Message from the Chairperson -...

Message from the Chairperson

It is my pleasure to present the Hawaii Department of Agriculture’s Annual Reportfor Fiscal Year 2003. This year has certainly been exciting and challenging sincemy appointment as Chairperson commenced in January 2003. The Deputy to theChairperson, Diane Ley, and I am proud to work with department administratorsand staff who are truly interested and motivated to undertake significant initiativesto help agriculture flourish in our State and improve the services provided by thedepartment.

We have made it a priority to develop stronger partnerships and there is a renewedspirit of cooperation between state and federal agencies, farmers, ranchers,educational and research institutions and others in the industries of agriculture andaquaculture. These partnerships are never more important as we all try to make thebest use of limited resources.

During FY 2003, the department’s approximately 300 staff members statewide were charged with monumentaltasks, including:

♦ monitoring of 12.5 million pieces of incoming baggage, cargo, mail parcels and 4.2 million arriving airlinepassengers; while conducting special inspections of nearly 100 percent of 670 flights from Guam toprevent the importation of the brown tree snake;

♦ conducting inspections of 300,000 imported animals, disease surveillance testing of more than 14,000livestock animals, and implementing the highly successful 5-day-or-less rabies quarantine program fordogs and cats;

♦ conducting more than 800 pesticide inspections and investigations, and treatment and removal of noxiousweeds from about 3,000 acres statewide;

♦ testing of 2,300 gasoline pumps, 1,800 taximeters, and 1,650 measuring devices for accuracy; andinspections of eggs, coffee, fruits, vegetables and other commodities;

♦ management of more than 3,600 acres of agricultural park lands, and 85 miles of irrigation systems; andalso the management of 215 agricultural loans; and

♦ promoting Hawaii products at trade shows in California, Chicago, Florida, Houston, Nevada and Japan.

As we move into the second year of this administration, I look forward to continuing implementation many of ourinitiatives, which include projects to increase marketing opportunities for various agriculture and aquacultureproducts. We are continuing our work to assist in the development of a world-class farmers’ market, increasingcollaboration with a major cruise line to showcase Hawaii-grown products, and beginning a new market developmentproject to promote locally grown beef. There are also ongoing efforts to increase export avenues by working withfederal and foreign government agencies on plant quarantine issues.

A major legislative initiative that the department is helping to advance is to fulfill the constitutional mandate toconserve and protect important agricultural lands in Hawaii - a critical factor in strengthening agriculture andassuring its long-term economic viability.

On behalf of the entire Department of Agriculture, I respectfully submit this annual report outlining the programsand initiatives accomplished to strengthening agriculture and aquaculture in Hawaii.

Sincerely,

Sandra Lee KunimotoChairpersonHawaii Board of Agriculture

Table of Contents

TABLE OF CONTENTS

Office of the Chairperson 3

Administrative Services Office 5

Agricultural Development Division 7

Agricultural Loan Division 10

Agricultural Resource Management Division 13

Animal Industry Division 14

Aquaculture Development Program 19

Plant Industry Division 21

Quality Assurance Division 31

Agribusiness Development Corporation 34

List of Tables & Charts 37

Board of Agriculture - Photos 38

Organizational Chart 39

Other Tables and Charts 40-55

Editor/Desktop Publisher: Janelle SaneishiPrinter: Hagadone Printing Company

This annual report is also accessible via the department’swebsite at: www.hawaiiag.org/hdoa/

This annual report can also be made available in large print,taped or in Braille to meet special needs, if requested in advanceby calling (808) 973-9560.

Office of the Chairperson

Planning & Development

The Department actively seeks to protect existing farming areasand promote increased access to and productive use of thethousands of acres of important agricultural lands andinfrastructure vacated by sugar plantations throughout the State.The Department, as the principal advocate for agricultureamong State agencies, offers consultative input into land usezoning, environmental program implementation, and broaderplanning and economic development issues that affectagricultural resources and the growth of agriculturalbusinesses.

The Department is participating in the 70+ stakeholderAgricultural Working Group (AWG) whose efforts wererecognized in the 2003 Legislature. The AWG is to provide the2004 Legislature with proposed legislation to identify and protectimportant agricultural lands and a range of incentives to benefitagricultural businesses and landowners of importantagricultural lands. The effort of the AWG should bring focus tothe growth of agriculture as an important and respectedsegment of Hawaii’s economy.

In years past, the Department has reported on the progress ofHawaii farmers in achieving estimated farm-gate values ofselected crops. An updated version of this effort is being workedon. In the years to come, most of the 14 selected crop groupswill invariably experience ups and downs, however, there shouldbe continued real growth. While modest in comparison to thevisitor industry’s $11 billion in economic activity, the economicactivity generated by diversified agriculture is solid, steadilyincreasing, and will be bolstered by the continued strength ofthe pineapple industry and the resurgence in sugar production.

The following is a listing of activities for fiscal year (FY) 2002-2003 that supported the protection of agricultural resources,increased the use of former sugarcane lands andinfrastructure, and expanded diversified agriculturedevelopment in general:

Ø Submitted extensive testimony before CountyCouncils and departments, State Land UseCommission, and community organizations onagriculture-related issues including: City and Countyof Honolulu’s proposed amendments to agriculturalproperty tax, initiative to preserve prime agriculturallands, redefinition of the agriculture zoning ordinance,and the ongoing conflict between urbanencroachment and agriculture in Kamilonui Valley;functional definition of agriculture for Maui County;facilitating discussions between farmers andlandowners on “good neighbor” and land tenureissues; and amendments to County agriculturalzoning and community plan ordinances.

Ø Represented the Department’s and agriculture’sinterests before the following committees andorganizations: National Association of State

Departments of Agriculture, Western Governors’Association, Water Quality Standards TechnicalAdvisory Group, U.S. Department of Agriculture StateTechnical Committee, Community-Based EconomicDevelopment Advisory Council, and Hawaii Forestryand Communities Initiative Working Group andExecutive Board.

Ø Provided comment on more than 60 land useapplications, legislative bills, legislative inquiries,proposed land exchanges, and environmental rule-making that have significant impact on agriculturalresources throughout the State such asestablishment of Critical Habitats for threatened/endangered species, water quality standards forstreams, non-point source pollution program rules,and identifying and protecting important agriculturallands.

Ø Responded to more than 85 telephone, walk-in, andwritten requests from citizens, government agencies,legislators, consultants, non-profits, the University ofHawaii at Manoa, and out-of-state organizations forpresentations, information and limited analysis ofissues pertaining to agricultural resources,development opportunities, urban farming, low-landflooding, insurance, alternative crops, and agriculturalland leases.

Office of the Chairperson

Agribusiness Development & Research

To promote a strong and vigorous agricultural industry,the department must have the ability to respond to urgentproblems without having to wait for supplementallegislative funds. This program is designed to addresscritical agricultural research and also marketing andpromotional needs to ensure the continued growth ofHawaii’s agriculture.

The following are projects approved by the Hawaii Boardof Agriculture during FY 2003:

ØØ Development and Evaluation of Strategies to ManageClosteroviruses, Mealybugs and Mealybug Wilt ofPineapple ($70,000) FY2002Mealybug wilt of pineapple is one of the two most importantdisease problems affecting pineapple production in Hawaii.The focus of this research continues to strategically reducethe incidence of pineapple mealybug wilt associated virusinfected pineapple and therefore improving yield andreducing the probability of mealybug wilt of pineapple. Thisis the second year of a three-year project.

ØØ Evaluation of Systemic Acquired ResistanceIntermediates PABA and Benzol for Nematode Controlon Pineapple ($20,000)Nematode control continues to be an important aspect inthe profitable production of pineapple in Hawaii andinnovative controls are still needed. This project willevaluate intermediate inducers of Systemic AcquiredResistance for nematode control on pineapple.Greenhouse experiments will be conducted to evaluatethe effect of chemical inducers on nematode reproductionand plant growth.

ØØ Breeding and Selection for Hawaii Coffee withCupping Quality, Disease Resistance and High Yield($37,300) FY2002The goal of this coffee breeding and selection program isto produce a unique Hawaiian coffee with increased yieldand cup quality and the insurance of disease and pestcontrol. New coffee hybrids have been selected forcupping quality and seedlings were prepared for field trials.This is the second year of a three-year project.

ØØ Implementing Taro Production and Reducing DiseaseLevels by Use of Organic Amendments ($20,000)This project will test alternative methods to determine iftaro yield can be increased by the addition of soilamendments without the long period needed for croprotation. The objectives of this project are to evaluate theagronomic effect of soil amendments on yield and toassess whether soil amendments will reduce the levelsof disease at harvest.

ØØ Rambutan Flowering, Fruit Set and Production inHawaii ($30,000) FY2001Hawaii’s rambutan grows in an environment that issignificantly different from the traditional growing areas.As a consequence, production in some areas of Hawaiican be erratic due to inconsistent flowering and poor fruitset. This is the final year of a three-year project that willdevelop rambutan culture and management informationon flowering and fruit set and identify varieties with theability to produce consistently in Hawaii.

ØØ Anthurium Germplasm Maintenance ($20,000) FY2002The availability of various anthurium varieties permitsHawaii’s anthurium industry to meet the changing needsin the global marketplace and access varieties asproduction problems may arise. This is the second yearof a three-year project that will establish and maintainanthurium germplasm in-vitro.

ØØ Genetic Resistance to Burrowing Nematode inAnthurium ($40,000) FY2002Burrowing nematode is a major pest adversely impactingthe anthurium industry. Crop losses occur despite highexpenditures on nematicides. With chemical protectionunder increased scrutiny for safety and environmentalconcerns, alternative controls are important to research.Breeding new and improved varieties can utilize geneticengineering to place genes for pest resistance into flowers.This is the second year of a three-year project that willcontinue to employ genes for protease inhibitors as ameans to control nematode growth and their rate ofreproduction.

ØØ Macadamia Variety Trials ($5,000)The results from this project will provide the industry withseveral new high yielding cultivars that produce kernels ofsuperior quality. Further evaluations of three selectionswill be conducted over a wide range of growing sites. Newselections that have a potential for further evaluation willbe identified and propagated from seedlings planted in testplots.

ØØ Evaluation and Control of a New Strain of theSugarcane Smut Fungus, Ustilago scitaminea, theBiggest Disease Problems for Sugarcane Worldwide($110,000)In susceptible cultivars, sugarcane smut caused byUstilago scitaminea can spread rapidly, causing significantyield losses and reduce cane stands to unmillable grassystalks. This research program will evaluate the variabilityand thus the likelihood of the appearance of other newstrains of the fungus and the need to alter the breedingand control programs for the future. Numerous smut fungalisolates from around the state will be analyzed usingamplified fragment length polymorphisms technique.

Administrative Services Office

ADMINISTRATIVE SERVICES OFFICE

Elaine Abe Administrator

The goals of the Administrative Services Office are tostreamline and improve its operations, while providingadministrators and program managers with guidance,training and management “tools” to enhance theirdecision-making capabilities in administering theirprograms.

The following is a list of projects that have beencompleted:

Ø Coordinated the Department’s Legislative Testimonyand Bills during part of the 2003 Legislative Session.

Ø Developed Interim Procedures for LegislativeTestimonies and Bills.

Ø Developed ASO Program Plan to Compliment theDepartment of Agriculture’s EmergencyPreparedness and Response Plan.

Ø Updated the Emergency Response Telephone Trees,Listing of Disaster Response Coordinators andWorkers, and Listing of First Aid Certified Personneland Kits.

Ø Implemented a visitor sign-in procedure to the KingStreet Complex in response to heightened securityduring the War with Iraq.

Ø Completed issuing identification badges to alldepartmental personnel.

Ø Developed procedures to record homeland securitycosts and revenue losses related to the War with Iraq.

Ø Successfully implemented the change from separateUnion and Employer Health Plans to One EmployerUnion Trust Fund.

Ø Implemented the new EMCP Performance Evaluationand Variable Pay Program for Department’s excludedmanagers.

Ø Implemented the Department’s Workplace ViolencePolicy.

Ø Implemented the new Form HRD 1 which replacedthree current forms.

Ø Coordinated movement of DSL lines to terminate atICSD.

Ø Assisted in the implementation of the new AgriculturalGateway Web Server.

Ø Coordinated migration of Requisition/Purchase OrderSystem.

Ø Installed the SANS at the new Kapalama facilities forPlant Quarantine Branch and Quality AssuranceDivision Offices.

Ø Completed networking computers at the KahuluiOffice on Maui, Hilo Office on Hawaii and AnimalQuarantine Holding Facility on Oahu to the State’sNGN.

Ø Modified Animal Quarantine application and forms toaccommodate new quarantine programs.

Ø Reviewed and recommended disposition of 2,111Animal Quarantine accounts receivable and refundaccounts.

Ø Coordinated departmental responses relating to theLegislative Auditor’s Office review of the Department’sRevolving and Trust Funds/Accounts.

Ø Conducted workshop on the State’s Executive BudgetProcess for Department administrators, managersand other budget personnel.

Ø Completed various capital improvement projects tocorrect safety concerns and other deficiencies atDepartment facilities including asbestos abatement,roof repairs and air conditioning improvements at theKanahoahoa Building, demolition of a caretakercottage, and improvements needed to makereasonable accommodations for individuals withdisabilities.

Ø Brought Department’s vehicle fleet into compliancewith the U.S. Department of Energy Alternative FuelVehicle (AFV) program.

Administrative Services Office

Ø Fabricated a trailer for the Chemical/Mechanicalprogram to transport a sprayer for coqui frogeradication activities.

Major projects still in progress include:

Ø Working with consultants to design and implementon-line system for the Maui Risk Assessment.

Ø Working with consultants to migrate AgriculturalResource Management Information System andAdministrative Services applications from Speed II toAPPX.

Ø Continuing to network all Oahu and neighbor islandoffices to State’s NGN.

Ø Implementing new two new servers at the MainOffice.

Ø Continuing various capital improvement projects tocorrect safety concerns and other deficiencies atDepartment facilities including upgrading of electricaland fire systems and re-roofing the main buildings atthe King St. Complex, demolishing unused kennelsand modifying the service window at the AnimalQuarantine Station and renovating portions of theDepartment of Health’s State Laboratory Facility foruse by the Quality Assurance Chemical AnalysisLaboratory.

Ø Continuing work on updating and implementing theDepartment’s on-line telephone directory.

Ø Implementing the HGEA Drug and Alcohol TestingProgram.

Ø Conducting a survey to determine customersatisfaction with personnel related matters.

Ø Continuing to record fixed assets for the Departmentin accordance with GASB 34.

Other future projects include developing a Standard OperatingProcedures Manual for the department, migration of AnimalQuarantine Information System, conducting a workshop forprogram managers on using the FAMIS reports, implementingin-house printing capabilities for summary warrant vouchers.

Agricultural Development Division

AGRICULTURALDEVELOPMENT

DIVISION

The Agricultural Development Division assists in themarket research, planning, development, and expansionof Hawaii’s agricultural industries through marketresearch and promotional events, as well asdisseminating a collection of production and marketinginformation.

MARKET DEVELOPMENT BRANCHCalvin Lee, Manager

The mission of the Market Development Branch is to assist inthe development of the agricultural industry, consisting ofcommodity groups and food processors, through the expansionof new and existing markets.

Trade Shows and Trade Missions

Ø Sponsored a trade mission to Japan and a reversetrade mission to develop new markets for tropical cutand potted flowers, with support from a grant fromthe Western United States Agricultural TradeAssociation.

Ø Sponsored a Hawaii exhibit at the International OrchidShow in Fukuoka, Japan to develop exports marketsfor Hawaii orchids.

Ø Co-sponsored a Hawaii exhibit at the NaturalProducts Expo West Tradeshow in Anaheim,California to develop new markets for Hawaii naturalproducts.

Ø Co-sponsored a Hawaii exhibit at the NationalRestaurant Association Tradeshow in Chicago todevelop new markets for Hawaii products.

Matthew K. Loke, Ph.D.,Administrator

Ø Co-sponsored three separate exhibits with the HawaiiExport Nursery Association (HENA) to developmarkets for Hawaii’s nursery plants. The threeexhibitions were at the Tropical Plant Industry Expo(TPIE) Tradeshow in Ft. Lauderdale, Florida, theNursery/Landscape Expo Tradeshow in Houston,Texas, and the Western Nursery and Landscape Expoin Las Vegas, Nevada.

Ø Co-sponsored the Mid Pacific Horticulture Tradeshowin Hilo, Hawaii targeting local, mainland, andInternational trade buyers.

Promotional Materials

Ø Contracted with a professional photographer toproduce photos of agricultural products that will beused in the Branch’s promotional activities.

Matching Funds Promotional Contracts

Ø Hawaii Food Manufacturers Association $150,000matching funds promotional program for valued addedagricultural and food products targeting the local,tourist, and mainland markets has been implemented.The program consists of local trade and consumerevents and Mainland trade shows.

Ø Hawaii Coffee Association $98,000 matching fundspromotional program promoted the sales andawareness of all of Hawaii’s coffees to trade buyersand consumers on the mainland and in Hawaii.Activities included participation in the Specialty CoffeeAssociation of American Trade Show, coordinatingand implementing the Hawaii Coffee AssociationConference and Trade Show, and consumeradvertising targeting the mainland market.

Local Market Promotions and Activities

Ø Participated in agricultural trade and consumer fairsand exhibits such as the Lodging, Hospitality, andFoodservice Expo on Oahu; the Made In HawaiiFestival on Oahu; and the Big Island Farm Fair onthe Island of Hawaii.

Ø Directory of Hawaii Agricultural and Food Producers– Updated the registration of local companies in thebranch’s database (directory) that gives Hawaiicompanies and global buyers the ability to transactbusiness with each other. Contracted with aconsultant to develop an online system to have thecompanies listed on the database update their ownfiles on the Web thereby increasing the accuracy andefficiency of the database. Enhanced the marketdevelopment section of the website by adding an “AgBriefs” information bulletin, product availability charts,photos, recipes, and product information.


Ø Organized and coordinated the agricultural exhibit atthe 2002 Hawaii State Farm Fair.

Ø Sponsored a promotion of Hawaii grown range fedbeef with the Hawaii Cattlemen’s’ Council and theRoyal Hawaiian Shopping.

Ø Sponsored the Hawaii Agriculture 2002 Conferencein cooperation with the Hawaii Farm BureauFederation, University of Hawaii College of TropicalAgriculture and Human Resources, and theAgricultural Leadership Foundation.

Ø Sponsored a promotion of locally produced porkfeaturing the production of brochures, Island Freshproduct labeling, and a “Taste of Elegance” chefs’ event.

Ø Updated the Calendar of Events of trade shows, fairs,and festivals that benefit agricultural and foodproducers and Ag-tourism companies.

Ø Sponsored a “Buy Hawaii” promotion with PeterMerriman on “Chef’s in Paradise” TV program.

Ø Participated in a committee on “agricultural feasibility”that evolved into a subcommittee of the AgriculturalWorking Group that will make recommendations fordrafting legislation affecting agricultural land useissues.

Mainland and International Market Promotions andActivities

Ø Co-sponsored, coordinated, and implemented thefourth annual Governor’s Exporter of the Yearprogram.

Ø Coordinated and administered the Western UnitedStates Agricultural Trade Association (WUSATA)Market Access Program of the USDA, ForeignAgricultural Service (FAS) that consists of1) a generic program that included a trade missionto Japan and a reverse trade mission from Japan toestablish markets for Hawaii horticultural products,2) a branded program that assisted Hawaiiancompanies in developing specific export markets fortheir products, and 3) an export readiness programthat provided Hawaii companies the opportunity ofhaving a one-on-one consultation with an expert onexporting.

Ø Sponsored a promotion in Michigan of Hawaiiproducts in cooperation with Keith Famie, a notedchef on the Food Network and other media venues.

Ø Sponsored a promotion of Hawaii products in PonteVedra, Florida in conjunction with Hawaii Cooks withRoy Yamaguchi.

The Market DevelopmentBranch assisted inorganizing an exhibit boothat the Produce MarketAssociation Exposition inOrlando, Florida, in October2003.

Participants in the Hawaiibooth included the HawaiiPapaya IndustryAssociation (HPIA) and theHawaii Tropical FlowerCouncil.

Pictured at the booth is TomTjerandsen, exportmarketing specialist withthe HPIA.

More than 700 companiesfrom 24 countries exhibitedtheir products at the event.


Ø Coordinated a presentation of the finest Hawaiianproducts for Governor Lingle’s visit with PresidentBush and other high level dignitaries in Washington.

Ø Participated in an Ad Hoc Committee seeking marketdevelopment grants from federal and private sources.

Ø Participated with an inter-division HDOA team tocoordinate the implementation of the “Seal of Quality”program for Hawaii agricultural products.

HAWAII AGRICULTURAL STATISTICS SERVICEBRANCHDonald Martin, State Agricultural Statistician

The Hawaii Agricultural Statistics Service (HASS) Branch is acooperative effort between the Hawaii Department of Agricultureand the National Agricultural Statistics Service, U.S.Department of Agriculture. This partnership, spanning nearlyfour decades, allows the efficient use of state and federalresources, while at the same time, providing a comprehensivearray of agricultural intelligence and reducing respondentburden.

Major activities of HASS included data collection, analysis, andtimely publication of agricultural statistics for the State. Theresult of these efforts was a measure of total farm income of$5?? million during FY 2002. Most of HASS data collectionefforts were in the diversified agriculture sector that was valuedat $3?? million in FY 2002.

Activities during FY 2002 included the following:

Ø Special breakdown of Big Island coffee.

Ø Made 15,500 individual contacts via personalinterviews, telephone, and mail questionnaires.

Ø Published 130 reports.

Ø Distributed more than 43, 000 releases to farmers,other individuals, businesses, universities, andgovernments worldwide.

Ø Answered more than 1,200 individual requests forinformation by mail, telephone, and office handouts.

Statistical reports are available on the HDOA website at:www.hawaiiag.org/hdoa/ or free e-mail subscriptions areavailable at www.nass.usda.gov/sub-forms.htm

MARKET ANALYSIS AND NEWS BRANCHMatthew K. Loke, Ph.D., Acting Manager

The Market Analysis and News Branch (MANB) is responsiblefor enhancing the effectiveness and efficiency of agricultureby conducting economic, market and business feasibilityresearch, evaluating the efficiency and effectiveness of marketdevelopment programs, collecting data on agriculturalcommodity shipments, supply and wholesale prices anddisseminating information through various media. Throughthese functions, MANB assists the State’s agricultural industryin its development and expansion efforts and provides soundinput for program planning and policy making within and outsidethe Department.

MANB is tasked with two primary, yet distinct functions. Thefirst involves research on all market aspects of agriculturalproducts. Towards this end, MANB conducts some tenresearch or program evaluation studies annually. The secondfunction is carrying out the market news program, jointly withthe Market News Branch of the Agricultural Marketing Service,United States Department of Agriculture. This program providesup-to-date information on current market conditions – wholesalemarket prices throughout the state, movement of fresh fruitsand vegetables, and supply and demand information ondifferent products.

Activities and accomplishments for FY 2003 included thefollowing:

Ø MANB was awarded a USDA-FSMIP grant for$50,000, in cooperation with the University of Hawaiiat Manoa, to study the economic impact of factorssuch as geographic location, transportation rates andregulations, industry structure, and product selectionand differentiation on the competitiveness of selectedHawaii agricultural products destined for mainlanddomestic markets. The USDA-FSMIP received a totalof 72 proposals and 28 projects were funded.

Ø Assisted in writing, review and editing the study entitled“The Gathering Place of Honolulu,” a feasibility studyconducted in cooperation with a private contractor toassess the possibility of establishing a “world class”farmers’ market in Hawaii.

Ø Completed a photo catalog of fresh fruits andvegetables that are available at wholesale market inHonolulu. A separate catalog of fresh fruits andvegetables grown in Hawaii was also completed.

Ø Completed a study on the economic impact of theWaiahole irrigation system on Oahu’s agriculture andanother study on the outlook for the papaya industryin Hawaii.

Agricultural Loan Division

AGRICULTURAL LOAN DIVISION

Kevin YokoyamaActing Administrator(January 1, 2003 -June 30, 2003)

Doreen Shishido, Administrator(Retired in December 2002, not pictured)

Ø Continued to collaborate with the National AgriculturalStatistics Service (NASS) and the NationalAssociation of States Department of Agriculture(NASDA) in enhancing the data collection efforts ofthe MANB.

Ø Continued to collect, compile, publish anddisseminate weekly reports on a timely basis withlimited personnel. The reports include:

§ Honolulu Wholesale Prices of Fresh Fruits andVegetables;

§ Neighbor Island Wholesale Prices of Fresh Fruitsand Vegetables;

§ Weekly Honolulu Arrivals of Fresh Fruits andVegetables;

§ Honolulu Barge Arrivals; and§ Honolulu Wholesale Egg Market.

The Agricultural Loan Division administers theAgricultural Loan Program and the Aquaculture LoanProgram. These loan programs provide financialassistance to qualifying entities that are unable to obtainfinancing through conventional sources. In this role, thedivision contributes to the growth, development, and wellbeing of the agricultural and aquacultural industries inHawaii.

The Agricultural Loan Division facilitates the promotion,development, and sustenance of Hawaii’s agricultural andaquacultural industries. The funding provided under thedivision’s loan programs serves a range of purposes includingexpansion of operations, development of infrastructure toimprove operations, purchasing of equipment to increaseefficiency, and to assist in the recovery from natural disastersthrough the Emergency Loan program. This assistance helpsto sustain and further develop these industries, which continuesto provide jobs and income to residents, reduces dependenceon imports, and provides green and open space appreciatedby residents and visitors to the islands.

While diversified agriculture has been expanding and is anessential industry to the State, agriculture is often viewed as arelatively risky endeavor. In addition to the normal businessrisks such as economic conditions, competition, andgovernment regulations, farmers face natural disasters likedrought, floods, high winds, diseases, and pests. These addedrisks could preclude loans from conventional lenders. TheAgricultural Loan Division bridges this financing gap whenconventional lending sources are unable to provide funding.To this end, the division provides funding to borrowers that havebeen denied loans from conventional lending sources and meetthe program’s eligibility criteria. The division also can cooperatewith conventional lenders to jointly fund loans by minimizingtheir risks through guaranteed and participation loans, whichleverages public and private sector funds.


Fiscal year 2003 was challenging for many businesses,including farming enterprises. The terrorist attack of 9/11 andits lingering impacts, the West Coast dock lockout, and thewar in Iraq contributed to a general poor and uncertain economicclimate. During this time some farmers appeared hesitant toaccept more debt, however, the division did provide funding forfarmers on Oahu, Hawaii, Maui, and Kauai. Among the typesof enterprises assisted were farm operations that producedtropical flowers, bananas, Asian vegetables, truck crops,organic vegetables, taro, orchids, tropical ornamental fish, andbaby vegetables. The division also assisted existing borrowersduring the difficult economic period through modification of theirloans to accommodate their changing operating situations.Some of the ways in which the division provided assistancewas to provide payment relief to better match cash flow andconsenting to voluntary liquidation of collateral to reducedebt load.

Currently, the program is faced with a limited funding situation.During the prior year of FY02, $4.8 million was transferred fromthe program to the State general funds to help balance thebudget. Also, $6.39 million in loans were approved under theAgricultural and Aquaculture Loan Programs, and $4.525 millionwas approved under Acts 78 and 266, passed by the legislaturefor a special Kauai economic development loan program.

In FY03, another $2 million was transferred to the State generalfunds. With reduced funding the division is seeking to stretchand leverage available funding through joint lending activitieswith other lenders. Joint lending activity, including guaranteedand participation loans, have been very minimal in recent years.Contributing to this has been significant changes that haveoccurred in the commercial lending sector including mergers,acquisitions, and restructuring. This has lead to personnelchanges and differences in the way the commercial sectorprocesses and approves loans, including agricultural loans. Asit appears that much of the major changes have taken place,this is an opportune time to focus on outreach with thecommercial sector to inform of the benefits of lending inpartnership with the division. Additionally, since the divisionhas limited funding we are also seeking to leverage our availablefunds. To better develop the division’s network and in an effortto stimulate more joint lending activity an outreach effort hasbeen initiated. As part of the outreach, the division has metwith numerous commercial lenders, other government lenders,and micro-lenders to familiarize them with the program.

The program is a self-sustaining entity as it operates from itsown revolving fund and has not required annual fundappropriations from the general fund. As a revolving fund,principal amounts collected from loan payments are used to

Below: The division provided funding to enable Ed Miyashita to expand his vegetable farm in Waimanalo, Oahu.


replenish the revolving fund, while interest payments pay forall of the division’s administrative and operating costs. Theadministration of the program is a balancing act, as the divisionrequires reasonable expectation of repayment while alsoexisting to assist those that are unable to obtain financing fromconventional sources.

Major highlights for FY03 were the following:

Ø The division’s portfolio as of June 30, 2003 was valuedat $22.0 million with 215 loans booked. Of this,$11.9 million was attributed to the county of Hawaii,$4.2 million to the county of Oahu, $3.4 million to thecounty of Maui, and $2.5 million to the county of Kauai.

Ø Approved 14 loans for $1.436 million during FY03.Also modified 26 loans to accommodate the changingoperating environment and needs of borrowers.

Ø FY03 collections yielded $3.816 million. Of thecollected amount, $1.182 million was in interest and$2.634 million was in principal.

Ø During this fiscal year, the legislature transferred$2 million from the division’s revolving loan funds tothe State’s general funds to help balance the budgetdeficit.

Ø Initiated an outreach effort and made 58 contacts,including 37 commercial lenders, five micro-lenders,and three government lenders.

Ø Participated in the agricultural economic feasibilitygroup within the department to discuss various issuespertaining to furthering agricultural development in theState.

Below: With the assistance of a loan, Jack Saysiry wasable to recover from flood damage to his Waialua, Oahufarm.

Agricultural Resource Management Division

AGRICULTURAL RESOURCE MANAGEMENT

DIVISION

Brian Kau, P.E.Administrator/Chief Engineer

The Agricultural Resource Management Division worksto ensure that the State has adequate and reliable sourcesof agricultural water, farmland, infrastructure for farmingand agricultural-related processing facilities. The divisionprovides administrative oversight for state agriculturalpark lots, processing facilities and several irrigationsystems statewide.

By maintaining and operating abandoned plantationirrigation systems, the division supports and encouragesthe development and expansion of diversified agricultureon former mono-crop plantation lands.

Activities for FY 2003 included the following:

Ø The 2003 legislature passed senate bill 1034, whichbecame Act 90. This landmark legislation allows thetransfer of agricultural leases from the Department of Landand Natural Resources to the Department of Agriculture.The transfer should provide the farmers with betterinteraction and service, because the department has abetter understanding of the unique requirements thatfarmer have. The department anticipates the first roundof transfers to take place during the summer of 2004.

Ø Irrigation water was reintroduced into the Lower HamakuaDitch for the first time in over a year. Due to continuingreconstruction and repairs to the ditch, we were unable tosupply irrigation water for an extended period of time. Thefirst group of projects has been completed which has ledto increased reservoir storage, a new distribution system,and more efficient and reliable flumes. Improvements tothe ditch will continue throughout the year.

Ø In 2002, the Department of Agriculture received a grantfrom the Department of Interior, Bureau of Reclamation tobegin an agricultural water plan. The grant, in combinationwith matching state funds, has allowed the completion ofthe Hawaii Water Plan which will be submitted to Congressin September of 2003. The plan will serve as aspringboard to develop the Hawaii Agricultural Water Useand Development Plan which will identify currentagricultural requirements and a map for the future.

Ø The agricultural park program continued to monitor andreplace lessees who did not meet the program’sobjectives and continued to re-award leases to qualifiedapplicants. Staff continued to counsel and work withlessees who were experiencing difficulty meeting theirlease terms and conditions at older agricultural parks inPahoa, Keahole, Panaewa, Waimanalo, and Waianae.Farmers with new or recently granted leases at Kahuku,Hamakua, Molokai, Kalaeloa, and Kekaha started theirfarming operations.

Ø Rental reopenings for Pahoa Agricultural Park, Phase IIand Keahole Agricultural Park, Phase II were completed.Kahuku Ag Park had 18 out of 24 lessees submit a Petitionto Dedicate Land for Agricultural Use to the City & Countyof Honolulu. If accepted, the agricultural park farm lotsare generally reassessed at a lower value, providingsavings for the lessees in real property taxes.

Capital Improvement Projects for FY 2003:

The following projects were completed on the Big Islandthis year:Ø Paauilo Reservoir Lining-constructionØ Paauilo Pipeline Replacement-constructionØ Phase I Flume Replacement-construction (Lower

Hamakua Ditch)

The following projects are ongoing on the Island of Hawaii:Ø Phase II Flume Replacement-construction (Lower

Hamakua Ditch)Ø Phase III Flume Replacement-design (Lower

Hamakua Ditch)Ø Intake Improvements-design (Lower Hamakua Ditch)Ø Honomalino Watershed (South Kona)-planning

The following projects are ongoing on Maui:Ø Upcountry Phase II (main line extension-construction)Ø Upcountry Phase III (main line extension, Kimo Road

lateral, and Pulehuiki/Kamehamehaiki lateral) - designØ Lower Kula Watershed Project - planning

The following project was completed on Molokai:Ø ADA improvements to Molokai Irrigation System office.

The following projects are ongoing on Kauai:Ø East Kauai Irrigation System - designØ Design/Build Project for Portable Power Generators

- construction

Animal Industry Division

ANIMAL INDUSTRY DIVISION

James Foppoli, Ph.D.,D.V.M.Administrator

ANIMAL QUARANTINE BRANCHIsaac M. Maeda, D.V.M., Program Manager

The mission of the Animal Industry Division is to protectHawaii’s livestock and poultry industries and the publichealth through the prevention of disease introductionsand the detection and control of economically importantdiseases or pests within the State. The Division conductsthe following: animal disease surveillance, epidemiologyand control; administration of voluntary livestock andpoultry disease certification programs; laboratorydiagnostic services; dog and cat quarantine to preventrabies introduction; inspection of all animals and birdsentering the State; and livestock brand registration. Theprimary focus of the division is shifting from mandatoryto voluntary disease surveillance and control programsin support of the livestock industry; however publichealth and environmental programs aimed at preventingthe introduction of rabies virus and West Nile virus intothe State are important ancillary functions. Thedevelopment of methods to insure rapid and appropriateresponse to incursions of highly contagious diseases,such as foot and mouth disease, is a division priority.

Hawaii’s statuses for State-Federal Cooperative DiseaseControl Programs are:

Brucellosis FreeCattle and Swine Pseudorabies Free

Stage V Bovine Tuberculosis, Accredited Free

Hawaii is also recognized as free of bluetongue virus andanaplasmosis, allowing the export of cattle from Hawaii toCanada without costly holding and testing procedures.

Activities relating to voluntary disease control programs include:Scrapie in sheep and goats; Chronic Wasting Disease incervidae; and Johne’s disease in dairy cattle. Surveillance forbovine spongiform encephalopathy (mad cow disease) is animportant continuing State-Federal cooperative program. Madcow disease has adversely impacted the cattle industry in manycountries worldwide and may cause human disease. Measuresto support public health, the horse industry, and Hawaii’s

endangered avifauna were implemented during FY03 to addressthe threat of West Nile virus introduction.

The Division received a Homeland Security grant of $68,000for emergency preparedness and response activities. Muchof the grant was used for the development of the Animal HealthEmergency Management System, an internet-based mappingsystem for Hawaii livestock and poultry with associatedinformational databases. The mapping program was nearcompletion at the close of FY03.

On June 30, 2003, rule amendments were implemented thatprovided a 5-day-or-less rabies quarantine option for qualifieddogs and cats in addition to 30-day and 120-day programswhich remain in effect for pets that do not qualify under thenew rules. Significant in the 5-day-or-less program is theprovision for qualifying dogs and cats to be released directly atHonolulu International Airport. Fees for the five-day-or-lessprogram are $165 if the pet qualifies for direct release from theairport and $224 if the pet must be held for up to five days inquarantine. The cost of the 30-day and the 120-day quarantineprograms remains unchanged at $655 and $1,080, respectively.

In contrast to the 120-day program, the reduced 30-day andnew 5-day-or-less programs rely heavily on staff andcomputerized data bases to monitor and verify informationrelevant to qualification. The Department also maintains awebsite dedicated to Hawaii’s rabies quarantine program. TheDepartment’s interactive website contains all of the informationand forms relating to quarantine and the importation of catsand dogs. Pet owners may access pre-arrival rabies testresults, 30-day and 5-day-or-less quarantine-eligible dates, aswell as download relevant forms and information. Checklistsfor both the 30-day and 5-day-or-less programs are at the siteto assist pet owners with preparing their pets to qualify for thesereduced quarantine options. Under the 5-day-or-less program,pets may be released at Honolulu International Airport if theycomplete pre-arrival requirements, which include:

Ø Two rabies vaccinations, with the last vaccinationadministered no more than 12 months prior to arrivalif it was a one-year vaccine, or no more than 18months prior to arrival if it was a three-year vaccine.The two vaccinations may not be administered within90 days of each other and the last vaccine must beadministered no less than 90 days prior to the pet’sentry into the state;

Ø Microchip implantation for identification purposes;

Ø OIE-FAVN rabies blood test results with sufficient levelof rabies antibodies;

Ø 120-day pre-arrival waiting period between the timethe lab receives the blood sample and the earliest


date the pet may enter the state under the newprogram. The pre-arrival waiting period is necessarydue to the long and variable length of rabies incubation,where the virus may hide in an animal before clinicalsigns of the disease become apparent; and

Ø Pet owners must also submit required paperwork noless than 10 days prior to the pet’s arrival.

Pet owners who do not submit the required documents uponarrival will have their pets held in quarantine for up to five daysor until all requirements are completed and documentssubmitted. In addition, the program also allows Hawaii residentsto travel with their pets and return to the state without quarantineif they follow the specified procedures before they leave.

Since the new 5-day-or-less rabies quarantine programbecame effective, approximately 53 percent of the 1,203 petsthat have entered the state from June 30, 2003 through August31, 2003 have qualified for the program. Of the 732 pets thatqualified under the 5-day-or-less program, 636 pets (86 percent)qualified for direct release upon arrival at Honolulu InternationalAirport.

During FY03, the portion of quarantined dogs and catsundergoing 30-day quarantine was 69 percent. The averagedaily population was 620 animals with a range of 443 to 747animals occupying the quarantine station at any given timeduring FY03. Active duty, military pets comprised approximately34 percent of quarantined dogs and cats, similar to prior years.

The total number of animals completing quarantine increasedslightly for FY03 compared to FY02 from 4,681 to 4,771 animals.In addition to the 4,325 animals completing quarantine, 446dogs and cats spent varying lengths of time at the quarantinestation while transiting to other destinations.

In addition to rabies exclusion, the quarantine programcontinues to monitor dogs carefully for ticks exotic to Hawaii.No exotic ticks of medical importance were discovered duringFY02. Rhipicephalus sanguineus the brown dog tick is currentlythe only tick established in Hawaii associated with dogs.

Quarantine statistics for animals arriving between June 30 and August 31, 2003

Program Cats Dogs Total PercentIn Program

120-Day 105 182 287 24%

30-Day 81 103 184 15%

5-Day-or-Less 36 60 96 8%

Airport Release 254 382 636 53%

Total Entries 1,203 100%

LIVESTOCK DISEASE CONTROL BRANCHJason D. Moniz, D.V.M., Manager

The Livestock Disease Control Branch prevents, investigates,conducts surveillance, controls and eradicates animal diseasesthat have serious economic impact on the state and nation’slivestock and poultry industries, some of which impact publichealth. The branch inspects animals entering the state andinsures compliance with division rules and laws pertaining tothe control and eradication of animal diseases.

Ø West Nile Virus (WNV)West Nile virus continues its westward spread acrossthe North American continent. In each year sincefirst appearing in New York in 1999, West Nile virushas infected mosquitoes, birds, horses and humansas it spread westward, each year infecting a newadjacent section of the country. This year theintermountain and northern plains states have thehighest incidence with spread occurring into thestates west of the continental divide and as far westas California. Given this pattern of movement theWest Coast is expected to have the highest incidencein 2004, placing Hawaii at its highest risk since WestNile’s first appearance in North America in 1999.

A working group of pertinent scientific and regulatorypersonnel from Department of Agriculture,Department of Health, Department of Land andNatural Resources, U.S. Fish and Wildlife Service,U.S. Geological Survey and the University of Hawaiicontinue to monitor for the disease and implementpreventive measures in an effort to preclude theentrance of the virus into Hawaii. The departmentcontinues to work with the U.S. Postal Service toembargo the movement of birds through the mail,thereby allowing inspection of all shipments enteringthe state. Susceptible species of birds prior to enteringthe state are required to be isolated in a mosquito-proof environment, under veterinary supervision,immediately prior to entry. These efforts along withHawaii’s geographic isolation work to reduce the riskfor West Nile virus to enter Hawaii.

Ø Newcastle’s DiseaseOutbreaks of Newcastle’s Disease occurred in theWestern and Southwestern U.S. in October 2002with foci in California and Texas. The outbreaks weresuspected to be caused by the illegal internationalmovements of gamecocks. The outbreak involved19,146 premises in the states of California, Nevada,Arizona, New Mexico and Texas. Twenty-twocommercial operations were involved in the outbreak.The outbreak resulted in 2,328 premises beingcompletely depopulated, most in California.

Hawaii had good control over the movement of poultryand birds into the state during the outbreak as a result


of the Postal Service embargo and permit system ithad in place for West Nile virus. Poultry and birdsfrom affected counties and buffers around thesecounties were denied entry into the state during theoutbreak.

Ø Bovine TuberculosisBovine Tuberculosis free status maintainedBovine tuberculosis a chronic, debilitating disease ofcattle, bison, goats, cervids and other animals thatcan also cause a serious disease in man, is causedby the bacteria Mycobacterium bovis.

The State of Hawaii maintains its Bovine TuberculosisFree Status. However, the State continues to monitorcattle herds and wildlife on the east end of Molokaiwhere bovine tuberculosis has been a persistentproblem for the past 63 years. The last infected cattleherd was located on the east end of Molokai and wasdepopulated without spread in 1997. Since thenannual herd tests that have been conducted on all ofthe east end cattle herds has detected no new casesof bovine tuberculosis.

A hunter assisted survey of wildlife began in 1998 onMolokai to monitor the prevalence of bovinetuberculosis in axis deer, feral swine, feral goats andmongoose. Since 1998, 447 axis deer, 426 feralswine, 69 feral goats and 183 mongoose have beentested for bovine tuberculosis. Five feral swine havebeen found infected with bovine tuberculosis, the mostrecent in June 2003. All of the infected feral swinehave been caught at or adjacent to Ualapue, wherethe 1997 infected cow was found.

To prevent the potential spread of bovine tuberculosisfrom the east end of Molokai, all cattle east of Kamalo,Molokai are required to have an annual negative bovinetuberculosis test or be tested negative within 30 daysprior to movement out of the area. All herds are incompliance with these movement and testrequirements. In addition, a quarantine of feral swinedisallowing their movement east of Kamalo is also inplace to prevent the potential spread of bovinetuberculosis infected feral swine from the area.

Ø Bovine BrucellosisBovine Brucellosis class free status maintainedBovine brucellosis is an infectious disease of cattle,bison and elk, caused by the bacteria Brucellaabortus. Brucellosis can also infect man.

During the fiscal year, 8,332 cattle were tested whichresulted in two (2) suspects being found.Epidemiological investigations found no evidence ofherds infected with bovine brucellosis. Supplementaltesting, epidemiological investigations and herd testsfound no evidence of Brucella abortus infections.

Hawaii has been officially classified free of brucellosissince 1983. Infrequent suspects and reactors havebeen found to be caused by Brucella suis, which rarelyaffect cattle, or Yersinia enterocolitica infections.Brucella suis, which causes brucellosis infections inswine, has been found to occasionally affect cattlecausing a self-limiting, subclinical infection. The cattletesting positive originated in areas where they havecontact with feral swine known to be infected withBrucella suis. Due to the self-limiting nature of Brucellasuis in cattle, no quarantines or other control actionswere deemed necessary to address these findings.Self-limiting gastrointestinal infections with Yersiniaenterocolitica has also been determined to cause falsepositive responses to the Brucella abortussurveillance serological tests.

Ø Swine Brucellosis & PseudorabiesHawaii maintains free statuses for SwineBrucellosis and PseudorabiesBrucellosis in swine is caused by the bacteria Brucellasuis. Infected swine experience reproductive failuresincluding abortion and infertility. Brucella suis cancause serious infections in man.

Hawaii retained its free status for swine brucellosisdespite finding and depopulating two herds foundinfected on Oahu. On farm surveillance anddiagnostic testing discovered one farm on the NorthShore and one in Windward Oahu infected.Epidemiological investigations found contact withinfected feral swine to be the likely cause of theseinfections. The herds had no epidemiologicalrelationship with each other. The investigation foundno evidence of spread from these herds. Both herdowners have no plans to repopulate their herds.

Feral swine in the Kona, Hamakua (Hawaii),Kahakuloa (Maui), Ft. Shafter westward throughWaianae, the North Shore and Windward (Oahu) areknown to be infected with swine brucellosis.

In addition to the testing of all sows and boars over 6months of age at slaughter annually, 25 percent ofthe herds in the state are randomly selected andtested to determine their status. In addition, all swineover 6 months of age, at slaughter, are tested forsurveillance purposes. During FY 2003, 1,866domestic swine and 59 feral swine were tested forsurveillance purposes.

Pseudorabies, a viral infection of swine, causesrespiratory disease and reproductive failure.Pseudorabies can cause an acute fatal disease toother species but does not affect man.

Surveillance testing of 1,866 swine during fiscal year2003 found three (3) infected domestic swine. All of


the infected domestic swine were from one farm onthe Windward side of Oahu that was depopulatedbecause of being concurrently infected with swinebrucellosis. Infection was traced to exposure toinfected feral swine. Area and contact testing foundno spread.

An additional 59 feral swine were tested with six (6)from the islands of Oahu and Hawaii testing positive.Feral swine on the island of Hawaii, Maui and Oahuare known to be infected with pseudorabies. Infectedferal swine populations serve as a constant threatfor infection of domestic swine populations.

A quarantine remains in effect that disallows theintroduction of feral swine into domestic herds andalso disallows the inter-island movement of feralswine. Historically, all domestic herds found infectedwith pseudorabies or swine brucellosis in the statehave been traced to exposure with infected feralswine.

Ø Transmissible Spongiform EncephlopathiesScrapieScrapie is a transmissible, insidious degenerativedisease affecting the central nervous system ofsheep and goats.

Hawaii continues to be recognized as consistent withthe USDA, Voluntary Scrapie Certification ProgramStandards. A State Scrapie Certification Board is inplace to oversee the program which certifies goatand sheep flocks within the voluntary program.Scrapie has never been diagnosed in any goat orsheep flocks in Hawaii. Interstate movementrequirements were put in place that requires that allfemale sheep moving interstate or to shows areidentified back to their flock of origin with the use ofofficial government approved ear tags.

Ø Bovine Spongiform Ecephalopathy (BSE)FDA regulations prohibiting the feeding of ruminatecontaining feed, to ruminates, is in place in Hawaiiand throughout the nation. No cases of BSE haveever been found in the US. Surveillance for BSE is inplace nationwide. For surveillance purposes, Hawaiiinvestigates and submits brain samples from anycattle showing signs of neurological disease for BSEtesting.

Scrapie Flock CertificationInspection


The Veterinary Laboratory provides diagnostic and surveillancetesting to support the Livestock Disease Control Branch, AnimalQuarantine Branch, and other governmental agencies as wellas private ranchers and farmers. The laboratory receives andtests a variety of animals and animal specimens for diseasediagnosis. The veterinary laboratory is certified to performdiagnostic test for diseases of both economic and public healthimportance such as brucellosis, anaplasmosis, pseudorabies,equine infectious anemia, bluetongue, porcine respiratory andreproductive syndrome, and Johne’s disease. Timely andaccurate detection of animal diseases ensures to maintain andimprove the general health and well-being of livestock andpoultry in Hawaii.

During FY 2003, the laboratory processed approximately 25,000animal specimens with more than 60 percent (15,435) samplesoriginating from livestock in support of the Livestock DiseaseControl Branch’s activities including cooperative diseasesurveillance program with USDA. Pathological cases (87cases) have remained relatively constant since FY 2002 withthe majority from recently imported animals.

VETERINARY LABORATORY BRANCHCrane Hahn, D.V.M., Program Manager

Ø Voluntary Johne’s Disease Herd CertificationProgram (VJDHCP)During FY 2003 Hawaii was officially recognized byUSDA as having an approved VJDHCP. The divisionparticipated with the dairy industry and the VJDHCPState Committee to conduct herd risk assessments,develop herd plans and conduct herd testing on thestate’s dairy industries. During the fiscal year 851head of dairy cattle were tested for Johne’s. TheVJDHCP goal is to implement disease controlmeasures to reduce and eliminate Johne’s diseasefrom cattle herds and conduct annual surveillanceto verify a free status once it is achieved in the state’sherds.

Ø Importation/Exportation of Livestock, Poultryand Other AnimalsAn embargo placed on the movement of poultry andother birds through the U.S. Postal Service inSeptember 2002 remains in place to prevent theentry of West Nile virus from entering the state throughinfected birds.

Inspected and approved for entry into the state:22,367 head of livestock, 8,644 poultry and otherbirds, 249,664 day-old chicks, 5,137 cases hatchingeggs, 7,219 dogs and cats and 11,439 other animals.

Conducted a total of forty nine (49) complianceinvestigations resulting in fourteen (14) citations beingissued. Issued 170 written warnings and refusedentry on 128 animal shipments not meeting entryrequirements.

Aquaculture Development Program

AQUACULTUREDEVELOPMENT PROGRAM

John CorbinManager

The Aquaculture Development Program (ADP) providesessential support services to encourage further growthand diversification of the aquaculture industry. ADP is aplanning, development, and problem-solving divisionwhose goals are to assist in the start-up of productionand service businesses, and to contribute to theirsuccess. Specific activities include planning and policyformulation, new business development, permitfacilitation, marketing assistance, disease diagnosis andprevention assistance, and co-funding of statewidetechnical extension.

The mission of ADP is to: prepare and implement stateaquaculture plans and policies for the expansion ofaquatic farming, and research and technology transferbusiness; coordinate statewide development activities;and directly assist both public and private sector interestsin achieving their aquaculture-related goals, so as tocreate jobs and diversify the economies of all islands.

Major activities for FY 2003 included:

Ø Continued the implementation of the amendedChapter 190D, HRS, Ocean and Submerged LandsLeasing law by facilitating the approval process forfive additional aquaculture leases by the Departmentof Land and Natural Resources.

Ø Served as Team Member for a study managed bythe University of Delaware, Center for Study of MarinePolicy that produced a report for Congress entitled,Operational Guidelines for Aquaculture Leasing in theU.S. Exclusive Economic Zone (EEZ).

Ø Completed federal grant to evaluate open oceanaquaculture sites using GIS and regulatoryprocesses, in collaboration with the UH Sea GrantCollege Program and the Office of Planning,Department of Business, Economic Developmentand Tourism.

Ø Participated in the governing boards and advisorycommittees of: the Pacific Marine Aquaculture Center,Pacific Aquaculture and Coastal Resources Centerat UH Hilo, Center for Tropical and SubtropicalAquaculture, National Association of State AquacultureCoordinators, Natural Energy Laboratory of HawaiiAuthority, Marine and Coastal Zone ManagementAdvisory Group, Commodity Advisory Group,University of Hawaii Sea Grant College Program, andHawaii Aquaculture Association.

Ø Assisted with permits for species importation and sitingfor farmers on Oahu, Kauai, Maui and Hawaii.

Ø Co-chaired the Marine Ornamentals 2004 ConferenceOrganizing Committee, as well as Finance Program,Marketing and Publications Committees. Thisinternational conference, the third in a series originatingin Hawaii, will be held in March 2004 at the HawaiiConvention Center.

Ø Promoted the consumption of aquaculture productsby participating in the State Farm Fair, Made in HawaiiExposition, Sam Choy’s Poke Contest, the Hotel andRestaurant Expo, and the Taste of AquacultureFestival. Worked with television, radio and print mediato place stories and promote the industry. Also,worked with industry association to secure grant todevelop promotional video. Continued electronic bi-monthly newsletter, Aquaflashes.

Ø Carried out for aquatic animal health managementover 100 field trips and analyzed 300 casesubmissions, and provided animal health consultationservices to producers and research organizations,statewide, including conducting workshops ondisease diagnosis and prevention. Revised the officialState certification procedures and documents toreduce any possibility of forgery in overseas markets.

Ø Received a continuation grant from the USDA forresearch in disease management for the Hawaiiaquaculture industry.

Ø Co-funded statewide technical extension services tothe aquaculture industry, in cooperation with the UHSea Grant Extension Service leveraging over $200,000in matching funds through the project.

Ø Provided technical reviews of research proposals tothe UH Sea Grant College Program, U.S. Departmentof Commerce, U.S. Department of Agriculture, andthe Pacific Tropical Ornamental Fish Program(PTOFP). Also assisted in organizing the proposalsolicitation and review process for the third year ofthe PTOFP program, which distributed over $600,000in grants.

Aquaculture Development Program

Ø Served on the Board of Directors and providedassistance to the Hawaii Aquaculture Association(HAA) in the areas of meeting and conferencedevelopment and execution, grant writing andpromotion through the annual Taste of HawaiiAquaculture reception.

Ø Contributed three technical papers to the AnnualConference of the Hawaii Aquaculture Association.Prepared White Paper on Open Ocean Aquaculturein Hawaii for use by the department. Gavepresentation at PACON Ocean Day 2003.

Craig and Carol Schmarr farm one of the truly uniqueanimals of the ocean – sea horses. Ocean Rider, locatedat the Natural Laboratory of Hawaii Authority in Kailua-Kona, is a world leader in captive-bred sea horses.

Many of the sea horse varieties grown by Ocean Rider areconsidered to be on the edge of extinction. Sold direct toconsumers worldwide via the Internet, Ocean Rider is amodel of cutting edge and conservation-mindedaquaculture business (see website: www.oceanrider.com).

Plant Industry Division

PLANT INDUSTRYDIVISION

Lyle Wong, Ph.D. Administrator

The Plant Industry Division consists of three branches,the Pesticides Branch, Plant Pest Control Branch andthe Plant Quarantine Branch. Together, the brancheswork to protect Hawaii’s agricultural industries bypreventing the entry and establishment of detrimentalinsects, weeds and other pests and by assuring the safeand efficient use of pesticides in Hawaii. The divisionalso works with growers, exporters, and othergovernment agencies to resolve quarantine restrictionsin order to allow export of Hawaii’s fresh fruits,vegetables, flowers and foliage products to marketsworldwide.

PESTICIDES BRANCHRobert A. Boesch, Manager

The Pesticide Program regulates the distribution and use ofpesticides through a program of licensing, testing thecompetency of restricted-use pesticide applicators, andeducating and monitoring pesticides distributors andapplicators. This is to ensure the efficient, effective and safeuse of pesticides to minimize adverse effects onthe environment.

Three of the major activities of the program in FY 2003were as follows:

Biotechnology Monitoring

In January 2003, pesticides program staff participated withEnvironmental Protection Agency (EPA) staff in inspecting seedcorn companies producing genetically modified corn pursuantto experimental use permits issued by EPA. These inspectionswere part of a second round of inspections after EPA initiatedand settled enforcement actions with Mycogen and Pioneer.Increased federal activity in monitoring biotech crops isexpected. The Pesticides Program considers plants with genesfrom other species that control pests to be treated articles anddoes not regulate them. Activities in biotechnology monitoringfalls under EPA authority and utilizes EPA funds.

Ground Water Review Procedure Being Reassessed –Progress Report

Pesticides user concerns about the ground water protectionprogram resulted in a reevaluation of how the program is beingimplemented. The Hawaii Department of Agriculture has beenusing a risk assessment procedure to assess potential ofpesticides to leach to drinking water that includes thefollowing steps:

Ø Label and data review for the following risk factors:

§ Review of the pesticide use pattern forapplications to the soil (soil fumigants applied tocontrol nematodes, herbicides applied to the soilto prevent weed seeds from germinating, andground treatments for termites);

§ EPA approved label advisories or restrictionsbased on potential to contaminate ground water:

§ Pesticide persistence (half-life) and mobility(solubility, affinity for organic carbon) and usinga geographic information system with modelusing soil and chemical properties to mapleaching potential in areas of potential use;

§ Magnitude and extent of potential use.

Ø If the label and the data suggest that the pesticidemay leach, an additional step is taken to provide datasummaries provided by the manufacturer, the labelon potential use practices and other information tothe University of Hawaii for an recommendation onpotential regulatory actions.

Ø Consult with user groups on potential benefits of thenew chemicals.

This procedure has developed since 1987, when the HawaiiPesticides Law was changed to require the Department ofAgriculture to determine if unreasonable adverse effects existwhen the use of a pesticide will result in the detection ofresidues in drinking water.

Model development and fieldwork over the past decade hasprovided much information on pesticide fate in the environment.Some newer pesticides have not been licensed in the Statedue to potential to leach to drinking water sources.

Since many of these newer pesticides are considered safer topeople, the Department of Agriculture has awarded a contractto the Water Resources Research Center to determine theenvironmental fate of some of the newer pesticides and to makerecommendations on the current decision making processused by the pesticides program.


PLANT PEST CONTROL BRANCH (PPC)Larry M. Nakahara, Manager

Fieldwork has been completed at five sites (Waimanalo,Poamoho, Kunia, Maui, and Kauai). Cooperators included theUniversity of Hawaii Experiment Stations at Waimanalo, Maui(Kula) and Poamoho, Pioneer Research, Kauai (Mana Plains)and Hawaii Agriculture Research Center, Kunia. Over onethousand (1000) samples have been collected and will beanalyzed by the Department’s Chemical Analyses Laboratoryat the Kamauleule Building at Waimano Home.

Dioxin Laboratory Set Up at the University of HawaiiManoa

Using funds made available by the U.S. EnvironmentalProtection Agency to develop phytoremediation technologiesand the Pesticides Use Revolving Fund, the University of Hawaii,College of Tropical Agriculture and Human Resources,Molecular Biology and Biochemical Engineering Departmentestablished a laboratory with the capability to analyze samplesfor dioxin compounds. The laboratory is important for testingsoils from old sugarcane herbicide mixing sites to assess thepresence and appropriate mitigation measures fordioxin compounds.

The primary function of the Plant Pest Control is to reducepopulation densities of plant pests that cause significant damageto agriculture and the environment to manageable levels. Thisis achieved through statewide programs to eradicate or controlplant pests, which include destructive insects, mites, snails,and slugs, noxious weeds, plant diseases, and any otherorganism harmful to plants, by utilizing chemical, mechanical,biological, and integrated control measures. It also certifies thegenetic purity of seeds grown in the State, an activity that isbeing transferred to the Quality Assurance Division. TheBranch consists of the Biological Control and Chemical/Mechanical Control Sections.

Some of the activities of the Branch during FY 2003 includedthe following:

New Pest Detection and Identification

Ø Identified 187 samples of insects and other organismsfrom which 31 specimens were processed and addedto the Branch’s Zoological Reference Collection. Thecollection now contains approximately 165,900specimens. In addition, 39 samples of insectspecimens intercepted by the Plant QuarantineBranch were identified and 190 calls regarding variouspests were received from the general public andprocessed.

Ø Recorded six new immigrant insects in Hawaii duringFY 2003. The first four species listed have the potentialto become significant plant pests if not suppressed

by biocontrol agents. The twig borer may only attackplants or portions thereof that are not in good health,while the giant flower beetle appears to be harmlessto plants.

ØØ A thrips, Dolichothrips indicus (Hood) (Thysanoptera:Phlaeothripidae). USDA-APHIS-PPQ inspectorsmade several interceptions of this thrips fromgardenia and guava being taken out of Hawaii during2001 and 2002. The origin of this species is India. Itis also known from Trinidad, Puerto Rico, otherislands in the Caribbean, Florida, and eastern Brazil.Hosts recorded in literature include avocado,eggplant, litchi, lemon, melon, Momordica, and Piper.

ØØ A banyan leaf tier, Choreutis sp. (Lepidoptera:Choreutidae). Larvae of this moth were firstdiscovered in March 2001 at Pauoa on Oahu, hiddenwithin leaf rolls on banyan trees. The caterpillars tiethe edges of the leaves with silk to create the roll. Itis the first member of the family Choreutidae to befound in Hawaii. Choreutid larvae are mostly leaf-tiers. Adults are active during the day.

ØØ Nesting whitefly, Paraleyrodes minei Iaccarino(Homoptera: Aleyrodidae). Specimens of this tinywhitefly were collected from red hibiscus in the Pawaaarea of Honolulu in April and May 2003. Nymphs ofthis whitefly appear to create “nests” by producingand spreading white flocculent silken material arounditself on both the upper and lower leaf surfaces. Thiswhitefly is commonly known as the nesting whiteflyin California, where it is a pest of avocado. Whitefliesin general feed on plant sap and excrete honeydew,which collects dust and supports the growth of sootymold. The honeydew also attracts ants that interferewith biological control.

A banyan leaf tier caterpillar exposed in leaf roll. Thecaterpillar ties the edges of a banyan leaf to create aprotected site in which to feed and pupate.


ØØ A wiliwili seed beetle, Specularius impressithorax(Pic) (Coleoptera: Bruchidae). Specimens of thisbeetle were first collected from seed pods of wiliwili,Erythrina sandwicensis Degener, on Maui in April2003. This bruchid was later found to be present onmost of the major Hawaiian Islands. Larvae havebeen found boring within the wiliwili seeds. Emergingadults create exit holes in the pods. Heavy damagesto seeds have been observed.

ØØ A branch and twig borer, Heterobostrychushamatipennis (Lesne) (Coleoptera: Bostrichidae).Specimens of this beetle were collected from a deadbranch of a mango tree at Kalihi on Oahu in June2003. T. Guerrero submitted the specimens to A.Samuelson of the Bishop Museum, who made thespecies determination.

ØØ A giant flower beetle, Protaetia orientalis (Gory andPercheron) (Coleoptera: Scarabaeidae). Adultspecimens of this large beetle were collected onOahu at the Hickam Air Force Base Mamala Bay GolfCourse in November 2002. Each beetle measures2 centimeters long, which is twice the length of themango flower beetle, P. fusca (Herbst), that iscommonly found in Hawaii. The beetles were restingor congregating on the underside of leaves or nearbranch tips of kou-haole, Cordia sebestena L., alsoknown as Geiger tree. Since this was the only planton which they were observed, it may be that they areattracted to the flowers of the kou-haole tree for itsnectar or pollen. There were no signs of foliar damageon these trees so the adults, like those of the mangoflower beetle, may not be herbivores. However, thebeetle may become a nuisance because its largesize, rapid and erratic flight pattern, and loud buzzingsound during flight may alarm people.

Projects of the Branch’s Biological Control Sectionincluded the following during FY 2003:

Ø Yellow Sugarcane Aphid [Sipha flava (Forbes)].Production of the yellow sugarcane aphid (YSA)parasitic wasp, Lysiphlebus ambiguus (Haliday)(Pakistan biotype), declined to low levels in the HiloInsectary. Conditions contributing to the declineincluded invasion of rearing cages by ants,contamination of potted sorghum host plants by otheraphids, chlorosis of host plants due to causes notyet determined, and lack of time to address thevarious problems because of changing projectpriorities. Despite the continuing difficulties, upsurgesin production during some months of the year enabledshipments to be made to Kauai for a final attempt toget this YSA parasitoid established on that island.

During the previous two years, several recoverieswere made on the islands of Hawaii and Maui. InApril 2003, a survey of pastures near Pukalani, whereL. ambiguus had been released earlier, revealed ahigh rate of parasitism by the YSA parasitoid. Thesignificance of this is that it was the first observedincidence of such a high level of parasitism of YSAon Maui. During the past year, 10 releases, consistingof a total of 30,770 adults, were made on Maui (3)and Kauai (7). From FY 1998 through FY 2003, morethan 500,000 adults were released, mostly in pastureson the islands of Hawaii and Maui, but also insugarcane fields on Kauai. Propagation of this YSAparasitoid will be terminated.

ØØ Citrus Leafminer [Phyllocnistis citrella Stainton]. Thecitrus leafminer (CLM), which appeared to be a veryserious threat to all citrus in Hawaii when it was firstfound on Oahu at Waimanalo in June 2000, is now apest of little significance. This was the result of thefortuitous introduction of its primary natural enemy,Ageniaspis citricola Logvinovskaya. This encyrtidwasp apparently arrived in Hawaii in association withCLM infestations on potted citrus plants.

Although the CLM inflicted a great deal of damage tocitrus plantings on Kauai during the past two years,its damage is not readily observed at present. Thus,it has become very difficult to collect the parasitoidon Kauai, as well as on Oahu, for shipment to theneighbor islands. Fortunately, CLM infestations werestill active on Maui, where A. citricola could be readilycollected for shipment to the Hilo Insectary. The pupaewere held for adult emergence and subsequent fieldrelease on CLM-infested citrus trees. The firstdetection of the CLM on the island of Hawaii was madein a grapefruit orchard at Kohala Ranch on June 28,2002. Shortly thereafter in mid-July, 270 A. citricolapupae were collected on Maui at Lahaina and shippedto the Hilo Insectary from where 220 of the emergingadults were transported to Kohala Ranchand released.

As residents became aware of this pest and itsdamage, infestations were reported, during July

Giant flower beetleadult measuring ¾ inchin length. Specimensof this large beetle werefound on kou-haoletrees at Hickam AFB inNovember 2002.


through December, from several districts around theisland, including Puna (Hawaiian Paradise Park,Kurtistown), South Hilo (Waiakea, Pepeekeo),Hamakua (Honokaa, Waipio Valley), North Kohala(Hawi), South Kohala (Kawaihae), and North Kona(Keahole, Kaloko, Honokahau, Kailua). A total of 12releases, amounting to 4,434 A. citricola adults, weremade in those localities during that period. Adultsthat emerged from pupae collected on Maui,supplemented by those from Oahu collections, werevital to the control effort during the earlier part ofFY2003.

In November 2002, confirmation of the establishmentof A. citricola was made at the Kohala Ranch siteand it began to serve as a reservoir for parasitoidcollection. As reports of CLM infestations diminishedas a result of excellent biocontrol, the final releasesof A. citricola adults were made in remote, isolatedlocalities during late-January 2003 (200 at Kalapanain Puna and 120 at Waipio Valley in Hamakua) andearly-February (285 at South Point in Ka’u).

Nettle Caterpillar [Darna pallivitta Moore]. Propagationof the nettle caterpillar continued in the HDOA InsectQuarantine Facility in Honolulu, as well as in the HiloInsectary. However, a disease infection of the Hilocolony resulted in the termination of propagation atthat facility in September 2002. The original infestationat Panaewa extended its range across VolcanoHighway to a flower and foliage nursery. New hostrecords at that site included Curculigo capitulata(whaleback), Monstera deliciosa, Alpinia purpurata(red ginger), and Phlebodium aureum (hare’s foot fern,laua’e haole). After a period of disinfecting, a newcolony was established in the Hilo Insectary with eggs

provided by UH-Manoa CTAHR-PEPS researchersin Hilo. The larvae appeared to be doing well on Rhapispalm plants. The colony is being maintained toproduce eggs and larvae that will be set out in thefield to detect parasitoid activity. In May 2003 atPanaewa, during an investigation of a report aboutminor expansion of the known range of the nettlecaterpillar, larvae were found feeding on Canavaliacathartica (maunaloa). This discovery is significantbecause maunaloa is the first dicot plant in Hawaii tobe confirmed as a host plant. All previous sightingswere on monocots. Several dicot species have beenidentified as hosts of D. pallivitta in its native region.

ØØ Giant Whitefly [Aleurodicus dugesii Cockerell].Heavy infestations of the giant whitefly (GtWF) werediscovered on red hibiscus at Honolulu InternationalAirport in late-May 2002. Subsequent surveysdisclosed heavy infestations in the adjacentMapunapuna industrial area and lighter infestationsin the Salt Lake residential area. At several sites,large numbers of Encarsia guadeloupae Viggiani,were found parasitizing GtWF nymphs.

This parasitic wasp was introduced from Trinidad in1980 for biocontrol of the spiraling whitefly (SWF), A.dispersus Russell, a close relative of the GtWF.Although they are similar in size and lay their eggs ina spiral pattern, they are easily differentiated on thebases of some physical characters. Mature GtWFnymphs have a grayish brown color in contrast to thewhite SWF nymphs. The wings of the GtWF adultshave brownish patches like camouflage and are heldtent-like when at rest instead of being typically whiteand held flat over the back like those of the SWF.Also, the waxy, tubular secretions of the mature GtWFnymphs elongate and appear like whiskers, whilethose of the SWF form curls.

The GtWF, native to Mexico, was found in Californiain 1992 and in Florida in 1996. In July 2002, heavyinfestations were detected on red hibiscus inneighboring localities at Hickam Air Force Base,Kalihi, Moanalua, and Alewa Heights. In early-January2003, a heavy GtWF infestation was found onplumeria trees near Moanalua Gardens.

Large numbers of ladybird beetles, primarily the threespecies introduced from the West Indies for SWFbiocontrol, were observed feeding on GtWF nymphs,but there was only a trace of parasitoid activity. Bythe end of January, GtWF infestations werecommonly observed in the Downtown Honolulu area,especially on Citharexylum spinosum (fiddlewood),a currently popular ornamental tree favored by somehorticulturists despite its potential for invasiveness.Heavy infestations were annoying Chinatownshoppers and shopkeepers.

Entomologist Walter Nagamine releasing parasiticwasps to control infestations of the giant whitefly


Other less favored hosts included Turnera ulmifolia(yellow alder), Hibiscus tiliaceus (hau), and Thespesiapopulnea (milo). A very interesting occurrence wasthe confirmation of a report of a very heavy GtWFinfestation on fiddlewood at a Kaneohe residencebecause it was the only confirmed infestation on thewindward side of Oahu at that time. Several otherinfestations were found later. At this time, it appearedthat the SWF biocontrol agents, despite their earliersuccess in suppressing GtWF infestations on redhibiscus, would not be effective enough to maintainthe GtWF population density at manageable ortolerable levels. Thus, preliminary contacts weremade with biocontrol officials in California forassistance because they had introduced two speciesof parasitic wasps from Mexico for GtWF control. ByMarch, GtWF infestations on Oahu had dispersedeastward to Makiki and westward to Waipio.

New reported hosts included avocado, citrus, andguava. On March 25, 2003, a major breakthroughoccurred when Idioporus affinis LaSalle and Polaszekwas discovered at Waimalu. This pteromalid waspapparently arrived in Hawaii in association with theGtWF on infested host plants and was not detecteduntil its population density increased. I. affinis wascollected amid GtWF infestations by a Californiaentomologist in Mexico at Guadalajara in 1997. OnOahu in April, surveys indicated that I. affinis wasstarting to increase in numbers and distribution. Itwas found to be parasitizing GtWF nymphs on redhibiscus hedges at Kapolei, Kalihi, and Pawaa. FromApril through June 2003, 57 releases, totaling 33,720I. affinis adults, collected from fiddlewood, first atWaimalu and later at other localities, were made atvarious release sites in Honolulu from Moanalua toWaikiki. New GtWF hosts included bauhinia, coconut,and naupaka.

ØØ Koster’s Curse [Clidemia hirta (L.) D. Don]. Periodiccollections of clidemia berries, infested by the clidemiafruit-feeding caterpillar, Mompha trithalama Meyrick,and also by the clidemia flower-feeding caterpillar,Carposina bullata Meyrick, are being conducted inEast Hawaii on a time-available basis. FromNovember 2002 through January 2003, the OperationMiconia Crew collected green clidemia berries frominfestations near the University of Hawaii GeothermalWell at Pohoiki in Puna. This is the most favorablecollection site where releases of this species had beenmade in late-February and throughout March 1999,and where the initial recovery had been made in April2000. The collected fruit were held in cages in theHilo Insectary for adult emergence. The moths usuallyemerged and were released during the followingmonth. Portions of some collections were immediatelysent to cooperators in South Kona and on Molokai.Adults emerging from the Pohoiki collections were

released in December on Molokai at Kainalu (158)and on Hawaii at Kaumana (40) just above Hilo.Releases in February were made on Hawaii atKukuiopae in South Kona (385), Kurtistown (165), andKaumana (12), but data were not received from theMolokai cooperator for later releases made at Kainalu.HDOA Hilo personnel made a collection at Pohoiki inMarch, which resulted in releases during April in theWest Maui Watershed (200) and on Hawaii atHawaiian Acres in Puna (50), Ainaloa Estates nearPahoa (120), Kipahoehoe in South Kona (80), andKaumana (50). Collection and distribution of bothclidemia biocontrol agents will continue.

ØØ Gorse [Ulex europaeus L.]. The cooperative projectwith Manaaki Whenua Landcare Research NewZealand to introduce another gorse biocontrol agent,Cydia succedana Denis and Schiffermuller,commonly known as the gorse pod moth, into Hawaiifor further suppression of gorse infestations has beeninitiated. Seeds of three Fabaceae (legume) specieswere sent from the Hilo Insectary to the New Zealandcooperator in July 2002 for propagation in pots in thegreenhouse and subsequent use in host specificitytesting of this seed-feeding caterpillar. In the UnitedStates Forest Service greenhouse at HawaiiVolcanoes National Park, gorse seedling germinationstudies are being conducted to quantify the effects ofvarious control strategies, including biocontroland burning.

Data collection in the gorse experimental plots atHumuula on the slopes of Mauna Kea was initiated inDecember 2002. Beginning in early-February 2003,host plant cuttings were shipped from Hilo to NewZealand for host specificity testing of C. succedanaas planned.

On Maui, surveys of gorse at Haleakala National Parkin early July 2002 revealed a resurgence of gorsebiocontrol agents that resulted from the flushing ofgorse following recent heavy rains. The gorse seedweevil, Exapion ulicis Forster, was very abundant.Approximately 75 percent of the seeds within thegorse seed pods sampled were damaged. The gorsedefoliator, Agonopterix ulicetella (Stainton), wasobserved in low numbers, but this was normal forthis species during the months following the annualspring population explosion. Although the gorse mite,Tetranychus lintearius Dufour, was limited indistribution during the earlier surveys, an upsurge ofits population during August 2002 resulted in reportsof moderate damage from Maui collaborators.

Ivy Gourd [Coccinia grandis (L.) Voigt]. Insectarypropagation of the ivy gourd leafmining weevil,Acythopeus cocciniae O’Brien, had been terminatedin April 2002 to devote more resources to the


propagation of the ivy gourd gall weevil, A.burkhartorum O’Brien. However, the continuedemergence of adults from the final few propagationcages prolonged the release of A. cocciniae until earlySeptember. During July and August 2002, 6 releases,totaling 923 adults, were made on Maui at Waiehu,Wailuku, and Kahului, while on Hawaii, 5 releases,totaling 995 adults, were made at Kailua-Mauka,Napoopoo, and Kahaluu. A final shipment to Maui inearly September resulted in a release of 140 adultsat Wailuku and 147 at Kahului.

On September 19, 2002, the last 212 adults toemerge were released amid ivy gourd infestations atWaimanalo in East Oahu. The initial release of A.cocciniae had been made on Oahu at Makiki Heightsin November 1999. This weevil is now wellestablished at all release sites on Oahu and Hawaii,and is dispersing on its own.

In comparison to A. cocciniae, A. burkhartorum islarger in size, has a much longer life cycle, and itsimmature stages seem to be more vulnerable topredation by ants and birds. Lab production has beenretarded by low fecundity. After a successful effort toboost the A. burkhartorum propagation colony,releases resumed on Oahu in November 2002.Liberation of the gall weevil during FY 2003 consistedof 19 releases, totaling 884 adults, made atWaimanalo and Moanalua from November 2002through June 2003.

On May 30, 2003, A. burkhartorum galls were foundon ivy gourd vines under the shade of monkeypodtrees at the release site along Moanalua Stream belowTripler Army Medical Center. This discovery, alongwith previous observations of galls on ivy gourd alongthe H-1 Interstate near Kunia, was very encouragingsigns of the establishment of the gall weevil. Late inFebruary 2003, 40 lab-reared A. burkhartorum adultsand 391 field-collected A. cocciniae adults werepackaged and turned over to a University of Guam(UOG) official for transport to the UOG quarantinefacility to boost their propagation stock, acquired fromHawaii in March 2002.

ØØ Miconia [Miconia calvescens DC]. With theestablishment of the miconia biocontrol pathogen,Colletotrichum gloeosporioides f. sp. miconiae (Cgm),in the major infestations on the islands of Hawaii andMaui, no further releases of the fungus were madeduring the past year. However, research continuedin a collaborative project with the USDA ForestService Invasive Species Unit on assessing the effectof the Cgm on miconia plants. In greenhouse tests,the fungus suppressed plant growth by 50 percentafter only one application. Results of field tests areforthcoming. In a collaborative project with the

Government of French Polynesia, the HDOA PlantPathologist revisited Tahiti to monitor an existingrelease plot and to release the fungus at another site.The biocontrol activity of the fungus in Tahiti appearsto be more successful than in Hawaii for severalpossible reasons. The miconia infestation in Tahiti isextremely dense and the weather is continually rainywith high relative humidity, so the fungus has beenable to maintain itself and produce tremendousamounts of inoculum, causing mortality of youngseedlings. It is spreading readily beyond the initialrelease sites. Also, in Tahiti, the fungus is notcompeting with other on-going control efforts, suchas chemical spraying and mechanical removal ofmiconia plants, as is the case in Hawaii. According toFrench Polynesian officials, they will be setting up alaboratory in the near future to mass-produce thefungus. Miconia continues to be a top priority weed inHawaii and the search for other biocontrol agents iscontinuing in South America.

Fireweed [Senecio madagascariensis Poiret]. Duringexploration for potential fireweed biocontrol agents in1999, eleven species of fireweed natural enemieswere collected in South Africa and Madagascar andcolonized in the HDOA Insect Quarantine Facility inHonolulu. Early in FY 2001, the colonies of sevenspecies were destroyed because they lacked hostspecificity and had minimal impact on fireweed. Thepropagation of two more species, a tephritid fly and acurculionid beetle, was terminated in FY 2002 becausethey did not prove to be effective and the colonies haddwindled. As a result, only two species remainedcolonized for testing in FY 2003.

During the past year, host specificity testing wascompleted for the most promising species, Secusioextensa (Butler), an arctiid moth whose larvaedefoliate fireweed. The colony was established fromone lot of about 100 larvae collected from fireweed atFt. Dauphin, Evatra, Madagascar, in October 1999 bythe HDOA Exploratory Entomologist. The caterpillarswere packaged with other potential biocontrol agentsand hand-carried to the HDOA Insect QuarantineFacility for rearing. A report of the bionomics and hostrange of this species is being been prepared as aprelude to a request for release of this speciesfrom quarantine.

The other potential fireweed biocontrol agent,Sphenella sp. poss. austrina, is a tephritid fly, whoselarvae feed on the flower heads of S.madagascariensis. This fly was colonized throughthe receipt of two shipments from South Africa, eachcontaining hundreds of fireweed flower heads infestedby two tephritid species and other plant material withseveral other biocontrol candidates. Host specificitystudies for this tephritid fly is ongoing.


ØØ Maile Pilau [Paederia foetida L.]. The Skunk VineBiocontrol Project, a collaborative effort betweenthe HDOA Plant Pest Control Branch and theUSDA-ARS Invasive Plant Research Laboratory(IPRL) in Ft. Lauderdale, Florida, continued in FY2003. The propagation colony of the lace bug,Dulinius sp. prob. conchatus Distant, which wascollected at different sites at Osaka Airport on theisland of Honshu by the IPRL Research Leader andan associate researcher, was destroyed in theHDOA Insect Quarantine Facility. The lace bugreadily fed and colonized on noni (Indian mulberry),Morinda citrifolia L., a Polynesian introduction intoHawaii and a key test plant in the family Rubiaceae.

One shipment of the chrysomelid beetle,Trachyaphthona sp., consisting of two lots, wasreceived from Kyushu University, Fukuoka, Japan,in September 2002. The first lot, consisting of 32adults, was collected at Mt. Koura, while thesecond, consisting of 9 adults, was collected atMt. Wakasugi, both from skunk vine infestations inFukuoka Prefecture. This was the final collectionof the 2002 season funded by the USDA-ARS.Previously, three shipments of chrysomelidbeetles, consisting of seven lots, collected inFukuoka, Kagoshima, and Nagasaki Prefectures,during the first half of June 2002, were receivedfrom Kyushu University. Unfortunately, none of thebeetles from all four shipments successfullycolonized despite the emergence of some second-generation adults. However, the rearing confirmedvital information about the larvae feeding on theroots of skunk vine (maile pilau). On June 20, 2003,the first shipment of the new season arrived,containing 100 (87 alive, 13 dead) Trachyaphthonasp. adults that were collected on skunk vine at Mt.Unzen-dake in Nagasaki Prefecture. They wereplaced in cages containing potted skunkvine in the department’s InsectQuarantine Facility.

Projects of the Branch’s Chemical/Mechanical ControlSection included the following during the FY 2003:

Ø Conducted surveys in Phase II of ProjectEradication, an intensive campaign to remove allbanana plants within a 10-square-mile area in theNorth Kona District. This resulted in the detectionof five residential lots having banana plants infectedwith banana bunchy top virus (BBTV).Investigations indicated BBTV was not eradicatedfrom the 10-square mile area. Staff canvassed allNorth Kona properties and destroyed all infectedbanana plants to suppress BBTV from moving toother disease-free areas on the island of Hawaii.

Ø Collaborated in a multi-agency taskforce withDLNR-Aquatic Resources and EngineeringDivisions, City & County of Honolulu, U.S. Militaryand other agencies to control giant salvinia, Salviniamolesta DC, a floating aquatic weed, whichcovered nearly 300 acres of Lake Wilson inWahiawa, Oahu. Opening-up the surface waterswas essential to avert massive fish kills and publichealth concerns should salvinia’s dense growthcontinue to impede oxygen transfer to the lake’swaters. The six week effort, from Febrauary 21 toApril 3, allowed 28 DOA employees to spray over268 gallons of AquaMaster (a glyphosate herbicide)onto salvinia on the lake’s surface waters and bankareas. Spray booms on two boats were used toshrink and sink an estimated 50 percent of thefloating weed, while other agencies removed theremaining salvinia through mechanical means. TheDOA spent $36,000 in in-kind-services for labor tospray the herbicides and $1,000 to construct aspray boom for one of the boats. On Memorial Day,May 26th, Lake Wilson was sufficiently cleared ofgiant salvinia and opened for public fishing.

Right: Plant Pest Control Specialists NiltonMatayoshi (r) and Derek Arakaki (l) apply anaquatic herbicide to Salvinia Molesta at LakeWilson in Wahiawa.

Above: Close up of Salvinia molesta


Ø Discovered BBTV at a private residence at Pukalani,Maui on December 23rd. Surveys and chemicalcontrol measures were implemented immediately.Staff disseminated BBTV information with CTAHRpersonnel at a shopping center and plant sale. Bythe end of the fiscal year, BBTV-infested bananaplants were found in 29 of 400 residential lotsinspected. A total of 156 mats and 507 infectedbanana plants were destroyed in an effort to suppressand contain the disease to this locality. BBTV wasnot found in other parts of Maui in spite of BBTV beingestablished in Pukalani for over a year.

Ø Provided early BBTV disease detection assistanceto Kauai commercial banana growers as part of aBBTV management program on the island. Duringthe fiscal year, BBTV widened its spread to new farmlots in the southern areas of Kauai in the Lawai-Poipu-Numila areas. BBTV was detected in Kapahi in April2000 following an earlier eradication attempt. BBTVhad first been discovered at Kilauea Town in October1997 where an eradication project was attempted.Later surveys in 2000 showed that the Kapahiinfestation was due to a failed eradication of BBTVfrom the Kilauea infestation. Staff conducted island-wide surveys to delineate the spread of this diseaseand control any outbreaks that may occur on Kauai.

Ø Surveyed agricultural lands on Oahu where BBTV iswidespread. Staff assisted commercial farms in theearly detection of this disease. Commercial growerswere urged to manage the virus on their farms bycontrolling the insect vectors with insecticides anddestroying diseased plants with herbicide injections.

Ø Assisted papaya growers on Hawaii by identifyingpapaya ringspot virus (PRV) in commercial fieldplantings and marking diseased trees for later removalby growers. A total of 43,947 infected plants weretagged for destruction during the fiscal year on over210 farm lots in the Puna and Hamakua Districts onHawaii. This was a 9.2 percent increase over lastfiscal year’s total of 40,216 plants tagged.

Ø Collaborated with DLNR and Invasive SpeciesCommittees on Hawaii, Maui, Kauai, and Oahuinvolved with controlling miconia, Miconia calvescensDC. On Hawaii, the group suppressed miconia inparts of Hilo, Puna and Honaunau. On Maui, miconiacontrol was also carried out by RCUH, and HaleakalaNational Park in East and West Maui. Staff and othervolunteers continued to suppress incipientpopulations of miconia in Manoa, Waimanalo,Kahaluu, Tantalus, Maunawili, and Kalihi Valley.

Ø Conducted research on chemical toxicants to controlcoqui frog, Eleuthrodactylus coqui Thomas,infestations found on Hawaii, Maui, Oahu and Kauai.

The discovery of citric acid applied as a 16 percentspray solution proved highly effective against the coquifrog, replacing the need for caffeine and hydrated limeas ranacides.Efforts were made to find amanufacturer of hydrated lime willing to register theproduct as a pesticide. Cement companies thatmanufacture hydrated lime were not interested soefforts were redirected to exempt hydrated lime, likecitric acid, for use as a pesticide. Hydrated lime is asoil amendment that is commonly used to raise thepH in soil.

Ø Treated a quarter acre of pathos landscaping at ahome improvement store at Iwilei on Oahu for frogswith citric acid. Plants were dug out, bagged, andremoved. During the operation, 17 coqui frogs and195 greenhouse frogs, Eleuthrodactylus planirostris(Cope), were collected. At Wahiawa Heights, coquifrogs were hand-picked to prevent populations fromincreasing. A highly successful sprayer loan programwas initiated on the Big Island allowing residents fromcommunity associations and other organizations theuse of 100-gallon gas-powered sprayers forapplication of citric acid. Groups obtained permissionfrom property owners under their jurisdiction,purchased the citric acid, received instructions fromprogram staff, and applied the mixture where needed.

Ø Worked with the Coqui Frog Working Group to stresspublic education as a way to engage the public incontrolling the growing coqui frog problem on the BigIsland. Brochures and flyers that illustrated the frogproblem on the island and information on whatresidents could do to control the frog in their areaswere handed out at various community events.Informational meetings were held, and PowerPointpresentations were given to nurserymen and thepublic. These PowerPoint presentations were alsoaired on Public TV a number of times on the island,where the frog is a major problem because ofoptimum environmental conditions in the Hilo-Punaarea of East Hawaii. The coqui frog did well in areasfrom sea level to 4,000 feet elevation with 60 inchesor more rainfall where food (arthropods) wasabundant. The frog also did well in irrigated areas,such as plant nurseries, resorts, and backyardgardens. While males mainly called during the warmsummer months from June to September, adults andjuveniles were found all year-round.

Ø Worked with the Coqui Frog Working Group todevelop the successful “habitat modification” of LavaTree State Park on the Big Island to demonstratecontrolling the coqui frog by modifying the landscape.Removal of under-story weedy plants, which werefrog breeding sites and a haven for criminal activity,provided the impetus for community groups to takenotice and volunteer in the replanting of the park with


PLANT QUARANTINE BRANCHNeil Reimer, Manager

native plants. Nanawale Community Association andMalama O Puna were pleased at how removal of theunder-story made criminal activities less desirableat the park. Especially helpful were the laborresources provided by the Hawaii CorrectionalCommunity Center. Inmates did most of the heavylifting and cleanup.Frogs were greatly reducedfollowing the removal of the weedy vegetation, exceptin lava pockets with small chambers where frogscould hide.

Ø Continued chemical and mechanical control ofdesignated noxious weeds, such as thorny kiawe,(Prosopis juliflora [(Sw.) DC], on Oahu and Kauai;miconia, Miconia calvescens DC, on Kauai and Oahu;fountaingrass, (Pennisetum setaceum [(Forssk.)Chiov.], on Lanai and Oahu; ivy gourd, (Cocciniagrandis [(L.) Voigt], on Kauai; gorse, Ulex europaeusL., on Hawaii; and fireweed, Seneciomadagascariensis Poiret, on Kauai where veryfavorable control was obtained at Half-Way Bridgeand at a new infestation site at Kalihiwai that wasdiscovered in June 2003.

Ø Developed a strong working relationship with OISC(aka Fountaingrass Working Group) composed ofU.S. Army, Federal, State, University of Hawaii andvarious other non-profit agencies whose goals are todetect and control invasive alien species that aredeleterious to Hawaii’s agriculture andnatural resources.

Ø Conducted routine surveys of agricultural andvegetable seed vendors to ensure the quality andproper labeling of seed sold to consumers.Germination tests were also performed oncommercially sold vegetable and agricultural seedlots to ensure that minimum germination standardswere met.

Ø Examined incoming foreign seeds for noxious weedseeds under a cooperative agreement with USDA-APHIS-PPQ. Two seed lots were rejected becauseof corn import regulations that prohibit the entry offoreign millet seeds in U.S. seed imports.

Ø Serviced the needs of the expanding seed cornindustry that increased its plantings on formersugarcane lands on Kauai and Oahu and into fallowpineapple lands on Maui. The program also heldseveral meetings with growers and Quality AssuranceDivision (QAD) staff to shift certification activities toQAD so more time could be spent on pest eradicationand control activities. A total of 580 new applicationswere processed this fiscal year. With carry-over fromFY 2002, 500 Foundation and Hybrid classcertifications were issued for seed corn shipmentsweighing 4.3 million pounds.

The branch administers Hawaii’s plant and non-domesticanimal quarantine program by preventing the introduction ofharmful pests and diseases into the State and by facilitatingplant exports. This is done through:

(1) permit reviews;(2) air and sea ports-of-entry inspections;(3) interisland inspections;(4) investigating and enforcing State quarantine laws

and regulations;(5) educating travelers and the public; and(6) inspecting and certifying plants for export.

FY 2003 Highlights

Ø Brown Tree Snake Rapid response training wasconducted on Guam and Saipan during the end of Apriland early June. Three staff from HDOA along with a DLNRstaff member underwent a three week course on rapidresponse techniques and procedures. They were alsotrained in snake capture and handling techniques.Additional HDOA staff will be attending future trainingsessions. The objective is to have at least one HDOAstaff member from each island trained to respond to snakesightings in Hawaii.

Ø Plant Quarantine Branch (PQB) moved into a new facilityat 1849 Auiki St. The new facility includes more quarantinerooms for plant importers, more space and improvedconditions for temporary holding of confiscated animals,improved mist extraction equipment, and a dedicated roomfor nematode extraction and identification, autoclave andfreezer for commodity destruction, a loading dock tofacilitate inspection of containers, and other improvementsover the previous site which will be the new location forthe University of Hawaii Medical School complex.

Ø PQB conducted pre-entry inspections of Dole and DelMonte pineapple operations in Costa Rica. The Board ofAgriculture established import conditions to ensure thatshipments arriving in Hawaii from Costa Rica were freeof pests. All shipments of pineapple slips from CostaRica met the import conditions and passed visualinspections for pests in Honolulu. These shipments werepart of recent attempts by Dole and Del Monte to switchthe variety of pineapple that they currently have inproduction in Hawaii in order to stay viable in the market.

Ø A Rosy Boa snake (Lichanura sp.) was confiscated froma passenger arriving on a flight from Los Angeles. Theboa was declared by the passenger from Tucson, Arizona.

Ø In December 2002, Hilo PQ started witnessing interislandtreatments for coqui frogs using 16 percent citric acid.From December through June 2003, 54 shipmentsconsisting of 84 parcels (Young Bros. containers)containing 8,427 potted plants were treated and certified.


Ø Kahului Airport has experienced a substantial increase innonstop flights from the US mainland with the existingcarriers adding more flights and the addition of ContinentalAirlines with service from Houston, Texas. Maui’s PQinspectors met this challenge with the existing staffshortage and cleared an average of 21 flights and 4,000passengers each day. Each Saturday, they cleared 25arrivals with an average passenger load of 5,000 people.

Ø A hedgehog was turned in by an anonymous person tothe VCA Animal Hospital in Kaneohe. The hedgehog wasleft on their front counter in a paper bag with $20 and anote requesting that it be euthanized.

Ø An Aloha Airlines agent found a lizard in the forward cabinof a flight from Santa Ana, California. The lizard wasidentified as a Western Fence lizard (Sceloporusoccidentalis) which are common in California.

Ø Staff submitted 786 insect interceptions to the PlantQuarantine entomologist for identification. Of these, 50percent were not known to occur in Hawaii, 43 percentwere known to occur in Hawaii, and seven percent wereunidentifiable. Based on these identifications, thedispositions of these shipments were as follows: 57percent had the pest removed and were released to theimporter, 20 percent were refused entry and returned tothe port of origin, 20 percent were treated and destroyed,and three percent were treated and released.

Ø A total of 290 containers of Christmas trees were shippedto Hawaii from Oregon and Washington. In accord withthe HDOA protocol, Washington and Oregon Departmentsof Agriculture witnessed the shaking and cleaning of 100percent of the trees in 76 percent of the containers. Theother 24 percent of the containers were spot checked bythe two mainland agriculture departments. No containerswere found by HDOA inspectors to be infested withyellowjackets. This is the first time in the last 10 yearsthat all containers were found apparently free of pests.

Ø Effective April 16, 2003, ACT 012 authorizes the HawaiiDepartment of Health and Tripler Army Medical Center toimport microorganisms for laboratory use without reviewand permit approval. However, the import ofmicroorganisms for these laboratories still require labelingand invoicing to allow inspection at the port of entry. ACT012 also provided laboratories participating under theClinical Laboratories Improvement Amendments of 1988to be registered with the department pursuant to rules.Rules are currently being drafted.

Ø Approximately 491 disease reports were submitted, ofwhich 76 percent were identified as diseases not knownto occur in Hawaii, 11 percent were identified as diseasesknown to occur in Hawaii and 13 percent were non-diseaseinterceptions. About half of the diseases not known tooccur in Hawaii were avocado scab, which was laterdetermined to be here in Hawaii, followed by rust on beetsand chard.

Left: Neil Reimer, Ph.D., Branch Manager of the Plant QuarantineBranch (standing) and Earl Campbell of the U.S. Fish & WildlifeService catch a brown tree snake during training in Guam.

Above: Nilton Matayoshi, (l) and HDOA animal specialist, DomingoCravalho, Jr.. during brown tree snake training exercises in Guam.

Quality Assurance Division

The Quality Assurance Division serves both theconsumer and producer of agricultural and otherproducts by providing services and enforcing laws andrules designed to improve the market quality ofagricultural commodities, promote fair trade and honestbusiness practices, and maintain stability in the dairyindustry.

COMMODITIES BRANCHWalter Mitsui, Manager

QUALITYASSURANCE

DIVISION

Samuel CampAdministrator

The Mission of the Commodities Branch is to “Set TheStandards” and provide assurance that standardized, highquality, safe, and authentic Hawaii agricultural products canbe showcased in Hawaii as well as throughout the world marketthrough a fair and just agricultural business climate.

The Commodities Branch enhances the economicstability of Hawaii’s agricultural industries bymaintaining grade standards for locally produced fruitsand vegetables, nuts, coffee, flowers and foliage,processed foods and other agricultural products. TheBranch provides unbiased, professional, and timelyservice-for-fee grade, condition, and origin certificationand food safety audits, to add value and desirability toagricultural products. Under federal-state cooperativeagreements, the Branch provides federal certificationfor fresh and processed fruits and vegetables, eggs,seafood and meat, which may not otherwise beavailable to local clients, as well as state certificationfor origin and quality of green coffee, and origin ofcertain products.

The Branch provides just, and unbiased enforcementto assure safety and fair business dealings inagricultural products, to protect the agriculturalcommunity as well as the general public. The Branchadministers laws and rules pertaining to fresh fruit,vegetable, and egg labeling and advertising; minimumexport quality; licensing of dealers in agriculturalproducts; prevention of agricultural theft; and samplingand testing of animal feed for label guaranteeand adulteration.

The Branch’s Milk Control Section regulates the dairy industryin the Honolulu and Hawaii milk sheds by licensing producersand distributors of milk, establishing milk production quotas,setting minimum class 1 price paid to dairy producers, andconducting retail milk surveys and inspections. This specialfunded section is entirely self-funded through license feesassessed to milk producers and processors.

The Commodities Branch’s Chemical Analysis LaboratorySection provides chemical analysis services for the FeedProgram as well as the Pesticides Branch. Animal feedsamples are analyzed for adulteration from agri-chemicals andmycotoxins; environmental samples are analyzed forcontamination from agri-chemical and other substances; andpesticides are tested for ingredients. The Chemical AnalysisLaboratory Section, under an inter-departmental agreement,is located in the State Department of Health’s StateLaboratories Division in Pearl City.

Listed below are brief overviews of developments that haveimpacted the Branch’s activities (See page 54 for a detailedtable of activities):

Ø Completed the move to the new “Measurement Standardsand Commodities Building” at 1851 Auiki Street in lowerKalihi, along with the Measurement Standards Branch andQuality Assurance Division Administration.

Ø Inspected and certified over one million cases of cannedpineapple from Maui Pineapple Company, which continuesto receive large federal government contracts andassessed over $210,000 in fees.

Agricultural Commodities Marketing Specialists (ACMS) PaulWatanabe (front) and Elliot Nakashima (back) gradepineapple juice.

Ø Continued the fee-for-service papaya non-transgenictesting program and established and conducted a new“Identity Preservation Protocol” program for tighter controlof non-transgenic papayas that are exported to Japan.More than five million pounds of papayas were checkedand $19,722 in fees were assessed over the year.

Ø Commodities staff assisted the Measurement StandardsBranch on Kauai to set up a taxi meter testing coursesince there is no Measurement Standards inspectoron Kauai.

Ø Commodities staff on Maui were trained by th retiring MauiMeasurement Standards inspector to conduct taxi metertesting and licensing.

Ø Followed the enactment of Act 49, SLH 2003, which allowsthe Branch to: 1) provide auditing and certification servicesfor food safety, food security and product traceability; 2)cross-utilize temporary help in various programs underone certification services revolving fund; and 3) acquirethe seed certification program from the Plant Pest ControlBranch, Plant Industry Division. With current fiscalconstraints, reduced full-time staff, and changingdemands in the agricultural community, this act will allowthe Branch to address new demands, and cross-utilizetemporary staff to assist where needed, forbetter efficiency.

Ø Staff attended papaya, coffee, and cattle industry meetingsand conferences; and Hawaii Marketing Alliance meetingsfor a “Seal of Quality program.

Ø Staff participated in the Agricultural Theft Task Forcesponsored by the Hawaii Farm Bureau Federation, whichincludes various county police and prosecutors andDepartment of Land and Natural Resources officers. Staffvisited farmers markets to educate vendors and distributeag-theft flyers; they were accompanied by county policeofficers and prosecutors for greater effect. Flyers werealso distributed to various processors, wholesalers,shippers, truckers, and airlines.

Ø Attended mainland training sessions and conferences,which included: USDA/AMS sponsored Fresh ProductsBranch Terminal Market Refresher Class, ProcessedProducts Branch National Supervisor’s Conference, anda Plant System Auditor’s Workshop; FDA sponsoredLaboratory Food Safety Counter-Terrorism Workshop andan Integrating Laboratory Resources for National Food

Security workshop; the self-sponsored NationalEgg Regulatory Officials Conference; and theInternational Association of Milk Control Agenciesannual conference. The costs to attend theseconferences were mostly paid by federal agenciesand the milk special fund, at minimal or no costto the state.

Ø Hosted supervisory visits by USDA officialsfrom AMS - Processed Products Branch, FreshProducts Branch, and Poultry Division. Met withvisiting officials from USDA Grain Inspection,Packers and Stockyards Act. Hosted andreceived training from a visiting US Departmentof Commerce official in seafood inspection.Military inspectors were also invited to the seafoodinspection class.

Ø Participated in a Federal-State agreementto distribute up to $70,000 under a USDA OrganicCertification Cost-Share Program, to qualifiedorganic producers and handlers in Hawaii for theperiod 10/01/02 through 09/30/04.

Agricultural Commodities Marketing Specialist (ACMS) Albert Louie in-training to Certify Seed Corn

Meat Grader Keith Otsuka Grading Beef


Ø The Commodities Branch is working with a cattle rancherto develop a State beef origin certification program, tofacilitate export and marketing of local beef in Japan.

Ø The Chemical Analysis Laboratory developed over adozen new methods to analyze pesticides in variousmatrixes, such as Dieldrin / organochlorines screening invegetables leaves, roots, and soil; Caffeine in soil; Triclopyrin leaves; Phosmet in air filter; Tim-Bor; Rotenone informulation; aflatoxin in root powder; Organophosphatesin animal tissue; and Bromacil in soil and liquid samples.

Ø Through EPA and Pesticides Branch funding, theChemical Analysis Laboratory purchased an Ion trap gaschromatograph / mass spectrometer which will facilitateaccurate pesticide detection and a High PerformanceLiquid Chromatograph with auto sample and data stationto be used to analyze soil samples for a soil leachingproject. This project is geared to help farmers find aneasy method to purge their soil of persistent pesticides.

Ø Branch fee assessments and penalties collected totaled$496,001; about 17 percent more than last year.

MEASUREMENT STANDARDS BRANCHW illiam Pierpont, Manager

The Measurement Standards Branch works to protectconsumers, businesses, and manufacturers from unfairpractices, which are based on a measurement process orsubject to a standard of quality. The goal is to minimize lossesand inaccuracies due to incorrect or fraudulent measuringequipment, processes, or substandard products.

The Standards and Technical Services Sectionassures that State measurement standardsconform to national standards. It performsmetrological calibration of the enforcementstandards used by the Branch and the standardsused by registered service agencies in repairingcommercial devices.

The Standards and Trade Practices EnforcementSection has the responsibility of assuring theconsumer that transactions involving measuringinstruments, labeling, content of packagedcommodities, and pricing are accurate and fairto all parties.

Listed below are brief overviews of developmentsthat have impacted the branch’s activities (Seepage 55 for a detailed table of activities.

Ø The State Metrologist received advancedtraining and certification from the NationalInstitute of Standards and Technology(NIST).

Ø The metrology laboratory received re-certification by theNational Institute of Standards and Technology.

Ø The metrology laboratory inspected and calibrated 95mass test standards, 808 mass enforcement standards,and 708 field standards for service agencies conductingbusiness in the State of Hawaii.

Ø The metrology laboratory inspected and calibrated 13volumetric test standards, 31 volumetric enforcementstandards, and 8 volumetric field standards for serviceagencies conducting business in the State of Hawaii.

Ø The Branch worked with the Hawaii Coffee Associationand local businesses to implement the amended HawaiiRevised Statute §486-120.6, also known as the locallygrown coffee law. Over 430 labels were submitted forreview and technical analysis.

Ø The Branch received and investigated over 18 odometercomplaints, a significant increase from the 4 investigationsdone in 2002. In conjunction with the Attorney General’soffice the investigations completed by the Branch haveled to indictments and arrests.

Ø Inspectors visited 198 establishments for the purpose ofidentifying those that are subject to the price verificationinspection. As a result of this effort, 145 establishmentswere added to the list.

Ø The compliance rate for stores inspected for priceverification was 98 percent, an increase over last year’s93 percent compliance rate.

Ø The Branch identified and certified a two-mile taxi courseon Sand Island access road in Honolulu and a one-miletaxi course on Kauai.

Measurement Standards Inspector Larry Hagmann conductsinspection on a gas pump.


AGRIBUSINESSDEVELOPMENTCORPORATION

Alfredo LeeExecutive Director

The Agribusiness Development Corporation (ADC) wasestablished pursuant to Act 264, SLH 1994 to coordinatethe development of Hawaii’s agricultural industry and tofacilitate its transition from a dual-crop (sugar andpineapple) industry to a diversified, multi-crop and animalindustry. More specifically, it is responsible for devisingmeans by which arable sugar and pineapple lands andtheir production infrastructure can be used again by adiversified agricultural industry and for providingmarketing assistance that can lead to the developmentof local, national, and international markets for Hawaii-grown products.

Mission Statement: The Agribusiness DevelopmentCorporation (ADC) is a vehicle and process to make theoptimal use of agricultural assets for the economic,environmental, and social benefit of the people of Hawaii.It is a risk-taking advocate for agriculture.

The ADC is an attached agency to the Department ofAgriculture governed by a board of eleven (11) members.

Major activities in FY 2003:

ØØ Kekaha Agricultural LandsThe ADC has successfully negotiated the transfer of about12,600 acres of Kekaha Agricultural lands and the relatedinfrastructure via an Executive Order (EO) from theDepartment of Land and Natural Resources (DLNR) tothe ADC subject to a Memorandum of Agreement betweenDLNR and ADC. DLNR agrees to take care of pendingissues prior to turning over the property to ADC and willcontinue to help ADC on land management issues. TheEO will allow the ADC to make optimal use of the State’sassets and allows ADC the flexibility to administer theagricultural lands and infrastructure.

ADC continues to provide operational and maintenanceservices for the infrastructure of the Kekaha agriculturallands. In January of 2003, ADC completed the $1.25million Mauka (Waimea) Hydroelectric Power Plant repair

project, part of the Navy – Phase II contract. With thishydroelectric plant back in operation, the Kekahaagricultural lands are once again energy self-sufficient.Occasional surplus electricity generated from thehydroelectric power plant has been sold to the Kauai IslandUtilities Cooperative (KIUC), further reducing Kauai’sdemand on fossil fuel.

Utilizing Navy-Phase III funds appropriated via the FY2002Department of Defense Appropriations Act, ADC awardedcontracts for surveying and engineering design work atthe Kawaiele and Nohili pump stations and for ravinecleaning and clearing. Funds have also been used toconduct preliminary environmental assessments andpermit requirement evaluations at various project sites toinclude access road repair and Kekaha electrical systemimprovement projects.

ØØ East KauaiThe ADC continued to provide funds appropriated via Act208, SLH 2001, for the operation and maintenance of theEast Kauai Irrigation System. The East Kauai WaterUsers’ Cooperative, managing entity of the system, utilizedthe funds to maintain and improve the irrigation system.Starting out with a dozen members, the Cooperativeincreased its membership to 37 within a one-year period.With more members committing to sharing the operationalcosts, the Cooperative’s goal is to become financially self-sufficient in the next few years.

Left: New control panel for the Mauka Hydroelectric plantin Waimea, Kauai..Right: Refurbished hydroelectric generator.

Agribusiness Development Corporation

Agribusiness Development Corporation

ØØ Waiahole Water SystemADC continues to provide Waiahole Water Systemirrigation water without interruption to users in Central andLeeward Oahu. During this past fiscal year, water usageincreased by 29 percent, which was due primarily to,increased planting of crops and drought-like conditions.After an initial grace period, ADC began making back debtservice payments for the general obligation (G.O.) bondissued for the purchase of the water system.

Per the decision of the Commission on Water ResourceManagement, LEGAL FRAMEWORK, FINDINGS OFFACT, AND DECISION OF ORDER (December 2001Decision and Order), ADC was ordered to develop anassessment and plan, and construct a diversion that woulddeliver the additional water from the Waiahole ditch tunnelsystem to the Waikane stream. ADC completed theWaikane diversion in November 2002. Since then, 2 milliongallons of water from the ditch is being diverted intoWaikane stream daily in an effort to partially restorehistorical instream flows. Information regarding thebackground and status of the Commission on WaterResource Management’s Decision and Order on Waiaholewater use, can be viewed at http://.state.hi.us/dlnr/cwrm/current/cchoa95.

Other Activities:Ø The ADC continued lease negotiation with Kamehameha

Schools for use of about 118 acres of KamehamehaSchools land for the development an agriculturalsubdivision project on the Hamakua coast of the Big Island.

Ø ADC has continued lease negotiations with the Universityof Hawaii for use of the Kauai Tropical Fruit DisinfestationFacility located near the Lihue Airport. This facility currentlyis the only plant on Kauai capable of treating papaya forexport to the U.S. mainland. The goal of ADC is to keepthis facility open as a means to assure long-term viabilityof the papaya industry on Kauai.

Ø The ADC Board of Directors has also approved theexpenditure of $10,000 and is in the process of enteringinto a Memorandum of Agreement (MOA) with theUniversity of Hawaii, College of Tropical Agriculture andHuman Resources (CTAHR) for the development of amarketing plan and strategy that fully represents allsegments of diversified agriculture in Hawaii. CTAHR willcreate an agricultural marketing project with broadobjectives for developing ideal goals or targets formarketing agricultural products, identifying successfulstrategies and techniques used by the industry,demonstrating such strategies and techniques, andassisting industry to adopt such practices.

ØØ State of Hawaii, Twenty-Second State Legislature,2003Two measures that were submitted to the Legislaturewere passed and signed into law. The first measure, Act91, Relating to the Agribusiness Development Corporation,retains the selection process for the ADC Board ofDirectors by repealing provisions that establish themembers of the Board of Agriculture as members of theboard of directors of the ADC, beginning July 1, 2005. Act91 allows Hawaii’s agricultural industry to fully benefit fromthe efforts of the board members appointed by theGovernor, specifically for the purposes of the ADC.

The second measure, Act 47, Relating to the AgribusinessDevelopment Corporation, provides the ADC with theneeded flexibility in managing public lands by exemptingpublic lands set aside by the Governor to ADC, or publiclands leased to ADC by any department of agency of theState, from the provision of Chapter 171, Hawaii RevisedStatute (HRS), relating to public lands. This Act affordsthe ADC the same exemptions for private lands purchasedby ADC and allows ADC the flexibility and authoritynecessary to make optimal use of its assets.

ØØ Board MembersADC welcomes new board members Eric Weinert (BigIsland) and Teena Rasmussen (Maui) who replaceddeparted Diane Ley and Robert Sutherland. Other private-sector members of the board are Larry Jefts, YukioKitagawa, Denis Kam, Chris Kanazawa, Bert Hatton, andWayne Katayama. Ex-Official members includeChairperson of the Department of Agriculture, Chairpersonof the Department of Land and Natural Resources, andDirector of the Department of Business, EconomicDevelopment and Tourism.

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