Case Bill Adds Hawaii Macadamia Nuts to Country-of-Origin Labeling

NEWS RELEASE July 27, 2005

Case bill adds Hawaii macadamia nuts to country-of-origin labeling

Washington, D.C. - Hawaii's macadamia nut industry would receive a significant boost in the U.S. marketplace under a bill introduced today by Congressman Ed Case.

The bill would add flavored and roasted macadamia nuts in cans or other packaging to a list of products that are required to have labels listing the product's country of origin. Such labeling would help to prevent some macadamia nut producers from implying in their labeling that their products are 100 percent Hawaii-grown when, in fact, they may contain a mixture of some Hawaiian nuts and lower quality nuts from other sources. Macadamia nuts used for candy or ingredients in other foods would not be covered by the bill.

"Hawaii produces the highest quality macadamia nuts in the world, and we're known worldwide as the pioneer in developing a national and international market for macadamias. But some producers are unfairly taking advantage of this success," said Case, a member of the House Agriculture Committee and ranking member (senior Democrat) on the Livestock and Horticulture Subcommittee, which has jurisdiction over specialty crops including macadamia nuts.

"This is most evident in roasted and flavored nuts in cans or other packaging. Some producers outside Hawaii use lower quality nuts in their products, but still mention a tie to Hawaii in their packaging. This practice hurts the reputation of the Hawaiian macadamia nut industry by decreasing demand and prices for Hawaiian nuts and damaging the reputation of the Hawaiian macadamia nut industry."

The 2002 Farm Bill established a mandatory "country-of-origin" labeling program to discourage such practices. The program doesn't include macadamia nuts and currently applies only to farm-raised and wild fish and shellfish; ground and muscle cuts of beef, lamb, and pork; fresh and frozen fruits and vegetables; and peanuts. The law has only been implemented for fish and shellfish, and mandatory labeling rules for fruits, vegetables and meat are expected to be issued by the U.S. Department of Agriculture by September 30, 2005.

"The long-term viability of Hawaii's agriculture depends on developing and marketing high-value niche products clearly identified as Hawaii-grown. Adding macadamia nuts to the mandatory country-of-origin labeling program would allow macadamia nut farmers to enjoy the same marketing benefits as American peanut growers."

Case today also introduced a bill to include Hawaii in the U.S. Department of Agriculture's Agricultural Management Assistance Program which provides cost-sharing assistance under contracts of three to 10 years in 15 states. The program helps producers to reduce production, price or revenue risks when launching a variety of projects ranging from construction of water management and irrigation structures to organic farming.

"This worthy program was established in 2000 to benefit states where participation in federal crop insurance programs has been historically low. Hawaii, which was not included among the 15 initial states, certainly qualifies based on this criterion. Additionally, the program's activities mesh very well with the needs of Hawaii farmers, especially in relation to water management and irrigation, soil erosion, pest management, organic farming and value-added processing."

Case said the USDA program has adequate room for Hawaii because the state receives less than one cent per dollar of agricultural value compared with the nationwide average of six cents. This places Hawaii last among all states in agricultural assistance received as a percentage of the value of it agricultural production, said Case.

http://wwwc.house.gov/case/press_releases/2005/2005-48.html