WHEN YOU THINK ABOUT AGRICULTURE IN HAWAII AND BUYING LOCAL, FRUITS AND VEGETABLES MIGHT COME TO MIND FIRST, BUT WHAT ABOUT LOCAL BEEF?

RAISING CATTLE HAS BEEN HAPPENING HERE FOR CENTURIES.

IN FACT, CATTLE IS THE STATE’S FOURTH MOST VALUABLE AGRICULTURAL COMMODITY.

HOWEVER, THE BUSINESS OF GETTING LOCAL BEEF TO ISLAND CONSUMERS IS CHALLENGING, SO WE’RE ASKING IF HAWAII CAN HAVE A VIABLE BEEF INDUSTRY.

TONIGHT’S LIVE BROADCAST AND LIVE STREAM OF INSIGHTS ON PBS HAWAII START NOW.

¶¶ ¶¶ ALOHA AND WELCOME TO INSIGHTS ON PBS HAWAII.

I'M DARYL HUFF.

THE HISTORY OF CATTLE IN HAWAII STARTS IN 1793 WHEN SIX COWS AND A BULL WERE GIFTED TO KAMEHAMEHA THE GREAT.

THE KING CREATED A 400‑ACRE PASTURE AND PLACED A KAPU ON KILLING THEM SO THAT THEY COULD MULTIPLY.

TODAY, IT’S A MULTI‑MILLION DOLLAR INDUSTRY THAT INVOLVES COMPETING AND COOPERATING STAKEHOLDERS AND A LOT OF CONSTRAINTS.

AND DESPITE ENDLESS CALLS TO INCREASE LOCAL FOOD PRODUCTION, ONLY ABOUT 20 PERCENT OF CALVES BORN HERE ARE USED FOR LOCAL CONSUMPTION WHILE MOST BEEF IS IMPORTED.

WE’RE ASKING OUR PANEL TONIGHT HOW WE CAN GET MORE LOCAL BEEF FROM PASTURE TO PLATE.

WE LOOK FORWARD TO YOUR PARTICIPATION IN TONIGHT'S SHOW.

YOU CAN EMAIL OR CALL IN YOUR QUESTIONS, AND YOU’LL FIND A LIVE STREAM OF THIS PROGRAM AT PBSHAWAII.ORG AND THE PBS HAWAII FACEBOOK PAGE.

NOW, TO OUR GUESTS.

MICHELLE GALIMBA IS A BEEF CATTLE RANCHER IN THE KAU DISTRICT ON HAWAII ISLAND.

HER FAMILY STARTED KUAHIWI RANCH IN 1993 BY LEASING ABANDONED SUGARCANE FIELDS.

MICHELLE IS ALSO A HAWAII COUNTY COUNCILMEMBER FOR DISTRICT 6, WHICH RUNS FROM VOLCANO VILLAGE TO SOUTH KONA.

LANI PETRIE IS THE OWNER OF KAPAPALA RANCH, A STATE LEASEHOLD PROPERTY ON HAWAII ISLAND.

THE RANCH WAS FOUNDED IN 1860 IN A LEASE SIGNED BY KAMEHAMEHA, IV, AND BEEN OPERATED BY LANI’S FAMILY FOR THE PAST 47‑YEARS.

SHE HAS A DEGREE IN AGRICULTURAL ECONOMICS AND BUSINESS AND IS AN INDUCTEE IN THE PANIOLO HALL OF FAME.

DEREK KURISU IS THE EXECUTIVE VICE PRESIDENT AT KTA SUPER STORES.

THE LOCALLY OWNED GROCERY STORE OPENED IN 1916 AND NOW HAS SEVERAL LOCATIONS ACROSS HAWAII ISLAND.

DEREK GREW UP ON A PLANTATION AND HAS BEEN A LONG TIME CHAMPION OF FOOD SUSTAINABILITY.

AND HUNTER HEAIVILIN IS THE FOUNDER OF SUPERSISTENCE, A HAWAII‑BASED CONSULTING FIRM.

HE COLLABORATES WITH VARIOUS CLIENTS TO HELP SHAPE POLICIES AND STRATEGIES TO STRENGTHEN OUR LOCAL FOOD SYSTEMS.

START OFF WITH LANI.

WHAT IS THE DIFFERENCE BETWEEN THE WAY CATTLE RAISED IN HAWAII AND CATTLE IS RAISED ON THE MAINLAND?

>> NOTHING.

I MEAN, OUR INDUSTRY IS COMPARTMENTALIZED.

SO YOU HAVE YOUR SEED STOCK PEOPLE.

COW PRODUCER.

STOCK OPERATORS.

FEED LOTS.

THEN YOUR SLAUGHTERHOUSES.

SO THAT COMPARTMENTALIZATION IS INDUSTRY WIDE.

SO THERE'S NOT A LOT OF DIFFERENCE.

>>Daryl: TERMS OF ASKING MORE IN TERMS OF PICTURING A BIG MAINLAND FEED LOT VERSUS PASTURE IN HAWAII.

>> THAT'S WHICH ARE MADE THE DISTINCTION.

VERY COMPARTMENTALIZED.

YES, THAT SEGMENT.

INDUSTRY THAT FINISHES CATTLE OR PUT THAT IS LAST 300 POUNDS OF GAME, IT PUTS INTERNAL MARBLING, VERY QUALITY THAT CONSUMERS ARE LOOKING FOR, IS DONE ON MAINLAND IN THE FEED LOTS.

>>Daryl: DO PEOPLE WANT LOCAL BEEF?

DO THEY HAVE TO PAY A PREMIUM FOR THE BEEF THAT THEY BUY FROM COMES FROM LOCAL BEEF.

>> FOR US, WE'VE BEEN ALWAYS SELLING LOCAL BEEF.

TODAY, ABOUT 40% OF OUR BEEF SALES IS LOCAL.

>>Daryl: THAT'S MORE THAN.

>> YEAH.

A LOT OF THEM GROUND BEEF.

STUFF LIKE THAT.

I GUESS LIKE PEOPLE LIKE ME, BORN AND RAISED ON LOCAL BEEF.

SO WE'RE KIND OF USED TO THE FLAVOR AND THE TASTE.

I THINK THERE'S A LOT OF LOCALS LOVE LOCAL BEEF.

AMAZING THING IS I THINK BETTER FOR YOU.

IT'S HEALTHIER AND INDUSTRY IS COME A LONG WAY, TODAY'S BEEF IS MUCH MORE TENDER, AND IT TASTES AND THAN THOSE IN THE PAST.

40% OF OUR BEEF SALES IS LOCAL.

LOCAL BEEF.

>>Daryl: MICHELLE, AT YOUR RANCH, DO YOU PRODUCE CATTLE THAT ARE AT QUALITY GRADE THAT CAN PRODUCE STEAKS.

AS OPPOSED TO JUST GROUND BEEF.

HOW DO YOU DO THAT?

HOW IS THAT NOT A FEED LOT?

HOW DOES IT WORK ON YOUR FARM YOUR RANCH.

>> SO WE, IT'S A DIFFICULT PROCESS.

IT'S VERY MUCH EXPOSED TO THE RISKS OF WEATHER.

WE HAVE TO REALLY PAY CLOSE ATTENTION TO WHAT'S GOING ON WITH THE WEAR.

LANI SAID, WITH THE WEATHER NOT A LOT OF DIFFERENCE I INDUSTRY WIDE HOW YOU PASTURE A CATTLE.

KEEP THEM ON FRESH GRASS ALL THE TIME.

WHICH IS SOMETHING THAT LANI DOES VERY, VERY WELL WITH HER CATTLE.

DIFFERENCE IS THAT WE KEEP THE THEM ON PASTURE, ALL THE WAY UP UNTIL WE SELL THEM HERE LOCALLY.

VERSUS SENDING THEM TO THE MAINLAND FOR THAT FINAL SORT OF PERIOD IN A FEED LOT ON GRAIN.

>>Daryl: KIND OF ASKING IS, WE PICTURE MAINLAND FEED LOTS.

IS THERE A LOT OF GRASS THAT COMING FROM MAINLAND AS WELL?

>> NO.

THERE REALLY ISN'T A LOT OF GRASS‑FED BEEF THAT COMES TO HAWAII.

FROM THE MAINLAND.

THERE IS SOME THAT COMES FROMEL NEW ZEALAND AND AUSTRALIA.

BUT ACTUALLY, I THINK MOST OF IT GRASS‑FED BEEF RAISED ON THE MAINLAND STAYS THERE.

BECAUSE THERE'S SO MUCH, LOCAL GRASS FED IS ALMOST SAY THEM TOGETHER.

KIND OF PERSON THAT WANTS TO HAVE GRASS‑FED BEEF ALSO WANTS, REALLY CARES' ABOUT THEIR LOCAL ECONOMY USUALLY AND SUPPORTING THEIR LOCAL FARMERS AND RANCHERS ISN'T A LOT OF MOVEMENT IN GRASS‑FED BEEF IN THE UNITED STATES TO HAWAII.

>>Daryl: IN YOUR RESEARCH, WHAT IS THE CHALLENGE WITH HAWAII BEEF VERSUS MAINLAND BEEF?

IS IT PURELY JUST COST SO MUCH TO OPERATE HERE.

>> HAWAII HAS HIGHER COST OF PRODUCTION FOR A VARIETY OF GOODS.

PART OF THAT IS JUST THE COST OF LAND, COST OF LABOR, COST OF ANY POWER THAT YOU MIGHT NEED.

ALSO TAX STRUCTURES.

>> IMPLEMENTED GENERAL EXCISE TAX, LATE FIFTIES, RECOGNITION AT THE TIME THAT IT WOULD INCREASE COST OF FOOD.

AND WHILE MULTIPLE OTHER STATES, WHICH TO SAY EVERY OTHER STATE BUT OURS FORWARDS SALES TAX BREAKS FOR THE VARIETY OF INPUTS FOR AGRICULTURAL OUTPUTS.

WE ONLY AFFORD EXEMPTION FOR AGRICULTURAL FUELS.

OPPORTUNITIES ACROSS THE AGRICULTURAL SYSTEM AND CATTLE INDUSTRY BEING ONE, TO LOWER THE COST OF PRODUCTION BY MODIFYING TAX SYSTEMS.

>>Daryl: IN YOUR GUYS OPERATION, WHAT IS THE BIGGEST COST FACTOR FOR YOU?

TERMS OF RAISING OF THE CATTLE?

>> LABOR AND WEED CONTROL.

I THINK YOU HAVE TO, LET ME TAGGING TO TO WHAT MICHELLE WAS SAYING.

TAG ON TO WHAT MICHELLE WAS SAYING.

ALL LAND IS NOT EQUAL.

GRASS CAN LOOK GREEN, BUT WHERE WE'RE FROM, ON THE SOUTHEAST SIDE OF THE BID ISLAND, GROUND IS HALF A MILLION YEARS NEWER THAN THAT ON THE NORTH SIDE OF THE ISLAND.

GRASS LOOKS GREEN AND ALL OUT THERE, IT'S NOT EQUAL.

YOU'RE TALKING ABOUT TAKING THESE ANIMALS FROM 400 POUNDS LIVE WEIGHT, WEANED FROM THEIR MOTHERS TO 12 TO 1300 POUNDS.

TAKES A LOT OF GROCERIES.

NOT ONLY ALL GRASS IS NOT EQUAL, TROPICAL GLASSES ARE DIFFERENT THAN YOUR CONTINENTAL GRASS.

TROPICAL GRASS THEY LIKE THAT, PUT THE NUTRITION BACK DOWN TO THE ROOT.

WHEREAS CRESTED WHEAT GRASS AND FESCUES AND CONTINENTAL TYPE GRASSES ARE REALLY GRAINS.

THEIR VALUE, NUTRITIONAL VALUE IS HELD UP IN THE LEAF.

SO EVEN THOUGH GRASS LOOKS ALL GREEN AND COULD BE GREEN OTHER SIDE OF THE FENCE, NOT ALL THE SAME.

WE CAN'T RAISE VERY MANY GRASS‑FED BEEF AT OUR PLACE AND THERE ARE SOME LOCATIONS STAY WIDE THAT CAN.

BUT NOT EVERYBODY CAN.

>>Daryl: INTERESTING QUESTION FROM VIEWER.

CALLER CALLS IN.

DO THESE CATTLE COMPANIES IN HAWAII COMPETE WITH EACH OTHER IN TERMS OF PRICE, OR THEY POOL ALL OF OUR PRODUCTS SELL TO THE MAINLAND UNDER ONE NAME COMPANY?

THAT'S A BIG TOPIC.

START OFF.

I KNOW YOU TOOK QUITE A LONG TIME TO DEVELOP YOUR CATTLE TO THE POINT AT THAT YOU DID.

IS THERE A COMPETITION AMONG RANCHERS AND DOES THAT ACTUALLY GET IN THE WAY OF HEALTHY INDUSTRY?

>> I WOULDN'T SAY THERE'S COMPETITION BETWEEN RANCHERS.

I THINK MORE WE COOPERATE A LOT MORE THAN WE COMPETE.

I MEAN, THIS IS A LITTLE BIT OF COMPETITION.

BUT I THINK WE MOSTLY ARE FACED WITH THE SAME KIND OF ISSUES.

AND WE'RE COMPETING REALLY JUST TO GET TO USE THE NATURAL RESOURCES THAT WE HAVE.

WHICH IN HAWAII, REALLY IS THE GRASS.

YEAR‑ROUND GRASS.

THAT IS OUR COMPETITIVE ADVANTAGE.

SO WE'RE ALL SORT OF REALLY COMPETING TO FIGURE OUT HOW TO USE IT THE BEST.

BUT WE'RE NOT REALLY COMPETING AGAINST EACH OTHER.

I MEAN, THERE'S A HUGE CULTURE RANCHING IN HAWAII.

ALL GO TO BRANDING AND HELP OUT DURING THE PERIOD WHEN YOU NEED A LOT OF HELP.

I WOULD SAY THAT THIS ISN'T REALLY A FACTOR OF HOW THE INDUSTRY WORKS.

BUT.

>>Daryl: LET ME MOVE ON DO I GOT A COUPLE OF QUESTIONS ABOUT THE TASTE OF GRASS‑FED BEEF.

DAN FROM WAHIAWA POINTS OUT THAT CHEF ALAN WONG DID A BLIND TASTE WITH LOCAL GRASS‑FED BEEF VERSUS MAINLAND BEEF.

CHOSE THE GRASS FED.

NO HORMONES.

TASTE BETTER.

BETTER FOUR.

TWO STRONG SELLING POINTS.

SHOULD LEGISLATORS MAY PROVIDE FUNDING TO SUSTAIN IF NOT GROW LOCAL BEEF.

GET TO THAT ALSO, GRASS GRASS‑FED BEEF IS WHO MARBLING DOESN'T TASTE GOOD.

>> TOUGH AND I WOULDN'T BUY IT.

CAN YOU RESPOND TO THAT?

YOU MENTIONED PEOPLE LIKE IT.

>> YEAH.

YOU KNOW, ALAN I WONG AND I DID TASTE TEST.

MAUNALANI HOTEL.

ROOM OF EXECUTIVES THERE.

I THINK ABOUT CLOSE TO 200 PEOPLE.

SO WE COOKED THE BEEF AND COOKED GRASS‑FED BEEF.

GROUND BEEF.

AND WE DIDN'T SEASON IT.

DIDN'T DO ANYTHING.

AND IT WAS KIND OF LIKE SURPRISING BECAUSE TEMPERATURE, EVERYTHING WAS SAME.

PLATED IT OUT.

FED IT TO THE CROWD.

GRASS‑FED BEEF AND U.S.

CHOICE BEEF FROM THE MAINLAND.

AND IT WAS 50‑50.

IT WAS 50‑50.

50 WANTED GRASS FED AND 50 WANTED CHOICE.

I WAS KIND OF SHOCKED.

AND BECAUSE GRASS FED BEEF IS ACQUIRED FLAVOR.

ONE OF THE COMMENTS THAT WAS MADE IS TENDERNESS.

SOMETHING THAT HAS A BAD STIGMA.

LOCAL BEEF.

AND SO FOR ME, IT'S VERY IMPORTANT THAT WE START TO SEE LACK, GRADE, WANT GRASS‑FED BEEF TO BECOME A PREMIERE BEEF.

GOT TO BE SOME KIND OF STANDARD I THINK.

HAS TO BE DONE.

SO THAT IMAGE STAYS THERE, YOU EAT REAL GOOD GRASS‑FED BEEF.

AMAZING.

FLAVOR AND TENDERNESS.

EAT THE GRASS‑FED BEEF KIND OF SCRAWNY, LOW GRADE BEEF AND IT WILL BE TOUGH.

THERE'S NO QUESTION ABOUT THAT.

>> GOES BACK TO RISK FACTOR THAT MICHELLE WAS TALKING ABOUT.

DRY WEATHER.

TAKE AN ANIMAL DIET OF 18% PROTEIN.

GRASS.

THEIR PLACE ESPECIALLY TRADEWIND BLOWS OFF THE OCEAN, AND WITHIN A WEEK, YOU CAN BE DEALING WITH CATTLE EATING MORE LIKE STRAW.

8% PROTEIN.

MAYBE LESS.

THAT AFFECTS THE QUALITY OF MEAT IMMEDIATELY.

IT'S TOUGH TO MANAGE.

LIKE MICHELLE WAS SAYING.

ANOTHER PART OF IT IS THE, A LITTLE BIT MORE SKILL REQUIRED IN COOKING GRASS‑FED BEEF.

I THINK CORN FED BEEF, SO UNIFORM.

KIND OF JUST, GOING TO BE THE SAME WHENEVER YOU GET IT.

BECAUSE IT'S FED ALL THE SAME THINGS.

VERSUS GRASS‑FED BEEF, IT WILL BE DIFFERENT GRASSES DIFFERENT PARTS ANIMAL.

HAVE DIFFERENT DEGREES OF TENDERNESS.

>> SO I MEAN, CAN YOU LOOK AT THAT AS A PROBLEM OR YOU CAN LOOK AT IT AS AN OPPORTUNITY.

I WAS JUST IN SEATTLE.

AMAZING RESTAURANT THERE.

NAMED BATUAU, EVERY SINGLE PIECE OF THE CARCASS UP ON A BOARD.

THEY COOK EVERY PIECE OF THE CARCASS DIFFERENTLY.

JUST KIND OF DIFFERENT WAY OF LOOK AT EATING BEEF.

IF YOU WANT IT TO BE EXTREMELY UNIFORM, PROBABLY BETTER OFF WITH YOUR CONVENTIONAL GRAIN FED BEEF.

>>Daryl: LET ME GO TO HUNTER.

SO TASTE ASIDE, SOUNDS LIKE IT'S MIXED.

NOT A FACTOR IN PREVENTING PEOPLE FROM THIS PRODUCT BEING SUCCESSFUL.

WHAT ARE THE REAL IMPEDIMENTS IN HAWAII TO THE SUCCESS OF THIS INDUSTRY?

>> SUCCESS OF THIS INDUSTRY?

WELL, I APPRECIATE YOU NOT FORCING ME TO ADJUDICATE OTHER PEOPLE'S PALLETS.

IN TERMS SUCCESS OF THE INDUSTRY, I THINK THAT THE PRIMARY COMPETITION, LOOKING IN THE EVOLUTION OF HAWAII'S I COULD SAY, DEPENDENCE UPON IMPORTED GOODS, CATTLE AND BEEF BEING ONE OF THEM, THAT COMPETITION THAT WE LARGELY FACE, WHILE THERE IS INTERNAL COMPETITION, FOR LAND ACCESS OR ACCESS TO PROCESSING FACILITIES, THAT THE BROADER SYSTEM THAT WE'RE SORT OF UP AGAINST IS IMPORTED PRODUCTS.

>> IMPORTED BEEF IS NO DIFFERENT.

THINKING BACK DO I THINK IT WAS AROUND 30'S AND 40'S.

1900, ABOUT ALL OF OUR BEEF WAS LOCALLY GROWN BY THE LATE THIRTIES EARLY FORTIES, AROUND 25%.

BY MIDCENTURY, STARTING TO TIP.

SO THINKING ABOUT WITH OUR INCREASE IN POPULATION, SIGNIFICANTLY INCREASED AMOUNT OF BEEF AT THAT WE WERE CONSUMING COULDN'T KEEP UP WITH THE DEMAND BY LOCAL SOURCES.

>>Daryl: ANALYSIS ABOUT BREAD.

ALL EATING FRESH BREAD MADE HERE UNTIL SOMEONE FIGURED OUT HOW TO FREEZE AND UNFREEZE IT.

>> YOU SHIP IT TO HAWAII AND UNDERCUT EVERYBODY ALL THE FRESH BREAD.

I WONDERED IF THERE'S SOME TECHNOLOGY ADVANCEMENT THAT CREATED THAT DYNAMIC.

I WANT TO ASK DEREK.

I GOT A COUPLE QUESTIONS HERE FOR PEOPLE.

WHY CAN'T WE, IS THERE A GOOD REASON WHY WE CAN'T FIND MORE LOCAL BEEF PRODUCTS AT OUR GROCERY STORES.

ASIDE FROM KTA, WHERE CAN I GET LOCAL BEEF, A CALLER?

I MEAN, HOW AVAILABLE IS IT TO YOU AS A RETAILER AND TO OTHER RETAILERS?

YOU PROBABLY ARE CONTACT WITH THEM.

IS THERE MORE DEMAND FOR LOCAL BEEF THAN LOCAL SUPPLIERS ARE ABLE TO GENERATE?

>> YOU KNOW, WITH AS FAR AS I KNOW, WE ALWAYS SOLD LOCAL BEEF.

THE ONLY REASON WHY WE STARTED TO BRING IN BEEF FROM THE MAINLAND, WAS BECAUSE WE HAD MAINLAND COMPETITION COMING IN.

WE ARE FORCED FOR BRING IN SOME OF MAINLAND BEEF.

BUT DURING THAT TIME, WHAT MICHELLE AND LANI SAID, LIKE EDUCATION IN COOKING.

SO I REMEMBER WRITING ONE BOOK CALLED BIG ISLAND MEAT MAGIC.

LOCAL BEEF IS GOOD IF YOU KNOW HOW TO COOK IT.

FOUR SEASONS SERVES LOCAL BEEF.

>>Daryl: I LIKE TO COOK.

WHAT IS THE TRICK?

>> PROBABLY THE WAY THEY PROCESS IT OR.

>>Daryl: IN TERMS OF COOKING.

IF I GET COOKING.

BUY MYSELF A LOCAL STEAK, HOW AM I GOING TO COOK IT?

DIFFERENT FROM A MAINLAND STEAK?

>> YOU DON'T WANT TO OVERCOOK.

VERY IMPORTANT TO NOT OVERCOOK LOCAL BEEF.

>>Daryl: BEEF THERMOMETER.

UP TO 145 DEGREES.

SHOULD I LIKE CRANK IT DOWN FEW DEGREES FOR LOCAL BEEF?

>> I WOULD GO UP.

YEAH.

HOTTER AND FASTER.

>>Daryl: OKAY.

>> THEN YOU DO THE OUTSIDE.

DON'T TRY AND EAT A ROUND, A GRASS FED ROUND AS A STEAK.

JUST GOING TO BE VERY, VERY UNHAPPY.

I THINK CONSUMERS, WE DON'T COOK ANY MORE AS A SOCIETY.

AND PEOPLE THAT DO KNOW HOW TO USE A ROUND OR CHUCK.

SO EVERYBODY THINKS OF A STEAK, AND THAT'S JUST SUCH A SMALL PERCENTAGE OF THE TOTAL CARCASS.

THAT'S ONE OF THE BIG CHALLENGES OF KEEPING MEAT HERE.

IS TOTAL UTILIZATION, YOU'RE TALKING ABOUT LOIN MEAT, RIB, SHORT LOIN AND TENDERLOIN AND NEW YORK.

SIRLOIN, ONLY 18% OF YOUR CARCASS.

I STILL GOT TO SELL THE REST.

RIGHT?

>> THAT WAS THE KEY TO HOW OUR PROGRAM STARTED.

WE USED KAWANA FOODS.

WHATEVER WE WERE LONG ON, CREATED VALUE ADDED PRODUCTS WITH IT, SO YOU KNOW YOU GOT PIPIKAULA.

USE PIPIKAULA IN POKE.

RIGHT ABOVE THE SHOULDER SOME OF THE TOP ROUNDS.

BEEN USING THAT FOR FUNDRAISERS.

>> TERIYAKI PLATES IN THE PARKING LOT.

AND YOU KNOW, YOU GRABBING THING THAT YOU'RE LONG ON, AND TRY TO DO SOME KIND OF OTHER VALUE ADDED PRODUCTS.

BECAUSE TO MAKE A MONEY, YOU GOT TO SELL WHOLE PIECE.

>> YOU CAN'T BE STUCK WITH ANYTHING.

WORST THING YOU WANT TO DO IS SELL HAMBURGER.

CHEAPEST THING THAT CAN BE UTILIZED.

NOT ANY MORE.

>> EXACTLY.

>> CHANGING.

>> PEOPLE BUYING BONE FOR PET FOOD.

>> HIGHLIGHTS THE IMPORTANCE OF WHERE A COMPANY IS SITUATED AND COMMUNITY THAT IT'S RESPONSIBLE TO OR ACCOUNTABLE TO.

>> AND THE LENGTHS IT WILL GO TO ENSURE THAT'S SUPPORTING THE PRODUCERS AND COMMUNITIES A PART OF IT.

>> YEAH.

>> WITH SUPERMARKET REVOLUTION, IN THE FIFTIES, NEW BIGGER, NATIONAL COMPANIES COMING IN.

BRINGING IN ALL OF THESE OTHER GOOD.

INCREASE OF COLD STORAGE, ALWAYS COMMENTED ON THAT SHIP DRASTICALLY SHIFTED THE LANDSCAPE OF FOOD AVAILABILITY AND COMPETITION LANDSCAPE.

THINKING CONCERTEDLY TO WHOM THESE FIRMS ARE ACCOUNTABLE TO HAS A SIGNIFICANT IMPACT FOR THE WAY THAT IS THEY ACTED IN OUR SYSTEMS AND ENDS UP ON OUR PLATE.

>> I THINK HUNTER BRINGS UP A REALLY GOOD POINT.

SOMETHING THAT IN OUR EVOLUTION, OUR RANCH, HAS BEEN REALLY IMPORTANT AND BEYOND THE MONEY PART.

WHEN WE FIRST STARTED OUT, SHIPPED ALL OF OUR CATTLE TO THE MAINLAND.

BECAUSE THAT WAS JUST THE STANDARD OPERATING PROCEDURE.

AND AT A CERTAIN POINT, MY MOTHER WAS REALLY INSPIRATION FOR THIS.

SHE REALLY WANTED TO KEEP CATTLE HERE.

AND CATTLE HERE LINED UP WITH A LOW POINT IN THE CATTLE MARKET DOES ITS THING.

LOW POINT, RANCHERS REALLY HAVE A HARD TIME MAKING MONEY HERE.

SO WHY NOT TRY SOMETHING CRAZY AND SO WE WENT INTO THE KEEPING CATTLE HERE.

GRASS FINISHING THEM.

AND JUST GET THIS AMAZING FEELING WHEN YOU CAN SEE YOUR COMMUNITY EATING THE FOOD THAT YOU PRODUCED.

YOU NEVER WANT GO BACK TO JUST SENDING IT ALL OFF.

>>Daryl: NOT MAKE YOU RICH.

>> NO.

WE DID ALL RIGHT WITH GRASS‑FED BEEF.

THAT'S BECAUSE PEOPLE WANT IT.

WE GET SUCH GREAT SUPPORT FROM OUR COMMUNITY.

SHOUT OUT THEM.

>>Daryl: HOW IS THE INDUSTRY DOING IN TERMS OF I MEAN, I KNOW THERE'S WAY MORE RANCHERS.

PARKER RANCH.

YOU'VE GOT A GOOD SIZE RANCH.

THERE'S MANY, MANY SMALL SOURCES OF CATTLE.

HOW IS THE REST OF THE FOLKS DOING WITH THE BUSINESS OF RAISING CATTLE FOR BEEF?

>> WELL, THERE'S PEOPLE THAT ARE IN THE BUSINESS OF RAISING BEEF AND THAT'S WHAT THEY DO.

MICHELLE'S FAMILY.

MY FAMILY.

AND THEN THERE'S A LOT OF PEOPLE THAT RAISE BEEF THAT'S, I DON'T EVEN LIKE THE WORD HOBBY.

PASSION.

AND THEY DO IT WELL AND THEY DO IT ON THE WEEKENDS.

BUT THEY HAVE FULL‑TIME JOBS.

AND SO THEY LOOK AT, WELL WE LOOK AT NUMBERS VERY METHODICALLY.

WE HAVE TO.

WHERE THERE'S A LOT OF SUPPLY IN THIS STATE, NATIONWIDE, PEOPLE DON'T REALLY CARE WHAT IT COSTS.

BECAUSE THEY GOT SOME PASTURE FROM GRANDMA OR WHATEVER, AND KEEPING THE GRASS DOWN AND THEY GOT 30 OR 50 COWS OUT THERE.

SO AS FAR AS PEOPLE THAT ARE WATCHING THEIR NUMBERS, WE WOULDN'T BE IN BUSINESS IF WE WEREN'T PROFITABLE.

EVERY YEAR, NO.

BUT ENOUGH YEARS THAT WE'VE BEEN THERE FOR 47.

>>Daryl: DOES THE PRICE OF LOCAL GRASS‑FED BEEF COMPETE WITH THE MAINLAND BEEF.

>> NOW, IT'S LITTLE CHEAPER.

LOWER IN PRICE THAN THE MAINLAND.

MAINLAND BEEF PRICES, SKY HIGH NOW BECAUSE OF THE TRADE FACTOR AND PRICES GONE UP.

>> SUPPLY.

>> YEAH.

>> NATIONWIDE SHORTAGE.

>> YOU KNOW, BUY LOCAL BEEF IS TO ME, SO IMPORTANT.

BECAUSE HELPS ECONOMY AND EVERYTHING ELSE.

LANI AND MICHELLE COME SHOPPING IN THE STORE.

KNOW WE SUPPORT IT.

TO YOUR QUESTION, EARLIER, HOW CAN THEY GET LOCAL BEEF IN OAHU?

MICHELLE, YOU GUYS SELL TO WHOLE FOODS.

SAFEWAY.

>> FOODLAND.

>> MY COMPETITOR BUT WE'RE ALL FRIENDS IN THE SAME BUSINESS.

THEY DO SELL LOCAL BEEF.

>>Daryl: I GOT A QUESTION FROM CLAUD, SLAUGHTERHOUSES IN HAWAII, THERE ARE BUT NOT VERY MANY.

HOW DOES THAT AFFECT THE INDUSTRY?

X NUMBER OF BRANDED OF LOCAL BEEF.

IT GETS CONFUSING SOMETIMES BECAUSE NAMES WILL CHANGE AND SO ON.

I DON'T KNOW WHO WANTS TO BITE ON THIS.

PARDON THE PUN.

YEAH, IS THE SLAUGHTERHOUSER INFRASTRUCTURE ENOUGH TO SUPPORT THE INDUSTRY?

>> WELL, I THINK RIGHT NOW, IT IS.

ALTHOUGH UNEQUALLY DISTRIBUTED.

SO THERE'S A LOT OF SLAUGHTERHOUSE CAPACITY ON OAHU.

I THINK THERE IS PRETTY GOOD SLAUGHTERHOUSE CAPACITY ON HAWAII ISLAND.

MAUI.

I THINK IN THE NOT IN SUCH A GOOD PLACE.

AND KAUAI, I'M NOT REAL UP ON IT BUT I THINK THEY COULD USE A LITTLE MORE SLAUGHTERHOUSE CAPACITY.

SO REALLY DEPENDS ON THE ISLAND.

BUT OVERALL, IN A PRETTY GOOD PLACE ACTUALLY.

AN INTERESTING THING IS WE HAVE SORT OF YOUNG PEOPLE COMING IN AND STARTING SMALL SLAUGHTERHOUSES, MODULAR/MOBILE SLAUGHTERHOUSE.

>> THAT'S REALLY EXCITING TO SEE YOUNG PEOPLE SORT OF GOING OUT AND DOING THESE INNOVATIVE THINGS WITH SLAUGHTER.

>>Daryl: DID YOU WANT TO ADD TO THAT?

>> I HAVE A COMMENT.

TALKING ABOUT MEAT, JUST IT'S LIKE THE MEAT.

I WANT TO MAKE THE DISTINCTION HERE.

BECAUSE THERE IS THE COW, COMPARE IT TO A PAPAYA COMPARE IT TO PAPAYA TREE.

PAPAYA TREE IS THE FACTORY.

MOTHER LOAD.

PAPAYA THAT WE HARVEST, THAT IS THE PRODUCT.

BUT AFTER THREE OR FOUR YEARS, THE PAPAYA TREE NEEDS TO BE CUT DOWN.

SO IN OUR INDUSTRY, YOUNG HEIFER IS GROWN.

AND SHE STARTS TO HAVE CALVES BY THE TIME SHE'S THREE.

STARTS TO BE A REALLY GOOD MOTHER COW BY THE TIME SHE'S FIVE.

BUT BY THE TIME SHE'S TEN, 11 YEARS OLD, HER PRODUCTIVITY, CALVES ARE GETTING SMALLER.

WE GO TO THE DENTIST.

THEY DON'T.

SO NO MORE TEETH.

CALF GETS SMALLER.

AT ABOUT TEN, 11 YEARS RANCHERS WILL CUT THE PAPAYA TREE DOWN.

BUT IN OUR INDUSTRY, THAT COW STILL HAS A VALUE.

THAT IS ALL OF THAT MEAT STAYS HERE.

THAT IS THE GRIND THAT YOU'RE EATING WITH YOU GO TO KTA, NOW IT'S SAFEWAY.

FOODLAND.

IT'S THE ANIMAL THAT IS PASSED PRODUCTIVE LIFE BUT STILL VERY GOOD MEAT.

DELICIOUS.

OLDER ANIMAL, THE MORE FLAVOR IT REALLY HAS.

>>Daryl: TALK ABOUT PEOPLE TOO.

>> YEAH.

AS OPPOSED TO WHAT WE TALK ABOUT GRASS‑FED BEEF.

NOW, GRASS‑FED BEEF WE'RE TALKING ABOUT THAT PRODUCT, PAPAYA, IT'S NOT FULLY MATURE YET.

THAT COW HAS THAT CALF AND SHE CAN RAISE IT UP TO SAY 4 OR 500 POUNDS.

NOW, WHERE DOES IT GO?

NOW WE'RE TALKING ABOUT GRASS FED SEGMENT.

I WANT TO MAKE THAT DISTINCTION.

RIGHT IN THE BEGINNING.

YOU GOT THE COW CALF PRODUCER.

AND NOW HANDS OVER THAT 400‑POUND ANIMAL TO SOMEONE LIKE MICHELLE.

THAT GOT THE GRASS.

CAN TAKE THEM, NOT GOING TO BUY MY COWS, CALVES SHE'S GOT HER OWN.

BUT THAT SECTION OF THE INDUSTRY IS GOING TO TAKE THAT ANIMAL FROM 4 TO 12.

IF YOU LEAVE THEM IN THE STATE.

>> AND THAT IS A DIFFERENT QUALITY OF BEEF THAN WHAT WE'RE TALKING ABOUT.

SO TO ME, THERE'S QUITE A BIT OF LOCAL GROUND MEAT STATEWIDE.

AND THAT IS WHERE IT'S COMING FROM.

>>Daryl: IS THAT WHERE MOST OF THE MONEY IS TO BE MADE?

>> WELL, THERE'S A LOT OF COWS OUT THERE.

EVEN DAIRY COWS, AND COWS, PART OF THE BOTTOM LINE THERE.

AND I THINK HOPEFULLY, STATE USES THOSE THINGS, GROUND BEEF IN THEIR, INSTEAD OF IMPORTED IT FROM THE MAINLAND.

IS THIS WHAT WE'RE TALKING ABOUT?

>> WE'VE BEEN SHORT ON SLAUGHTER CAPACITY UNTIL THE LAST FEW YEARS.

>> WE SHOULD BE USING OUR OWN.

>>Daryl: GROUND BEEF?

>> WELL, TRY TO DO THE COWS INTO WHERE THEY CAN BE HARVESTED.

>>Daryl: I DID A STORY HAWAII NEWS NOW ABOUT THE BEEF INDUSTRY.

NO SIMPLE ANSWER TO A SIMPLE QUESTION.

IT'S VERY COMPLICATED.

ONE THE THINGS THAT STRUCK ME IS HOW MUCH CATTLE MOVE AROUND IN COURSE OF THEIR LIFE IN HAWAII.

GET TO A CERTAIN POINT WHERE MOST OF THEM ARE STILL BEING SHIPPED OUT AS YEARLINGS TO THE MAINLAND FINISHING.

ONES THAT STAY, MOVE THEM FROM ONE PASTURE TO ANOTHER.

WHEN YOU WANT TO GET THEM PROCESSED.

>> SEND ANOTHER ISLAND.

>> MANY OF THEM SLAUGHTERHOUSE AT KAPOLEI WAS MULTIPLE TIMES BIGGER THAN NEEDED TO BE FOR THE CURRENT TIME.

SO IS THERE GROWTH POTENTIAL HERE?

HOW MUCH POTENTIAL IS THERE FOR US GETTING BACK TO THE ORIGINAL QUESTION OF THIS SHOW, CAN WE EVER REALLY HOPE TO BE UP AND UP OR SURPASS MAINLAND BEEF?

WHAT DO YOU THINK ABOUT THAT QUESTION?

>> I MEAN, I THINK EXPANSION OF PROCESSING CAPACITY IS CERTAINLY AFFORDS OPPORTUNITY FOR EXPANSION OF THE INDUSTRY OVERALL.

BUT IT ALSO I THINK, BEGS OF QUESTION OF WHAT IS GOING TO FILL THAT CAPACITY IN THE MEANTIME?

IF OUR PRODUCTION IS NOT AT THE EXTENT IT'S CURRENTLY NEEDED TO MAINTAIN OPERATIONS.

CENTRALIZATION OF PROCESSING CAPACITY ON OAHU IS SOMETHING THAT HAS BEEN NOTED ACROSS INDUSTRY FOR LONGER THAN I'VE BEEN AROUND.

PROBABLY DOUBLE THAT.

KIND OF DOUBLING DOWN ON THAT APPROACH AS OPPOSED TO SOMETHING THAT MIGHT BE MORE DIVERSIFIED.

>>Daryl: TALKING ABOUT.

>> SMALL GUYS OPERATING MULTIPLE PLACES.

>> SOMETHING THAT'S TAILORED FOR A GIVEN ISLAND SO IT'S NOT REQUIRING ADDITIONAL TRANSPORTATION ADDS ADDITIONAL COST.

>>Daryl: LET ME GO THROUGH SOME QUESTIONS.

KIND OF GETTING TO THE STAGE WHERE WE GOT TO ASK WHAT IS IT GOING TO TAKE TO MOVE TO THE NEXT LEVEL.

I MEAN, THERE'S QUESTION WAS HOW MUCH RED TAPE DOES, HOW MUCH WHERE DO IT GO?

WANTED THIS PERSON'S NAME.

GOOD QUESTION.

HOW MUCH RED TAPE DOES IT TAKE TO GET BEEF TO MARKET IN HAWAII?

IS IT TREMENDOUSLY MORE DIFFICULT THAN ON THE MAINLAND?

MICHELLE, DO YOU A SENSE OF THAT.

>> WOULDN'T SAY IT'S A MATTER OF RED TAPE.

TO BUILD A SLAUGHTERHOUSE IS IMMENSE AMOUNT OF RED TAPE.

REGULAR.

>>Daryl: FEDERAL AND STATE RED TAPE.

>> RIGHT.

A LOT OF MONEY.

TOP RATED AS RANCHERS, I WOULDN'T SAY RED TAPE IS THE ISSUE.

PROCESSING FACILITIES ARE IMPORTANT.

>> I WOULD START WITH THE LAND.

BECAUSE YOU EITHER GOT TO HAVE TWICE AS EVERYBODY LAND OR HALF AS MANY COWS TAKES TWICE AS LONG.

I DON'T KNOW WHAT YOU FOLKS ARE DOING.

YOU'RE TURNING INVENTORY, TAKING THAT 4 WEIGHT TO 1200 POUNDS IN 11 OR 12 MONTHS, ON THE MAINLAND, VERSUS 24 MAYBE HERE.

>>Daryl: SO ON THAT POINT, IS THERE ENOUGH LAND TO EXPAND THE INDUSTRY?

>>I DON'T THINK SO.

>> YOU DON'T THINK SO.

>>Daryl: TO MEET LOCAL DEMAND.

>> DON'T THINK SO.

>>Daryl: THAT'S A PRETTY BIG LIMITING FACTOR, I WOULD SAY.

>>Daryl: WE CAN GROW SWEET CORN IN HAWAII.

WHY CAN'T WE GROW GRAIN CORN?

MAYBE WE SHOULD GROW GRAIN CORN IN FEED LOT SITUATIONS.

THEN I START RUNNING INTO ENVIRONMENTAL ISSUES THAT PEOPLE DON'T LIKE TO DEAL WITH HERE.

SHOULD WE BE SUPPORTING OUR INDUSTRY WITH GRAIN?

>> YOU KNOW, AT ONE POINT, BIOGENIC OPERATION IN KOHALA, I THINK RAISING THEIR OWN FEED CORN.

AND VISITED THE PLACE SEVERAL TIMES IN THE PAST.

>> THIS WAS LIKE 20, 30 YEARS AGO.

I THINK 40 YEARS AGO.

DATING MYSELF.

I THINK 3, 4, 5 YEARS, NO LONGER THERE.

SO IT WAS AN AMAZING OPERATION.

>>Daryl: PEOPLE WILL TRY SOMETHING INNOVATIVE AND LOOKS LIKE IT'S GOING TO BE SUCCESSFUL, THEN IT JUST FADES AWAY.

>> FADED WAY.

>> HAVE TO PAY ATTENTION TO YOUR COST.

>>Daryl: YEAH.

>> ANOTHER FACTOR WAS HAPPENING HERE IN THE INDUSTRY, WE LACK LABOR.

BOTH SLAUGHTER FACILITIES, RETAIL, MEAT SHOPS AND EVERYTHING, I MEAN WE LACK LABOR.

I GUESS NOBODY WANTS TO WORK.

COLD ROOM AND HARD WORK AND WE NEED TO IMPROVE LABOR SITUATION, A LOT OF BOTTLENECKS IN SLAUGHTER FACILITIES.

I DON'T THINK THEY HAVE ENOUGH LABOR ALSO.

>>Daryl: OF COURSE.

OKAY, SO SEEMS LIKE, THIS IS MYRON IN KA'U, CHANGE IN ATTITUDE NEEDED.

SUPPORT LOCAL BEEF AND THE INDUSTRY WILL GROW CREATING MORE JOBS, IF PEOPLE WERE THERE TO FILL THEM.

KEEP OUR MONEY HERE INSTEAD OF SUPPORTING COMPANIES THOUSANDS MILES FROM HERE.

MAY HAVE TO PAY A LITTLE BIT MORE TO BE SUSTAINABLE BUT IT'S WORTH IT.

SOUNDS LIKE PRICE AT THE PUMP OR PRICE AT THE STORE IS NOT OUR ISSUE.

IT'S EXPANDING GOOD PRODUCTS AND GETTING GOOD PRODUCTS GROWN AND PROCESSED.

IS THAT WHERE WE'RE AT?

>> PRODUCTION ISSUE.

FOR ME, I CAN'T DO THAT.

RISK ISSUE.

MICHELLE BROUGHT UP IN THE BEGINNING, ONE OF MY TOPICS.

LAST NIGHT, ON HAWAII NEWS NOW, DID YOU SEE THE MAP OF THE STATE OF HAWAII AND THE DROUGHT SITUATION?

IT'S STATEWIDE.

ONCE YOU MAKE A COMMITMENT TO KEEP THAT ANIMAL HERE, THAT'S IT.

YOU HIT A DROUGHT.

>> SLAUGHTERHOUSE ISN'T HAPPY WITH ANIMALS THAT AREN'T 1200 POUNDS.

TEN, A THOUSAND, THAT HURTS THEIR PRODUCTIVE, THEIR COST.

SO IT'S A DOMINO EFFECT.

>> I THINK THE QUESTION THAT YOU ASKED FOR THIS SHOW IS CAN WE HAVE A VIABLE BEEF INDUSTRY, AND I WOULD SAY, WE HAVE HAD A VIABLE INDUSTRY FOR 160, 170 YEARS AND I THINK WE WILL CONTINUE TO HAVE A VIABLE BEEF INDUSTRY.

WILL WE BE COMPLETELY ‑‑ I DON'T THINK WE'LL BE FEEDING, NOT IMPORTING, WE WILL CONTINUE, WE WILL NOT.

IT GOES BOTH WAYS.

I THINK PEOPLE NEED TO SUPPORT INDUSTRY THAT IS THERE.

AND IT MIGHT GROW A LITTLE.

BUT IT WILL NEVER GET TO 100% OF BECAUSE 50% OF PEOPLE WANT CORN FED BEEF ANYWAY.

YES.

>> 100% SELF‑SUFFICIENCY ISN'T NECESSARILY SORT OF RESILIENT SYSTEM FOR FOOD PROVISIONING OVERALL.

>>Daryl: WE'RE 100%, DEPENDENT ON TOURISM.

LOOK WHERE IT'S GOTTEN US.

>> KEEP INDUSTRY STAYS PROFITABLE AND CAN STAY IN BUSINESS, I JUST WANT TO REFLECT ON THE MISSILE SCARE BACK IN 2018.

I DON'T KNOW WHAT YOU GUYS WERE THINKING ABOUT THAT 40 MINUTES, WAS VERY TIME‑CONSUMING.

WOW, BECAUSE SOME OF OUR FAMILIES LIVED THROUGH PEARL HARBOR.

MY PARENTS BOTH DID.

SO IT WAS A VERY HUMBLING 40 MINUTES.

BUT MY HUSBAND AND I SAT DOWN AND FIGURED OUT WHAT WE COULD DO TO FEED OUR COMMUNITY VERY QUICKLY BECAUSE WE HAD A WHOLE BUNCH OF ‑‑ WE HAD 750 OF THOSE FIVE WEIGHT CALVES THAT ARE BEAUTIFUL EATING.

ARE THEY THE MOST UTILIZING THEIR GROWTH POTENTIAL?

NO.

BUT IN AN EMERGENCY, ALL MEAT WAS HERE.

ONE OF THE THINGS, I"M VICE PRESIDENT THE CATTLEMEN'S COUNCIL, VERY CONCERNED ABOUT OUR INDUSTRY GETTING AHEAD OF THE 8 BALL BECAUSE I THINK WE LEARNED A GOOD LESSON DURING 2018.

GET AHEAD OF THE 8 BALL SO THAT WE CAN HAVE A SUPPLY IN AN EMERGENCY THAT GETS TO DEREK'S STORE.

>>Daryl: HEALTHY INDUSTRY DOESN'T NECESSARILY HAVE TO BE WIPES OUT COMPETITION FROM THE MAINLAND.

IT COULD BE PART OF A BALANCING ACT.

QUICKLY, COUPLE OF QUESTIONS.

GEORGE ON MAUI SAYS, MAUI NEEDS STATE‑OPERATED, OWNED SLAUGHTERHOUSE SO CATTLE WON'T NEED TO BE SHIPPED OFF ISLAND.

HAS THE STATE BEEN A HELP OR HINDRANCE IN TERMS OF DEVELOPMENT AND GROWTH OF LOCAL BEEF INDUSTRY?

WE TALKED ABOUT HOW WE GOT EXCESS PROCESSING CAPABILITY ON OAHU, ABOUT RIGHT ON THE BIG ISLAND, BUT YOU DON'T THINK IT'S ABOUT RIGHT ON THE BIG ISLAND?

>> NO.

NEED A LOT MORE PROCESSING SLAUGHTER CAPACITY ON THE BIG ISLAND.

>>Daryl: OKAY.

BUT MAUI HAS VERY LITTLE SLAUGHTER CAPACITY.

SO THE QUESTION OVERALL IS, WHAT IS THE ROLE OF THE STATE IN AT LEAST HELPING GROW THE INDUSTRY A LITTLE BIT MORE?

>> WELL, WE PREVIOUSLY HAD A STATE MEAT INSPECTION PROGRAM THAT HELPED AT LEAST COVER SOME OF THE COST THAT ARE NOW BORNE BY OPERATORS THAT NEED TO BE, OR RATHER, OVERSEERS NEED TO BE BROUGHT IN THROUGH USDA PROCESSES.

THAT'S ONE OPPORTUNITY FOR THE STATE TO PONY UP AND MECHANISM THAT COULD HELP LOWER THE COST OF WHAT ENDS UP ON THE PLATE.

>> FARM‑TO‑SCHOOL PROGRAM.

I THINK MAUI CATTLE COMPANY HAD A HECK OF A TIME WITH THAT.

GOT THE CONTRACT AND THEN I DON'T KNOW ALL THE PARTICULARS BUT, YEAH, THINGS LIKE THE FARM‑TO‑SCHOOL REALLY HELPS.

>> HAVING A DEMAND THERE.

>> I THINK IMPORTANT FOR THE STATE PURCHASING GOAL THAT WE'VE ESTABLISHED FOR OURSELVES, INCREASE THE QUOTIENT THAT WE ARE CONSUMING LOCALLY, PRODUCED LOCALLY, IS LAUDABLE.

BUT YOU THINK WE ALSO NEED TO BE VERY PARTICULAR ABOUT WHAT WE'RE ACTUALLY PROVIDENCE WHAT WE'RE CONSUMING.

>> AS IT'S WRITTEN, 51% STANDARD DOESN'T ACTUALLY SPECIFY 51% STANDARD FOR GOODS THAT QUALIFY FOR THE REPORTING BY STATE DEPARTMENTS ABOUT HOW MUCH THE QUOTIENT OF LOCAL GOODS THAT THEY'RE PURCHASING OVER FROM TOTAL FOOD PURCHASE.

SO CURRENTLY, YOU COULD ADD COST OF PROCESSING INTO THAT.

OR EVEN HAVE OTHER NONLOCAL GOODS INCORPORATED INTO VALUE‑ADDED PRODUCTS THAT ARE CONSIDERED PART OF THAT 51%.

SO I THINK IT'S IMPORTANT TO REALLY SET A STANDARD PARTICULARLY FOR SINGLE PRODUCTIONS.

SINGLE PRODUCTS, SINGLE‑INGREDIENT PRODUCTS, TO ENSURE WE SAY LOCAL BEEF, SOLELY LOCAL BEEF IN THE WAY WE WOULD EXPECT ABOUT BUYING A LOCAL CARROT.

IT'S A LOCAL CARROT.

MECHANISMS THAT ARE PROVIDING FOR OUR SCHOOL FOOD PROGRAMS AND OTHERS IDEALLY MORESO THE FUTURE.

>> DON'T NECESSARILY HAVE THOSE STANDARDS.

YOU SEE BOTH SIDES, CUSTOMER SIDE, FROM THE RETAIL SIDE.

WE ALL DO A LITTLE BIT.

YOU'RE IN THE MIDDLE OF IT.

WHAT WOULD YOUR ADVICE BE TO THE STATE, INDUSTRY, OTHER STORES, ABOUT HOW TO MAKE THIS INDUSTRY GROW AT LEAST SOME AND CONTINUE GROW?

>> I'M GLAD YOU ASKED ME THAT QUESTION.

I'VE BEEN THINKING ABOUT IT FOR QUITE SOME TIME.

THROUGH ALL OF MY EXPERIENCES, I'VE KIND OF LEARNED A LOT.

ONE OF THE THINGS THAT I THINK IS GOING TO BE REALLY IMPORTANT IS THAT WE GOT TO CREATE ONE STANDARD, ONE LOCAL BEEF STANDARD, SO THAT THE MEAT IS CONSISTENT.

SO MUCH INCONSISTENCY.

WHAT LANI WOULD BRING, MICHELLE WOULD BRING, MIGHT BE GREAT BEEF.

MIGHT HAVE BEEF COMING FROM OTHER PLACES.

BECAUSE OF DROUGHT, GRASS IS BAD.

THERE'S NO STANDARD.

>>Daryl: LET ME INTERRUPT.

PROCESS WE'RE TALKING ABOUT HERE.

FROM WHAT I UNDERSTAND, THE PROCESSING PLANT, THEY CAN MAKE HAMBURGER 30% FAT OR 5 OR 10% FAT.

THEY COULD BLEND DIFFERENT THINGS.

WOULD THAT BE WHERE THE STANDARD WOULD HAVE TO BE MET, >>I'M NOT TALKING ABOUT GROUND BEEF.

GROUND BEEF TENDER ANYWAY.

I'M TALKING ABOUT STEAKS.

I THINK THAT'S WHY WHEN THERE'S ALL KIND OF COMPLAINTS ABOUT BEEF, IT'S NOT TENDER.

>>Daryl: GET ONE BAD ONE, MAKE UP YOUR CONCLUSION.

>> PRIME.

THERE'S CHOICE.

THERE'S DIFFERENT GRADES, AND I THINK GRADING SYSTEM MIGHT BE PART OF THE SOLUTION.

BUT I THINK WHAT ALSO GOT TO HAPPEN.

STATE COULD HELP A LITTLE BIT MORE VALUE‑ADDED PRODUCT COMING OUT OF THE CATTLE INDUSTRY.

WHEN YOU DO VALUE‑ADDED PRODUCTS, YOU COULD GET THE BEEF AND SHIP IT OUTSIDE AND ALSO EXPORT IT.

>>Daryl: GIVE ME SOME EXAMPLES OF VALUE‑ADDED PRODUCTS.

>> MAYBE LET'S SAY CORN BEEF.

CORN BEEF IS VALUE‑ADDED.

PIPIKAULA IS VALUE‑ADDED, MAKE TENDER PALEO BEEF OVER THE FIRE.

CREATE VALUE‑ADDED.

TEXAS BRISKET.

REALLY, WE SHOULD DO STUFF LIKE THAT HERE.

CREATE MORE VALUE‑ADDED PRODUCTS SO WE'RE ABLE TO SHIP IT ALL OVER THE WORLD.

HAWAII IS A SPECIAL BRAND.

THEY KNOW WHATEVER YOU BUY FROM HAWAII, THE PRODUCTS; GOING TO BE CLEAN, TENDER, AND BEAUTIFUL WEATHER.

SO MORE VALUE‑ADDED ITEMS, AND I THINK BETTER GRADING SYSTEM.

SO THE HIGH‑QUALITY BEEF CAN BE SOLD IN THE MARKET AND LOWER‑QUALITY BEEF AND THOSE OTHER NONTENDER CUTS CAN BE USED FOR VALUE‑ADDED PRODUCT.

>>Daryl: OKAY.

INTERESTING.

MET ME ASK LANI.

LET ME ASK LANI THIS QUESTION.

DOES THAT WORK FROM THE PERSPECTIVE OF A RANCHER, THIS GRADING SYSTEM?

THAT WOULD BE AT THE PROCESSING PLANT ABC, IS THAT OKAY?

DOES THAT WORK FOR YOU FOLKS?

>> COULD I JUMP IN HERE?

ACTUALLY, MORE OF A ME QUESTION.

>>Daryl: I'M SORRY.

THERE'S NO SIMPLE ANSWER TO A SIMPLE QUESTION.

>> YEAH.

I THINK SOMETHING THAT IS WORKED REALLY WELL WITH WHOLE FOODS THAT WE WORK WITH WITH GRASS‑FED BEEF, IS THAT THEY GIVE US PARAMETERS.

THEY'RE PRETTY SIMPLE PARAMETERS AT LEAST ON PAPER.

TO ACTUALLY GET THEM IN PRACTICE AS A RANCHER, NOT SIMPLE.

BUT THEY GIVE US AN AGE LIMIT AND A WEIGHT.

SORT OF BOTTOM LIMIT.

UPPER LIMIT ON THE AGE OF THE CATTLE BECAUSE CATTLE BECOMES TASTIER AS IT GETS OLDER, BUT TOUGHER.

MEET THE AGE LIMIT AND MEAT HAS TO BE BIGGER THAN A CERTAIN SIZE.

SO BETWEEN, IT'S A PRETTY SIMPLE STANDARD.

IT REALLY DOES HOLD OUR FEET TO THE FIRE TO GET A QUALITY ANIMAL OUT THERE.

>>Daryl: I GUESS INSTRUCTS THE RANCHER THIS IS WHAT YOU NEED TO DO TO GET THIS TO THIS LEVEL?

>> RIGHT.

THE OTHER THING, VALUE‑ADDED, AS HE'S TALKING ABOUT, CAN BE AS SIMPLE AS VACUUM PACKING.

YOU CAN TAKE AN ANIMAL, MAYBE LESSER QUALITY, AND CRYOVAC IT LEAVE, IT FOR 4 WEEKS.

>> TOTALLY DIFFERENT CUTABILITY.

DRY AGE, WET AGE.

SAME THING.

I MEAN, THEY'RE DIFFERENT.

THE PROCESS OF BREAKING DOWN THE PROTEINS IS WHAT YOU'RE TRYING TO DO.

>>Daryl: ACTUALLY VERY INTERESTING.

SO WHEN WE TALK ABOUT VALUE‑ADDED, GENERALLY SPEAKING, ANOTHER COMPANY OR ANOTHER INDIVIDUAL ENTREPRENEUR THAT RISES UP AND SAYS, OKAY, I'M GOING TO DEVELOP A PACKET, GOING TO VACUUM‑SEAL STUFF, MAKE CORN BEEF.

SO WHERE ARE THOSE ENTREPRENEURS AND HOW DO YOU GET THEM INTO THE SYSTEM?

>> WE ACTUALLY HAVE THEM ON A VERY SMALL SCALE.

THERE'S FOLKS THAT ARE DOING BEEF JERKY AND BRANDING IT.

AND AS DEREK WAS SAYING, THAT HAWAII BRAND JUST HAS A LOT OF CACHE, LOCAL FOLKS WANT TO BUY HAWAII PRODUCTS.

MUCH LESS TOURISTS WANTING TO TAKE IT HOME.

THERE IS A LOT OF OPPORTUNITY FOR A VIABLE BEEF INDUSTRY IN THAT SORT OF SEGMENT, VALUE‑ADDED.

>>Daryl: INTERESTING.

>> LEEWARD COMMUNITY COLLEGE, THANKS TO THE STATE, STATE PUT IN 20‑SOMETHING MILLION DOLLARS.

THEY DO HAVE LIKE A VALUED‑ADDED CENTER, IT'S NOT OPEN YET, BUT ALMOST GOING TO OPEN RUN BY LEEWARD COMMUNITY COLLEGE UP IN WAHIAWA AND HELP AGRICULTURE CREATE MORE VALUE‑ADDED PRODUCTS.

THAT MIGHT BE PART OF THE SOLUTION BECAUSE IT'S EDUCATIONAL BASED.

STUDENTS WILL BE RUNNING DIFFERENT TASKS, AND IF YOU WANT TO MAKE ONE PIPIKAULA OR MAKE A CORN BEEF PIPIKOLA OR CORN BEEF, THERE'S A PLACE TO DO IT.

>>Daryl: COMES TO SOMETHING LIKE THAT, POTENTIAL NICHE PRODUCTS.

THAT PARTICULAR INDUSTRY, DOES IT TAKE SUPPORT OR GOVERNMENT, OR JUST TAKE INNOVATION AND ENTREPRENEURISM AND SOME LEVEL OF INVESTMENT?

>> I MEAN VALUE‑ADDED AS MARKET DIVERSIFICATION APPROACH IS PRACTICED BY PRODUCERS OF ALL KINDS OF GOODS.

>>Daryl: FIGURE IT OUT THEMSELVES.

>> FIGURE OUT THEMSELVES, BUT ALSO MAY BE THIRD PARTIES THAT ARE TAKING THAT... >> RISK.

>> PRODUCT, AND MAY TAKE ON THAT RISK AS WELL.

I THINK SOME OF OUR, NOT NECESSARILY APPLICABLE WHEN YOU'RE TALKING ABOUT MEAT AND CONCERNS THERE.

COTTAGE INDUSTRY AND FOOD ALLOWANCE AND MAKE SURE STANDARDS ENABLE SOME OF THAT INDUSTRY TO DEVELOP.

PART OF THE BENEFIT OF EXPANDING THE INDUSTRY AND MECHANISMS THAT IT HAS TO DISTRIBUTE BOTH LOCALLY, AND THERE'S MENTION OF EXPORT INCREASES OPPORTUNITY FOR PRODUCTION LOCALLY TO INCREASE OVERALL.

>>Daryl: SEVERAL QUESTIONS HERE.

WE DON'T HAVE A LOT OF TIME LEFT.

PROBABLY SHOULD HAVE DONE THIS EARLIER.

GETTING QUESTIONS ABOUT SORT OF ENVIRONMENTAL IMPACT OF THE INDUSTRY.

MAINLAND, GIANT FEED LOTS A LOT OF CONCERN ABOUT ENVIRONMENTAL IMPACT HERE.

ONE QUESTION WE HAVE, HOW WOULD EXPANDING OR DEVELOPING BEEF INDUSTRY BE IN COMPLIANCE WITH CLIMATE CHANGE OBJECTIVES FOR HAWAII?

THEN SOMEBODY ASKS MICHELLE, HOW ENVIRONMENTALLY FRIENDLY OR GOOD FOR THE ENVIRONMENT IS THIS INDUSTRY, GRASS‑FED BEEF INDUSTRY?

>> WELL, I WOULD SAY GRASS‑FED BEEF IS ALL KINDS OF BEEF THAT YOU COULD HAVE PROBABLY THE MOST ENVIRONMENTALLY FRIENDLY BECAUSE THEY'RE EATING GRASS AND THAT, WELL, ONE, NOT SORT OF TAKING CORN AWAY FROM PEOPLE EATING IT.

CATTLE HAVE THIS WONDERFUL ABILITY TO DIGEST CELLULOSE AND MAKE MEAT.

I THINK IT'S ACTUALLY A GREAT PRODUCT IN THAT WAY.

AND THEY ALSO, ANOTHER REALLY GREAT THING ABOUT CATTLE IS THAT THEY KEEP FUEL LOADS DOWN, WHICH I THINK WE'VE BECOME MUCH MORE SENSITIVE TO THAT.

>>Daryl: WHAT DOES THAT MEAN?

>> KEEPING GRASS.

HAD SOME TALK ABOUT GRASS GROWS LIKE CRAZY.

>> YES.

I WAS ASKED THAT QUESTION ONCE IN A FORUM WITH VEGETARIANS.

AND I TOLD THEM, YOU KNOW, GRASS‑FED BEEF IS WAY BETTER THAN GRAIN FED.

THEY WERE TALKING ABOUT METHANE GAS.

GO THROUGH LANI'S PASTURE, MICHELLE'S PASTURE, NICE GREENERY.

GOT TREES.

ABSORB ALL THE METHANE GAS THAT COME US OFF THE CATTLE.

THERE'S A GREAT CORRELATION WITH THE ENVIRONMENT IN HAWAII THAT WITH TREES AND THE GRASS, ABSORBING METHANE GAS.

I MEAN, LOCAL BEEF, I MEAN, I THINK IS VERY ENVIRONMENTALLY SOUND.

>> I AGREE.

ANOTHER THING I WANTED TO BRING UP IS THERE'S AMAZING COMPANY CALLED SYMBOSIA GRADING, SEAWEED FED TO THE CATTLE WHICH CUTS METHANE.

GOING TO BE LIKE GREAT ON THE CLIMATE CHANGE PERSPECTIVE.

IT'S ALSO IMPORTANT TO CONSIDER WHAT THE EFFECTS WILL BE TO THE INDUSTRY AND TO GRAZERS THEMSELVES.

>> WE KNOW THAT CLIMATE ENVELOPE OR PRODUCTION OF GRASSES IS LIKELY TO SHIFT AS WE SEE TEMPERATURES CHANGE, AS WE SEE PRECIPITATION RATES CHANGE.

IT'S NOT INCONCEIVABLE TO PROJECT A FUTURE WE'RE IN, CURRENT PATTERN OF GRAZING IS LIKELY TO NEED TO SHIFT FOR SOME OPERATIONS TO CONTINUE.

AS WE THINK, AS I THINK WE SHOULD, THINK THROUGH THE STEPS TO MAKE THOSE TRANSITIONS, I THINK IT'S IMPORTANT TO BE CONSIDERING THE MANIFOLD MULTIBENEFITS OF GOOD LAND MANAGEMENT THAT GRAZERS AND RANCHING OPERATIONS CAN BE A KEY PART OF IT FOR MANAGEMENT NOT JUST CATTLE, FIRE BREAKS, HYDROLOGICAL FUNCTION, ENSURE WE HAVE A DIVERSE AGROBIODIVERSE LANDSCAPE THAT WILL BE ABLE TO PROVIDE MORE THAN JUST CALORIES THAT WE MIGHT EXPECT FROM IT NOW.

>> INNOVATIVE IDEAS IS MIXING TREES AND PASTURES.

>> AND BEEF.

>>Daryl: WHAT DO YOU THINK ABOUT HOW THE PASTURES LOOK?

BEAUTIFUL UNTIL IT GETS REALLY DRY.

>> YOU'RE DOING SILVER PASTURING YOUR PLACE.

>> IN CONJUNCTION WITH HUHONUA.

YEAH.

WE DO.

WE RAISE THE EUCALYPTUS TREES.

>>Daryl: OVERALL, JUST LET ME GO TO ROUND US OUT HERE.

WHAT IS YOUR HOPE FOR WHAT THIS INDUSTRY COULD BE FOR CONSUMERS IN TERMS OF THE FUTURE?

WHAT IS YOUR HOPE?

>> YOU KNOW, FOR US, WE ALWAYS WANT TO SUPPORT LOCAL REGARDLESS OF WHAT IT IS.

ESPECIALLY LOCAL AGRICULTURE.

YOU KNOW, IN ORDER FOR US TO BE FOOD SUSTAINABLE HERE IN THE ISLAND, WE NEED TO HAVE LOCAL PROTEINS.

IN THE PAST, BEING BORN AND RAISED IN THE SUGAR PLANTATION, WHENEVER THERE WAS A SHIPPING STRIKE, PEOPLE PANICKED.

EVEN TODAY, NEED RICE AND TOILET PAPER.

>>Daryl: I GOT TO STOP YOU NOW.

WE'RE DONE.

MAHALO TO YOU FOR JOINING US TONIGHT, AND WE THANK OUR GUESTS HAWAII COUNTY COUNCILMEMBER MICHELLE GALIMBA AND DEREK KURISU FROM KTA SUPER STORES.

AND KAPAPALA RANCH OWNER LANI PETRIE AND HUNTER HEAIVILIN OF SUPERSISTENCE.

NO INSIGHTS NEXT WEEK, BUT WE WILL BE HAVING ANOTHER TOWN HALL DISCUSSION ON A SUBJECT THAT AFFECTS ALL RESIDENTS, AFFORDABLE HOUSING.

WE’LL FOCUS ON GOVERNOR GREEN’S CONTROVERSIAL EMERGENCY PROCLAMATION THAT SUSPENDED LAWS TO BUILD THOUSANDS OF HOMES TO HELP ADDRESS OUR HOUSING CRISIS.

JOIN US FOR KAKOU: AFFORDABLE HOUSING: AT WHAT COST?

PLEASE JOIN US THEN.

I’M DARYL HUFF FOR INSIGHTS ON PBS HAWAII.

ALOHA!

¶¶ ¶¶