A study is underway to determine the economic impact of requiring a minimum of 51% Hawaii coffee beans when using the regional name in blends and input from farmers is being requested.
For decades, legislation has been introduced in the Hawaii Legislature to regulate the percentage of locally grown coffee in blends that name a specific Hawaii region on labeling.
Attempts to pass the legislation have previously failed. However, in the 2022 session a bill was passed by the House with a 51% minimum for blends and sent to the Senate. Senate Agriculture and Environment Chair Sen. Mike Gabbard did a gut and replace maneuver to remove the 51% requirement and replace it with a “study.”
The Hawaii Senate passed the measure to set aside $100,000 for the Department of Agriculture to conduct an independent study to assess the economic impact of Hawaii’s coffee labeling laws on local coffee farmers and the industry.
“Analysis shall include studying the impacts of a change to a minimum coffee blend ratio of fifty-one per cent and one hundred per cent,” the bill, signed by former Gov. David Ige stated. The measure also directed the study to include consultation with coffee farmers, including the Hawaii Coffee Association, Kona Coffee Farmers Association, and other stakeholders in the coffee industry within Hawaii.
Per the bill, the study would be due by Jan. 1, 2024, to be considered during the legislative session that year.
HB1517 twice provides that the HDOA study is to be “independent.”
A request for proposal was issued by HDOA on May 1 and in part reads “entities submitting proposals must be impartial to the effects on different industry stakeholders such as coffee farmers, processors, roasters, packers, distributors, millers, coffee associations, restaurant supply and other retail business interests.”
Guild Consulting of Honolulu was awarded the contract to conduct the study. Their choice for project economist was questioned by local coffee farmers for his previous consulting work for other defendant coffee marketers in opposition to certification of a class of Kona coffee farmers who were alleging deceptive and fraudulent labeling of Kona coffee. The economist has since severed ties from the study.
Guild has retained Oral Capps, executive professor and regents professor in the Department of Agricultural Economics at Texas A&M University, to serve as the project economist. Joining Capps at his request are his colleagues, Harold Goodwin, professor emeritus at the University of Arkansas and Loren Burns, a long-time research associate with Capps at Texas A&M.
A consideration in the second search was to secure an unbiased project economist, one with minimal/no ties to the Hawaii coffee industry. The study should be completed by Jan. 1 with a report to the Legislature no later than 20 days prior to the start of the 2024 Session.
Project participation from diverse Kona and Kaʻu coffee stakeholders is sought. After a brief project delay, Guild Consulting announced a request for project participation and industry input.
In mid-November, Guild Consulting will conduct a series of surveys, focus groups and interviews to gather critical feedback on topics related to Kona and Kaʻu coffee, coffee labeling and the production of Kona and Kaʻu coffees.
Those interested in taking part are asked to provide their contact information online be considered for project participation and to sign up for project updates. Those interested can visit:
https://tinyurl.com/5eszzvhf .
