LIHU’E — Yes, sugar prices are the lowest they’ve been in two decades. Yes, that and other circumstances led Amfac Sugar Kaua’i to decide not to replant much of its acreage already harvested or being harvested on the west and
LIHU’E — Yes, sugar prices are the lowest they’ve been in two decades.
Yes, that and other circumstances led Amfac Sugar Kaua’i to decide not to replant much of its acreage already harvested or being harvested on the west and east sides of Kaua’i, with attending furloughs for 100 workers who held planting positions.
But, no, people have misread the writing on the wall: Amfac does not plan to fade away at the end of this year, according to Jeff Ashmore, president of Amfac Agribusiness and the one making the calls on Amfac Sugar Kaua’i’s future.
One of three remaining sugar plantations in the state (the others are Kaumakani’s Gay and Robinson and Maui’s Hawaiian Commercial and Sugar), Amfac Sugar Kaua’i is “assessing the business viability of operating Amfac’s sugar operations on Kaua’i,” while at the same time formulating its 2001 operating plan, Ashmore said.
“The conclusion of this assessment will answer the question of whether and how we proceed to the future,” he continued.
“Matters of most significance include internal issues such as our yields and productivity, and external influences such as worldwide sugar pricing.
“We have significant incentive to conclude the assessment process as soon as practicable. However, we will not compromise diligence in such an important exercise.” Regarding the furloughed employees, in response to a question fueled by community speculation that the workers would never be called back and that Amfac had made a decision not to continue in sugar, Ashmore said, “If we wanted to lay off employees as opposed to furloughing, we would have done so.” “During furloughs, the company continues to pay each employee’s benefits, which is not the case with a layoff,” Ashmore said. “We have not decided to discontinue operations. Therefore, maintaining the composition of our workforce is important, notwithstanding the current unplanned furlough.
“We have suspended planting activities due to present cash restraints expected to be remedied in the fourth quarter. We are taking the opportunity of this slowdown, however, to assess the overall business viability which involves matters bearing on the nature, timing and extent of planting.” Furloughed workers have told The Garden Island they remain confident that they will be called back to work this year.
Under terms of current contracts in place between the International Longshore and Warehouse Union (ILWU, representing the workers) and Kaua’i Electric (to sell power to KE), Amfac Sugar Kaua’i must give up to three years notice of intent to stop sugar operations.
Neither of those entities have been so notified, “since such a decision has not been made,” Ashmore said.
Ashmore didn’t respond to questions about the effectiveness of trucking cane from the Westside to the Lihu’e Plantation mill for processing, a cost-cutting decision which resulted in the closing of the former Kekaha Sugar Co. mill.
He also did not respond to a question asking if the increased costs of trucking the cane are offset by savings from not operating the Kekaha mill.
In addition, Ashmore did not answer a question about Amfac’s plans for its large land holdings on the island in the event a decision is made to discontinue sugar, or questions about the age of the Lihu’e Plantation mill site or conditions of structures and equipment the company uses.
Business editor Paul C. Curtis can be reached at 245-3681 (ext. 224) or pcurtis@pulitzer.net
