HAWAII'S EGG FARMERS

Taking a great fall

Rising costs and increased mainland
competition threaten the future
of locally grown fresh eggs

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By Lyn Danninger
ldanninger@starbulletin.com

Local egg production has been dropping for a number of years. During 2001, statewide output totaled 128 million eggs, down 10 percent from 2000's total of 143 million eggs laid, according to the Hawaii Agricultural Statistics Service.

But Hawaii's chickens have not been resting on their feathers. Fewer layers and fewer people willing to stay in the business are two reasons for the decline, said Big Island egg producer David Davenport of Kamuela's Hawaiian Fresh Egg Farm.

With mainland imports dominating the market and substantially higher costs associated with egg production in Hawaii, if current trends continue, it may become increasingly difficult for Hawaii consumers to purchase island-grown eggs.

The number of farms producing local eggs has dropped by as much as half in the past seven to eight years with about 10 left statewide, said Glen Fukumoto, livestock extension agent with the University of Hawaii's College of Tropical Agriculture and Human Resources.

"It has become just a marginal business, but we do need some local production," said Fukumoto, who works with many of the farmers.

Davenport is one of the few farmers left in Hawaii who do their own brooding, flying baby chicks in from the mainland to raise. The brooding process takes about five months until the chickens are ready to lay, so the costs add up, he said.

Feed has to be imported; then there's electricity, labor, land, taxes and extensive regulations. Some farm families also have trouble with the younger generation not wanting to take over the farm, he said.

"The numbers are going down because of rising costs in Hawaii and increased competition from the mainland, so it's difficult for a family business to continue," Davenport said. "I can tell you we're not getting rich."

For example, feed on the mainland costs about $130 a ton, but by the time it arrives in Hawaii, the price goes up $80 to $90 a ton.

Farmers must also ship in egg packaging. On the mainland the cost would be about 6 cents to 6.5 cents per carton. By the time it arrives in Hawaii, the carton costs 11 cents, Davenport said.

Supermarkets that regularly ship large volumes of inventory to the island, however, receive economies of scale when bringing mainland eggs to Hawaii and keep the retail price low. Mainland eggs are typically cheaper than island eggs and often can be found on two-for-one special.

The number of local layers has dropped to roughly 604,000 today from around 754,000 in 1996 as consumers snap up the cheap imports, according to the Hawaii Agricultural Statistics Service.

To add to the problem, Hawaii becomes a dumping ground for excess mainland eggs at certain times of the year.

Egg production The number of eggs produced in Hawaii, in millions: 1996 179.0 1997 172.0 1998 154.4 1999 149.0 2000 143.4 2001 128 Source: Hawaii Agricultural Statistics Service

"The mainland egg market always falls into a cycle where they overproduce, so it eventually comes to California and then on to here," said Phyllis Shimabukuro Geiser of Mikilua Poultry on Oahu, who is also president of the Hawaii Egg Producers Cooperative.

Local poultry farmers must then be careful they don't overproduce, especially during those times. With the cost of production at least 60 percent lower on the mainland, it can be hard to compete.

Consumer confusion in differentiating between local eggs and mainland eggs is also an issue.

While historically there has been a preference for local eggs, according to Shimabukuro Geiser, shoppers who are in a hurry are not always going to take the time to differentiate between the two.

Even though there are now labeling requirements -- Hawaii-produced eggs have an "Island Fresh" daisy logo on the carton, and mainland eggs must be individually stamped with red or purple to mark U.S. Department of Agriculture inspection -- the law does not address the issue of brand names, Shimabukuro Geiser said.

"A lot will use the same brand for both local and mainland eggs they distribute, so for people who have brand loyalty or associate the product with a local company, it can be confusing," she said. "In the past, perhaps five years ago, the trend was to meet labeling requirements of the state, but some people realized if they chose a local-sounding name, it would be more attractive."

UH's Fukumoto said farmers could do a better job helping to educate consumers and promoting the benefits of the local product such as its quality, taste and freshness.

From a nutritional standpoint, there is little difference between eggs shipped from the mainland and those straight from the local farm, according to the American Egg Board.

But as an egg ages, the white becomes thinner and the yolk becomes flatter. The changes do not have any great effect on the nutritional quality of the egg or its functional cooking properties in recipes, according to the board.

Appearance may be affected, though. When poached or fried, the fresher the egg, the more it will hold its shape rather than spread out in the pan.

But if consumers want to continue to have a choice between locally grown fresh eggs and mainland eggs, they need to pay more attention and educate themselves, Fukumoto said.

"If consumers don't want to buy eggs 10 days older with 2,500 miles added to them, then they need to open the carton and look for a U.S. stamp signifying mainland eggs or the 'Island Fresh' daisy."