message from the chairperson · transition magazine.” this magazine highlights career...

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page 1 Message from the Chairperson Sincerely, Sandra Lee Kunimoto, Chairperson Hawaii Board of Agriculture It is a pleasure to present the Hawaii Department of Agriculture’s Annual Report for Fiscal Year 2006. This report covers the period between July 1, 2005 and June 30, 2006, during which the state faced record-breaking amounts of rain and flooding that devastated areas across the state, including many agricultural areas. Even in the best of agricultural years, the weather presents a challenge to farmers. However, the rains in the Spring of 2006 caused great hardship in our agricultural community, with farmers across the state suffering extreme crop losses. The emergency situation mobilized several divisions, including the Agricultural Resource Management Division, which is responsible for managing the state’s agricultural irrigation systems and reservoirs and the Agricultural Loan Division, which also geared up to provide emergency financial assistance to about 45 farms, totaling more than $1.6 million. We would like to recognize and thank Governor Linda Lingle, the County Mayors and the many county, state and federal agencies, as well as private and non-profit organizations that provided assistance to our farmers during the recovery effort. Other major events during this period include: The launch of the Hawaii Seals of Quality program, which distinguishes 100 percent Hawaii-grown and manufactured products for the local and export markets. Plant Quarantine inspectors expanded risk assessment activities to include neighbor island airports and ports to determine the greatest risks for the transport of invasive species. HDOA researchers have searched the world for biological control solutions to the problems of invasive species that have become established in the state. Work on enhancing bio-security preparedness for both plants and animals continues. Expansion of open-ocean aquaculture ventures and other diverse forms of land-based aquaculture. On behalf of the more than 300 employees of the department, we appreciate the interest and dedication to support and expand farming in Hawaii.

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Page 1: Message from the Chairperson · Transition Magazine.” This magazine highlights career opportunities to high school and younger students. Implemented the department’s on-line telephone

page 1

Message from the Chairperson

Sincerely,

Sandra Lee Kunimoto, ChairpersonHawaii Board of Agriculture

It is a pleasure to present the Hawaii Department of Agriculture’s Annual Report forFiscal Year 2006. This report covers the period between July 1, 2005 andJune 30, 2006, during which the state faced record-breaking amounts of rain andflooding that devastated areas across the state, including many agricultural areas.

Even in the best of agricultural years, the weather presents a challenge to farmers.However, the rains in the Spring of 2006 caused great hardship in our agriculturalcommunity, with farmers across the state suffering extreme crop losses. Theemergency situation mobilized several divisions, including the Agricultural ResourceManagement Division, which is responsible for managing the state’s agriculturalirrigation systems and reservoirs and the Agricultural Loan Division, which also gearedup to provide emergency financial assistance to about 45 farms, totaling more than$1.6 million.

We would like to recognize and thank Governor Linda Lingle, the County Mayors andthe many county, state and federal agencies, as well as private and non-profitorganizations that provided assistance to our farmers during the recovery effort.

Other major events during this period include:

The launch of the Hawaii Seals of Quality program, which distinguishes 100percent Hawaii-grown and manufactured products for the local and exportmarkets.Plant Quarantine inspectors expanded risk assessment activities to includeneighbor island airports and ports to determine the greatest risks for thetransport of invasive species.HDOA researchers have searched the world for biological control solutionsto the problems of invasive species that have become established in thestate.Work on enhancing bio-security preparedness for both plants and animalscontinues.Expansion of open-ocean aquaculture ventures and other diverse forms ofland-based aquaculture.

On behalf of the more than 300 employees of the department, we appreciate theinterest and dedication to support and expand farming in Hawaii.

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Table of Contents

TABLE OF CONTENTS

Office of the Chairperson 3

Administrative Services Office 6

Agricultural Development Division 8

Agricultural Loan Division 13

Agricultural Resource Management Division 15

Animal Industry Division 19

Aquaculture Development Program 24

Plant Industry Division 26

Quality Assurance Division 38

Agribusiness Development Corporation 40

Lists of Tables & Charts 44

Board of Agriculture - Photos 45

Organizational Chart 46

Other Tables and Charts 47 - 63

Editor/Desktop Publisher: Janelle SaneishiPublic Information Officer

Printer: Hagadone Printing Company

This annual report is also accessible via thedepartment’s website at: www.hawaiiag.org/hdoa/or copies may be requested by calling (808) 973-9560.

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Office of the Chairperson

Planning & Development

The Hawaii Department of Agriculture actively seeks toprotect existing farming areas and promote increasedaccess to and productive use of the thousands of acresof prime agricultural lands and infrastructure vacatedby sugar plantations throughout the state.

The department, as principal advocate for agricultureamong state agencies, offers consultative input intocounty, state, and federal land use planning andpermitting, environmental program development andimplementation, and undertakes broader planning andeconomic development efforts to ensure the availabilityof agricultural resources and the growth of agriculturalbusinesses. The economic activity generated bydiversified agriculture is solid and steadily increasingdespite the decline in pineapple andsugarcane industries.

With the passage of the landmark Important AgriculturalLands Act (Act 183, 2005 Session Laws of Hawaii), thedepartment, with the assistance of the Department ofTaxation, established the 28-member Forum onAgricultural Related Matters. The forum’s task is todevelop and implement a comprehensive and integratedframework of incentives and programs that will promoteagricultural viability, sustained growth of the agriculturalindustry, and the long-term use and protection ofimportant agricultural lands for agricultural use inHawaii. Initial efforts have spawned a wide array ofpotential incentives, including tax credits and

exemptions, agribusiness incubator and workforcedevelopment, loan programs, conservation plan reportto the legislature will be ready by the 2007 legislativesession and will contain findings and recommendations,including proposed legislation and recommendedminimum criteria for determining when the “enactmentof legislation establishing incentives and protection” hasoccurred for the purposes of this Act. The report willinclude an analysis of the impacts and benefits of itsrecommendations, a record of the stakeholder group’sprocess and deliberations, and provide the supportingrationale for the incentives being proposed.

The department also supported the protection ofagricultural lands and related infrastructure as well asthe expansion of diversified agriculture development ingeneral through a number of ongoing efforts. Theseefforts included the submittal of testimonies and positionstatements before county councils and departments,state departments, State Land Use Commission, andother organizations on agriculture-related issues suchas amendments to agricultural property tax programs,county-level initiatives to protect prime agriculturallands, facilitating discussions between farmers andlandowners on “good neighbor” and land tenure issues;amendments to county agricultural zoning andcommunity plan ordinances; amendments to state andfederal environmental regulations affecting the use ofagricultural land and water resources.

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Office of the Chairperson

Office of the ChairpersonProjects and Initiatives

Important Agricultural Lands – Act 183 (SLH 2005)mandates that the Hawaii Department of Agriculture (HDOA)develop incentives to promote viability, sustained growth,long-term use and protection of Important AgriculturalLands (IAL) in Hawaii. Together with other key agencies,organizations, stakeholders and small producer groups,a comprehensive report of potential incentives for IAL hasbeen developed, and will be presented to the2007 legislature.

Agricultural Labor and Agricultural WorkerHousing – Agriculture businesses across the state arebeing impacted by the shortage of labor. As differenttypes of labor are utilized it is important for employersto understand the laws that apply, including the H2AAgricultural Employment Visa Program and the Migrantand Seasonal Agricultural Workers Protection Act.HDOA partnered with the Hawaii Department of Labor(DOL) and Industrial Relations (DLIR), the United StatesDepartment of Labor and the United States Departmentof Agriculture (USDA) to conduct a series of freeinformational workshops in July and August. Presentedon Oahu, Maui, Kauai and in Kona and Hilo on the BigIsland, the team covered issues such as workers’compensation, pre-paid health care, joint employment,independent contractors, wages, worker benefits,transportation, housing and enforcement of federal andstate basic labor standards. More than 100 peoplefrom the industry attended the educational meetings,and voiced their workforce concerns with the team.

In September, HDOA, DLIR and USDA partnered withthe Micronesian Community Network to put on a pilotmatch-up meeting for Micronesian community leadersand Oahu producers to facilitate information sharing. Amini agricultural job fair connecting Micronesians toagricultural employers will take place in November.

Agricultural worker housing has emerged as a themeduring these workshops and meetings, and HDOA hasbegun to work with USDA Rural Development and theHawaii Housing Finance and Development Corporationto identify potential funding sources and partners foragricultural worker housing projects.

Transportation – In May, Young Brothers Limited (YB)proposed to end their less-than-container-load (LCL)service on Maui, a particularly important option for islandfarmers. The business decision reflected the significantgrowth in cargo and demand at Kahului Harbor, and theneed for increased efficiency of operations and use ofspace at the port. In August, an agreement was reachedbetween the State Department of Transportation andYB which provides that the company will continue toprovide LCL service for several years. Numerous partieshelped to bring about the resolution to this critical issue,including the Hawaii Farm Bureau Federation, the MauiFarm Bureau, YB, the State Departments ofTransportation, Commerce and Consumer Affairs,Business, Economic Development & Tourism, GovernorLinda Lingle, and HDOA.

Emergency Management – HDOA continues toprogress in emergency management and preparedness.Utilizing United States Department of HomelandSecurity funds, HDOA awarded a contract to updateemergency response plans in accordance with theNational Response Plan and the National IncidentManagement System. Deliverables for the project alsoinclude crucial continuity of operations and plant healthemergency plans, and the designation of departmentpersonnel within a departmental Incident CommandSystem. HDOA continues to participate in emergencyresponse training opportunities, including anagroterrorism course facilitated by the Institute forSecurity Studies at the University of Nevada atLas Vegas.

Federal Farm Bill Legislation – Through the NationalAssociation of the State Departments of Agriculture(NASDA), HDOA continues to participate in draftingpolicy for the federal Agricultural Appropriations Bill,also known as the Farm Bill. Issues range from fundingfor specialty crops and continued conservation programsto new bioenergy initiatives and increased borderprotection to prevent the entry of invasive species.

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Administrative Services Office

ADMINISTRATIVE SERVICES OFFICE

Elaine AbeAdministrator

The goals of the Administrative Services Office are1) to meet the staff support needs of the department’sprograms and personnel by providing guidance, training,information, efficient equipment and vehicles, andadequate facilities, and facilitating the processing oftheir requests in order to enhance managers’ decisionmaking capabilities and employee productivity; and2) to meet the needs of the public by assisting them intheir requests or directing them to the appropriate entityto address their needs.

Financial statements for the department may be foundon pages 47 to 55.

The following is a list of projects that have beencompleted:

Attended briefing on issues of residency waiver/residency during employment.

Participated in two job fairs at the BlaisdellConvention Hall.

Coordinated a West Oahu College student’sunpaid internship in Human Resources.

Attended presentation on changes to Employee’sRetirement System (ERS), primarily introductionof Hybrid Plan.

Assisted ERS in helping employees interestedswitching over to this retirement plan.

Assisted programs in filling 33 positions.

Worked with the Plant Quarantine program toplace an advertisement and article in “TheTransition Magazine.” This magazine highlightscareer opportunities to high school andyounger students.

Implemented the department’s on-linetelephone directory.

Completed issuing new department IDs to allPlant Quarantine Inspectors.Expanded the use of the pCard (procurementcard) to 46 employees as of June 30, 2006.

Connected Aquaculture Sand Island office,Chemical Analysis Laboratory at Waimano, theKona Plant Quarantine Office and Honolulu PlantQuarantine Office to the NGN network.

Provided program managers access to DATAMART andpCard expenditure information to assist inmanaging program finances more efficiently.

Updated pCard Merchant Category Codes (MCC)restrictions to correspond with State’s restrictedMCCs and requested exceptions to the State’slist of restricted MCCs to allow purchasesnecessary to meet program objectives.

Coordinated and worked together with theDepartment of Accounting and General Services(DAGS), System Accounting Branch andInformation and Communication ServicesDivision (ICSD) to print summary warrantvouchers and error reports onsite at thedepartment.

Implemented the State Procurement Office’sdelegation of authority to the departments toapprove purchases off the travel price list.

Developed a standard letter to explain toemployees the after-the-fact payroll process andto answer frequently asked questions.

Developed a computer equipment replace-ment schedule.

Implemented new Plant Industry server to housePlant Pest Control and Pesticide information.

Migrated Animal Quarantine Station applicationfrom Speed II to APPX.

Developed database to track correspondenceswith the Attorney General’s Office.

Developed database for Commodities’ DealerLicensing Program.

Updated network software for main office servers.

Worked with ICSD to implement state’svirtual firewall.

Developed Ag Loan tracking database.

Developed Inventory database.

Modified Motor Pool System to collect informationrequired by Act 96, SLH 2006, Relating to Energy.

Developed database to import and summarizeTesoro and DAGS’ Motor Pool transactions.

Developed interface to Datamart to trackfixed assets.

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Administrative Services Office

Completed training of property custodians oninventory management with assistance fromDAGS Inventory Management Branch.

Major projects still in progress are:

Working with consultants to transfer PlantQuarantine on-line system to the department.

Continuing to network all Oahu and neighborisland offices to state’s Next Generation Network(NGN).

Implementing replacement APPX applicationserver.

Transferring hawaiiag.org/hdoa webpagesto ICSD.

Upgrading Lotus Notes to Revision 6.5.5

Replacing network equipment no longer undermaintenance support.

Coordinating various capital improvementprojects to correct safety concerns and otherdeficiencies at department facilities including re-roofing and air conditioning improvements at theLanikaula office, and air conditioning andelectrical improvements at the King St. facility.

Establishing six-year special repair andmaintenance and capital improvement programfor department’s office buildings.

Auditing leave records of programrecord keepers.

Reviewing and rewriting internal personnelpolicies and procedures.

Monitoring the length of time to service variousprogram requests.

Implementing the HDOA Workplace ViolenceAction Plan.

Assisting the Plant Quarantine program inestablishing and filling new Plant QuarantineInspector positions and Plant Pest ControlAides/Technicians.

Reviewing need to provide pocket masks for allfirst aid kits and automated defibrillators atkey locations.

Participating with other departments and thePersonnel Transaction Office (DHRD) in adiscussion group to find problem areas andstreamline the Human Resource ManagementSystem process to record personnel transactions.

Reviewing department’s accounting manual toupdate existing procedures and developing newguidelines and procedures for variousprocurement and purchasing processesincluding contract management to addressfindings in the Legislative Auditor’s financial auditof the department.

Providing improved guidance and support toprograms by attending State Procurement Officetraining sessions on various procurementmethods and changes to the procurement law.

Updating ASO Strategic Plan.

Developing energy efficiency and conservationprogram and compiling energy data to meetrequirements of Section1168.5 of Act 160, SLH2006, and Act 96, SLH 2006, Relating to Energy.

Initiating project to complete the necessaryNational Pollutant Discharge Elimination System(NPDES) permit requirements for discharges ofstorm water from small MS4s (municipalsewer systems).

Updating Oahu staff directory for dissemination.

Other future projects include working on replacing theserver at Auiki St., modifying Animal Quarantine systemapplication, conducting labor relations workshops forsupervisors, developing flow charts and procedures formajor personnel functions, developing travel handbookfor employees to use as a guide in processing traveldocuments, and preparing for the implementation ofHawaii Electronics Procurement System (HEPS).

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Agricultural Development Division

AGRICULTURAL DEVELOPMENTDIVISION

Matthew K. Loke, Ph.D.,Administrator

The Agricultural Development Division (ADD) serves topromote the economic viability of commercial agriculturein Hawaii by sponsoring joint marketing programs foragricultural products with high revenue growthpotentials; facilitating the development and expansionof marketing opportunities for targeted agricultural andprocessed products; and providing timely, accurate anduseful statistics.

This fiscal year has been both challenging and rewardingfor the division. Despite losing two key personnel inmarketing during the year, we were able to keep ourmomentum and achieved some “milestone” successesincluding the following:

Started administering the USDA National OrganicCertif ication and Cost-Share Program, whichencourages organic farmers in Hawaii to certify theirfarm. Nearly 80 organic growers have takenadvantage of the program, which reimburses 75percent of their certification cost (up to a maximumof $500).

Awarded export readiness-training (ERT) fundstotaling $245,000 from USDA-Foreign AgriculturalService (FAS) to train and prepare new-to-export,minority and women owned businesses in Hawaii.The grant from the FAS Emerging Markets Programwill be jointly administered by the Western UnitedStates Agricultural Trade Association (WUSATA).

Received approval for pilot crop insurance programin Hawaii for bananas, coffee, and papayas andconditional approval for the AGR-Lite, a whole-farmrevenue insurance program from the USDA-RiskManagement Agency (RMA). These insuranceprograms for Hawaii farmers will encourage higherproduction and reduce potential income losses.

Coordinated and hosted the Associated Press (AP)television and wire service journalists on anassignment to review the expansion of diversifiedagriculture in Hawaii. The AP story was a hit and wasfeatured in newspapers across the US mainland andin foreign countries.

Launched the Hawaii Seals of Quality (SOQ) brandingprogram, which promotes genuine, grown-in or made-in Hawaii, premium products. This program attracted12 leading producers and 8 leading chefs (HawaiiRegional Cuisine). The SOQ launch receivedwidespread press coverage.

New activities undertaken during FY 2006 were:

Agriculture Research Program ContractsThe Agriculture Research Program was established toprovide financial assistance to fund research projects,which would support local agricultural products with high-revenue growth potential or significant production in thenext ten years. The goal of this program is to maintainHawaii’s competitive edge with foreign producers andsustain the long-run viability of Hawaii’s agriculture. Thisfiscal year, ADD implemented a new procedure to solicitand award agriculture research funds on a competitivebasis. To meet new expectations and to insuretransparency, the State’s RFP (Request for Proposal)process, which is set by the State Procurement Office(SPO), was followed. The new procedure included:

i. Establish a RFP (Request for Proposal) process;ii. Establish a research evaluation panel and

assessment criteria to review all applicationsin a fair, unbiased and professional manner;

iii. Publicly post the RFP on the SPO website for30 days as required by regulation;

iv. Create a $100,000 portfolio to addressemergency pest outbreaks;

v. Designate a funding priority for projects withindustry matching funds and crops in thegrowth phase of their life cycle.

In FY 06, this program funded 12 research contractstotaling $468,478 to study new crop varieties for melons,tomatoes, pepper and yams, pickleworm control,detection of ohia rust, cacao trials, improve nonigermplasm, reduce papaya blemishes, pest infestationin Wili-Wili trees and other diverse agricultural projects.

WUSATA/WASDA/NASDA Conference, Honolulu

State marketing officials and Directors/Commissionersof Agriculture from 13 western states met with senior USDAofficials including then-Assistant Secretary of Agriculture,Will iam Hawks, and officials from other regionalagricultural trade groups to discuss various marketingand legislative issues relating to U.S. agriculture. ADD/MDB assisted in organizing this highly successful conference.

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Agricultural Development Division

MARKET DEVELOPMENT BRANCHCalvin Lee, Manager (retired December 2005)Todd Low, Manager (From December 2006)

The mission of the Market Development Branch is tofacilitate the development of the agricultural industry,consisting of commodity groups of agricultural producersand food processors, through the expansion of new andexisting markets.

Major activities during FY 2006 were:

Matching Funds Promotional Contracts

This is the third fiscal year that the branch implemented anew procedure to solicit and award matching marketingfunds. To insure transparency, the procedure followed theState’s RFP (Request for Proposal) process that wasposted on the State Procurement Office (SPO) Website.The applications fell into three predetermined categories:

1. Distribution systems focusing on encouraging Hawaiiag businesses to pool resources, at least fourcompanies, in order to improve efficiency intransportation/shipping, distribution, salesrepresentation, or consolidation issues. There werethree awards in this category.

2. Mainland and international trade shows focusing ona Hawaii-theme exhibit with a minimum of fourunrelated companies attending the trade show. Therewere six awards in this category.

3. Industry education and promotion of agriculturefocusing on producer’s competitiveness and humancapital capacity building; and marketing effort orhosting events supportive of Hawaii’s agriculture.There were 11 awards in this category.

The program attracted 23 applications from 10 tradeassociations and 20 of the applications were funded for atotal of $197,000. Based on previous experience, thisprogram is expected to support an estimated $3 million inannual sales.

Local Market Promotions and Activities

Lodging, Hospitality, and Food Service Expo, Honolulu

Products that were sampled at the HDOA exhibit werea variety of melons from Aloun Farms including a newvariety called musk melon; cheese from the Island ofHawaii from a new producer, originally from Holland,and flavorful escargots from Oahu. The HDOA exhibitwas recognized and awarded the honorable mentionplaque in the Multiple-booth Design Category. The eventattracted some 5,500 potential buyers-chefs, caterers,grocers, convenience stores, hotels, and the military.

Hawaii State Farm Fair, KapoleiThe traditional farm fair was organized by the HawaiiFarm Bureau Federation (HFBF) to showcase Hawaii’s agriculture.The HDOA contributed in various ways including educationalbooths displaying the various activities of thedepartment in keeping our plant and animal industrieshealthy, minimizing the introduction of invasivespecies, promoting the production and consumptionof Hawaii’s fruits and vegetables, maintaining viablemeasurements and standards for Hawaii’scommerce, and exposing the public to the ornamentaland business aspects of Hawaii’s aquaculture. Thefair attracted more than 49,200 attendees and generated some$63,000 in gross sales for produce and plants.

Made in Hawaii Festival, HonoluluMDB was in charge of the Festival cooking demonstrations.MDB was a sponsor and coordinated the cooking demonstrationof local agricultural products. A segment of the cookingdemonstration was televised live on KHON-2’sHawaii’s Kitchen, hosted by Manolo Morales. Thespace was decorated by carefully crafted floralarrangements that welcomed and attracted attendeeswhile promoting local flowers and vegetables. Thefestival attracted an estimated crowd of 30,000. MDBsampled food for and distributed recipes to over 2,600attendees to the various cooking demonstrations.

The founrding producers of theHawaii Seals of Quality programwere honored at a luncheon atWashington Place as guests ofGov. Linda Lingle and Lt. Gov.James Aiona.

The event in May 2006 kickedoff the program whichdistinguishes quality agricul-tural and value-added productsthat are truly Hawaii’s own.

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Agricultural Development Division

Natural Products Expo West Trade Show,Anaheim, CAMDB and DBEDT jointly lead 13 Hawaii exhibitors tothe nation’s largest natural, organic and healthyproducts trade show. The show had 43,000 attendeesand 2,600 exhibits. Hawaii producers’ seized theopportunity to meet distributors, retail chain, andrepresentatives from natural food restaurants,independent/coop natural products retailers, discoverand introduce new products, and attend educationseminars. The expo is expected to gross over$5.2 million in sales for participating exhibitors.

Trade Mission to Fukuoka, JapanHDOA, DBEDT, and the Oahu Visitor’s Bureau jointlysponsored this trade mission in partnership with theU.S. Consulate-Fukuoka/USDA, Japan Airlines,Honolulu Japanese Chamber of Commerce, and theHawaii Fukuoka Kenjinkai. The mission promotedHawaii’s products and services, visitor industry, arts& culture, and entertainment to this growing businesshub in Southern Japan.

Increasing Diversified Agricultural Exports toCanada ($2.3 million in 2005)The introduction of new direct flights from Vancouver,British Columbia to Honolulu and Kahului hasstimulated new commercial activities between theCanadian province and Hawaii. ADD/MDB inpartnership with the U.S. Department of Commerceand Harmony Airways has opened new markets forHawaii agricultural producers and entrepreneurs.Various products, including papayas, pineapples,sweet potatoes, herbs, avocados, mangoes, flowers,and fish are being exported to Vancouver at an annualvalue of $2.3 million. Another $1 million worth ofCanadian agriculture products (flowers/plants, fish

Buy Fresh, Buy Local, Island Fresh CampaignADD/MDB is co-sponsoring a “Buy Fresh, Buy Local -Island Fresh” promotion with UH-CTAHR and theHFBF. This campaign seeks to create consumerawareness by featuring local produce in newspaperand magazine articles. Another popular item was thedevelopment of a local produce availability chart.

Wahiawa Pineapple FestivalMDB set up an educational booth at the PineappleFestival at Wahiawa District Park on California Avenuein the heart of Wahiawa town. The booth displayedfresh pineapples, historical photos, pineapplerecipes, and the “Buy Fresh, Buy Local - Island Fresh”seasonality charts. The event featured a parade, arts& crafts displays, games, and activities for children,and pineapple culinary creations from celebrity chefs.Approximately 7,500 people attended thisannual event.

Mainland and International Market Promotionsand Activities

Produce Marketing Association (PMA) Conventionand Exposition, Atlanta, GAHDOA lead a Hawaii delegation to the show to allowHawaii vendors to network with the produce industryleaders, to see new products, strengthenrelationships with current customers, gain informationfor future purchasing decisions, and to build theirbusinesses. PMA is the place to learn the direction ofthe growing global produce industry.

The KITV Morning Show features monthly segments topromote the “Buy Fresh, Buy Local” campaign toencourage consumers to support Hawaii agriculture.L to R: Ben Guiterrez, Mahealani Richardson, Chef KeleSmith of the Pacific Club, Kylie Matsuda of Kahuku Farmsand Dan Meisenzahl.

Market Development Branch display at the WahiawaPineapple Festival.

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Agricultural Development Division

The Hawaii Agricultural Statistics (HAS) Branch is acooperative effort between the Hawaii Department ofAgriculture and the National Agricultural Statistics Service,U.S. Department of Agriculture. This partnership, spanningfour decades, allows the efficient use of state and federalresources, while at the same time providing acomprehensive array of agricultural intelligence andreducing respondent burden.

Major activities of the HAS included data collection,analysis, and timely publication of agricultural statisticsfor the State. The result of these efforts was a measure oftotal farm-gate estimated value of $576 million during2005. Most of HAS data collection efforts were in thediversified agriculture sector, which was valued at$438 million in 2005.

Activities during FY 2006 included the following:

Completed Census of Aquaculture data collection.Completed June Area Survey (first area survey inHawaii since 1991).Completed Labor Language Survey.Conducted Economic Study for Hawaii Seed Industry.Published 130 reports.Made over 15,000 individual contacts via personalinterviews, telephone, and mail questionnaires.

HAWAII AGRICULTURAL STATISTICS BRANCHMark Hudson, State Agricultural Statistician/Director

and specialized greenhouse products, such astomatoes) were imported into the state, creatingadditional revenues for our local wholesalers.

China Emerging Market Grant Project (on-going)This market access project is a joint effort betweenthe Market Development Branch, the University ofHawaii, College of Tropical Agriculture and HumanResources (CTAHR), and the Hawaii AgriculturalResearch Center (HARC). The joint marketing collaborationhas established a high-end gift basket of value-addedHawaii products that is being test marketed in China.

China Nursery Project – with Oregon andWashington (on-going)After a successful venture to create a China-U.S.Friendship Garden at the Beijing Botanical Garden todisplay nursery products from Oregon, Washington,and Hawaii, the tri-state marketing team engaged ina similar activity at the Shanghai Botanical Garden.Negotiations with the Shanghai authorities weresuccessful and shipment of plant materials from thetri-state will commence in March 2006. These projectswill help to establish new flower and nursery marketsfor these three states. The return-on-investment isalso significant. The China-U.S. Friendship Garden in Beijingcurrently has an asset value of over U.S. $1 million.

Distributed more than 40,000 releases to farmers,other individuals, businesses, universities, andgovernments worldwide.Answered more than 1,000 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.usda.gov/sub-forms.htm

MARKET ANALYSIS & NEWS BRANCH

The Market Analysis and News Branch (MANB) isresponsible for enhancing the effectiveness and efficiencyof agriculture by conducting economic, market andbusiness feasibility research, evaluating the efficiency andeffectiveness of market development programs, collectingdata on agricultural commodity shipments, supply andwholesale prices and disseminating information throughvarious media. Through these functions, MANB assiststhe state’s agricultural industry in its development andexpansion efforts and provides sound input for programplanning and policy making within and outsidethe department.

MANB is tasked with two primary, yet distinct functions.The first involves research on all market aspects ofagricultural products. Towards this end, MANB conductssome ten research or program evaluation studies annually.The second function is carrying out the market newsprogram, jointly with the Market News Branch of theAgricultural Marketing Service, United States Departmentof Agriculture. This program provides up-to-dateinformation on current market conditions – wholesalemarket prices throughout the state, movement of freshfruits and vegetables, and supply and demand informationon different products.

Activities and accomplishments for FY 2006 includedthe following:

Completed statewide compilation of Hawaii’s freshfruit and vegetable imports for 2005 and establisheda modified method of estimating Hawaii’s imports(from all sources) of fresh fruits and vegetables.

Completed a report on Hawaii’s fresh fruit andvegetable imports by each of the state’s four countiesin 2005 and the re-estimation, based on new dataand estimation method, of Hawaii’s fresh fruit andvegetable imports from 2001 through 2004.

Updated, due to industry demand, a research studywhich analyzes the effect of structural change on farmoperations and growth of Hawaii’s coffee industry,using new data.

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Agricultural Development Division

Continued to provide specialized data, researchpapers, sources of information, market/businessconditions of commodities or agricultural relatedservices to business owners, agricultural tradeassociation and researchers engaged inHawaii’s agriculture.

Continued to collaborate with the National AgriculturalStatistics Service (NASS) and the National Associationof States Department of Agriculture (NASDA) inenhancing the data collection efforts of the MANB.

Continued to collect, compile, publish anddisseminate weekly reports on a timely basis. Thereports 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; andHonolulu Wholesale Egg Market.

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Agricultural Loan Division

AGRICULTURAL LOAN DIVISION

Dean MatsukawaAdministrator

The Agricultural Loan Division administers theAgricultural Loan Program and Aquaculture LoanProgram. The primary objective is to promote thedevelopment of the state’s economy by stimulating,facilitating, and granting loans to qualified farmers,aquaculturists and food manufacturers.

The division also serves as a safety net for agricultureand aquaculture by providing loans in times ofemergency. The program strives to work with privatelenders through participation loans and providing loanguaranties. The program, as a lender of last resort, alsoprovides direct financial assistance to those that areunable to obtain financing from conventional sources.The program is self-sufficient, operating through interestcollections, and is able to achieve its objective of growth,development and preservation of the agricultural andaquacultural industries without requiring any taxpayerfunding. Administration of the program requires abalance between providing financial assistance whileensuring that loans have a reasonable expectationof repayment.

The Agricultural Loan Division is committed to the growth,development, and well being of the agricultural andaquacultural industries in Hawaii.

In FY 06, the division provided 40 loans totaling $2,001,200in low-interest financing for Hawaii farmers. The majority ofthe loans were emergency loans to help farmers recoverfrom the heavy rains that affected the state from late Februaryto early April. The state’s early activation of the its emergencyloan program resulted in strong demand for operating loansto assist the farms in their recovery. The program featured alow-interest rate and no credit denials for loans $50,000and under to expedite the loan process. The division, inorder to process the emergency loans on a timely basis,needed to utilize all of its personnel, including the neighborisland staff as the bulk of the loan requests originated fromfarms on Oahu.

Agriculture and aquaculture industries continue to face manychallenges such as global competition, increasing costs,increasing regulations and adverse weather (droughts,floods and wind). Agriculture can no longer only adapt orreact to these changes/situations but must becomeproactive, visionary and embrace these new realities. Asthe agricultural and aquacultural industries evolve, thedivision must also constantly adapt to the new markets,technologies and needs of the farm community.

The division’s mission is economic development and willcontinue to support the agriculture and aquacultureindustries. The division will continue its outreach to increaseawareness of the program and will continue to serve as aresource and safety net to these industries.

The Agricultural Loan Divisionprovided financing to enable Henryand Penny Hattal to relocate anddevelop their orchid nurseryoperation in Waianae. The Hattalshave constructed a shadehouseand are starting to fill the facilitywith orchid plants.

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Major activities and accomplishments of the program forFY 2006 were as follows:

Approved 40 loans for about $2 million during FY 06.The loans helped farmers retain or increase farmacreage by 872 acres. The division’s loans alsohelped to preserve or increase employment for 142farm employees.

The division’s portfolio as of June 30, 2006 was valuedat $18 million with 186 loans booked. The loanbreakdown by county is as follows:

1. Hawaii County $7.7 million2. Oahu County $4.4 million3. Maui County $3.5 million4. Kauai County $2.3 million

Collected $4.4 million in FY 06. Of the amountcollected $920,164 was in interest and $3.456 millionwas in principal.

Below: Ho Ho and Malia Chang’s farm in Waianae wasdamaged by continuous rains and flooding that occurredin early 2006. With the assistance of an emergencyloan, the Changs were able to replant a field of chives.

Modified 11 loans during FY 06 for a variety of purposesto assist farmers including restructuring and re-amortizing of payments, extensions of disbursementsdates, substitute and releases of collateral andreleases of guarantors.

Approved $990,000 participation loan with a privatelender to provide assistance for a dairy operation.The participation loan is designed to benefit theoperation by providing funds that would be above thestate’s direct loan limits while providing a blendedinterest rate that improved the operation’s cash flow.

Activated Emergency Loan program to assist qualifiedfarmers recover from heavy rains and flooding whichoccurred throughout the state from Februarythrough April.

Charts depicting loan distribution may be found onpage 56.

Agricultural Loan Division

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Agricultural Resource Management Division

AGRICULTURAL RESOURCEMANAGEMENT DIVISION

Brian Kau, P.E.Administrator/Chief Engineer

The Agricultural Resource Management Division worksto ensure that the state has adequate and reliablesources of agricultural water, farmland, infrastructurefor farming, and agricultural-related processingfacilities. The division provides administrative oversightover state agricultural park lots, processing facilities,and several irrigation systems statewide.

By maintaining and operating abandoned plantationirrigation systems, the division supports andencourages the development and expansion ofdiversified agriculture on former mono-cropplantation lands.

Activities for FY 2006 included the following:

The past fiscal year was a landmark year for the irrigationprogram. This spring, all the existing, individual,administrative rules governing the irrigation systems wererepealed and replaced with a single unified chaptergoverning all irrigation systems owned by the HawaiiDepartment of Agriculture. The new rules took over twoyears to complete as the department held over a dozenmeetings with key stakeholders and several publichearings to receive input and revise previous drafts. Twoof these meetings had direct, live interaction amongrepresentatives of the irrigation systems that allowed themto share their concerns with farmers from other islandsand propose solutions to continue working together forthe betterment of diversified agriculture. The consolidatedrules will provide consistency throughout all of the systemsand a simplified fee structure for meter installations,irrigation water delivery rates, etc. Also, the new chapterwill govern any future irrigation systems that we receiveor construct.

Many of Hawaii’s farmers experienced extremely wetconditions in the second half of the fiscal year. For nearlyseven weeks between mid-February and early April 2006,much of the state had a highly unusual, extended wetperiod. The Waimanalo area received 150 percent ofnormal annual rainfall in just seven weeks. The saturatedground and continuing rainfall caused widespread floodingand crop damage throughout the farming community.

Emergency Breach of theKailua Reservoir –Waimanalo, Oahu

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Agricultural Resource Management Division

However, the opposite condition occurred from thebeginning of April through the end of the fiscal year andforecasts indicate a dry summer and possibly drier thannormal winter, causing concern for the availability of waterto irrigate various crops and commodities. A rapidly fallingreservoir coupled with the predicted weather led theWaimanalo Irrigation System to declare a Phase III,mandatory water conservation measure, effective July 7,2006. The declaration requires a cutback of 30 percent ofmonthly average consumption in an attempt to prolongirrigation water service to farmers until the return of normalrainfall patterns.

The new non-agricultural park lands program continuesto progress. This year, additional amendments were addedto the statutes to allow the program to function correctly. Inaddition, we reviewed and inspected the Big Island andMolokai leases held by farmers identified as bona fideand created a preliminary transfer list of these tenants.We hope to complete the islands of Oahu, Maui, and Kauaiby the end of the calendar year. Staff is also working tocomplete the administrative rules that will govern theprogram. A first draft has been completed and we anticipatebeginning the approval process sometime in the fall. Also,an agreement is in the works with the Department of Landand Natural Resources for the temporary management oftransferred parcels in the event that positions within HDOAare not staffed by the transfer date.

FY 2006 continues the successful trend of the divisionsecuring partnerships for its programs and goals. Wecontinue to participate in partnerships with the NaturalResources Conservation Service, U.S. Army Corps ofEngineers, U.S. Department of the Interior-Bureau ofReclamation, and State of Hawaii Department of Defense-Civil Defense Division. This year, the department hasreceived more than $4 million in federal grant funding thathas been or will be applied to the renovation of ourirrigation infrastructure.

Heavy rainfall in the months of March and April severelyimpacted several reservoirs in the State of Hawaii,including the department’s decommissioned KailuaReservoir in Waimanalo. A localized collapse of thereservoir’s outlet pipe caused a sink hole, approximately20 feet in diameter and 20 feet deep, to develop on thecrest of the dam, jeopardizing the structural integrity of thereservoir. During two separate storm events, thedepartment determined that an uncontrolled breach of thereservoir was possible and thus called for emergencyevacuations of residents downstream of the reservoir. Theextremely hazardous condition of the dam prompted theGovernor to issue an Emergency Proclamation on April24, 2006 to protect public health, safety, and welfare. Theproclamation allowed the department and the HawaiiNational Guard to team up and immediately address this

dangerous condition in order to reduce the possibility of adisaster. Royal Contracting Company (RCC) wascontracted by Civil Defense to slip-line the deterioratedoutlet pipe and repair the sinkhole. The department hadRCC create a 12-foot wide breach with 1:1 horizontal tovertical slopes in the reservoir’s dam embankment. Sincethen, the contractor has restored a heavily eroded areadownstream of the outlet pipe and installed interim erosioncontrol measures to contain sediment from entering thestream. The department continues to work with thecontractor and a civil engineering firm to widen the existingbreach, reduce stream velocities, and provide more stableand permanent erosion control measures. This work isscheduled to be completed by the end of the year and willprovide a safer environment for residents immediatelydownstream of the reservoir.

After nearly 15 years of financial hardship, the PaauiloRendering Plant looks to revive the Big Island’s beefindustry. Since taking over in 2003, Hawaii Beef Producers,LLC (HBP) has worked with the department to expandand develop the facilities into a full-scale beef processingoperation. Modifications to the facility will allow therendering plant to fully process animal waste into usefulbyproducts and eliminate the need to dispose of thesebyproducts in landfills. Byproducts such as tripe, hearts,and livers, which are currently discarded, will be harvested.In addition, higher grades of cowhide will be generatedand marketed internationally, and raw ingredients will beextracted to develop bio-diesel fuel. All of HBP’s productsare 100 percent natural, grass-fed beef which is part of anexpanding natural foods market. Hawaii’s climate allowsfor year-round grazing which is ideal for the natural grass-fed beef industry. HBP has received cattle from more than250 active independent ranching operations on the islandof Hawaii. In the future, Kukaiau Cattle Company is

Grant Schule displays organically grown papaya fromKumu Farms, which is located in the Molokai Ag Park.

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Agricultural Resource Management Division

projected to be the largest supplier with guaranteeddelivery contracts for high quality fed cattle cows andpremium grass finished cattle. Renovations to the existingfacility are nearing design completion and construction isscheduled to begin early next year.

Construction of the fourth and final phase of irrigation flumerepairs/replacement in the Lower Hamakua Ditch (LHD)watershed district is underway. This phase of work willimprove a total of 11 flumes and maximize the amount ofirrigation water captured in the system. Seven of the existingflumes will be demolished and replaced with high densitypolyethylene (HDPE) pipe, two will be replaced withredwood flumes, and remaining two metal flumes will becleaned and painted with a minimum of two layers ofprotective coating. A notice to proceed was issued onAugust 21, 2006 and construction is scheduled forcompletion by April of next year. Upon completion, theagricultural community will have a more reliable source ofirrigation water with fewer interruptions. The departmentis eager and excited to see diversified agriculture prosperand foresees the LHD region as a major contributor to thestate’s agricultural economy in the near future.

The state agricultural (ag) park program continues to reachout to qualified farmers who are interested in becoming alessee under this program. During fiscal year 2006, a totalof 14 lots in the Waianae, Pahoa, Kalaeloa and Kekaha AgParks were offered to interested farmers. During thatdisposition, the program identified five qualified farmerswho will receive state agricultural leases for theiroperations. The new lessees are experienced farmers whoare engaged in the production of nursery plants, thedivision placed five qualified farmers in the program throughlease assignments.

This year, we are proud to introduce three lessees in theag park program whose successes speak to the value ofcooperation between the public and private sectors.

Sunrise Capital, Inc. successfully purchased the assetsof Ceatech USA, Inc. (Controlled Environment AquacultureTechnology), on September 30, 2005, and acquired theleasehold interest in 18 of 19 farmlots in the Kekaha AgPark. Sunrise Capital has assembled a team to producehigh health white shrimp brood stock for sale anddistribution to commercial aquaculturalists, as well asgrow the brood stock for retail sales. The aquacultureponds have been cleaned and disinfected with operationsrestored in August 2006. In addition to the approximately143 acres within the ag park, Sunrise has acquiredinterest in 433 acres of former Kekaha Sugar Companylands across the highway from the ag park for futureexpansion and a hatchery site leased from theDepartment of Land and Natural Resources andprocessing plant in Hanapepe.

Kumu Farms is located on the island of Molokai, and isone of the inaugural tenants in the Molokai Ag Park.Established in 1980, Kumu Farms currently specializesin culinary herbs and Sunrise papaya production with over100 acres under cultivation. Recognizing that the fruit flyinfestation in the Hawaiian islands presents a majorbarrier to export, and with help from the UH-ExtensionService, Kumu Farms developed a USDA certified papayatreatment facility in the ag park. Nearly 80 percent of allproduction is destined for mainland markets. In responseto the nation’s growing interest in organically grownproduce, Kumu Farms has successfully certified nearly50 percent of their acreage in the ag park, producing“certified organic” culinary herbs and papaya. Despite thevery significant challenges of operating on Molokai, KumuFarms has succeeded by thoughtfully adapting tochanging conditions both in the field, transport chain, andmarketplace. Kumu Farms and its workforce exemplifythe practical ingenuity and hard working values that havehelped expand Hawaii’s diversified ag sector.

Pacific Floral Exchange, a lessee in the Pahoa Ag Park,began as a small exporter of tropical flowers in 1989.Starting with only five employees, Pacific Floral Exchangequickly grew and shipped more than a million dollarsworth of flowers in its first year of operation. Today, with 50employees and 80 independent growers, Pacific FloralExchange ships flowers grown on hundreds of acres,including several parcels located in the Pahoa Ag Park.Its success earned Pacific Floral Exchange the 2004Governor’s Exporter of the Year Award. In addition, it wasnamed by Coopers and Lybrand, Pacific Business Newsand First Hawaiian Bank as one of Hawaii’s fastestgrowing companies, becoming the recipient of the annualHo’oulu (growing tree) Award in 1997.Grayson Inouye, President of Pacific Floral Exchange,

an anthurium farm in the Pahoa Ag Park.

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Agricultural Resource Management Division

Capital Improvement Projects for FY 2006

The following projects were completed on the Big Islandthis year:

Intake Improvements - construction (LowerHamakua Ditch)

The following projects are ongoing on the Big Island:Phase IV Flume Replacement - construction(Lower Hamakua Ditch)Paauilo Distribution Pipeline ImprovementsPhase 2 - construction (Lower Hamakua Ditch)Paauilo Rendering Plant – designWaimea Irrigation System FlumeImprovements - designHonomalino Watershed - planning (SouthKona)

The following projects were completed on Maui this year:Upcountry Phase III Main Line Extension

construction

The following projects are ongoing on Maui:Upcountry Kimo Road Lateral - constructionUpcountry Phase V Main Line Extension -constructionUpcountry Pulehuiki Lateral – designUpcountry Phase VI Main Line Extension -designLower Kula Watershed Project - planning

The following projects are ongoing on Molokai:Molokai Irrigation System ReservoirImprovements - design

The following projects are ongoing on Oahu:Waiahole Irrigation System ReservoirImprovements - design

The following projects are ongoing on Kauai:East Kauai Irrigation System, FlumeReplacement - constructionKokee Irrigation System Improvements –design

Data on lease dispositions and irrigation systems maybe found on pages 57 and 58.

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Animal Industry Division

ANIMAL INDUSTRY DIVISION

James Foppoli, Ph.D.,DVMAdministrator/State Veterinarian

RABIES 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 publichealth by preventing disease introductions and detectingand controlling economically important diseases orpests within the state. The division conducts: animaldisease surveillance, epidemiology and control;inspection of all animals and birds entering the state;livestock brand registration, voluntary livestock diseasecertification programs; laboratory diagnostic services;and dog and cat quarantine to reduce the risk ofrabies introduction.

Recently, the focus of the division has been animal healthemergency management, especially with respect to avianinfluenza virus. Public health and environmental programsaimed at preventing the introduction of rabies virus andWest Nile virus into the state are importantancillary functions.

Hawaii’s statuses for State-Federal Cooperative DiseaseControl Programs during FY 2006:

Brucellosis Free, cattle and swinePseudorabies Free, Stage VBovine Tuberculosis, Accredited Free

Hawaii is also recognized as free of bluetongue virus andanaplasmosis, and surveillance programs for thesediseases are ongoing to insure that the free status isdocumented and maintained. Hawaii remained free ofnotifiable foreign animal diseases during FY 2006;however, efforts to strengthen foreign animal diseasepreparedness continue.

For the third year in a row, there was a substantial increasein the number of dogs and cats that qualified for directrelease at Honolulu International Airport since the Five-day-or-less rabies quarantine program began on June30, 2006. In FY 06, an unprecedented 8,966 dogs andcats went through the rabies quarantine program with morethan 84 percent (approximately 7,547) qualifying for directairport release after inspection. This represents anapproximate 17 percent increase from the 7,653 animalsthat entered the state in FY 05 and an 87 percent increasefrom the 4,771 animals that entered Hawaii prior to thestart of the Five-day-or-less program in FY 03.

The following are rabies quarantine statistics for cats anddogs arriving between July 1, 2005 and June 30, 2006(FY 06):

PROGRAM NUMBER PERCENT

120-day 600 6.7%30-Day 152 1.7%5-Day-Or-Less 667 7.4%Airport Release 7,547 84.2%

Total 8,966 100%

The Five-day-or-less program relies heavily on staff andcomputerized databases to monitor and verify informationrelevant to qualification. Although 7,547 dogs and catswere released at the airport in FY 06, this statistic doesnot reflect the total number of pet documents processed,as more than 44,000 active records are currentlymaintained in the system. To increase efficiency andeffectively manage the data and processing of Five-day-or-less dogs and cats, the program updated and is in theprocess of enhancing the computer system.

Right: Animal Quarantine caretaker Harrison Hoe (r)assists Veterinary Medical Officer Dr. Heather Honda,during a routine health examination of a dog in thequarantine veterinary office.

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Animal Industry Division

The dramatic increase in pets entering the state and theincrease in dogs and cats qualifying for the Five-day-or-less program substantially increased the workload for theclerical, veterinary, accounting and inspection sections.More time is spent reviewing documents, qualifying pets,processing payments, receiving and inspecting pets andaddressing the needs, questions and concerns of thegeneral public.

The veterinary staff expends a considerable amount oftime each day contacting pet owners and veterinarians toeither verify qualification information or request additionalinformation. It is estimated that up to half of the submitteddocumentation requires follow up. Clerical, veterinary andinspection personnel also spend a significant amount oftime e-mailing and speaking with pet owners on the phoneor in person explaining program requirements.

The Livestock Disease Control Branch port veterinarianand livestock inspectors also provide critical support tothe program by assisting rabies quarantine veterinarytechnicians in processing dogs and cats released at theairport seven days a week.

The department updated its website and informationbrochure dedicated to Hawaii’s rabies quarantine programthat contains all of the information and forms relating toquarantine and the importation of cats and dogs. Petowners may access pre-arrival FAVN rabies serologicaltest results and Five-day-or-less quarantine-eligible datesat this HDOA website. Checklists for the Five-day-or-lessprogram are available at the site to assist pet owners ofboth resident pets and non-resident dogs and cats withpreparations to qualify for this reduced quarantine option.Under the Five-day-or-less program, pets may be releasedat Honolulu International Airport if they complete pre-arrivalrequirements that include (but are not limited to):

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 36 monthsprior to arrival if it was a three-year vaccine. (The twovaccinations may not be administered within 90 daysof each other; and the last vaccine must beadministered no less than 90 days prior to the pet’sentry into the state)

Microchip implantation for identification purposes;

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

120-day pre-arrival waiting period between the timethe lab receives the blood sample and the earliestdate the pet may enter the state (the pre-arrival waitingperiod is necessary due to the long and variable lengthof rabies incubation, where the virus may hide in ananimal before clinical signs of the disease becomeapparent); and

Pet owners must also submit required paperworkmore than 10 days before the pet’s arrival.

Pet owners that do not submit the required documentshave their pets held in quarantine for up to 120 days untilall requirements are completed and documents submitted.

Approximately 91 percent of arriving dogs and catsqualified for the Five-Day-or-Less program in FY 06.Furthermore, of those 8,214 pets that qualified for the Five-Day-or-Less program, 7,547 pets (approximately 91percent) qualified for direct release upon arrival at HonoluluInternational Airport. In comparison only 6.7 percent (600)of the arriving animals were quarantined for 120 days.

Midway in FY 06, 30-day quarantine was eliminated as adistinct category since animals may qualify for quarantineperiods between zero (airport releases) to 120 days underthe early arrival provision in the Five-day-or-Less program.Animals previously in the 30-day category are now includedwithin the Five-day-or-Less program as arriving early by 30 days.

The daily population of animals occupying the animalquarantine station at any given time during FY 06 rangedbetween 248 and 352 animals. The fluctuation in dailyanimal population at the station was lower and variedbetween 214 to 313 dogs and cats during FY 05. Theaverage daily population was higher in FY 06 than FY 05.

In addition to rabies exclusion, the quarantine programcontinues to monitor dogs and cats carefully for ticks exoticto Hawaii. Two species Dermacentor sp and Ixodes sp werediscovered and eliminated from two cats arriving in Hawaiiduring FY 06. These species have been reported topotentially serve as a vector for Rocky Mountain SpottedFever, Lyme disease, Tularemia and other rickettsial andbacterial diseases of veterinary and human medicalimportance. Rhipicephalus sanguineus, the brown dog tick, isthe only tick established in Hawaii associated with dogs.

Quarantine Animal Caretaker Zachary Tom checks themicrochip identification number on an arriving dog. Themicrochip number identifies the pet to the blood test thatis required for entry under the Five-day-or-less rabiesquarantine program.

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Animal Industry Division

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

The Livestock Disease Control Branch prevents,investigates, conducts surveillance, controls anderadicates animal diseases that may have seriouseconomic impacts on the state and nation’s livestock andpoultry industries, some of which impact public health.The branch inspects animals entering the state andinsures compliance with division rules and laws pertainingto the control and eradication of animal diseases.

Avian Influenza (AI)As highly pathogenic Avian Influenza (AI) spread inSoutheast Asia, Africa and Europe, Hawaii increasedits preparedness and surveillance to AI. Severalemergency response training sessions were held forkey staff members, a large multi-agency mockscenario was conducted on Oahu, poultry producerinformation sessions have been held, biosecurity forproducers is being stressed, supplies for anemergency response has been purchased and areheld in storage, euthanasia and carcass disposaltraining has occurred and a mass carcass disposalplan is under development. The division has beenconducting surveillance of dead and diseaseddomestic poultry. Microbiologist training and laboratorytesting capability have been set up at the Departmentof Health laboratory for testing birds for AI. To date, nopositive tests results have occurred in domestic orwild birds.

West Nile Virus (WNV)The rules and quarantine prohibiting the importationof birds into the state, without pre-entry isolationrequirements to prevent WNV entry, remains in place.Birds not meeting entry requirements are refusedentry. West Nile virus arrived in the continental U.S. in1999 and since then it has made its way westwardand now affects all states except Hawaii and Alaska.To reduce the risk of WNV entering Hawaii, new poultryand bird import rules were promulgated to disallowsusceptible birds and poultry from entering the statewithout a pre-arrival mosquito-free isolation. Inaddition, an embargo on the movement of birds andpoultry through the U.S. Postal Service continues toprevent entry without inspection. Failure to complywith pre-arrival isolation requirements results in arefusal of entry.

Bovine TuberculosisBovine Tuberculosis free status maintainedThe State of Hawaii continues to maintain a “BovineTuberculosis Free Status.” Bovine tuberculosis (BTB)a chronic, debilitating disease of cattle, bison, goats,cervids and other animals that can also cause aserious disease in humans, is caused by the bacteriaMycobacterium bovis.

State and federal veterinarians test cattle herdsannually and conduct hunter assisted surveillance ofwildlife on the east end of Molokai, where bovinetuberculosis has been a recurrent problem for thepast 60 years. The last BTB infected cattle herd,located on eastern Molokai, was depopulated withoutfurther spread in 1997 and no new cases of BTB incattle have been found.

A hunter assisted survey for BTB in wildlife began in1998 on Molokai to monitor the prevalence of infectionin axis deer, feral swine, feral goats and mongoose.To date, seven feral swine have been found infected,the most recent from Mapalehu in March 2006. Todate, all infected feral swine have been caught at, oradjacent to, Ualapue where the 1997 infected cowwas found. The BTB infection appears to bemaintaining itself in the feral swine population in andaround the Ualapue to Mapalehu area.

To prevent the potential spread of bovine tuberculosisfrom eastern Molokai, all cattle east of Kamalo arerequired to have an annual negative BTB test or testnegative within 30 days prior to movement out of thearea. All herds are in compliance with establishedtesting and movement requirements. In addition, feralswine movement out of areas east of Kamalo hasbeen prohibited by a quarantine.

USDA funds have become available to address theinfection foci in wildlife. Increase efforts to hunt andtrap the affected area to reduce the feral pig populationare underway. Further funding will be sought topossibly fence the affected area for a possible focaldepopulation of feral swine in an attempt to eradicateBTB in wildlife in the Ualapue-Mapalehu area.

LDC branch manager, Dr. Jason Moniz, conductsbovine tuberculosis testing on newly importedbison at Hokukano Ranch in Kona.

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Animal Industry Division

Bovine BrucellosisBovine Brucellosis class free status maintainedHawaii has been officially classified free of bovinebrucellosis since 1983.

Bovine brucellosis is an infectious disease of cattle,bison and elk caused by the bacteria Brucellaabortus. Brucellosis can also infect humans. Duringthe fiscal year, 7,609 cattle were tested for brucellosis.No suspects or reactors were found. Occasional spillover of Brucella suis from infected feral swine andYersina entrocolitica will cause cross reactivity oncattle surveillance testing.

Swine Brucellosis & PseudorabiesHawaii maintains free statuses for SwineBrucellosis and Pseudorabies

BrucellosisHawaii retained its free status for swine brucellosisduring FY 06.

Brucellosis in swine is caused by the bacteria Brucellasuis. Infected swine experience reproductiveproblems including abortion and infertility. Brucellasuis can cause serious infections in humans. Nodomestic swine herds were found infected in FY 06and as a result Hawaii maintains its Brucella suisfree status.

Feral swine in Kona, Hamakua (Hawaii), Kahakuloa(Maui), Ft. Shafter westward through Waianae, theNorth Shore and Windward (Oahu) are known to beinfected with swine brucellosis. Exposure of domesticswine to infected feral swine and the practice ofmaintaining transitional herds of mixed feral anddomestic swine have been the source of all domesticswine brucellosis infections in the past.

In addition to annual testing of all sows and boarsover 6 months of age at slaughter, 25 percent of theherds in the state are randomly selected for testing todetermine their brucellosis status. Surveillance forFY 06 included 543 domestic swine, 90 transitionalswine and 49 feral swine. Fourteen percent of theferal swine tested were reactors to swine brucellosis.

PseudorabiesHawaii maintains a free status for pseudorabies in swine.

Pseudorabies (PRV), a viral infection of swine, causesrespiratory disease and reproductive failure.Pseudorabies infection of other species (such asdogs) is typically fatal but humans are not susceptible.

Pseudorabies surveillance testing of 540 domesticswine during fiscal year 2006 found no infecteddomestic swine. Two transitional herds were

determined to be infected. Feral swine on the islandsof Hawaii, Maui and Oahu are known to be PRV-infected. Infected feral swine are a constant threat todomestic swine herds. Ninety head of transitionalswine and 57 feral swine were tested in FY 06. Eightpercent of the transitional swine and 42 percent of theferal swine tested positive. A statewide quarantineorder prohibits the commingling of feral and domesticswine as well as inter-island movement of feral swine.

Historically in Hawaii, all herds infected withpseudorabies or swine brucellosis have beentransitional herds with exposure to infected feral swine.

Transmissible Spongiform EncephlopathiesScrapieHawaii continues to be recognized as consistent withthe USDA Voluntary Scrapie Certification Program Standards.

Scrapie is a transmissible, insidious, neuro-degenerative disease affecting the central nervoussystem of sheep and goats. Scrapie has not beendiagnosed in goat or sheep flocks in Hawaii.

USDA cooperative agreements continued in FY 06 toprovide sheep and goat flock owners with educationalinformation, enroll flocks in the status program,conduct surveillance testing on cull and diagnosticanimals and provide for some genotype testing. Noevidence of infection has ever been found in Hawaii.Change of ownership identification requirements forcertain classes of sheep and goats are to be put inplace in CY 06 to allow Hawaii to remain consistentwith the Scrapie program.

Bovine Spongiform Encephalopathy (BSE)During FY 06 BSE sampling of cattle exhibitingneurological signs, unknown cause of death andthose unable to rise continued. There were no positivetest results.

Voluntary Johne’s Disease Herd CertificationProgram (VJDHCP)The VJDHCP goal is to implement disease controlmeasures to reduce or eliminate Johne’s diseasefrom cattle herds and conduct annual surveillance toverify a herd’s status. A USDA cooperative grant wasused to conduct Johne’s testing of dairy and beefherds, conduct risk assessments, write up individualherd plans and provide outreach during the fiscal year.During FY 06, 3,079 cattle were tested for Johne’sdisease. Sixteen herds are currently participating inthe VJDHCP.

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

Animal Industry Division

Importation/Exportation of Livestock, Poultry andOther AnimalsAn embargo on the movement of poultry and otherbirds into Hawaii through the U.S. Postal Serviceimplemented in September 2002 remains in place.The embargo remains in place to prevent the entry ofWest Nile virus, Avian Influenza and other aviandiseases from entering the state with infected birds.

Inspected and approved for entry into the state: 18,957head of livestock; 8,519 poultry and other birds;779,745 day-old chicks and hatching eggs; 11,863dogs and cats; and 11,195 other animals.

The branch staff conducted 50 complianceinvestigations, no citations were issued, 209 writtenwarnings, and 23 animals were refused entry.

The Veterinary Laboratory Branch is primarilyresponsible for providing timely and accurate laboratorydiagnosis of animal diseases to support the mission ofthe Animal Industry Division, including commitments ofthe Federal-State cooperative programs.

Annually, the laboratory receives more than 20,000specimens from a wide range of animal speciessubmitted from the livestock and poultry industries, aswell as non-profit and other government agencies. Thesetesting services, offered at no cost to the submittingagencies, encompass all phases of laboratoryprocedures including bacteriology, parasitology,serology, and clinical/anatomical pathology.

All technical staff, including microbiologists and chemist,are certified in one or more diagnostic areas by theNational Veterinary Services Laboratories of the U.S.Department of Agriculture (USDA), and perform variouslaboratory tests to diagnose animal diseases, such asanaplasmosis, brucellosis, pseudorabies, Bluetongue,Johne’s disease, porcine respiratory-reproductivedisease, and other infectious diseases important toHawaii economy. The laboratory also activelyparticipates in Federal-State cooperative programs inthe prevention and surveillance of newly emerginginfectious diseases, including avian influenza, West Nileviral disease, bovine spongiform encephalopathy andother prion diseases of ruminants.

In FY06, the Veterinary Laboratory played a key role inthe administration and execution of the Federal-Statecooperative agreement for the National Animal PremisesIdentification System (NAIS) in the State of Hawaii. Twoveterinary medical officers and a laboratory staff activelyengaged in registering approximately 13 percent of thestate’s estimated 1,700 premises as part of the initialphase of the NAIS program.

Approximately 20,500 animal specimens, includingroutine diagnostic and surveillance blood samples wereprocessed and tested during FY 2005-2006 at thelaboratory. Among these animal specimens, 79 percentor 16,241 were collected by the activities of LivestockDisease Control Branch, with the remainder submittedby the Animal Quarantine Branch or other governmentagencies for diagnosis or surveillance of zoonoticdiseases important to public health.

A separate data summary illustrating major categoriesof diagnostic and surveillance activities performed bythe Veterinary Laboratory in FY 06 may be found onpage 59.

Livestock inspectors Susan Matsusaka (l) and AileenWakayama (r) inspect a shipment of pigeons thatarrived via air cargo at Honolulu International Airport.

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Aquaculture Development Program

AQUACULTURE DEVELOPMENTPROGRAM

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-solvingorganization whose goals are to assist in the start-up ofproduction and service businesses, and to contributeto their success. Specific activities include planningand policy formulation, new business development,permit facilitation, marketing assistance, diseasediagnosis and prevention assistance, and co-funding ofstatewide technical extension.

The mission of ADP is to: prepare and implement stateaquaculture plans and policies for the expansion of aquaticfarming, and research and technology transfer business;coordinate statewide development activities; and directlyassist both public and private sector interests in achievingtheir aquaculture-related goals, so as to create jobs anddiversify the economies of all islands.

Wholesale product value for the industry hit a new recordhigh of $30 million for calendar 2005 according todepartment statisticians, and continues to be one of thefastest growing sectors of diversified agriculture.

Major activities for FY 2006 were:

Continued the joint implementation with theDepartment of Land and Natural Resources (DLNR)of the amended Chapter 190D, HRS, Ocean andSubmerged Lands Leasing law by facilitating permitpreparation for three additional aquaculture leasesoff various islands. Prepared annual joint report toLegislature, with DLNR, on status of the oceanleasing. Made presentation on offshore aquacultureto Humpback Whale Sanctuary Advisory Council.Participated in the on-going planning for establishinga national offshore research center, the Pacific MarineAquaculture Center, in Hawaii. To honor one offshoreaquaculture company, the Governor declaredSeptember 27, 2005 as “Kona Kampachi Day.”

Continued to provide a world-recognized ShrimpSurveillance and Certification Program to the growingshrimp broodstock industry. Held facilitated review ofthe Program with the industry to identify areas forupgrade and improvement. Established rules forAquaculture Development Special Fund to implementfee-for-service program.

Participated in the Organizing Committee for theMarine Ornamentals 2006 Conference held at LasVegas, Nevada in February 2006. Served on theProgram Committee and as Session Moderators. Thisinternational conference is the fourth in a series thatoriginated in Hawaii. Reviewed industry proposalsfor the seventh year of the Pacific Tropical OrnamentalFish Program. Facilitated a major Japaneseinvestment in large-scale koi farming on Oahu.

Assisted with import and export permits for aquaticspecies by farmers on Oahu, Kauai, Maui and Hawaii.

Co-sponsored Stakeholder Summit for the aquacultureindustry to develop strategic plan for the industry.

Co-sponsored and participated in the HawaiiAquaculture Association’s 2006 Hawaii AquacultureConference held in June.

Promoted the local consumption of aquacultureproducts by participating in the Hawaii Lodging,Hospitality and Food Service Expo, State Farm Fair,Made in Hawaii Exposition, Taste of HawaiiAquaculture and the Sam Choy Poke Contest. Workedwith various internet, television, radio and print mediato provide background information, place stories andpromote the industry.

Lt. Governor James Aiona proclaimed September 27,2005 as “Kona Kampachi Day” in recognition of KonaBlue’s first commercial ocean harvest of its open oceanfarm of Kona Kampachi, a fish prized for sashimi.From left: John Corbin, ADP manager; Neil AnthonySims, Kona Blue Water Farms; Pat Ross, SeaEngineering; and Lt. Governor Aiona

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Aquaculture Development Program

Updated the Aquarium Industry Directory. ContinuedADP’s electronic industry newsletter, Aquaflashes, toget out time-sensitive information.

Made presentations to the Air Cargo Association, PewTrust Mariculture Task Force, and internationalworkshop on Socioeconomics in Aquaculture.

Participated in Science and Tech Day display, aspecial tradeshow for visiting Chinese investors, andworkshops and tours for the American VeterinaryMedical Association conference attendees.

After a nationwide search, hired a new stateaquaculture veterinarian with experience in bothprivate and public sectors of the Florida aquacultureindustry. Provided animal health managementservices to producers and research organizationsstatewide, with over 59 farm visits and 340 analyzedcase submissions. Contributed Hawaii’s aquacultureexperience to a national publication reviewing the U.S.industry’s application of best management practices.

Co-funded statewide technical extension services tothe aquaculture industry (with over 3,600 documentedincidents of assistance), in cooperation with the UHSea Grant Extension Service, leveraging more than$500,000 in matching funds through the project. Also,collaborated with UH on the establishment of anaquaculture coordinator for the University of HawaiiSystem to gear up capabilities and provided inputinto aquaculture faculty selection by the College ofTropical Agriculture and Human Resources.

Participated in the governing boards and advisorycommittees of: Pacific Aquaculture and CoastalResources Center at UH Hilo, Center for Tropical andSubtropical Aquaculture, National Association of StateAquaculture Coordinators, Natural Energy Laboratoryof Hawaii Authority (NELHA), Marine and Coastal ZoneManagement Advisory Group, University of Hawaii SeaGrant College Program, Hawaii AquacultureAssociation and The Oceanic Institute’s HatcheryAdvisory Board.

Provided technical reviews of research anddevelopment proposals to the UH Sea Grant CollegeProgram, U.S. Department of Commerce, U.S.Department of Agriculture, the Pacific TropicalOrnamental Fish Program (PTOFP) and NELHA.Provided reviews of Aquatic Species Import Permitsfor the department’s Plant Quarantine Branch.

ADP’s aquaculture veterinarian Allen Riggs (back)consults with Taro Kodama, President of Kodama KoiFarm, on the health of his valuable Japanese koi.Kodama Koi Farm is the largest online koi auctionoperating in the United States. ADP provides valuablediagnostic and health verification services, which arecritical to the company’s success.

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Plant Industry Division

PLANT INDUSTRY DIVISION

Lyle Wong, Ph.D.Administrator

The Division of Plant Industry consists of three branches,the Pesticides Branch, Plant Quarantine Branch, andPlant Pest Control Branch. Together, the Branches workto protect Hawaii’s agricultural industries by preventingthe entry and establishment of detrimental insects,weeds and other pests and by assuring the safe andefficient use of pesticides in Hawaii.

PESTICIDES BRANCHRobert A. Boesch, Manager

The Pesticide Program regulates the distribution and useof pesticides through a program of licensing pesticideproducts, testing the competency of restricted-usepesticide applicators, and educating and monitoringpesticides distributors and applicators. This is to ensurethe efficient, effective and safe use of pesticides tominimize adverse effects on the environment.

Statistical data on activities of the Pesticides Branch maybe found on page 60.

Highlighted activities for the program in FY 2006 wereas follows:

Support for Pesticides Programs in Western PacificThe U.S. Environmental Protection Agency has requestedhelp from the pesticides program to assist in pesticidesprogram development in territories and possessions ofthe United States in the Western Pacific, including Guam,the Commonwealth of the Northern Mariana Islands,American Samoa, and Palau. Glenn Sahara has beentraveling to these locales to meet with pesticide regulatoryofficials and train and assist them in conductingcompliance monitoring activities such as conductinginspections and collecting samples. Samples are sent tothe Chemical Analyses Laboratory in Honolulu for analysesand the results are provided to officials designated bytheir respective locales and EPA.

The program also trains and provides services such asrespirator fit testing and medical monitoring to WesternPacific staff during the annual program workshop inNovember. These activities are paid for by the U.S.Environmental Protection Agency.

National Plant Board Biotechnology Survey of States

The U.S. Department of Agriculture’s BiotechnologyRegulatory Services contracted with the National PlantBoard to determine state interest and potential state rolesin assisting the Biotechnology Regulatory Services in thereview of applications and monitoring the compliance withconditions of terms of rules and permits.

Dr. Lyle Wong, Carol Okada and Bob Boesch participatedin three meetings with the National Plant Board Committee.All were held at the U.S. Department of Agriculture’s officesin Riverdale, MD. The first meeting on September 13 and14, 2005 was conducted to inform the National Plant BoardCommittee about the Biotechnology program to providesome background and develop survey questions. Thesecond meeting was conducted on December 7 and 8,2005. At this meeting results were compiled and a reportdrafted. The third was held on January 27, 2006 to presentthe survey results to the Biotechnology Review Servicesmanagement. The report on the survey appears on theNational Plant Board website.

The participation by the Hawaii Department of Agricultureis important because Hawaii serves as a key seedproducing state for corn. While many states haveconsiderably more acreage planted in genetically modifiedcrops, Hawaii’s temperate climate throughout the yearmakes it ideal for seed increase during the winter months,so there is considerably more corn seed research activityhere than in other states.

Kauai Coffee and Bananas Statewide Authorized to UseProvado®Provado® is a systemic pesticide containing the activeingredient imidacloprid. It is used to control insects withsucking mouthparts. Emergency authorization to use thisproduct was obtained from EPA because of scale pestson Kauai and because bananas statewide are affected bythe bunchy top virus, which is spread by aphids. Underthe terms of the emergency exemption, reports must befiled with EPA concerning the extent of use, effectivenessof the pesticide in controlling the pest, and any adverseeffect from the use of the pesticide. These authorizationsare valid for one year.

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Plant Industry Division

PLANT PEST CONTROL BRANCHNeil Reimer, Ph.D., Manager (from October 2005)

The primary function of the Plant Pest Control Branch is toreduce population densities of plant pests that causesignificant damage to agriculture and the environment tomanageable levels. This is achieved through statewideprograms to eradicate or control plant pests, which includedestructive insects, mites, snails and slugs, noxiousweeds, plant diseases, and any other organisms harmfulto plants, by utilizing chemical, mechanical, biological, andintegrated control measures. The branch consists of theBiological Control Section and the Chemical/MechanicalControl Section.

Statistical data from the Plant Pest Control Branch may befound on pages 60 and 61.

Some of the activities of the branch during FY 06 includedthe following:

New Pest Detection and Identification

Identified 527 samples of insects and other organismsfrom which 130 specimens were processed and addedto the branch’s Zoological Reference Collection. Thecollection now contains approximately 166,200specimens. In addition, 120 samples of insect specimensand 327 samples of plant diseases intercepted by thePlant Quarantine Branch were identified and 223 callsregarding various pests were received from the generalpublic and processed.

The branch recorded 10 new immigrant insects in Hawaiiduring FY 06. Eight are plant pests, one is a fortuitousbeneficial parasitic wasp, and one is a health concern.These were:

A mealybug, Hypogeococcus pungens Granara deWillink (Hemiptera: Pseudococcidae)Specimens of this mealybug were collected fromhibiscus at Waimanalo, Oahu, in September 2005.Infestations of this mealybug resemble those of thepink hibiscus mealybug, Maconellicoccus hirsutus(Green), but the clusters of H. pungens are generallysmaller. On hibiscus, terminal shoots were mostlyaffected by this mealybug.

A mealybug parasitoid, Aprostocetus sp.(Hymenoptera: Eulophidae)Specimens of this mealybug parasitoid were rearedfrom an infestation of Hypogeococcus pungensGranara de Willink collected from joyweed, a beddingplant, at a retirement housing site in Pawaa in June2006. This parasitoid does not match otherAprostocetus species in the HDOA Insect ReferenceCollection and is new to the state.

A mealybug, Rhizoecus americanus Hambleton(Hemiptera: Pseudococcidae)After receiving a rejection notice from the CaliforniaDepartment of Food and Agriculture, HDOA personnelinspected a nursery at Panaewa on the island ofHawaii and collected samples of mealybugs fromfishtail palm, Caryota mitis. This detection representsa new state record for this species.

A thrips, Thrips imaginis Bagnall (Thysanoptera: Thripidae)During surveys to study ants at Haleakala NationalPark on July 11-14, 2003, specimens of this thripswere collected from litter extractions and beating ofpukiawe, Styphelia tameiameiae, within the park. Thiscollection in Hawaii represents a new U.S. record.The distribution of this thrips includes Australia, NewZealand, New Caledonia, and Fiji. It is known as the“plague thrips” in Australia. Crops, such as apples,pears, tomatoes, roses, and other flowers, aresometimes seriously damaged.

A coconut whitefly, Aleurotrachelus atratus Hempel(Hemiptera: Aleyrodidae)Specimens of this whitefly were first found on Maui oncoconut tree foliage at Kihei in May 2006. Surveysconducted several months later revealed that thiswhitefly was widespread in Maui’s Central Valley. Ithas been recorded from coconut and other palms intropical America, Samoa, and Florida. On Maui,nymphs of this whitefly have been observed to beheavily parasitized by a tiny wasp, tentatively believedto be a species of Encarsia.

European paper wasp, Polistes dominula Christ(Hymenoptera: Vespidae)Specimens of this wasp were first collected in June2006 by City and County of Honolulu Parks andRecreation personnel on Oahu after workers werestung as they were trimming trees. This potentiallyaggressive paper wasp hides its nest in voids andother enclosures, thus increasing the risk forunexpected encounters with human beings. Firstrecorded in North America in 1981, it has rapidlyincreased its distribution in the United States in thepast 20 years. It is the most abundant paper wasp incountries around the Mediterranean, its native region.Its distribution also includes southern Europe,northern Africa, and the Middle East, eastward to China.

Asian citrus psyllid, Diaphorina citri Kuwayama(Hemiptera: Psyllidae)Specimens of the Asian citrus psyllid (ACP) were firstfound in a sample of navel orange foliage submittedby a resident of Waiakea on the Island of Hawaii inMay 2006 for advice on an infestation of aphids.Subsequent surveys in the State revealed that ACPinfestations were present only in the southeastern

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Plant Industry Division

part of East Hawaii in the districts of South Hilo andPuna. Adult psyllids are small (3-4 mm), mottled,brown, winged, jumping insects. Immature psyllids,called nymphs, appear like greenish or dull orange,flattened scales. The host range of the ACP isrestricted to citrus and other plants in the familyRutaceae, most favorably mock orange, Murrayapaniculata, also known as orange jasmine. The ACPis a known vector of citrus greening disease (CGD),also known as Huanglongbing (HLB or yellow dragondisease) in Asia. This disease has devastated citrustrees in Asia, Africa, and Brazil. It causes mottling andyellowing of the veins of citrus leaves and misshapen,green, and bitter-tasting fruit. There is no known curefor this disease and the only option is to destroyinfected plants. It is not yet known if CGD is present inHawaii. Surveys will be initiated and samplescollected and sent to a USDA facility at Gastonia inNorth Carolina for disease analysis.

An armored scale, Pseudaulacaspis brimblecombeiWilliams (Hemiptera: Diaspididae)After receiving information from the CaliforniaDepartment of Food and Agriculture about thisarmored scale being occasionally intercepted on cutprotea flowers exported from Hawaii to Californiasince 2003, specimens previously collected at Kula,Maui, in 2000 were reexamined at the UH-CTAHRInsect Diagnostic Clinic. Those specimens weredetermined to be identical to currently identified P.brimblecombei specimens, thus confirming a newState record. Subsequent surveys conducted in Kulain May 2006 resulted in the collection of additional P.brimblecombei specimens.

Avocado thrips, Scirtothrips perseae Nakahara(Thysanoptera: Thripidae)Specimens of the avocado thrips were collected fromthe foliage and flowers of avocado, Perseaamericana, at Kula, Maui, in March 2006. Subsequentsurveys revealed severe scarring on the fruit ofavocado trees that were apparently caused by thisthrips. The results of the surveys indicate that thisspecies appears to be restricted to the Upcountry areaof Maui. Literature information suggests that theavocado thrips is not suited to high temperatures.

Kelly’s citrus thrips, Pezothrips kellyanus (Bagnall)(Thysanoptera: Thripidae). Specimens of this thripswere collected from loquat trees at Kula, Maui, inJanuary 2006. According to the UH-CTAHR InsectDiagnostic Clinic, specimens were previouslycollected on Maui in 2000. This thrips is known fromAustralia and New Zealand. In New Zealand, it ismostly found on citrus leaves, flowers, and fruits.Collections have also been made from the flowers ofCompositae, Lycopersicon, Brassica, Acmena, andCamellia, and the leaves of Sparmannia africana.

Projects of the Branch’s Biological Control Sectionincluded the following during FY 2006:

Nettle Caterpillar [Darna pallivitta Moore]D. pallivitta, after dispersing from its initial infestationsite in Panaewa to Waiakea and Hilo in the SouthHilo District and to Keaau, Kurtistown, and theHawaiian Paradise Park (HPP) Subdivision in theUpper Puna District during FY 05, continued to steadilyextend its range of infestation. In FY 06, the nettlecaterpillar was commonly found in residential areasof Waiakea and Hilo and became widespread in HPP,extending southeastward into the Ainaloa EstatesSubdivision. However, it is still confined to thesoutheastern portion of the Island of Hawaii. Reportsof sightings have been made on few occasions inKona but none have ever been confirmed.

Pest calls regarding this stinging caterpillar increasedin mid-July 2005, mostly from HPP. This area is rapidlybeing developed so substantial numbers oflandscaped house lots occur there now. InSeptember, many calls continued to be received fromHPP, but also from Waiakea, Waiakea Uka, andKaumana. A total of 27 were received that month,most as a result of stinging incidents. Light trapcounts of adults in HPP made by volunteerssuggested some synchrony of the life cycle. Thenumbers of moths caught at lights were highest inSeptember, following the outbreak of larvae. ByNovember, only a single call was received, regardingthe caterpillars.

In a cooperative effort with HDOA-PPC Branchpersonnel in Hilo, Dr. Matthew Siderhurst (USDA-ARS-PBARC), funded by the Hawaii Invasive SpeciesCommittee (HISC), developed a pheromone lure forD. pallivitta males. Lures given to Hilo PPC personnelfor trials were set out in Kona to try to confirm recentreports of the nettle caterpillar at three different sites.No moths were captured in the traps at any of thesites so its presence in Kona remains unconfirmed.

Rearing of D. pallivitta in the Hilo Insectary continuedto be a difficult challenge due to the infection of thelarvae by a nuclear cytoplasmic polyhedrosis virus. Ithas become a routine practice to kill off the colonyafter enough pupae are collected because theinfection becomes epidemic in the rearing cages. Allsupplies and equipment must then be sterilized andthe colony restarted using eggs from the emergedmoths of the last generation. Nonetheless, the HiloInsectary has so far been able to keep the HDOA InsectQuarantine Facility (IQF) in Honolulu supplied withlarvae as needed for rearing the parasitoid that wasintroduced from Taiwan.

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Plant Industry Division

Exploration for nettle caterpillar natural enemies inTaiwan during October 2004 resulted in the collectionof a parasitic wasp, Aroplectrus dimerus Lin(Eulophidae) that was found attacking D. pallivittalarvae. Host-specificity testing in the IQF wasconducted to determine if this potential biologicalcontrol agent will attack any non-target species,mainly native Hawaiian caterpillar species or speciesthat have been introduced as weed biocontrol agents.The testing was completed and a report of the resultsis being written for submission to the Board ofAgriculture to request the release of this biocontrolagent from quarantine.

Propagation of the parasitoid A. dimerus is continuingin the IQF, however, it is greatly dependent onshipments of D. pallivitta larvae from the Hilo Insectary.Laboratory conditions appear conducive to the spreadof the virus that has plagued the D. pallivitta coloniesfor several years. After rearing the larvae for onegeneration in the laboratory, the colony becomes badlydiseased and propagation stock is needed for furthercolonization. Thus, supplemental larval shipmentsare routinely sent from the Big Island, where the virusdisease is less prevalent but still an ongoing problem.

Giant Whitefly [Aleurodicus dugesii Cockerell]The Giant Whitefly Biocontrol Project was terminatedin FY 2006. There were no significant problems ofthis pest statewide. Although isolated outbreaks weredetected in previous years, the parasitic waspIdioporus affinis LaSalle and Polaszek (Hymenoptera:Pteromalidae) always managed to suppressinfestations to low levels. The giant whitefly was firstdetected on Oahu during May 2002, followed by thediscovery of I. affinis in March 2003 as a fortuitousbiological control introduction. This parasitoid wasfound in association with the giant whitefly as anaccidental introduction from California, where it hadbeen purposely introduced from Mexico as abiocontrol agent.

Cardin’s Whitefly [Metaleurodicus cardini (Back)]Surveys for this whitefly continued in the Hilo area,where it was generally found at low levels.Occasionally, it was observed in moderate numbersat different sites, although never becoming a problemdue to the presence of predacious ladybugs andparasitic wasps. It has yet to be detected on any ofthe other islands. To date, it has not shown itself to bea significant pest on any ornamental plants or crops.Ornamental hosts identified so far include plumeria(Plumeria spp.), fiddlewood (Citharexylum spinosum),and golden dewdrop (Duranta erecta). Fiddlewoodseems to be a preferred host, just as it is for the giantwhitefly. On crops, it was detected on common guava(Psidium guajava), but densities observed in thePanaewa area were too low to have any effect on guava

production. Citrus is the only other known crop host,but this whitefly has not yet been found on this plantin Hawaii.

It appears that this whitefly is under good biologicalcontrol by the coccinellids Halmus chalybeus(Boisduval) and Nephaspis spp. and the parasitoidEncarsia hispida De Santis, as they suppress thedensities of the whitefly nymphs. Survey counts ofwhitefly nymphs this year indicated that the giantwhitefly was much more common wherever M. cardinihad occurred previously.

Pickleworm [Diaphania nitidalis Cramer]The Pickleworm Biocontrol Project was put on holdfor the present time in favor of the Erythrina Gall WaspBiocontrol Project, which was given a higher prioritydue to the severity of the damage being inflicted onthe endemic wiliwili trees as well as on introducedornamental Erythrina species. Another criticalconsideration was that, based on surveys anddiscussions with commercial farmers, timelyinsecticide applications are very effective in controllingthe pest. The pickleworm is already well dispersedon all four of the major Hawaiian Islands. A reportfrom Maui indicated that only organic cucurbit growersare still having problems with the pest. A survey of anOahu farm at Ewa in August 2006 revealed that thecucumber fields were free of pickleworm damage.The grower reported that he was not using anyinsecticides to control the pickleworm. He firmlybelieved that his crop rotation practices and physicalbarriers were keeping the pest out of his plantings.Funds for the USDA (CAPS) Pickleworm SurveyProject were received in August 2006. Orders wereplaced to purchase traps and lures. A statewide surveyof this pest will commence as soon as the traps andlures are received.

Glassywinged Sharpshooter [Homalodisca coagulata (Say)]An immigrant mymarid parasitic wasp, Gonatocerusashmeadi Girault, played a major role in thesuppression of the population of the glassywingedsharpshooter (GWSS) in Hawaii. In all likelihood, G.ashmeadi arrived in Hawaii in association withinparasitized GWSS eggs on infested host plants thatwere shipped from the southern United States, mostprobably California or Florida. The presence of theparasitoid was not apparent when the pest was firstdetected in early 2004. Heavy infestations wereobserved on a wide variety of plants and an averageof six dispersing adults was consistently caught peryellow sticky card until November 2004. However,beginning in December 2004, the trap counts beganto decline to fewer than half as many adults caughtper trap. The dramatic decline in GWSS densitiescontinued throughout much of 2005 and, by June2006, no GWSS was trapped anymore.

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Concurrent to the rapid decline of GWSS, the very firstevidence indicating the presence of G. ashmeadi inHawaii was recorded in November 2004. AlthoughGWSS parasitization was initially low (20 percent), byApril 2005, the rates of parasitization had exceeded90 percent. Periodic monitoring of GWSS eggs fromat least seven locations indicated that 96 percent of3,383 total eggs sampled from July to November 2005were heavily parasitized. Subsequently, noparasitization data were generated because no GWSSeggs could be detected in the host habitat.

GPS surveillance, visual inspection of host plants,and egg sampling showed that the GWSS distributionwas limited to the leeward side of Oahu. In addition topreviously recorded hosts, tropical almond, Terminaliasp. (Family Combretaceae) and Erythrina variegata(Family Fabaceae) were also found to be infested bythe GWSS. Although a small infestation was detectedat Heeia in Kaneohe, continuous monitoring of thearea indicated that the pest had not spread to otherlocations in Windward Oahu. Moreover, surveys conducted inFebruary and March 2006 on Kauai and Maui showedthat the GWSS had not yet dispersed to those islands.

Papaya Mealybug [Paracoccus marginatus Williamsand Granara de Willink]The papaya mealybug (PM) was discovered on Oahufor the first time in September 2005 at Laie near thenorthernmost point of the island. Infestations wereobserved on papaya and hibiscus plantings. It waslearned that the mealybugs were very likely introducedthere from a nursery in Waimanalo that provided thehibiscus plants purchased by BYU-Hawaii to spruceup the campus for their Centennial Celebration. A visitto the Waimanalo nursery confirmed this informationwhen PM infestations were found on hibiscus plants.It was disclosed that the nursery obtained some ofthe infested hibiscus from Maui, where the PM wasfirst detected in Hawaii in May 2004. On Oahu, the PMwas subsequently found in Downtown Honolulu andHawaii Kai. So far, on Oahu, only generalist predatorslike syrphid larvae, brown lacewings, and ladybugshave been found in association with this mealybug.On Maui, however, a wasp, tentatively identified asAnagyrus sp. prob. loecki, has been found to parasitizethe papaya mealybug and is exerting some control.

A PM infestation was reported in June 2006 on somemature, fruiting, papaya trees at a Mililani residencein Central Oahu. It may have become established viaa hibiscus plant that was purchased by thehomeowner from a garden store in Waikele althoughhe did not recall any infestations on the plant after thepurchase. Ornamental plants, including hibiscus, aredistributed to garden stores by nurseries inWaimanalo, where the PM is now well established. Afollow-up survey of the Mililani infestation disclosed

that the pest had already dispersed into theneighborhood. Heavy infestations were observed ona hedge of hibiscus, a papaya tree, and a rose-flowered jatropha shrub.

Four shipments of parasitic wasps for biocontrol ofthe PM had been sent in June 2005 from a USDAaffiliated laboratory in Puerto Rico to the HDOA InsectQuarantine Facility in Honolulu. Propagation ofPseudleptomastix mexicana Noyes and Schauff, oneof three species of PM parasitoids, has progressedwell and host specificity studies have been initiatedfollowing colonization. Rearing of the other twoparasitoids, Acerophagous papayae Noyes andSchauff and Anagyrus loecki Noyes, was notsuccessful and they failed to colonize. In the lab, P.mexicana appeared to be the most dominant of thethree encyrtid species. After a while, the host plantsfor rearing the mealybug was switched from potatosprouts and sweet potato plants, used by the USDAlab, to papaya plants in an attempt to increase hostdensity and parasitoid production.

Macadamia Felted Coccid [Eriococcus ironsidei Williams]The macadamia felted coccid (MFC) was firstdiscovered in February 2005 in a macadamia nutorchard at Honomalino in the South Kona District ofthe island of Hawaii. Initial fears that this pest wouldspread rapidly and cause crop losses have not beenrealized. The grower has gained good control overthe infestation using horticultural oil that had beentested and recommended by a UH-CTAHRentomologist. An outbreak was occurring in a maukafield of approximately 25 acres when the scale wasfirst detected. Since then, the lower branches of thetrees were attacked by boring beetles (probablyScolytidae) and many of the branches died. Themanager mentioned that variety 344 (also known asKa’u) was more susceptible to the MFC and damageseemed worse where canopies were denser. He wasnot overly concerned about the “biological pruning” ofthe branches because the trees had been plantedtoo close together and were effectively pruned by thepest. The infestation was brought under good controlwith spray application of the oil. The MFC has notbeen much of a problem in other parts of the orchard.

A macadamia nut seedling nursery, which is a part ofthe business owned by the infested orchard, has beenchecked regularly by PPC staff personnel for MFCinfestations and also to ensure that the plants beingsold are sprayed by the nursery employees. No signof the MFC has ever been observed at the seedlingnursery. These plants are being sold to other growersso they present a risk of spreading the MFC to otherparts of the island. An insect growth regulator will betested by the UH-CTAHR researcher when MFCpopulations are high enough on infested trees in the

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orchard. This product may prove to be very beneficialin keeping the seedlings from becoming infested.

Erythrina Gall Wasp [Quadrastichus erythrinae Kim]The erythrina gall wasp (EGW) was first discovered inHawaii in Honolulu in April 2005 and rapidly dispersedthroughout the island of Oahu. Within six months, ithad spread statewide and devastated nearly all of themost susceptible species of Erythrina trees. Thealarming rate at which it spread had researchers bothin the government and private sectors scrambling forways to combat the invader with only limited successusing imidacloprid formulations.

The Erythrina Gall Wasp Biocontrol Project wasinitiated in August 2005 with the planning of anexploration by the branch’s Exploratory Entomologistin East Africa in December 2005. Preparation toreceive shipments of natural enemies requiredinformation on the gall wasp biology and itsdevelopment on Erythrina plants. No life history datawas found in scientific literature because this waspwas a newly described species. Thus, studies wereinitiated in the HDOA Insect Propagation Facility bythe EGW project leader and assistant. Erythrinavariegata was chosen as the host plant to conductthese studies because of its susceptibility to the gallwasp, availability of seeds, and ease of propagation.Seeds were an efficient way to grow uniformly sizedpotted plants for laboratory work. Scarified seedsgerminated in seven days and produced seedlings,six to eight inches tall, in three to four weeks.

Plant pests, mainly mites, thrips, and a fungusdisease (powdery mildew), have presented problemsduring plant propagation. Plants are constantlymonitored and routinely culled to eliminate pestinfestations. EGW biology studies were alsoundertaken to determine the relationship with its hostplant. Laboratory testing and observations were doneto determine what plant parts were attacked and howlong the different wasp stages requiredfor development.

The search for EGW natural enemies evolved into acooperative effort between the University of Hawaii(UH-CTAHR-PEPS) and the Hawaii Department ofAgriculture (HDOA). Africa was determined to be thebest starting point for the search based on literatureinformation, such as the number of endemic Erythrinaspecies in those countries and the presence ofQuadrastichus species in South Africa. Anotherdecisive factor was the proximity of two islands off thecoast of East Africa, Mauritius and Reunion, whereinitial outbreaks of the EGW were reported. UH-CTAHRresearchers selected Kenya, South Africa, and West Africa(Benin, Ghana, and Togo) for their exploration because oftheir professional contacts in those places.

HDOA biocontrol practitioners chose to concentratetheir search in Tanzania because of its geographicallocation in East Africa and the highest number ofendemic Erythrina species in all of Africa. However,the HDOA explorer began his trip in South Africa tocheck out the report of the presence of some speciesof Quadrastichus and to take advantage of better traveland shipping options. Nevertheless, the highestpriority for the HDOA Biocontrol Program is todetermine the native origin or range of the target pestspecies and to collect parasitoids found inassociation with the specific target species, or thosevery closely related to it. This strategy gives the bestchance of finding biocontrol agents that will be highlyspecific to the target pest species.

Collaborators of the UH researchers in Africa sentone shipment each of galled Erythrina leaves fromtheir respective countries, the first from South Africaduring December 2005 and the second from Kenyaduring January 2006. The HDOA ExploratoryEntomologist began his travel in late December 2005,collecting extensively in Tanzania and South Africa,and making a total of six shipments before returningto Honolulu in February 2006. Three UH researcherstraveled to South Africa and made four shipmentsduring April 2006. Another UH researcher madecollections from Benin, Ghana, and Togo during Mayand June 2006 and sent back three shipments.

As a result of these explorations, three potentiallypromising parasitoid species have been colonized inthe HDOA Insect Quarantine Facility (IQF) in Honolulu.Specimens have been sent to specialists for species

Exploratory Entomologist Mohsen Ramadan examiningspecimens of parasitic wasps he collected in EastAfrica that are being reared and studied in quarantineas potential biocontrol agents of the erythrina gall wasp.

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determination. This may take quite a while because,like the EGW when it first invaded Taiwan, Singapore,Mauritius, and Reunion in 2004, these parasitic waspswill most likely be found to be unknown species sothey will have to be described by specialists and givena species name. One species belongs to the familyEurytomidae and the other two to the familyEulophidae. Each parasitoid will have to undergo hostspecificity testing in the IQF to determine that it issuitable for release in Hawaii as a biocontrol agent tosuppress EGW infestations.

The data collected from the studies must provideassurance that the release will have minimal risk ofimpact on non-target organisms and nativeecosystems in the Hawaiian Islands.

Asian Citrus Psyllid [Diaphorina citri Kuwayama]The Asian citrus psyllid (ACP) was found accidentallyin May 2006 when a resident of Waiakea, a suburbanresidential area adjacent to and southwest of Hilo onthe Island of Hawaii, submitted a branch from a navelorange tree that was infested with aphids to the HDOALanikaula Office for control recommendations.

During microscopic examination of the aphids by PPCBranch personnel, one adult psyllid and some nymphswere found. Since no psyllids occur on citrus in Hawaii,the psyllid was believed to be the ACP on the basis ofliterature information about its recent invasion inFlorida. Transmission of digital photos of thespecimens initially, followed by the shipment ofmounted specimens to the USDA SystematicEntomology Laboratory in Beltsville, Maryland,confirmed the identification as D. citri.

The association of the ACP as the primary vector ofcitrus greening disease (CGD), known in Asia as Huanglongbing(HLB), resulted in the immediate shipment of a sampleof chlorotic foliage from the infested tree at the

Waiakea residence to the National Plant Germplasmand Biotechnology Laboratory in Beltsville, MD. Theresults were negative for CGD, caused by thebacterium Liberibacter asiaticus. However, only onecitrus foliage sample has been sent to the USDA labfor detection of the bacterial DNA. Funds are beingsought to ship more samples for diagnosis.

By the end of May 2006, surveys of East Hawaii hadbeen made from Waimea to South Point Road by ajoint effort of HDOA personnel (PQ and PPC Branches)and USDA-APHIS-PPQ personnel stationed in Hilo.The ACP distribution on the Big Island wasdetermined to be extend from the original detectionsite in Waiakea north to Papaikou, southeast toKalapana, and southwest to Glenwood and AinahouRanch (within Hawaii Volcanoes National Park).

Island-wide surveys for the psyllid continued throughJune. Preliminary surveys of all districts except NorthKona for the ACP were completed with negativeresults. Surveys focused on mock orange, Murrayapaniculata (also known as orange jasmine), because it is thepreferred host of the ACP, and on residential citrusplantings because of limited commercial plantingsin Hawaii. No ACP was detected during cursory surveysin West Hawaii. A GIS map has been generated by theHilo PPC staff to show its range of establishment.

Samples of mock orange foliage infested with psyllidnymphs have been collected from several sitesaround Hilo to hold for parasitoid emergence. Nonehad been recovered by the end of June. Some ladybirdbeetles, including Halmus chalybeus (Boisduval), Olla v-nigrum(Mulsant), and Coccinella septempunctata L., have beenobserved in association with the ACP nymphs.

Ivy Gourd [Coccinia grandis (L.) Voigt]Propagation of the ivy gourd gall weevil, Acythopeusburkhartorum O’Brien, was terminated at the end ofSeptember 2005. The final two releases, consistingof 20 and 126 adults, were made on September 26 &27, respectively, in Waimanalo along KalanianaoleHighway near Sea Life Park.

Propagation and establishment of this ivy gourdbiocontrol agent has experienced difficulties becauseof its long life cycle, need for shady conditions, andprobable field predation by ants and birds.Establishment had been spotty and, despite limitedsuccess at some sites, may now be in doubt.

Fortunately, the ivy gourd vine borer and ivy gourdleafmining weevil are well established and widespread onOahu, as well as in Kailua-Kona on the Big Island.They are having significant impacts in suppressingivy gourd population densities. Ivy gourd is nowcommonly observed only in localities, such as Waimanalo,Kahuku, and Waialua on Oahu, where the microclimate

Above: Asian citrus psyllid was first identified in Hawaiiin May 2006 on the east side of the Big Island.

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is most favorable for its proliferation. It is very rarelyseen in drier localities on the leeward side of Oahu,such as on the slopes of Punchbowl Crater, where itwas once the dominant vegetation, shrouding all ofthe other plants, including many invasive weeds.

Miconia [Miconia calvescens DC]Due to its aggressive, invasive nature, miconiacontinues to be a major threat to ecosystems in theHawaiian Islands, and exploration for, and researchto utilize, other biological control agents continue tobe ongoing projects.

In 1997, Plant Pathologist Robert Barreto of theUniversity of Viçosa, Viçosa, Brazil, identified a foliarnematode on miconia in Brazil and Costa Rica. Thisnewly described nematode, Ditylenchus gallaeformis,causes severe leaf distortion and galling and wasproposed by Dr. Barreto as a potentially goodbiocontrol agent. In March 2006, nematode gallscollected in Brazil were shipped to the HDOA PlantPathogen Quarantine Facility (PPQF) for host rangetesting and a colony has been established. However,infection of this nematode onto miconia plants in thequarantine facility has been painstakingly slow,prompting Dr. Barreto to conduct a reassessment ofthe parasitism of the nematode to the Hawaiianmiconia biotype. He is collaborating with Dr. TracyJohnson of the USDA Forest Service QuarantineFacility at Hawaii Volcanoes National Park on theisland of Hawaii to test the nematode in Costa Rica,where the miconia biotype more closely matches thebiotype in Hawaii. A graduate student was hired toisolate the nematode in Costa Rica and to determineits pathogenicity to the Hawaiian miconia biotype.Shipments of the nematode and another fungalpathogen, Coccodiella miconiae, on miconia to thePPQF in Honolulu are scheduled for August 2006.Meanwhile, the biocontrol fungal pathogenColletotrichum gloeosporioides f. sp. miconiaecontinues to be active in the wet Onomea area of EastHawaii and may be keeping miconia plants frombecoming the dominant vegetation in that locality.

Fireweed [Senecio madagascariensis Poiret]The colonies of the two very promising, potentialbiocontrol agents of fireweed, Secusio extensa (Butler), anarctiid moth, and Sphenella austrina Munro, a tephritidfly, have died out in the HDOA Insect Quarantine Facility.The probable cause of the demise of both colonieswas a decline in host plant suitability as a result ofheavy aphid infestations and severe damage.

A third highly promising agent, Nyctemera apicalis,an arctiid moth, is being reared successfully and isundergoing host range testing. The first two specieshad been collected in Madagascar and South Africa,respectively, during an exploration for fireweed naturalenemies in 1999. The third species was collected

more recently in South Africa during a second fireweedexploration in 2005.

The loss of the colonies of the first two agents wasvery unfortunate because host specificity studies werecompleted for the first species and nearingcompletion for the second. Both species are believedto be highly suitable for release in the HawaiianIslands to suppress fireweed infestations, which aremainly found in pastures and wayside areas onHawaii and Maui. Although this setback will delay theanticipated releases of S. extensa and S. austrina,which are eagerly being awaited by the cattle industry,it may have been a blessing in disguise becausethose insects were originally collected in 1999 andseven years of rearing in quarantine has very likelyresulted in inbreeding. Plans are being made fornew collections in Africa.

Maile Pilau [Paederia foetida L.]The Skunk Vine Biocontrol Project is a collaborativeeffort between the HDOA Plant Pest Control Branchand the USDA-ARS Invasive Plant Research Laboratory (IPRL) in Ft.Lauderdale, Florida. During FY 06, IPRL researchersinformed the PPC Branch that a new IPRL quarantinefacility was being built and that this activity would delaytheir efforts to collect and ship natural enemies ofskunk vine (maile pilau) from Nepal and Thailand.Also, political unrest in Nepal has impacted the greatlyanticipated collection and shipment of a highlypromising metallic green, leaf-feeding chrysomelidbeetle to the HDOA Insect Quarantine Facility forcolonization and testing. The larvae of this beetle alsofeed on the foliage. Studies of another chrysomelidbeetle, whose larvae feed on the roots, are still beingconducted at Kyushu University in Fukuoka, Japan.

Banana Poka [Passiflora tarminiana Coppens &Barney, sp.nov. (formerly P. mollissima)]Personnel of the Plant Pathology Unit and the DLNR’sMaui forester collaborated on two augmentationreleases of the banana poka biocontrol pathogenSeptoria passiflorae on Maui. The first release wasmade in the Kula Forest Reserve and the other at PoliPoli State Park. In order to obtain a culture of S.passiflorae, infected material was collected fromroadside banana poka and sent to the Plant PathogenQuarantine Facility (PPQF) in Honolulu, where thefungus was isolated. The Septoria isolate was thentested for pathogenicity. For each release, 200 cultureplates were prepared in the PPQF and taken to theKahului Biocontrol Lab for preparation. The inoculating procedurecalled for a solution of 2 percent sucrose and 0.5 percent gelatinwith Septoria fungus spores at a concentration of 1 x10 6 spores per ml. This solution gives the fungalspores a boost in the germination and the infectionprocess. Approximately 5 gallons of spore solutionwas prepared and sprayed on each occasion.

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The Kula site was a follow-up release because theeffects of previous fungal releases had diminishedas a result of dry weather conditions that plagued thearea for several years. During recent surveys of forestson Maui, new banana poka infestation sites have beenidentified, including the one at Poli Poli. The fungushad apparently not reached these sites because itsdispersal requires wind and rain, which typically flowup the mountain from the plains below. Infestationsthat are laterally adjacent to the infected sites haveremained free of the disease. Several months afterthe fungus was sprayed at Poli Poli, the disease wasobserved at that site and in the adjacent down-windareas as well. This project has shown that somefungi may require a little manipulation to expand theirrange to be more effective in their role asbiocontrol agents.

Projects of the Branch’s Chemical/Mechanical ControlSection included the following during the FY 2006:

Little Fire Ant [Wasmannia auropunctata (Roger)]Personnel of the Chemical/Mechanical (C/M) ControlSection continued to treat infestations of the little fireant (LFA) on the Islands of Kauai and Hawaii. On theBig Island of Hawaii, CM staff assisted nurserymenin the detection of LFA and trained nursery personnelto detect and treat infested property. On Kauai, staffconducted quarterly monitoring at the one infestedsite on the island in collaboration with personnel fromthe Kauai Invasive Species Committee (KISC).Chemical trials were conducted jointly with UH-CTAHR-PEPS researchers to find effective insecticidesfor use at various LFA infestation sites, including plantnurseries, residences, golf courses, pastures, andfruit and nut orchards.

Coqui Frog [Eleutherodactylus coqui Thomas].Coqui frog control efforts and sprayer loan programscontinued on the islands of Hawaii, Maui, Oahu, andKauai. Community groups, plant nurseries, and privateindividuals were allowed to borrow spray equipmentfrom the HDOA at no charge on these islands. On theIsland of Kauai, CM staff worked with members ofKISC to prepare the one wild coqui infested site forchemical treatment. Ground and trail clearing wasinitiated to enhance access for personnel and tocreate less habitable environments for the coqui indesignated areas. This also forced the frogs into greenislands where treatment could be concentrated.HDOA, KISC and private agencies contributed tofunding for chemicals and equipment.

Because of the concerted group efforts, the frogpopulation diminished to lower levels than thoseobserved the previous year. This assessment was

based on the decrease in male frog vocalizations.HDOA personnel assisted the Oahu Invasive SpeciesCommittee (OISC) and the U.S. Army, with surveys atthe one wild population on Oahu. HDOA participatedin night surveys for the frogs and OISC sprayedinfested locations during the day.

These efforts have decreased frog populations to ahandful of frogs in a couple of locations in what wasonce a heavily infested fifteen acre site. HDOA, OISC,and DLNR monitored and treated Oahu commercialnurseries for coqui frogs. The nursery staff alsoreceived training for coqui frog control by these groups.Frog populations have been eliminated at two of thethree infested nurseries and have declinedsignificantly at the third nursery due to thesecollaborative efforts.

Erythrina Gall Wasp (EGW) [Quadrastichus erythrinaeKim]. C/M personnel collaborated with UH-CTAHR andDLNR in chemical trials of systemic insecticides onnative wiliwili (Erythrina sandwicensis) for use againstthe EGW. These treatments are demonstrating someeffectiveness but are still ongoing.

Banana Bunchy Top Virus (BBTV)Containment and management practices for thebanana bunchy top virus (BBTV) continued on theIslands of Hawaii, Kauai, and Maui, with limitedchemical control work on commercial farms by HDOApersonnel. On Oahu, HDOA personnel assistedcommercial farmers in detecting and providingcounseling on management of the disease.

Fireweed [Senecio madagascariensis Poiret]Fireweed infestations on the Islands of Kauai andOahu are contained. Personnel on both islandsmanaged the sites and have no new plants sinceNovember 2005. Previously, this invasive weed hadinfested two acres on Kauai and about seven acreson Oahu.

Increased communication between the HawaiiDepartment of Transportation (HDOT) and HDOA hasresulted in a decline in the use of carpet grass seedsfor HDOT roadside landscaping projects on Oahu. Inprevious years, fireweed emerged at several locationsafter carpet grass seeds, produced in Australia, wereincorporated into hydromulch material to seed barelands along roadways. Surveys were continued forthe detection of new infestations of fireweed on Kauai,Oahu, Lanai, and Molokai.

Fountaingrass [Pennisetum setaceum (Forssk.) Chiov.]Collaborative work was conducted by state, county,federal, and private sector agencies to detect andremove fountaingrass on Kauai, Oahu, and Lanai.Populations of plants discovered in the surveyswere removed.

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PLANT QUARANTINE BRANCHCarol Okada, Manager (beginning January 2006)

Long Thorn Kiawe [Prosopis juliflora (Sw.) DC]Control efforts continued on Kauai and Oahu toremove long thorn kiawe (LTK) from shoreline areas.The work on Kauai was a cooperative effort with theKauai Invasive Species Committee and the U.S.Navy’s Pacific Missile Range Facility. On Oahu,responsible agencies such as Hawaii Department ofTransportation – Harbors Division and the Universityof Hawaii have cleared LTK from properties which fallunder their management.

Miscellaneous Noxious Weeds Chemical ormechanical control of designated noxious weedscontinued for gorse (Ulex europaeus), miconia(Miconia calvescens), turkeyberry (Solanum torvum),and glory bush (Tibouchina spp.). Other species suchas false kava (Piper auritum) and tetrastigma(Tetrastigma pubinerve) were controlled in limitedareas that were deemed eradicable. The work on falsekava and tetrastigma were cooperative efforts withthe OISC.

Public Awareness ActivitiesC/M personnel participated in educational outreachprograms for public awareness at activities such asthe Hawaii County Fair, Maui County Fair, and KauaiCounty Fair. Topics of the presentations includednoxious weeds, little fire ant, nettle caterpillar, andcoqui frogs.

Seed InspectionRoutine surveys of agricultural and vegetable seedvendors to ensure the quality and proper labeling ofseeds sold to consumers were conducted.Examination of seed lots entering the United Statesfrom foreign ports was performed in the C/M ControlSection Seed Laboratory under an agreement withthe U.S. Department of Agriculture, Animal and PlantHealth Inspection Service. Seed lots containingprohibited noxious weed seeds or seeds ofquarantine status were refused entry intoU.S. commerce.

Germination tests were performed on vegetable andagricultural seed lots to ensure that minimumgermination standards under the Hawaii Seed Ruleswere met. Tests were performed in the seed laboratoryfor Hawaii seed distributors, upon request, to ensurecompliance with the Hawaii Seed Rules.

Noxious Weed Specialist Derek Arakaki conductsgermination tests in the Seed Lab to determine ifimported seed lots comply with federal and stateseed standards.

The function of the branch is to administer thedepartment’s plant and non-domestic animal quarantinelaw by preventing the introduction of invasive species,including pests and diseases into and throughout thestate, as well as facilitating the export of Hawaii-grownplant materials to domestic and foreign markets.

This fiscal year marked the beginning of the HawaiiBiosecurity Program which focused on the following threecomponents:

(1) Improve phytosanitary controls by improvingprocedures based on:

(a) Risk assessments to evaluate highrisk commodities;

(b) Pre-entry measures to enter into complianceagreements with other states by providingpest-free imports; and

(c) Post-entry treatments and procedures tomitigate pest introductions when discovered.

(2) Reduce the dependence on imports by encouragingand promoting Hawaii-grown products.

(3) Expand agricultural exports through approved post-harvest treatments of Hawaii-grown crops to addstability and economies of scale forHawaii growers.

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A major step was taken by improving the inspectionfacilities, capabilities and personnel support on the islandof Maui. The Hawaii Department of Transportation withgrants from the Federal Aviation Administration haveprovided funding support to construct a “state of the art”Alien Species Inspection Facility and adjoining cargobuilding at Kahului Airport. This commitment will go a longway in the prevention of invasive species into our State.With the continued support of our Governor and the 2006Legislature the department is poised to launch into a comprehensivebiosecurity program that will be second to none.

Statistical data on the activities of the Plant QuarantineBranch may be found on page 62.

FY 2006 Highlights

The Airport Plant Quarantine Office was notified byHonolulu Police that a snake was sighted in a garagelocated at a Kuliouou, Oahu property. Inspectorsresponded to the scene and captured a three-foot-long ball python (Python regius).

Plant Quarantine Branch (PQB) Inspectors inHonolulu, Oahu retrieved a container with 17 landhermit crabs (Coenobita clypeatus) that was removed byTransportation Security Administration screeners fromthe luggage of a passenger that was en route to Kauai.

A dead painted bronzeback snake (Dendrelaphispictus) was found by Maui Builders’ workers whileunloading a container of furniture at Wailea, Maui.The specimen was later turned in to U.S. Departmentof Agriculture inspectors who turned over the carcassto state inspectors.

Aloha Airlines contract services employee capturedan Indo-Pacific house gecko (Hemidactylus frenatus)that was discovered in cargo from Manila, Philippines.

A three-foot green iguana (Iguana iguana) was caught bya Waimanalo, Oahu resident and turned in to the PQB.

A resident reported finding a four-foot-long boa (Boaconstrictor) in the laundry room area at a Hawaii Kai,Oahu property to PQB-Oahu who later captured theanimal, which was coiled behind a bag of rice.

Security guards at a Makiki, Oahu condominiumcaptured an African pygmy hedgehog (Atelerixalbiventris) that was found wandering in the courtyardarea of the property and reported the incident to PQB-Oahu who later retrieved the animal. About a weeklater, a seven-inch Tokay gecko (Gekko gekko) wascaptured at the same location.

A golfer from the U.S. mainland reported sighting an18-inch-long garter snake near the 4th hole of theKapalua Plantation course at Kapalua, Maui.Personnel from PQB-Maui, Department of Land andNatural Resources (DLNR), and Maui Invasive

Species Committee (MISC) conducted a series ofsnake searches in the surrounding area includingthe deployment of traps for a three-week period;however, no snakes were captured or sighted duringthe response.

A U.S. Department of Agriculture technician captureda four-foot iguana in the Kuaokala game managementarea in Waianae, Oahu. This is the first documentedcapture of this species in this area.

A recently arrived resident to Maui reported seeingwhat was described as a snake in the yard of aLahaina, Maui property. Personnel from PQB-Maui,DLNR, and MISC searched the area and set up trapsfor a three week period; however, no snakes weresighted or captured during this response.

An albino African pygmy hedgehog was captured by aresident in the garage area at a Pearl City, Oahuproperty. PQB-Oahu was notified by the resident of thefind, and inspectors later took custody of the animal.

A 17-inch albino corn snake (Elaphe guttata) wasdiscovered by a resident in the lanai area at aMaunawili, Oahu residence. The resident thencontained the snake and reported the matter to stateauthorities for disposition.

A green iguana was captured in the Waimanalo, Oahuarea by a resident who reported the matter to PQB-Oahu. The iguana was later retrieved by stateinspectors and safeguarded until shipment out of state.

An employee of a freight forwarding company captureda southern alligator lizard (Elgaria multicarinatus) inthe landscaped area near Pier 35 at Honolulu Harbor,Oahu and turned in the animal to PQB-Oahu. Theanimal was later donated to the Panaewa RainforestZoo in Hilo, Hawaii.

Proper handling of a brown treesnake during trainingsession in Guam.

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A 10-inch southern alligator lizard was recovered atthe Resort Quest Islander on the Beach property inKapaa, Kauai. The lizard was found inside the poolstorage locker and retrieved by PQB-Kauai personnel.

PQB-Oahu personnel retrieved a two-foot-longshingleback skink (Tiliqua regosus) from the HawaiianHumane Society, which was earlier captured in PaloloValley, Oahu and turned in by a resident living in the area.

Honolulu police responded to a report of a CubanKnight Anole (Anolis equestris) that was captured inthe Kahaluu, Oahu area and notified the PQB-Oahuwho then retrieved the animal.

Throughout FY 06, PQB-Oahu personnel recovered atotal of 13 Madagascar giant day geckos (Phelsumamadagascarensis grandis) at three different locationson the island of Oahu. Eleven giant day geckoescame from the Manoa area, and one each from EwaBeach and Waimanalo areas. The various areas havebeen surveyed periodically by personnel from PQB-Oahu, DLNR and Oahu Invasive Species Committee.

A total of 207 containers of Christmas trees wereshipped to Hawaii from Oregon and Washington. Inaccordance with the Hawaii Department of Agricultureprotocol, the Oregon and Washington Departmentsof Agriculture witnessed the shaking and cleaning of100 percent of the trees in 76 percent of the containers.The remaining 24 percent of the containers were spotchecked by the two mainland agriculture departments.Three containers were found by PQB-Oahu personnelto be infested with male yellow jackets. The contentsof these containers were 100 percent inspected byPQB-Oahu personnel and seven yellow jacket queenswere found.

PQB inspectors submitted 2,058 insect identificationsto the PQB entomologist. Of these, 29.3 percent werenot known to be established in Hawaii; 36.1 percentwere known to be established in Hawaii; and 34.7percent, the presence in Hawaii of the insect was notknown. Based in part on these identifications, thedispositions of these shipments were as follows: 39.4percent had the pest removed before the commoditieswere released to the importer; 1.2 percent wererefused entry (returned to the port of origin); 37.9percent were treated before being destroyed; and 11.5percent were treated and released.

First Time Insect Interceptions for Plant Quarantine

During the Kona Risk Assessment, PQB inspectorsdetected aphids on raspberries. The aphids wereidentified as Aphididae: Amphorophora idaei. Thisspecies is specific to this fruit and is not known tooccur in Hawaii.

During the Kona Risk Assessment, PQB inspectorsdetected an aphid on mango which was grown inPeru. The aphid was identified as Aphididae: Greenideamangifera; the mango aphid is not known to occur inHawaii. The Greenidea is an Asian genera of aphidswhich is not known to occur in Central and South America.

During the Maui Risk Assessment in August 2005,PQB personnel intercepted a stink bug on strawberryfruit. The stink bug was identified as Pentatomidae:Halyomorpha halys; the brown marmorated stink bugis not known to occur in Hawaii

During routine inspections, PQB-Kona inspectorsintercepted a shipment of bulk chicken mash infestedwith beetles. The beetles were identified as Curculionidae:Sutophilus granaries; Tenebrionidae: Alphitobius diasperinus; andTrogositidae: Lophacateres pusilius. All of these pestsare cosmopolitan.

During routine inspections, PQB-Maui personnelintercepted aphids infesting strawberry fruit. Theaphids were identified as Aphididae: Aphis forbesi;the strawberry root aphid is not known to occur inHawaii. A. forbesi is native to North America and isnow found in Europe, Japan, and in parts ofSouth America.

During routine inspections, PQB-Oahu personnelintercepted a shipment of raspberry fruits infestedwith aphids. The aphids were identified as Aphididae:Amphoraphora agathonica; the Large Americanraspberry aphid is not known to occur in Hawaii. Thespecies is distributed throughout North America andis a vector of raspberry mosaic viruses such as blackraspberry necrosis virus.

During routine inspections, PQB-Maui personnelintercepted a shipment of mango fruits infested witha scale. The scale was identified as Diaspididae:Aulacaspis tubercularis; the white mango scale is notknown to occur in Hawaii. This scale can be a seriouspest of mangoes.

Brown Tree Snake Rapid Response Training

The U.S. Geological Survey has developed andimplemented a rapid response training program in theevent of a brown treesnake (BTS) sighting that may occuroutside the island of Guam. An initial three-week course,which involves the proper handling of venomous snakesincluding BTS, search and trapping techniques as well asconducting formal interviews, provides participants withan organized plan of action should a BTS sighting occur.In fiscal year 2006, three additional PQB personnelsuccessfully completed the three-week BTS trainingcourse, and six personnel attended a one-week refreshercourse in Guam. This brings the total number of trainedDepartment personnel to ten (Oahu: 5; Maui: 2; Kauai: 1;and Hawaii: Hilo-1, Kona-1).

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COMMODITIES BRANCHJeri Kahana, Manager

John Ryan, Ph.D.Administrator(beginning July 31, 2006)

The Quality Assurance Division consists of two branches,the Commodities Branch and the MeasurementStandards Branch. The branches provide services andenforce laws that help to improve the market quality ofagricultural commodities, promote fair trade and honestbusiness practices, and maintain stability in thedairy industry.

QUALITY ASSURANCE DIVISION

Quality Assurance Division

The mission of the Commodities Branch is to “Set TheStandards” and provide assurance that standardized, highquality, safe, and authentic Hawaii agricultural productscan be showcased in Hawaii as well as throughout theworld market through a fair and just agriculturalbusiness climate.

The Commodities Branch enhances the economic stabilityof Hawaii’s agricultural industries by maintaining gradestandards for locally produced fruits and vegetables, nuts,coffee, flowers and foliage, processed foods and otheragricultural products. The branch provides unbiased,professional, and timely service-for-fee grade, condition,and origin certification and food safety audits, to add valueand desirability to agricultural products. Under federal-state cooperative agreements, the branch provides federalcertification for fresh and processed fruits and vegetables,eggs, seafood and meat, which may not otherwise beavailable to local clients, as well as state certification fororigin and quality of green coffee, and origin ofcertain products.

The branch provides just, and unbiased enforcement toassure safety and fair business dealings in agriculturalproducts, to protect the agricultural community as well asthe general public. The branch administers laws and rulespertaining to fresh fruit, vegetable, coffee, egg labelingand advertising; minimum export quality; licensing ofdealers in agricultural products; certificate of ownership

requirements on the movement of agriculturalcommodities to deter agricultural theft; and sampling andtesting of animal feed for label guarantee and adulteration.

The branch’s Milk Control Section regulates and maintainsthe stability of the dairy industry in the Honolulu and Hawaiimilk sheds by licensing producers and distributors of milk,establishing milk production quotas, setting minimumclass 1 price paid to dairy producers, and conducting retailmilk surveys and inspections. This special-funded sectionis entirely self-funded through license fees assessed tomilk producers and processors.

Listed below are brief overviews of developments that haveimpacted the branch’s activities. Statistical data for theCommodities Branch may be found on page 63.

Inspected and certified more than 2.5 millioncases of canned pineapple from Maui PineappleCompany, which continues to receive largefederal government contracts and assessedmore than $198,000 in fees.

Continued the fee-for-service papaya non-transgenic testing program and established andconducted a new “Identity Preservation Protocol”program for tighter control of non-transgenicpapayas that are exported to Japan. More than3.5 million pounds of papayas were checked and$46,180 in fees were assessed over the year.

Staff attended fresh fruits and vegetables, coffee,eggs and dairy industry meetings andconferences; and meetings for the “Seals ofQuality” program.

Commodities Inspector Gary Kumashiro shows thedifference between a fresh Hawaii egg and a mainlandegg to kids at the Hawaii State Farm Fair.

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Quality Assurance Division

MEASUREMENT STANDARDS BRANCHWilliam Pierpont, Manager

The Measurement Standards Branch works to protectconsumers, businesses, and manufacturers from unfairpractices, based on a measurement process or subjectto a standard of quality. The goal is to minimize lossesand inaccuracies due to incorrect or fraudulentcommercial measuring equipment, processes, orsubstandard products.

The Standards and Technical Services Section assuresthat State measurement Standards conform to nationalstandards. It performs metrological calibration of theenforcement standards used by the Branch and the fieldstandards used by registered service agencies in testing,repairing, and calibrating commercial devices.

The Standards and Trade Practices Enforcement Sectionhas the responsibility of assuring the consumer thattransactions involving measuring instruments, labeling,content of packaged commodities, and pricing are accurateand fair to all parties.

Listed below is a brief overview of the branch’s activities:

The State Metrologist received advanced trainingand certification from the National Institute ofStandards and Technology (NIST).

The metrology laboratory received re-certificationby the National Institute of Standards andTechnology.

The metrology laboratory inspected andcalibrated 178 mass test standards, 501 massenforcement standards, and 669 field standardsfor service agencies conducting business in theState of Hawaii.

The metrology laboratory inspected andcalibrated three volumetric test standards, threevolumetric enforcement standards, and 20volumetric field standards for service agenciesconducting business in the State of Hawaii.

The branch received and investigated over 15odometer complaints. In conjunction with theAttorney General’s Office the investigationscompleted by the branch have led to indictments,arrests, and prosecutions.

The compliance rate for stores inspected for priceverification was 100 percent.

Measurement Standards inspector WendellMurakami (l) tests a produce scale for accuracy at amarket in Chinatown and explains the procedure tothe vendor.

Educational visits were conducted on certificateof ownership requirements for agriculturalcommodities. Flyers were translated into nineforeign languages and distributed to variousfarmers and vendors.

Hosted supervisory visits by USDA officials fromthe Poultry Programs, and U.S. Department ofCommerce (USDC), National Marine FisheriesService.

Attended meetings with the coffee industry todiscuss geographic region origin verificationsystem to ensure that coffee being certified as“Kona” coffee originated within the Kona districts.

Staff attended training on ISO 9000, PrimuslabsFood Safety audit, USDC, National MarineFisheries Service Seafood Hazard Analysis andCritical Control Point (HACCP), and PacmarSeafood HACCP.

Branch fee assessments and penalties collectedtotaled $736,701; approximately two percent lessthan last year.

Statistical data from this branch may be found on page 63.

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Agribusiness Development Corporation

Alfredo LeeExecutive Director

AGRIBUSINESS DEVELOPMENTCORPORATION

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, ADC is responsible fordevising means by which arable sugar and pineapplelands and their production infrastructure can be usedagain by a diversified agricultural industry and forproviding marketing assistance that can lead to thedevelopment of local, national, and international marketsfor Hawaii-grown products. For administrative purposes,ADC is attached to the Hawaii Department of Agriculture.

Mission Statement (revised August 30, 2004):“The Agribusiness Development Corporation (ADC) is adynamic vehicle and process to create and to optimizeagricultural assets throughout the state for the economic,environmental and social benefit of the people of Hawaii.It is a risk-taking advocate for agriculture with uniquepowers to assist agricultural business.”

Board Members:Teena Rasmussen (Chair)Robert Sutherland (Vice-Chair)Yukio KitagawaRobert OsgoodRobert CooperSusan HaradaWayne KatayamaEric WeinertSandra Lee Kunimoto (Ex-Officio)Ted Liu (Ex-Officio), andPeter Young (Ex-Officio)

Right: The heavy rains in March 2006 caused damageto crops, agricultural equipment and infrastructure, in-cluding this irrigation water filter station in Kekaha, Kauai.

Kekaha Agricultural Lands

In September 2005, the U.S. Navy awarded the ADC a$1.7 million contract to operate and maintain the Kawaieleand Nohili pump stations and the related drainage canals.Besides the daily operations and monitoring of the pumpstations, the contract involves maintenance of the canals,roads, and electrical transmission lines. Emergencyopening of the drains at PMRF during flooding situationsand continuous maintenance of the NPDES permit werealso part of the work.

Record rainfall hit Kauai in March of 2006. The raincontinued to fall on the island for over 40 consecutive days.ADC worked closely with the farmers and othergovernment agencies to avert a major flooding disaster atthe Kekaha town and at the Pacific Missile Range Facility.The large flood-control pumps at the Kawaiele pumpstation were brought into action. Drains to the oceanswere opened as per directions from county Civil Defense.Although there were no major property damages at thetown, substantial damages to the crops and the irrigation/drainage systems were reported. Since Kauai wasdeclared a disaster area by President Bush, ADC becameeligible to apply for federal assistance on repair andmitigation work on the property. About 75 percent of theestimated $400,000 work could be reimbursed by FEMA.

The Kaloko Dam failure on March 14, 2006 brought to theforefront the importance of dam and reservoir safety. Stateemergency funding appropriated to the Department of Landand Natural Resources (DLNR) provided some relief onthe cost of preparing inundation maps, Phase I, and PhaseII studies on dams statewide. ADC initiated the processof preparing Emergency Action Plans for the Puu Lua,Kitano, and Mana reservoirs. Future projects might include

The following are highlights of ADC’s activity duringFY 2006:

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Agribusiness Development Corporation

The catwalk area at the Kawaielepump station in Kekaha was underwater during the record rainfall onKauai in March 2006.

appurtenant structure repairs and vegetation removal fromdam embankments pending capital improvement project(CIP) funding approval from the legislature.

On May 1, 2006, ADC executed its first 20-year license forapproximately 1,175 acres of land at Kekaha to Far WestAg, Inc. (Far West), a diversified agriculture operation. FarWest was one of the initial tenants of the property sinceKekaha Sugar ceased its operations in 2001. Besidesproviding contract services to various seed companies,Far West grew melons and other tropical fruits forlocal consumption.

The ADC Kekaha Committee continued to work on thedetails of an agreement to be executed between ADC andthe Kekaha Agriculture Association (Coop), which wouldallow the Coop to assume management of the commoninfrastructure to include the Kokee and Kekaha irrigationditches, the Mauka and Waiawa hydroelectric plants, thebackup generators, wells, main drainage ditches andaccess roads. ADC has a target to finalize the agreementby the ending of 2006.

ADC continued to receive inquiries for large tracts ofagricultural lands on the Mana plain, unfortunately allfarmable acreage, with the exception of about 2,000 acresof “mauka” land, have been committed to thecurrent tenants.

Waiahole Water System (WWS)

One of the major events affecting the WWS during thispast year was the announcement of Del Monte’s plantationclosure. Del Monte was a major water user whichconsumed up to about 25-30 percent of the Kunia WaterCoop’s total water usage. Geographically, Del Monteplantation is located near the end of the system. Theirconsistent demand for irrigation water had prevented manymillion gallons of “overflow” system loss. The WWS willbe faced with an economic pinch as well as a water-flowcontrol challenge during this transitional period until newagricultural businesses come in to replace Del Monte.

Another major event was Campbell Estate’s listing of itsKunia land holding for sale. The Campbell agriculturalland in the Kunia area, including lands under the Del Monteplantation, was divided into nine parcels and a couple ofthe parcels have already been sold during this past year.It is anticipated that during a transitional period whenexisting farmers are displaced by new tenants, land wouldbe vacant and little water would be used. This transitioncould affect the WWS water usage pattern and ditchoperations for many years to come.

Anticipating ditch operating challenges in the near future,the ADC board approved the installation of a pump-backsystem at Reservoir 225. This system would be a similarsetup which worked very well at Reservoir 155 locatedfurther down stream. When finished, the pump-backsystem would improve operating efficiency and reducesystem overflow loss.

Fortunately for WWS, the March – April severe weather didnot cause any major damages to the ditch system. Due topractically no demand for irrigation water, the windward

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Agribusiness Development Corporation

The last harvest forDel Monte pineapplein Kunia.

adjustment gate remained closed so that no windwardwater was diverted to the leeward side during this rainyperiod. Water developed in the leeward transmissiontunnel over the Waiawa area, also not being used, wasclassified as “overflow” loss.

One of WWS’s priorities to improve system loss followingrecommendations from the Commission on WaterResource Management was to target the unlined ditchsections of the system. Working with water users, theWWS crew altered the flow on a section of the ditch nearKunia road and totally eliminated about 800 ft. of unlinedwing ditch which supplied water to a settling pond duringthis past year.

Since an easement on the ditch was never issued to theformer Oahu Sugar Company by Campbell Estate, ADCinitiated contact and obtained approval from the landownerfor the issuance of a non-exclusive easement to ADC. Theeasement would include the ditch, Reservoir 155 andrelated discharge ditches. Surveying work on the easementhas been completed. Similarly, a non-exclusive easementhas also being worked out for Reservoir 225 with theRobinson Trust.

Farm and Ranch Land Protection Program

At its April 26, 2006 meeting, the ADC board of directorsapproved the establishment of an agricultural landconservation program. More specifically, ADC agreed tobecome an easement holder for agricultural easementsset up under the federal Farm and Ranch Land ProtectionProgram (FRPP) administered by the U.S. Department ofAgriculture’s Natural Resources ConservationService (NRCS).

In May 2006, ADC and the Hawaii Agriculture ResearchCenter (HARC) executed an option agreement to acquirean agricultural easement over a parcel of land in Kuniaunder the FRPP. Under this program ADC would apply fora grant with the NRCS covering 50 percent of the appraiseddevelopment value of the property. Similarly, ADC wouldapply for a matching grant with the DLNR from funding setaside by the Land Legacy Act. It is also anticipated that thelandowner (HARC) would also make in-kind contributionstowards the funding of the easement purchase. Once theeasement has been acquired, ADC’s obligation will be toinspect the property at least annually and to enforce theconservation program. ADC will have about two years tofinish the easement acquisition.

East Kauai Irrigation System

The legislature appropriated $100,000 for the operationand maintenance of the East Kauai Irrigation System thisyear. In addition to repairs and maintenance work ondeteriorated ditch sections, focus was also placed onmaintenance of the reservoir spillways.

Transfer of the irrigation system and the approximately7,000 acres of state-own agricultural land in the Kalepaarea to ADC was temporary put on hold because ofenvironmental concerns and a potential contested caseinvolving water rights.

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Agribusiness Development Corporation

Other activities and projects:

Kauai Tropical Fruit Disinfestation FacilityIn conjunction with College of Tropical Agricultureand Human Resources (CTAHR), the Kauai FarmBureau Development Corporation, the County ofKauai and the Kauai Economic Opportunity, ADCworked with a group of farmers towardsreopening of the Kauai’s Tropical FruitDisinfestation facility located near the Lihueairport. The planning part of the renovation andrehabilitation project has been completed andADC would initiate work to have the constructionportion of the project completed by December2006. A total of $150,000 CIP funding wasappropriated by the legislature on this project.The facility will need to be re-certified beforetreatment could start.

Kau Irrigation DistrictADC continues to work with the County of Hawaiiand a group of farmer, ranchers, and landownersin Kau on a potentially very encompassingirrigation project. The farmers have been meetingfrequently with the intention to form a water-userscooperative to manage the various irrigation ditchsystems in the district. Conceptually, ADC wouldask DLNR for the set aside of the state-ownirrigation and work out a long-term agreementwith the coop.

Tea ProjectThe ADC co-sponsored expansion and renovationof the tea pilot processing plant at the MealaniExperimental Station (Hawaii) was completed inthe fall of 2005. The on-going next phase will focuson distribution of tea plant cuttings, processingtechniques, and quality standards.

Solar Water Pasteurization DemonstrativeProject ADC signed an agreement and provided fundingto a group of researchers at CTAHR to do a solarwater pasteurization demonstration project.Objective of the project was to evaluate thefeasibility and operating costs associated withsolar water pasteurization technology in remoteareas. The demonstrative unit will be assembledand situated on Maui.

Will Hartzell from Safe WaterSystems explains the workingmechanisms of the solar waterpasteurizer to members of theADC Board of Directors.

The demonstration project islocated in the Kula Ag Park onMaui and has been successfulat pastuerizing surfaceirrigation water for use inwashing produce in areaswhere potable water is notavailable.