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Kona Coffee Council vs Kona Coffee Farmers Association

The Kona Coffee Council (KCC) has come out with a strange collection of items, which do NOT support the legislation, but which purport to protect Kona Coffee. Note that the current Board of the KCC was elected (1.13.07) by 78% proxy votes, most exercised by the processors. Only 49 real live bodies empowered to vote were present at the AGM in January. Yet 226 voting persons were recorded, all but 49 being proxy votes from people mostly never yet seen.
Below is their statement, with commentary from others in italics….

Kona Coffee Council Cooperative Legislative Program – 2007

I. Require a thorough economic impact study on 1) probable economic impacts on farmers, processors and retailers, and 2) consumer reaction to increased prices, that will likely be caused by changes to current Hawaii Kona coffee blend laws before legislating any increase in the current 10% minimum blend requirement.

Studies have already been done. This is a tactic – if you want to delay legislation ask for a study and it will delay things at least a year or more. A study from 1992 by two professors at UH Manoa showed clearly that consumers feel they are being deceived by the current labeling. A study by CTAHR professors in 2004 detailed the market for Kona coffee. Anything that asks about the consumer reaction to increased prices is a fraud. The legislation does not stop blenders from producing blends with 90% foreign coffee and 10% Kona – or from charging exactly the same amount as they currently charge. It only calls for not using the name Kona on 10% blends. Blenders can continue to blend whatever they feel their customers will buy, just don't use the name Kona on a product that isn't Kona. There is no "increased price" involved here. We don't need more studies to know that "10% Kona Blends" are intended to deceive customers and damage the reputation of Kona coffee.\n \nII. Provide state funding to the State Department of Agriculture for the economic impact study. The Hawaii Coffee Association, Kona Coffee Council, Kona County Farm Bureau and the University of Hawaii support, and will be involved in, this economic impact study.\n This study should be completed within one year of funding.\nAgain, a delaying tactic. There is no funding available for market studies. The Farm Bureau has stated that they do not want a study done by the State. They also said that they had no fixed timetable in mind, and did not rule out a three-to-five year timetable for a study.

II. Provide state funding to the State Department of Agriculture for the economic impact study. The Hawaii Coffee Association, Kona Coffee Council, Kona County Farm Bureau and the University of Hawaii support, and will be involved in, this economic impact study. This study should be completed within one year of funding.

Again, a delaying tactic. There is no funding available for market studies. The Farm Bureau has stated that they do not want a study done by the State. They also said that they had no fixed timetable in mind, and did not rule out a three-to-five year timetable for a study.

III Strengthen state "Truth in Labeling" legislation to further enhance consumer awareness of blended Kona coffee, by eliminating the loophole which allows a double identity statement and requiring better description of all ingredients in the ingredient statement.\n Move toward national/federal recognition and adoption of Hawaii "Truth in Labeling" standards for Kona coffee, as many mainland USA roasters are not bound by any labeling requirements for Kona coffee and are intentionally causing consumer fraud and confusion which degrades the "Kona" coffee name.

Is the KCC seeking to legalize the deceptive use of 10% Kona Blends on the mainland as well as here in Hawaii? That is what will happen is they extend the CURRENT law to federal use. There is no way to move towards federal and international regulation until we have a State law that protects Kona Coffee. Ed Case was approached and asked to promote a federal law. He had his staff research this, and came back and told the Kona Coffee Council that until the State protected Kona Coffee, no federal law would be possible as federal law follows the State. We have to fix our own house first before we can ask for help with mainland issues.

and the worst idea yet.....

IV Encourage the Hawaii Department of Agriculture to change current rules to require all Kona coffee grown and sold (green and roasted) to the public to be certified by the state. An audit trail as to the source should be required. Poor quality coffee degrades the "Kona" coffee name. The Department of Agriculture will work with small lot Kona coffee farmers to obtain "Prime or better" certification and to minimize or exempt certification costs for the small lots.\n The Kona Coffee Council will form a special committee to work with the Department of Agriculture to come up with a suitable certification plan for the small lot farmer."

This is a ploy to make being an Estate farmer uneconomic. Estate farmers consistently win the Cupping competition. Estate farmers rely on the quality of their product to keep their customers, most of whom they know by name. Estate farmers run their business on a quality basis. Their crop is picked at premium ripeness, their processing operation is small and geared to perfection. Poor quality coffee does not come from small estates, it comes from large processers using inferior or old beans, not processing promptly, selling stale coffee in large outlets. This is a means to "punish" estate farmers for daring to ask for Kona blends to be at least 75% Kona. To force "small-lot certification" is to harm quality and freshness. Estate farmers don't like to let their coffee off the farm, as we have all had cases where our coffee went to be dry-milled, and what we got back was NOT our coffee.

Golden Chance at raising the Kona in a KONA blend

Mainly just reposting some fabulous recent work done by our Kona Coffee Farmer's Association- We have been working so hard and now it is after the blizzard of our own personal holiday order rush, so time is coming back! First off here is one of our own friendly lizards- this is a Madagascar Gold Dusted day gecko. A real beauty!

They hang out on our porch waiting for their fruit buffet:). Just fun! And they do get tame-ish.

Okay back to the hard thougthful work:


Kona Coffee Farmers Association
PO Box 5436, Kailua Kona, HI 96745 • www.konacoffeefarmers.org • info@konacoffeefarmers.org


NEW COUNTY COUNCIL RESOLVES TO
PROTECT THE INTEGRITY OF KONA COFFEE

KAILUA KONA, HAWAII, DECEMBER 20, 2006 - The first session of the new Hawaii County Council saw a historic resolution being passed by an 8-0 vote.
Resolution 18-06 to the Hawaii State Legislature to revise and clarify Hawaii Revised Statute 486-120.6, recommending that any coffee labeled "Kona Coffee Blend" shall have a minimum of 75% Kona Coffee and should be labeled accordingly.
The Resolution also requires prominent identification on any package of "Kona Coffee Blend” to include the percentage by weight of any United States-grown coffee and in the case of foreign coffee to include the country of origin and percentage by weight.
The Resolution was introduced by new Kona representative Brenda Ford, and strongly supported by North Kona Representative Angel Pilago, and South Kona/Kau representative Bob Jacobson. Also voting in favor of the resolution were Dominic Yagong, J. Yoshimoto, Donald Ikeda, Emily Naeole, and new Chairman Pete Hoffman. Stacy Higa of Hilo abstained.
Thirty seven people gave testimony in support, plus others had sent in written testimony. Testimony in support came from many individual members of the Kona Coffee Farmers Association, the Kona Coffee Council, and the Kona County Farm Bureau. The organizations that gave official testimony were the Kona Coffee Farmers Association represented by Sandra Scarr and the Hawaii Democratic organization represented by Pat Stolfa.
Four people spoke in opposition, they represented the Hawaii Coffee Company, Captain Cook Coffee Company, Greenwell Farms, and Kona Mountain Farm.
It was an emotional occasion for several of the speakers as they spoke so passionately about the integrity of Kona coffee. Issues that were raised included the economic damage being done to the Kona reputation by the Kona name being used on coffee that contains only 10% Kona and 90% foreign coffee of questionable origin. Testifiers made the point repeatedly that the legislation does not ask blenders not to blend, it simply asks them to choose a name for their blend that does not include the name of Kona.
The four processors who testified all said they feared that such legislation would cause a glut of Kona coffee. But the many cherry farmers, estate farmers, consumers, and sellers stated that Kona coffee is sold out completely every year and that they could sell far more of it than they can grow. “Farming coffee in Kona is only viable because of its high reputation and correspondingly high price”, said Ken Sheppard, former Education Chair of the Kona Coffee Council. “The flood of cheap blends using the Kona name will cause Kona to be considered a commodity coffee instead of a specialty coffee and the price will drop.”
“Kona coffee farmers will now take their case to the State legislature”, said KCFA president Cecilia Smith, “and ask for protection of the Kona name as requested by this Resolution from the Hawaii County Council. Famous agriculture products are well protected by other states – Napa and Somona Wines, Vidalia Onions, Washington apples and many more. It is time to put the same protection around one of Hawaii’s signature crops.”
The Kona Coffee Farmers Association is a volunteer, non-profit, community-based organization of coffee farmers with the mission to promote and protect the economic interests of Kona coffee farmers who grow and sell 100% Kona coffee and to seek greater legal protection of the Kona coffee name.
### End ###

That was such an exciting day!
So now our able group is mobilizing to go to the Legislature and hope righteous works overrule Big Blender Money. It is going to be a tough fight but doing nothing is the only alternative and we know where that gets you.

Wish us luck please!

aloha from Kona

Mongoose Elected to Statewide Position

Just got an email this morning that Jim Wayman, who is discussed below as a trouble maker for 100% Kona, was named the head of the statewide Hawaii Coffee Association this past weekend. Now there's a group we *only Kona* farmers don't want to belong to. Yikes...some of the interview in a Pacific Biz article ....

(the entire thing can be found here:
http://www.bizjournals.com/pacific/stories/2006/07/24/daily5.html)

'Wayman is lead executive of Hawaii Coffee Co., producer of Lion Coffee, Royal Hawaiian Coffee and several coffees branded for local chefs and hotels. As a leading producer of Kona blends, Wayman has been a focus of criticism by some Kona growers who think blends dilute the Kona brand. "I would say to them that they should follow the money," Wayman said. "I'm also the largest seller of pure Kona in the state."' barf

(You are a Kona coffee farmer because of the lifestyle and not the money. I can not think of one single Kona grower with a mortgage and without an outside job/income who can afford to just grow Kona Coffee. I can't think of one farmer. Bob was a farm manager for many years and that paid the bills.)

I was just thinking this morning that the immoral, corrupt election, held by the once esteemed Kona Coffee Council in January of 2006, where I personally saw one person with 106 proxies--marking each one the same--and later those proxies were identified as the guy's employees with no email nor physical address--anyway that very same immoral election has been allowed to slide into oblivion. The current Board of Directors on the KCC (NOT including the ones who were finishing their terms) are avoiding the elephant in the Living Room.

Giving advice and living as though nothing corrupt happened. The vote was bought!

How many of us could be in business if we were corrupt? Think of Nixon!

konacoffee

konacoffee
the latest salvo ....

Please forgive us for such a lengthy message but we felt it important that concerned Kona farmers are able to read in full the exchange between respected Kona coffee farmer Howard Conant (whose coffee is served at the White House), and blender Jim Wayman of the Hawaii Coffee Company and legislative chair of the Hawaii Coffee Association.Wayman is accusing Kona farmers of selling sub-standard coffee - one would think this a joke, seeing as he sells a 90% blend of foreign coffees with the Kona name on it, and it was a major processor counterfeiting Kona in California that instigated the certification rules in the first place, which is why the HDoA made them apply to processors OUT of the Kona region and NOT to Kona farmers who grow, process and roast in region. However it is no joke when someone as powerful, deep-pocketed and influencial as Wayman threatens an ad campaign to destroy the reputation of Kona farmers.As always, if you object to receiving our news emails, simply put remove in the subject line and reply, and you will be removed from the list.Thank you for your concern

Begin forwarded message:

From Howard Conant to Jim Wayman 5/13/06

Jim,Let's be perfectly clear. "Loophole" is defined by Webster's College Dictionary as: "A means of escape or evasion, esp. a means or opportunity of evading a law, contract , etc..." The state certification program specifically permits farms in the Kona district to roast green coffee without certification. It was not accidental that the practice is condoned by the state, and therefore is not a loophole.If there is any loophole, it is in truth in labeling, which allows blenders like yourself to put 90% uncertified, unidentified, ungraded, coffee of mysterious foreign origin in every bag of 10% Kona Coffee Blend! And you state, "I believe the consumer should be made aware if the coffee they are purchasing is not being certified. Maybe this should be incorporated into the Truth in labeling rules as well." If you are really in favor in truth in labeling, how about identifying the 90% so people can determine what blend they are buying?You have repeatedly leveled charges that certain Kona estates are roasting and selling substandard Kona coffee, implying that it is "proliferating in the market place..." to quote your words. Those unsubstantiated charges are offensive and inflammatory, and possibly false. Would you kindly either validate the charges by naming names or discontinue those provocative statements? Thank you for explaining - I now understand your relationship to Honaunau Coffee Company. But I still have a very hard time understanding how you could possibly "represent the best interests of over 300 coffee farmers..." Your ""Kona's Dirty Little Secret" ad campaign would certainly reveal your hostility to Kona coffee farmers. Their best interests would be better served if you saved the ad money and paid them a little more cherry, which probably will not happen. Buyers can never represent the best interests of sellers, never.And finally, to repeat: I am not opposed to mandatory certification. I am opposed to mandatory discrimination against small farmers, and there are over 600 of us who might resent the "minor inconvenience" that could occur with mandatory certification, and who wish to be included in the debate for the greater good of the entire Kona coffee industry.So let's limit the debate to objective facts and drop the defamatory and deceitful rhetoric. Let's try to find solutions that work for everyone.Howard ConantKona RainForest Coffee100% organic and pure Konahttp://www.konarainforestcoffee.com

Jim Wayman wrote:
Howard:
Something I want to make clear: A processing mill is operated on my property to process the cherry that I purchase directly from farmers. In the past I have contracted out the processing operation to Honaunau Coffee Company and currently contract out the mill to Captain Cook Coffee Company. However, the cherry drop off station is operation is under my control and I purchase the cherry directly from the farmers as stated in my previous e-mail. The staff at our Royal Kona Visitor Center is not involved in the cherry drop off station and would have no knowledge of its operation. So when I make the claim that I represent the best interests of over 300 coffee farmers, I believe that is an appropriate statement... For those of who claim to advocate the "Protection and Promotion of the Kona Coffee" I find it ironic that those same people could be opposed to mandatory certification of all Kona Coffee (so long as it does not place the small farmer at a financial disadvantage to the larger processors which is the position that I advocate). A number of small farmers are using this loophole in the certification law to roast and sell below grade coffees, which do not meet state certification standards. Your position tolerates and possibly advocates substandard Kona Coffee proliferating in the market place which in turn hurts the reputation of the entire industry... After the Kona Coffee scandal the current certification rules were put in place and it was a good first step. Since then Truth in Labeling rules have been enacted in Hawaii which have gone a long way to making sure the consumer is aware of what they are purchasing. A major loophole still exists in Truth in labeling rules and I am also leading the effort to have those loopholes closed. It is also the time to close the loopholes in the certification process and I call on you and your associates to support me in this effort for the good of the entire industry. Your need to ask yourself the question, would the Kona Coffee industry as a whole be better off if all coffee was certified? I believe the answer is a definite yes. You need to stop worrying about minor inconveniences to the small farmer and start supporting what is best for the industry as a whole… I am considering an advertising campaign highlighting, "Kona's Dirty Little Secret" that not all Kona Coffee is certified and therefore if it is not certified it may not be genuine Kona Coffee. I believe the consumer should be made aware if the coffee they are purchasing is not being certified. Maybe this should be incorporated into the Truth in labeling rules as well.Sincerely,Jim Wayman[Jim Wayman]

-----Original Message-----From: Howard R. Conant
"Jim,Thanks for your response to my letter to Sandra Lee Kunimoto. However, I must not have written it very clearly. I feel it is always important to deal honestly and openly with people. In my letter to Ms. Kunimoto, I tried hard to do just that, so it is difficult for me to detect "... a distorted and one sided view of this situation." To summarize and clarify, I said that I am concerned about small farmers continuing to be shut out of the green market by discriminatory (to small farmers) certification pricing practices. Then I said that Kona coffee farmers should be considered as the primary members of the Kona Coffee Industry. And finally, that I hoped the HDOA would hold well publicized public meetings in Kona to share views and information. I did not say I am against mandatory certification, under fair and equitable conditions.You have stated that you buy "...over 2,000,000 pounds of Kona coffee cherry annually directly from over 300 farmers..." at your Royal Kona "...Visitor Center and a processing mill..." I was surprised to learn that you are in the business of buying and processing cherry, so I called your visitors center. They told me they do not purchase cherry at that location or any place else, and referred me to Honaunau Coffee Company which is not an affiliate. Perhaps you meant that you purchase green from other processors which represents 2,000,000 pounds of cherry. We find it hard to construe your activities as that of a Kona Coffee processor. You are a valued customer and we appreciate your business.I understand that you are interested in the direction of the Kona coffee industry, and that you want to keep cherry prices as low as possible. To illustrate my opinion about that: General Motors Corp buys hundreds of thousands of tons of steel every year, which has not entitled them to be spokesmen for the steel industry, or allowed them to guide steel industry policy. Nor should Hawaii Coffee Company guide, direct or control the Kona coffee industry.Regarding the function of certification, while the HDOA claims that cupping is part of the process and does indeed cup the large lots, the practice of piggybacking small lots on top of large lots precludes that process. It just does not happen, and never will, especially if the volume of small lots mushrooms as a result of mandatory certification. And the implication that small Estates would pass 3x off as Kona coffee is remote. We know our customers each by their first names. They trust us as we send them coffee every month, or market to new customers via the Internet. They continue to re-order because they are satisfied with our high quality. High rates of repeat customers motivate small Estate coffee farms to deliver the highest quality possible. There may be a few "cheaters" but it was acknowledged in the 4/27 meeting that mandatory certification will not keep the crooks honest. And the estate "cheaters" will sell a very, very small fraction of one percent of Kona coffee, not enough to justify a rule change.While I realize that the April 27 meeting at Captain Cook Coffee was organized by HCA, and included some of the major processors and heads of two coffee organizations, it is a distortion to characterize the meeting as "a meeting" of the HCA, and imply that Kona coffee farmers had the opportunity to participate. Indeed, with few directors present, it was a closed meeting which shut out many who desired to sit in.Hoping for more fair, honest and equitable discussions, Howard ConantKona RainForest Coffee100% organic and pure Konahttp://www.konarainforestcoffee.comkona wrote:----------

Forwarded message ----------From: Jim Wayman Date: Apr 29, 2006 10:45 AM Subject: RE: "Mandatory Certification of Green Kona Coffee"To: kona

Howard:

As I have known you to be a reasonable man, I am surprised that you would write such a distorted and one sided view of this situation. I am not going to take the time to answer your opinions at this sitting but I would be happy to discuss this with you sometime... The one thing I will take exception to is your charge against the legitimacy of someone from my business venue taking part in shaping Kona coffee policy within the state. It is true that I am not a farmer but I do own five acres in Kona where we operate a Visitor Center and a processing mill, which purchases over 2,000,000 pounds of Kona coffee cherry annually directly from over 300 farmers. I believe that gives me a legitimate right to be concerned with issues like certification of green coffee. Every vertically integrated farmer who uses the loophole in the processing rules to sell un-graded coffee and #3's gives the entire industry a black eye. Also, certification of all green requires all green to be cupped by the DOA people to make sure it meets cupping standards. Someone like you takes meticulous care to make sure that your coffee meets or exceeds the expectations for the taste profile of Kona coffee. Can you guarantee me that everyone using the exemption not to certify his or her Kona is producing a good cup? It just seems to me that anyone who champions the cause of protecting Kona coffee would want to make sure cheating and poor quality are stamped out. Mandatory certification for all can go a long way in accomplishing this... If the cost of certification is the issue then I understand your position. The reason for the Hawaii Coffee Association meeting held on Thursday April 27, 2006 at Captain Cook Coffee was to bring together the major processors and a representative from all coffee associations within the state, to meet with the DOA to brainstorm ways in which small farmers could be treated on an financial even playing field with the large processors in terms of the cost per pound to certify Kona coffee. I hope the two representatives from the Kona Coffee Farmers Association who attended the meeting give you a favorable report on the progress made... It seems like we all want the same things and hope we can work together to get there.Best regards,Jim Wayman -----

Original Message-----From: Sent: Thursday, April 27, 2006 6:07 AMTo: : "Mandatory Certification of Green Kona Coffee"

Below is a letter I have sent to Sandra Kunimoto FYI. If you agree, please contact Sandra with your opinion alsoHoward ConantKona RainForest Coffee100% organic and pure Kona http://www.konarainforestcoffee.comApril 23, 2006Ms. Sandra Lee Kunimoto ChairpersonBoard of Agriculture1428 South King StreetHonolulu, HI 96814-2512Aloha

Ms. Kunimoto, I am a coffee farmer in Kona, with seven acres of coffee under cultivation which I work full time with my wife and one helper. We pride ourselves in striving for the highest possible quality product by performing all functions from seed germination to roasting the final product to order. It has come to my attention that a new rule has been proposed and is under consideration to require mandatory certification of Kona green coffee, even if it is not shipped from this region as green. I am only one of more than 600 Kona coffee farmers, who employ thousands of workers. While the details of the proposal have not been shared with us, I am concerned that we may not be informed of the rule and consulted before it is adopted. Upon first consideration, the rule sounds onerous to those vertically integrated Kona coffee estates that process, roast and ship their product directly to the consumer. Historically, it has always been prohibitively expensive for us to state certify green in small lots, effectively locking us out of the green market, especially for those of us who grade and create more, and smaller, lots. I have been told that a small committee of people from the "Kona Coffee Industry" has met with DOA personnel about this certification issue. We, as an industry, have often been criticized as not being able to reach consensus about Kona Coffee issues. While that may appear true on the surface, it is not in fact true. The truth is that disparate elements who are not part of the Kona coffee industry have persuaded legislators and state department staff that they are a large part of the Kona Coffee industry. However, businesses outside of Kona that do not own or lease Kona coffee land and pay the property taxes, do not cultivate Kona coffee, do not process Kona coffee, and that in fact market 90% imported foreign coffee, can not be construed as part of the Kona coffee industry! They are simply our customers. The relationship between suppliers and customers is always a tug of war. Customers want the lowest prices, and suppliers want the highest. Customers wish to corner markets for their benefit while suppliers wish to broaden their markets for stability of price and demand. To quote our State of Hawaii Constitution, from Article XI, Agriculture, section 3. "The State shall conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands." (emphasis added). While marketing of agricultural products is important, I believe the Constitution mandates the primary focus to agricultural production. For that reason, I believe the wrong voices for the Kona coffee industry have been dominant in shaping public policy, specifically marketing voices. And the right voices, those of the 600 to 700 Kona coffee farmers have not been heard or considered when shaping coffee policy. Kona coffee farmers have always been deprived a voice in Honolulu. It is thought that we are represented by the Hawaii Coffee Association, but nothing could be further from the truth. We are unable to participate in HCA meetings or contribute to its policy for a number of reasons. Dues to join HCA are $350 or $250 (it keeps changing) which most farmers simply can not afford. If HCA represented farmers and wanted our participation, it would lower dues to an affordable level. Further, HCA meetings are almost always held in Honolulu, far from the 600 plus Kona coffee farmers and entirely out of reach for us. It is clear that those who do control the HCA do not want Kona coffee farmers' participation because we do not agree with them and can not be controlled. I implore you to start considering the inclusion of the Kona coffee farmers by having well publicized informational meetings here in Kona before deciding on mandatory green coffee certification. I am not alone in wishing to provide insight on the subject. Kona coffee constitutes about two thirds of the Hawaiian coffee industry. Isn't it time we were considered as the Kona coffee industry and had a voice? Mahalo nui loa, Howard R. Conant

Kona Coffee Council

There has been a political upheaval in our small coffee world. Bob
and I, and many others, have spent years & years in promoting and
protecting the all volunteer Kona Coffee Council (KCC) and yesterday
it was taken over by a political faction of large processors and their
allies. The farmers are no longer in charge.

Yesterday was the annual KCC general meeting and the opposition got
proxies from their employees and even the employees kids:<( and just
blew us out of the water. Truthfully the member ship doubled within
the 2 weeks before the Annual Meeting. Votes were cheap at $25 each.

The Kona Coffee Council had gotten so successful that the KCC recently
got some state grants which another Honolulu based coffee group had
assumed they would get. They were part of the "allies" cited above.

IMHO the processors, who buy a lot of coffee from cherry farmers and
then sell to blenders and other coffee people, did not want to pay the
high price for cherry that they have had to pay this year so instead
of supporting the little farmers, they will be supporting themselves.
The KCC had worked for good coffee prices for the little farmer and it
was too successful Sounds kind of like something in a foreign land,
but it wasn't.

The new BOD will be in for the next 2 years. Yes, we could have done
many things differently in hindsight, like re-writing the by-laws to
say only grown-ups:) could have proxies.

It is just disheartening and many of us are really devastated, but we
will still keep farming because we love our own Kona Coffee:). Will
keep you posted if anything some how changes about the KCC.