SR62

WHEREAS, specialty agricultural crops, such as coffee, tropical fruit, macadamia nuts, chocolate, and vanilla, constitute one of the fastest expanding areas of agricultural production for the State; and

WHEREAS, coffee requires a specific combination of sun, soil, and water, and is successfully grown in only a limited number of locations around the world; and

WHEREAS, the Kona weather pattern of bright, sunny mornings, humid rainy afternoons, and mild nights create favorable coffee growing conditions; and

WHEREAS, the care, skill, and cultivation practices of Kona coffee farmers, most of whom operate small family-owned farms, have built a reputation for quality among coffee consumers; and

WHEREAS, the Kona coffee name only applies to coffee beans grown in North and South Kona, thus, coffee that is grown elsewhere in Hawaii cannot be called "Kona coffee"; and

WHEREAS, under section 486-120.6, Hawaii Revised Statutes, the Kona coffee name is permitted to be used on a package of blended coffee that contains at least ten per cent coffee by weight from Kona; and

WHEREAS, the origin and percentage of the other coffees contained in the package of blended coffee is not required to be listed on the package label or advertisement; and

WHEREAS, as a result, a package of blended coffee could be labeled as "Kona coffee" even though it only contains ten per cent of real Kona coffee and ninety per cent of coffee grown in foreign countries; and

WHEREAS, the existing labeling requirements for Kona coffee causes consumer fraud and confusion, and degrades the "Kona coffee" name; and

WHEREAS, furthermore, coffee roasters on the mainland are not bound by any labeling requirements relating to the use of Kona coffee or the "Kona coffee" name, which adds to consumer confusion; and

WHEREAS, in the December, 2004, issue of Consumer Reports, a writer confused Kona coffee blends with Kona coffee, and mistakenly rated Kona coffee as "second rate" without differentiating between pure and blended Kona coffees; and

WHEREAS, in 2005, United States Congressman Ed Case introduced H.R. No. 3535 to amend the Agricultural Marketing Act of 1946 to require country of origin labeling for macadamia nuts; and

WHEREAS, similar legislation efforts for Hawaii-grown coffee, whether on the national or state level, could establish better truth-in-labeling standards for Hawaii-grown coffee and lessen coffee consumer confusion; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, that the Department of Agriculture is requested to study the existing labeling requirements relating to the use of the "Kona coffee" or other Hawaii-grown coffee names; and

BE IT FURTHER RESOLVED that the Department of Agriculture is requested to:

(1) Examine the existing labeling requirements relating to the use of the "Kona coffee" or other Hawaii-grown coffee names;

(2) Identify the problems with the existing labeling requirements for Hawaii-grown coffee;

(3) Develop stricter labeling requirements under state law and department rules for the use of the "Kona coffee" and other Hawaii-grown coffee names; and

(4) Develop ideas for a uniform national labeling standard and requirements for coffee roasters to abide by for the use of the "Kona coffee" or other Hawaii-grown coffee names; and

BE IT FURTHER RESOLVED that the Department of Agriculture is requested to submit a written report to the Legislature of its findings and recommendations, including any proposed legislation, no later than twenty days prior to the convening of the 2008 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Agriculture; the Dean of the College of Tropical Agriculture and Human Resources, University of Hawaii; the President of the Hawaii Farm Bureau Federation; the President of the Hawaii Coffee Association; the President of the Kona Coffee Council; the President of the Kona Coffee Farmers Association; and any other statewide coffee organizations.

	OFFERED BY:	_____________________________

Report Title:

Coffee; Labeling Requirements; Department of Agriculture

THE SENATE	S.R. NO.	62
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII