in the area of $50,000 per month. In its first 45 days of operation, the system is on course to pay for itself in 2.5 to 3 years, with potential savings in the hundreds of thousands of dollars. The 1,527 panels can produce up to 1,652 kilowatt hours per day, essentially keeping 1.2 metric tons of carbon dioxide, equivalent to 989 barrels of oil, out of the atmosphere annually,
The panels are designed for direct-use and do not employ energy storage via batteries. The company has restructured its processes to become a seven day a week, daylight-only operation, which has benefited its 55 employees, security and overall production.
The company is also in the process of upgrading and streamlining other systems to make them more energy-efficient. With 75 percent of its electricity needs met by solar, another 10 percent from biomass and increased energy-saving measures, the goal is to replace 100 percent of its electricity needs with renewable resources by 2015.
