Funding for an independent study of the economic impact of potential changes to Hawaii’s coffee labeling requirements is set for a vote by the state House and Senate.
House Bill 1517 CD1, the latest iteration of a measure that initially sought to set tighter limits on using Hawaii location names to sell coffee, passed a House-Senate conference committee late Friday afternoon, just making deadline for fiscal bills this session. The bill next heads for votes in the House and Senate, and, if passed by both chambers, ultimately to the governor.
The conference draft approved Friday includes $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 current draft reads. The measure also directs the study include consultation with coffee farmers, including the Hawaii Coffee Association, Kona Coffee Farmers Association, and other stakeholders in the coffee industry within Hawaii.
The study, per the bill, would be due by Jan. 1, 2024, to be considered by during the legislative session that year.
“Although I’m very disappointed that the amendments to the labeling law had to be removed at the last minute, being able to move forward with a study is still a win. For many years, those who profit by undercutting our local farmers have opposed a study of the economic impacts of Hawaii’s coffee labeling laws because they know the results will not come out in their favor,” said Rep. Nicole Lowen (D-North Kona), who was among those co-introducing the measure this legislative session.
“When the study is completed, it will remove another obstacle to finally getting the law fixed and doing the right thing,” she continued.
House Bill 1517, when introduced back in January would have prohibited using geographic origins of coffee in labeling or advertising for roasted or instant coffee that contains less than a certain percentage of coffee by weight from that geographic origin, phased in to a minimum of 51%.
Currently, state law allows distributors to use Hawaii names, such as Kona, Kauai or Ka‘u, on products that include as little as 10% of coffee from the named region.
The state law, first passed in 1991 to protect Kona coffee, was expanded to all Hawaiian grown coffee in 2001. Efforts since to increase the minimum percentage have been unsuccessful, though a measure in 2019 came close, but was deferred by its final Senate committee after being pared down to a study.
Coffee is the state’s second highest value agriculture crop, second to seed crops.
In 2021-22, the value of the 26.7 million pounds of coffee cherry produced was $60.05 million, according to a U.S. Department of Agriculture National Agricultural Statistics Service coffee report released Jan. 21. The 2021-22 value was up from $48.38 million in 2020-21 and $54.3 million in 2019-20.
Green coffee, which is beans that have been milled but not roasted, commanded $21.70 per pound, putting the value of the industry at over $113 million. Post-roast, Kona coffee sells on the Big Island around $40 to $45 per pound.
