DENNIS ODA / DODA@STARBULLETIN.COM
Cattle graze on the pastures of North Shore Cattle, Oahu's largest producer of grass-fed beef. The ranch expects to process 500 head this year.
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Bully on beef
New interest in grass-fed cattle has local ranchers cautiously optimistic
By Joan Namkoong
Special to the Star-Bulletin
Good news for consumers looking for naturally raised beef, fed on grass without the addition of hormones and antibiotics: More of it is available locally, with 40,000 to 50,000 additional pounds of beef being brought to market weekly since Hawaii Big Island Beef in Paauilo began operations in October.
The bad news is, that barely makes a dent in the state's beef consumption.
With about 800 ranchers and 81,300 beef cattle in the state in 2005, 9,200 head were processed in Hawaii -- about 5.5 million pounds of beef. But assuming average consumption of 62 pounds per person, the state's 1.3 million people would require 79 million pounds annually.
It hasn't always been this way. Island-grown beef was once easy to find. After all, cattle have been part of the agricultural landscape since 1793, when the first animals arrived on the Big Island. Beef has been produced continuously on all islands since then, but in the 1970s, the industry began to change.
While cattle grazed on grass for most of their lives, they were "finished," or brought to market weight, on grain at feedlots throughout the state. Eventually, the high cost of shipping grain forced ranchers to change the way they did business: They became producers of calves that were shipped to mainland feedlots for finishing.
All these decades later, though, the market is changing again, with a growing appreciation for grass-fed beef in the local market.
DENNIS ODA / DODA@STARBULLETIN.COM
Linda Nakasone, left, records the data, as Wade Rodrigues and Brad Kalilimoku pull on levers that keep the animal from moving while in the shoot.
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Ranchers are realizing that keeping beef cattle in Hawaii is good for the islands. "Shipping cattle to the mainland is not sustainable," said Alex Franco of Maui Cattle Co. "We need to keep cattle here and not use fossil fuels to get cattle to market. And we provide managed open space that is good for other industries like tourism."
At the same time, ranchers tout the premium quality of beef finished in Hawaii. Research has shown that grass-fed beef is better nutritionally, providing more beta carotene that is converted to vitamin A, more vitamin E and more omega-3 fatty acids than conventionally raised beef.
Conjugated linoleic acids, a group of polyunsaturated fatty acids, are present in higher levels in grass-fed than grain-fed beef.
"It has a flavor all its own," said Jill Andrade-Mattos, general manager of Hawaii Big Island Beef, who has spent her whole life in the industry. "It can be chewier, it's juicy and has its own good taste."
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DENNIS ODA / DODA@STARBULLETIN.COM
Ryan Lum, left, general manager at North Shore Cattle, and co-manager Dan Nakasone enjoy a lunch of teriyaki beef sandwiches made of beef from the ranch.
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Ranchers face up to obstacles
The type of grass, limited pasture land and weather put the cattle industry at risk
By Joan Namkoong
Special to the Star-Bulletin
Cattle grazing on green pastures may present an idyllic picture, but sustaining an industry of grass-fed beef is not a simple matter.
While the enthusiasm for grass-fed beef among consumers and ranchers has grown, raising beef cows in the islands has many risks.
Cattle are meant to eat grass, not grain, but the animals grow slower on grass. "A cow gains three-quarters to 1 1/2 pounds a day on grass, versus 3 1/4 to 3 1/2 pounds a day on corn," said Robert Sporleder, cattle operations manager for Hawaii Big Island Beef.
And Hawaii's grasses are not ideal. "Tropical grass is low in energy and cattle don't get the growth that they do on cool-season grasses," said Sporleder.
Mother Nature plays into it, too: Rain is essential for pasture growth; unpredictable climate patterns can have devastating effects.
Limitations of land and processing capability are likely to confine the industry's growth as well.
If all ranchers in the state decided to keep their beef cattle on pasture and finish them in Hawaii, there would not be enough pasture land.
The same holds true on the processing side. Slaughterhouse capacity seems adequate for now, now that six USDA facilities are available on four islands, but those four would fall short if ranchers decided to process all their cattle here.
A bigger issue on the processing side: "We don't have a skilled labor force here," said Jill Andrade-Mattos, general manager of Hawaii Big Island Beef, who says her processing facility could handle more production.
"There's no training program at the community colleges or University of Hawaii; you have to go to the mainland. If the industry is to grow, there need to be classes. It's been talked about, but nothing happens."
All players in the beef industry realize that price is a major issue. Ranchers must get a good return for their animals to support their operations and maintain grazing lands.
DENNIS ODA / DODA@STARBULLETIN.COM
Cattle at North Shore Cattle Co. are raised on grass, producing a type of more natural beef that island customers are growing to appreciate.
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"We're caught in a Catch-22," said Mattos. "We have to have quality for large high-value end markets, but we also have to have quantity. To get the quantity, ranchers have to know there's a finishing place and a good price."
Selling calves on the mainland was good for ranchers until recently, but the price for calves is dropping as the price of corn to feed them rises due to its desirability as a source of biofuel.
Finishing beef in Hawaii is an option, but with mainland beef produced by much larger, more cost-efficient operations, local beef faces stiff price competition.
The alternative is marketing Hawaii beef as a more healthful, more sustainable product worth its higher price.
It's an alternative that has found some success for North Shore Cattle Co. on Oahu, which began marketing its beef at Hawaii Farm Bureau Federation farmers' markets in 2003. The company has built a strong brand on Oahu and is able to sell all of its output, including hamburger, the major part of beef production, retailing at $4.75 per pound.
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So where is the island beef?
Certainly not in your neighborhood supermarket on Oahu. Neighbor island consumers fare better, with locally raised beef available in small grocery stores and some supermarkets. Here's what to look for:
Hawaii Big Island Beef
Most of the state's beef production is on the Big Island, which has two slaughter houses. The newer Hawaii Big Island Beef opened in October after major renovations to the Paauilo slaughterhouse built in the 1970s by Hamakua Sugar.
David S. De Luz Sr. of Big Island Land and Cattle merged interests with Andrade Processing Facility/J&J's Meat Markets. The plant slaughters 80 to 100 beef cows per week, making it the largest facility in the state.
Three-quarters of its products are sold on the Big Island through hotels, restaurants, island-based grocery stores, J.J. Andrade Meats in Honokaa and Foodland. The remainder is sold on Oahu.
Kulana Foods
Brady Yagi maintains the Hilo slaughterhouse and processing facility started by his grandfather James S. Yagi in 1939.
Large operations such as Kahua Ranch, Palani Ranch, Parker Ranch and several others bring 50 to 60 head of cattle to Kulana each week for slaughter.
The yield averages 500 to 600 pounds per animal, and close to half of that is hamburger, according to Yagi. Most of it stays on the Big Island, sold through KTA supermarkets and other retailers, restaurants and hotels. Ranchers such as Kahua sell directly to consumers.
North Shore Cattle
The ranch is the largest producer of naturally raised beef on Oahu, but "large" is a relative term. This year, the company will produce about 500 head for consumption, compared to the 8,000-plus head of the Big Island.
"We hope to be doing 1,000 head per year by the end of 2008," said general manager Ryan Lum. "That will get us to where our current market demand is." Lum is now partnering with bigger ranchers, hoping to buy calves for his own ranch, or larger animals that will be raised on their home pastures according to Lum's guidelines.
The company sells at Hawaii Farm Bureau Federation farmers' markets and operates the hamburger stand at the Dole Pineapple Visitor Center. It will also soon be taking over Pueo Restaurant at Coral Creek Golf Course.
Maui Cattle Co.
This consortium of a half-dozen ranchers is trying to build a strong brand on Maui and hoping to expand to Oahu.
Each week 35 beef cows go to the DeCoit slaughterhouse in Makawao and the processed beef is sold through small retail stores on the island.
"We started selling our beef at Long's in Lahaina," said Alex Franco of Kaupo Ranch, one of the Maui Cattle Co. partners. Some goes to Oahu, especially prime cuts that go to Alan Wong's restaurant.
Kauai
Ranchers take their cattle to one of two USDA slaughterhouses on the island, totaling 24 to 30 head a week.
The beef is sold through a handful of small island-based grocery stores.