HONOLULU — A major Kauai rancher has new plans to expand the statewide supply of locally raised beef after taking control of Oahu’s only slaughterhouse as part of a business separation.
Bobby Farias, who helped establish Kunoa Cattle Co. in 2014, recently left that company and has formed Hawaii Meats in partnership with an Idaho ranch operator.
As part of the deal, Hawaii Meats acquired the slaughterhouse and a Kauai cattle operation with about 2, 500 animals that had been part of Kunoa, according to Farias.
“It’s a new chapter,” he said. “I’m excited.”
Farias, who co-founded Kunoa with environmental investment consultant Jack Beuttell and other partners, said the Kunoa team wasn’t comfortable investing in a costly expansion of slaughterhouse operations to take local beef production to a major new level.
“The growth is scary and expensive,” said Farias, who partnered with an affiliate of Riverbend Ranch in Idaho to form Hawaii Meats.
Farias said that when Kunoa bought Oahu’s financially struggling slaughterhouse from a cooperative in 2016 after the facility’s original owner went bankrupt, eight to 10 cattle a month from its own ranch and other ranchers were being harvested.
Recent volume was up to about 120 animals a week, but Farias said the facility was being operated only three days a week and that he wanted to invest more in labor and physical capacity of the processing plant so that more local ranchers can stop shipping calves to the mainland for harvesting.
Scott Enright, former chairman of the state Board of Agriculture, said limitations with the slaughterhouse are among reasons many local ranchers can’t process cattle for the local market.
“This is a great development for the livestock community,” he said in a statement.
According to Farias, about 95% of Hawaii cattle in recent years got shipped to the mainland as young animals to bulk up before harvesting. Out-shipments might be down to around 90% or 92%, Farias estimated, yet much more can be done to keep cattle here for the local market, in his view.
“It was a good run with (Kunoa),” he said. “It was time to take the next evolutionary step.”
Kunoa was founded with the same mission to expand Hawaii’s homegrown beef supply, and started in 2014 with 1, 500 cattle managed by Farias, a third-generation Kauai rancher. The company, backed by $5 million in investment capital, acquired the slaughterhouse and rolled out its own brand of fresh beef and jerky.
In March, with a staff of 45 people, Kunoa announced a partnership to supply half the beef served in Oahu’s 168 public schools following a January deal to supply Kauai’s 15 public schools with all their beef needs.
Kunoa, which works with many other Hawaii ranchers for its beef supply, will continue to exist largely as a brand and processor of locally raised beef.
Beuttell said in an email that Kunoa operations will be led by Aaron Cates, the company’s chief financial officer, in place of Farias, who had been president.
“Kunoa’s commitment to delivering 100% Hawaii-grown meat products to the Hawaii market remains the same,” Beuttell said.
While Kunoa becomes a customer of Hawaii Meats through the slaughterhouse, Hawaii Meats also plans to establish its own brand of beef sold in stores and other businesses such as restaurants.
Farias anticipates that this part of the business can be established next year and complement Kunoa and other locally branded beef.
“We’re all in this together,” he said.