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Sample Business Plan.doc

VIEWS: 25 PAGES: 41

									TABLE OF CONTENTS
A. EXECUTIVE SUMMARY................................................................................................................ 2
B. BUSINESS DESCRIPTION – AN ORGANIC OPPORUNITY ....................................................... 4
       INTRODUCTION ........................................................................................................................... 4
       PRODUCT .................................................................................................................................... 4
       GROUNDWORK FORTHE VENTURE ............................................................................................. 4
       CROPS TO BE GROWN ................................................................................................................. 5
       THE OPPORTUNITY..................................................................................................................... 6
       OUR COMMUNITY ....................................................................................................................... 7
       LAND USE, (RE)CONNECTING TO `AINA (LAND) .......................................................................... 7
C. INDUSTRY AND MARKET ANALYSIS........................................................................................ 9
       GROWTH IN THE ORGANIC INDUSTRY ........................................................................................ 9
       THE HAWAI`I MARKET ............................................................................................................... 9
       LOCAL COMPETITION ................................................................................................................ 11
       OFFSHORE ORGANIC COMPETITION .......................................................................................... 12
       FARMING IN HAWAI`I ............................................................................................................... 12
       CUSTOMER PROFILE ................................................................................................................. 13
       DISTRIBUTION MECHANISMS.................................................................................................... 15
D. MARKETING PLAN ...................................................................................................................... 16
       PROMOTIONS AND OUTREACH.................................................................................................. 16
       SPECIFIC SEGMENT STRATIGIES ............................................................................................... 17
       MA`O CUSTOMER SERVICE PHILOSOPHY................................................................................. 17
       PROMOTIONAL MATERIALS AND LABELING ............................................................................. 18
       PRICING .................................................................................................................................... 18
       DISTRIBUTION .......................................................................................................................... 19
       SALES MANAGEMENT ............................................................................................................... 19
       COMPETITIVE ADVANTAGE ...................................................................................................... 19
E. MANAGEMENT PLAN .................................................................................................................. 20
       ORGANIZATION AND BOARD ................................................................................................... 20
       GOVERNANCE .......................................................................................................................... 20
       MA`O’S POSITION IN WCRC ................................................................................................... 21
       EXECUTIVE MANAGEMENT & STAFFING PLAN ........................................................................ 22
       COOPERATING EXPERTS ........................................................................................................... 22
F. OPERATIONS PLAN ...................................................................................................................... 23
       FARM PLAN .............................................................................................................................. 23
       RESEARCH AND DEVELOPMENT ............................................................................................... 23
       CROP GROWTH ......................................................................................................................... 23
       HARVEST AND QUALITY CONTROL ........................................................................................... 24
       INVENTORY MANAGEMENT ...................................................................................................... 24
       ORGANIC CERTIFICATION ......................................................................................................... 24
       FARMER’S MARKETS ................................................................................................................ 24
       LAND, EQUIPMENT, OFFICE SPACE, TOOLS, RESOURCES ........................................................ 25
       INCREASING YOUTH CAPACITY ................................................................................................ 25
G. FINANCIAL PLAN ......................................................................................................................... 26
       START-UP ................................................................................................................................. 26
       ACCOUNTING SYSTEM & BUSINESS CONTROLS ....................................................................... 26
       LONG-TERM SUSTINABILITY..................................................................................................... 26
       PROFORMA STATEMENTS ......................................................................................................... 26
H. RISK ASSESSMENT & CONTINGENCY PLAN ......................................................................... 35
I. ENDNOTES ..................................................................................................................................... 36
A. EXECUTIVE SUMMARY


   Leaders must deal with apathy along the Leeward Coast (Wai`anae), perhaps it
   comes from poverty and repeated disappointment, or from people too busy trying to
   survive and eke out a living. We hope that those that care can reach out to those who
   don’t and sow the seeds of positive change for the future of beautiful Wai`anae.
                            - Editorial, The Honolulu Advertiser, March 25, 2004

In September 2003, youth from a leadership training program began selling organically grown
products at farmer’s markets located at health clinics in Wai`anae, Hawai`i. Their goal was to
make affordable and healthy fruits and vegetables available to residents of their low-income
community. The youth exceeded all expectations – products sold quickly, customers returned
each week wanting more, and now these young people are poised to build on the test markets to
become the largest producer of USDA certified organic fruits and vegetables on the island of
O`ahu.

The Wai`anae Community Re-Development Corporation (WCRC), a Hawai`i non-profit 501(c)3
corporation, proposes the development of the MA`O Youth Organic Farm (MA`O). MA`O will
train and employ out-of-school youth from the Wai`anae community. These youth will grow a
diversity of field crops (e.g., salad greens, herbs, eggplant) and fruits trees (e.g., mango, limes)
using organic methods certified by the U.S. Department of Agriculture’s National Organic
Program rules, on five acres of land leased by WCRC.

The objectives of MA`O will be to:
    Increase productive land from 2.5 to 5-acres by the end of 2007, and expand to ten acres
       by 2010;
    Distribute 50% of produce to the Wai`anae community at affordable prices;
    Provide employment, as well as business and sales training to Wai`anae youth;
    Conduct research and provide advanced training in organic agriculture and community
       food systems;
    Work collaboratively with WCRC’s other programs to support the development of young
       people; and
    Restore idle land to productive use.

MA`O’s evolution dates back to 2001, when WCRC established the Mala `Ai `Opio Community
Food Security Initiative, a project to create a community food system to fight hunger, improve
nutrition, strengthen local agriculture and empower local families to move towards self-
sufficiency. In the Hawaiian language mala `ai `opio means the youth food garden, and ma`o is
also the Hawaiian name of the endemic cotton plant that makes its home in the Wai`anae area.
With youth leadership development as a core objective, WCRC established a series of
interconnected activities with the MA`O farm site as the primary training venue.

Life is a daily struggle for many young people in Wai`anae. Local public schools are failing to
meet the standards of the federally mandated No Child Left Behind Act. They experience high

MA`O YOUTH ORGANIC FARM                                                                                2
drop-out rates and illiteracy compared to the rest of the state. There are few opportunities for
post-secondary employment and training. Wai`anae has the state’s highest unemployment rate.
Teenage pregnancy rates are high. Add to this a rapid growth in the distribution and use of
crystal methamphetamine, and a formula for community deterioration and juvenile delinquency
is created.

This venture is being planned and implemented to provide an employment, training and life-style
opportunity for young people, while they work to improve the community. MA`O is founded
with an entrepreneurial philosophy that is guided by our Hawaiian cultural traditions, with
business activities developed to revive and expand upon Hawaiians’ traditional love and respect
for the land. There are many local projects that have attempted to integrate social enterprise with
Hawaiian culture; however, MA`O stands out from its competition however, through combining
the explosive growth predicted for the organic agriculture industry with methods that are deeply
respectful of Hawaiian culture and sustainability. This market opportunity provides fertile
ground for youth to make a radical contribution to the social and economic life of the Wai`anae
community, our home.

The national organic food industry has experienced rapid growth over the past 20-years. By
2001, sales of organic foods reached $8 billioni and there has been 20% growth annually in
national organic sales over the past 10-years,ii The Organic Trade Association projects that the
U.S. organic market will reach $30.7 billion by 2007. While this is small compared to the
conventional foods industry, OTA reports that conventional food growth is only 2-3% per year
versus organic foods, which is growing 17-20% annually.iii

According to the Hawai`i Organic Farmer’s Association (HOFA), Hawai`i imports over 90% of
organic produce.iv At the same time, there are only nine organic farms located on O`ahu where
870,000 consumers reside,).v Demand for fresh, local and organic foods is best illustrated by the
recent establishment of three Hawai`i Farm Bureau Federation markets on O`ahu. The Kapiolani
Community College (KCC) Farmers Market, which opened in late 2003, attracts over 2,500
visitors each Saturday, and specializes in 100% Hawai`i grown products. The Hawai`i organic
agriculture industry still lags behind the national growth figures, due to inflated land prices, the
pressure of urban development, and the difficult shift from the plantation agriculture system.
The scarcity of local organic fruits and vegetables has made MA`O’s certified organic product
highly attractive to consumers.

MA`O’s competitive advantage has been well established. WCRC recently secured substantial
funding from the U.S. Department of Housing and Urban Development, as well as the U.S.
Department of Health’s Administration for Native Americans (ANA) to support this program. In
its pilot year, MA`O established thriving farmer’s markets and strong relationships with retailers
and restaurants, in which demonstrated demand far outstripped supply. MA`O has also
developed partnerships with Leeward Community College to train youth and with Maui Land and
Pine CEO, David Cole, to collaborate in the development of a local organic industry. Most
importantly, MA`O has a cadre of strong and determined youth – many already trained and eager
to instruct others – with ambitions beyond their years, and a drive to become the largest producer
of certified organic fruits and vegetables on the island of O`ahu.

MA`O YOUTH ORGANIC FARM                                                                                3
MA`O YOUTH ORGANIC FARM   4
B. BUSINESS DESCRIPTION – AN ORGANIC OPPORTUNITY
1. Introduction
In September 2003, youth from a leadership training program commenced selling organically
grown products at farmer’s markets located at the Wai`anae Comprehensive Health Center and
Kaiser Permanente Health Clinic, in Nanakuli, both located on the Westside of the island of
O`ahu, Hawai`i. The goal: to get healthy organic fruits and vegetables, sold at a fair price, into
the regular food purchases of the low-income community. The youth exceeded all expectations –
products sold quickly, customers returned each week for more, and now a group of young people
are poised to build on these test markets to become the largest producer of USDA certified
organic fruits and vegetables on the island of O`ahu.

2. Product
The Wai`anae Community Re-Development Corporation (WCRC), a Hawai`i non-profit 501(c)3
corporation, proposes the development of the MA`O Youth Organic Farm (MA`O), a venture
managed by out-of-school youth from the Wai`anae community. MA`O will cultivate a diversity
of field crops and fruit trees, using organic methods certified by the U.S. Department of
Agriculture National Organic
Program’s rules, on 5-acres of land
                                                                            ISLAND OF O`AHU
currently leased by WCRC.
                                                                           STATE OF HAWAI`I
The objectives of MA`O will be to:
    Increase production of organic
       fruits and vegetables to a total
       of 5-acres, with each acre
       developed to gross at least
                                          WAI`ANAE                     $            $




       $50,000 by the end of 2007;
                                                                                        $
                                                                   $




    Distribute at least 50% of                                                        Area Map
                                                                                        Water Area
                                                                                ?
                                                                                        City$



       product into the Wai`anae                                         &              Census Tract
                                           MA`O YOUTH ORGANIC FARM                      Highway
       community through                                                              0 2 4 6
                                                                                         Miles
       community farmer’s markets;
    Provide employment with profit-incentives to three youth at start-up with two youth
       added by Year 2;
    Work collaboratively with University of Hawai`i’s College of Tropical Agriculture and
       Human Resources (CTAHR) and Leeward Community College (LCC) to increase
       research and advanced training in organic agriculture production;
    Work collaboratively with WCRC’s other programs to cultivate new organic farmers; and
    Restore idle land to productive uses, and reawaken the Hawaiian connection to
       agriculture.

3. Groundwork for the Venture
In 2001, WCRC established the Mala `Ai `Opio (MA’O) Community Food Security Initiative.
This initiative was developed in order to create a community food system, fight hunger, improve
nutrition, strengthen local agriculture and empower local families to move towards self-
sufficiency. In the Hawaiian language mala `ai `opio means the “youth food garden” and ma`o is

MA`O YOUTH ORGANIC FARM                                                                                5
also the Hawaiian name of the endemic Wai`anae cotton plant. WCRC established a series of
interconnected activities with youth leadership development as a core objective and the MA`O
farm site was established as the primary training venue. These activities now support the long-
term competitive advantage of MA`O, and are described as follows:

                      ACTIVITY                                     HIGHLIGHTS
       1. Youth Leadership Training (YLT).          This is the recruitment and training
          The YLT is a 10-month long, 18-hours      mechanism for MA`O Farm, and provides
          per week, leadership training for low-    a regular labor source for farm operations.
          income, out-of-school, Wai`anae
          youth, providing them with a paid
          educational, entrepreneurial, and
          agricultural work experience.
       2. Aloha `Aina Café and Natural Foods        The café will be a customer, a farmer’s
          was opened in April 2003, specializes     market site and a showcase for MA`O
          in healthy breakfasts and lunches using   products. As a commercial kitchen, the
          locally-grown products.                   café provides for the possibility of value-
                                                    added product development opportunities.
       3. Local Community Farmer’s Markets.         Farmer’s markets have tested and proven
          Four farmer’s markets have been           demand. The local customer base has been
          established at the Aloha `Aina Café,      introduced to the “organic” concept and the
          Wai`anae Comprehensive Health             “MA`O” product. Clinic markets support
          Center, Kaiser Permanente Health          the WCRC mission.
          Clinic, and Leeward Community
          College (LCC).
       4. ‘Ai Pohaku Workshop, hands-on,            The gardens illustrate the skill-set and
          culturally-based learning activities at   experience already developed in the youth
          Wai`anae Intermediate School (WIS)        that will lead MA`O and provide “fertile
          and Wai`anae High School (WHS),           ground” for youth training and recruitment.
          that mix traditional Hawaiian taro
          cultivation with edible, organic school
          gardens.
       5. The Wai`anae Organic Agriculture          The partnership was awarded a U.S.
          Center, in partnership with Leeward       Department of Housing & Urban
          Community College (LCC), expands          Development grant of $579,000 to
          research and training activities in       purchase 2.5 acres of WCRC’s leased land,
          Wai`anae.                                 and to build an improved post-harvest
                                                    packing and chilling facility which will
                                                    increase MA`O’s production handling
                                                    capacity.

4. Crops to be Grown
Over the past three years, WCRC has developed farm operations on 2.5-acres as an integral
training component of the Youth Leadership Training. This commenced with the planting of
fruits trees and bananas and the organic conditioning of soils for field crops. Thereafter,

MA`O YOUTH ORGANIC FARM                                                                           6
approximately 30 field crop varieties were grown and sold, with information gathered on: (a)
Best seed varieties; (b) Hardiness of crop to local conditions; (c) Reaction of crop to organic
methods of production; and (d) Marketability. Product was sold to Kokua Natural Foods
Cooperative, a cooperatively-owned grocery store specializing in organic foods located near the
main campus of the University of Hawai`i. Kokua has a customer base of educated
professionals, vegetarians, and people generally adept at cooking. This experience gave WCRC
product feedback, as well as information on the demand for, and lack of supply of, locally-grown,
organic fruits and vegetables. Through the development of this venture, MA`O will assume
overall responsibility for farm operations of the already developed 2.5-acres, and in May 2005
will begin preparation and cultivation of an additional 2.5-acres. Hawai`i has a 12-month
growing season and crops to be grown include:

          Cilantro                                              This will be our “regular rotation
          Daikon                                                (short)” planted every 14-days,
          Pak choy (bok choi)                                   ready to harvest from day-28
          Romaine lettuce                                       through to day-45, with crops
          Various lettuces, arugula, kale, chard, beets and     completed in 50-days.
           Asian greens (tat soi, mustard greens, mizuna)
           combined to produce two different salad mixes
          Beets                                                 This will be our “regular rotation
          Carrots                                               (long)” planted every 28-days,
          Fennel                                                ready to harvest from day-70
          Green onion                                           through to day-100, with crops
                                                                 completed in 105-days.
          Basil                                                 This will be our “perennial
          Collard greens                                        rotation” planted every 3-months,
          Eggplant (Japanese and Italian)                       ready to harvest in 80-days, with
          Kale (Red Russian, blue curly, lacinato)              crops completed in 5-6 months.
          Parsley (curly and flat-leaf)
          Swiss chard
          Taro
          Lemon (Meyer variety)                                 Trees will be planted as an
          Mango (Haden and Kiett varieties)                     income-generators with first
          Orange (various Washington naval varieties)           harvest being in year 3, and as a
          Tangerine (Clementine and Fremont varieties)          wind break on the windward areas
                                                                 of the farm.

5. The Opportunity
MA`O will utilize the organic production techniques and market research achieved through
WCRC’s start-up period to expand production and sales. The youth-managed venture will
provide planned financial incentives based on business and personal performance. MA`O will
sell fruits and vegetables at the already established farmer’s markets, at the recently established
Kapiolani Community College (KCC) Farmer’s Market, held every Saturday morning in
Honolulu (the market attracts over 2,500 visitors each week), and to restaurants. In October

MA`O YOUTH ORGANIC FARM                                                                               7
2004, WCRC received a $456,000 two-year grant from the U.S. Department of Health and
Human Service’s Administration for Native Americans (ANA), for Native Hawaiian youth
education and economic development activities. The ANA grant will provide salary support for
2-years for a total of five Native Hawaiian youth and project directors, and cover costs of
equipment needed to operate a farm. WCRC carries a 25-year lease for 5-acres, 2.5 of which will
be purchased in early 2006 using the aforementioned U.S. HUD federal grant.

6. Our Community
MA`O is situated in a community of 45,000 residents, of which more than 40% are Native
Hawaiian. The entire Wai`anae Coast has levels of poverty near 20% with some census tracts
exceeding 50%.vi On the Wai`anae Coast 45% of the entire population is under the age of 25
years, 34% is under the age of 18 years versus 24% across the State of Hawai`i (Census 2000).
The current unemployment rate for O`ahu is 3.5% while the Wai`anae Coast rate is
approximately three times the island average.vii

A report on food security to the 2003 Hawai`i State Legislature (“A Report to the Legislature on
SCR 75, SD1, HD1, 2002”), submitted by the State Office of Planning, describes Wai`anae is
one of the worst of the “at-risk,” food insecure communities, which translates to poorer self-
reported physical and mental health, higher levels of obesity, diabetes, and arthritis.viii According
to the Wai`anae Coast Comprehensive Health Center, the largest local health provider, at least
50% of residents suffer from obesity. Over multiple generations Wai`anae residents have
become dependent on the welfare system in which the percentage of people in Wai`anae
receiving welfare support (Temporary Assistance to Needy Families and Food Stamps) is four
times that of the State of Hawai`i.ix And yet, this is not our community’s history. Wai`anae was
once a self-sufficient community, easily growing food and managing land and water resources to
provide for community needs.

Wai`anae youth, a majority of whom are of Native Hawaiian descent, attend local public schools
that are failing to meet the federally mandated No Child Left Behind Act. Worse still, when you
look beyond the school environment, there are few opportunities for post-secondary employment
and training, strained parents and families, and high rates of school drop-out and illiteracy
compared to the rest of the state. Add to this a rapid growth in the abuse of crystal
methamphetamine and you have a formula for perpetuation of difficult conditions in Wai`anae.

7. Land Use, (Re)Connecting to `Aina (land) and Community Values
One of the core Hawaiian values is aloha `aina or love of the land. In pre-contact Hawai`i,
people lived within an agricultural system that sustained as many as 500,000 people. Wai`anae
has a rich agrarian history, from the pre-contact Western period when Hawaiians farmed the
entire region, through to the late 1800’s and early 1900’s when Hawaiian, and Chinese, Filipino,
Okinawan, and Japanese immigrants farmed the valley regions independent from the more
dominant plantation agriculture system. Fresh water, a precious resource in arid Wai`anae, was
carefully managed, with a portion diverted to taro patches in the upland and then returned to the
stream with nutrients that would feed into the estuaries and coastal fisheries. Crops such as taro,
banana, sweet potato and breadfruit were raised in abundance, but over time Hawaiian farmers
have lost the use and ownership of the land.

MA`O YOUTH ORGANIC FARM                                                                                 8
Today, Wai`anae residents still embrace the idea of an agricultural community, characterizing the
area with terms like “rural”, “open space” and “agrarian lifestyles.”x However, the economy and
people’s lifestyles have moved away from agriculture. Two of our most fertile valleys are used
predominantly by the U.S. military: Makua Valley is used exclusively for live fire training; and
75% of Lualualei Valley, where MA`O is located, is used for munitions storage and as a naval
communications base. Makaha Valley, to the north of Lualualei, has an exclusive gated
community, with a resort and two golf courses. In addition, much of Lualualei Valley’s prime
agricultural land is no longer in production because the past generation of farmers encouraged
their children to move away from the hard life of farming, encouraging them to seek professional
careers. The Wai`anae area already has three landfills, and more prospective sites have been
identified. In order to revive and expand upon Hawaiian’s traditional love and respect for the
land, MA`O has been founded with an entrepreneurial philosophy that is rooted in our cultural
traditions.




MA`O YOUTH ORGANIC FARM                                                                             9
C. INDUSTRY AND MARKET ANALYSIS
1. Growth in the Organic Industry
From the early 1960’s to 1980 the organic agriculture industry grew steadily across the United
States. In the 1960’s the industry was jump-started when information on the dangers of
pesticides came to public prominence, most notably with the publication of Rachel Carson’s
Silent Spring in 1962.xi Consumers grew to understand the connection between personal and
environmental health, and over the course of time a genuine shift in food consumption patterns
occurred. After 1980, the organic foods sector grew rapidly. By 2001, sales of organic foods
reached $8 billionxii and there has been 20% growth annually in national organic sales over the
past 10-years.xiii There are multiple factors that have contributed to this growing demand,
including:

      Increase in diet related illnesses, such as the rate of U.S. obesity amongst youth;
      Increased health care costs and adoption of preventative medicinal practices;
      Growth in the physical fitness industry, gourmet cooking, and fine dining;
      Public awareness of fast-food’s detrimental impact on health; and
      Major public health crisis, such as Mad Cow disease.xiv

What was once an industry propelled by farmer’s markets and natural foods cooperatives has
now become mainstream. The Organic Trade Association (OTA),xv the leading industry
advocate, lists some examples of growth trends; including:

      In 2002, more organic foods were purchased in regular retail supermarkets than any other
       location. Organic foods are now available in over 20,000 natural foods stores and are
       found in over 70% of conventional retail groceries;
      Huge food and beverage corporations, such as Kraft and Coca-Cola, have now joined the
       organic market by purchasing leading organic brands. USA Today reported in their
       December 2, 2004 edition that the San Diego Padres and the St. Louis Cardinals would be
       serving organic franks alongside conventional hot dogs;xvi and
      A national survey done in 2002 of 1,000 consumers showed that 58% had purchased
       organic foods.xvii

OTA projects that the U.S. organic market will reach $30.7 billion by 2007. This is still
miniscule compared to the conventional foods industry but OTA reports that conventional food
growth at 2-3% per year while organic foods has been climbing at the growth rate of 17-20%
annually.xviii

2. The Hawai`i Market
The Hawaiian demand for organics may not easily correspond with national market trends due to
our unique location. Certainly there have been similar public health and environmental scares.
In 1993, the chemical pesticide heptachlor, recognized by the EPA as carcinogenic, was banned
because residues were found in a number of agriculture products including cow’s milk and
cucumbers. Heptachlor had been used to eradicate ants from pineapple and to kill termites in
homes.xix Despite this type of impetus, Hawai`i has been slow to embrace organic foods. The

MA`O YOUTH ORGANIC FARM                                                                           10
National Agriculture Statistics Service (NASS) reported in 2003 that of Hawai`i’s $553 million
total farm revenue, only an estimated $4.8 million was organic (less than 1% of total Hawai`i
farm revenue). Comparatively U.S. organic produce represents over 2% of total farm revenue.xx

There are seven small natural foods stores on the island of O`ahu and like the continental U.S.,
organic fruits and vegetables can now be found in Hawai`i’s regular retail grocery stores. Of
nine regular grocery outlets surveyed for this business plan, six stocked organic fruits and
vegetables.xxi Of the three that did not stock organic produce one had been in recent contact with
MA`O to purchase product. Of the six stores that did stock organic fresh produce, a non-
scientific visual survey of inventory showed that less than 10% was locally sourced. In two
stores none of the organic produce was from Hawai`i.

Hawai`i imports over 80% of all fruits and vegetables, and 90% of fresh organic produce.xxii
Organic foods already sell at a premium, where the additional cost of shipping to Hawai`i
increases the retail price of organic foods out of the range of most local residents. Recently,
however, big-box retailers such as Costco have started importing large volumes of organic salad
greens from California, selling them at a third of the price of the same locally produced
product.xxiii For the most part, the local trend in organic foods is closely aligned with the
emergence of Hawai`i Regional Cuisine, a merging of Eastern and Western cooking influences
that mirrors Hawai`i’s cultural diversity.xxiv Chefs have connected with smaller farms to source
the freshest ingredients and have asked for organic fruits, vegetables and meats. This market had
been predominantly a tourist audience (high-end, college-educated travelers staying at resorts),
but over the past decade many restaurants have been established in local communities. This
trend has stimulated the local market, and is best illustrated by the recent establishment of three
Hawai`i Farm Bureau Federation (HFBF) farmer’s markets on O`ahu. In Honolulu, the
Kapiolani Community College (KCC) Farmers Market, opened in late 2003, attracts over 2,500
visitors each Saturday. The market’s development has been critical for local farmers because it is
the first time a market has required all products be grown in the Hawaiian Islands. At other
farmer’s markets on O`ahu, such as the City and County of Honolulu operated People’s Open
Markets, vendors may sell imported fruits and vegetables.

According to the Hawai`i Organic Farmer’s Association (HOFA), the local trade association for
organic growers, there are now approximately 132 certified organic farms in the State of
Hawai`ixxv with only nine located on O`ahu where 870,000 consumers reside.xxvi It is difficult to
extrapolate exactly how large the organic fruits and vegetables market is on O`ahu, partly
because State agencies do not as yet collect organic-specific data.

A measure of industry size can be understood by looking at growth trends related to a leading
retail outlet on O`ahu called Kokua Natural Foods Cooperative. Formed over 25-years ago,
Kokua has a membership of 2,400 and occupies a small grocery outlet approximately 2,000
square feet, close to the campus of the University of Hawai`i. The membership, staff and Board
have collectively decided that an expansion is imperative at this time because currently no
national health food chains, such as Whole Foods or Trader Joe’s, have entered the Hawai`i
market, and there are industry rumors that Whole Foods is researching local store locations.
Kokua hired industry consultants to survey the market potential and reported that Kane`ohe,

MA`O YOUTH ORGANIC FARM                                                                               11
located on the Windward Side of O’ahu, would be an ideal location for expansion. Kane`ohe has
a population of 35,000 people, and the industry consultants deduced that the total natural foods
market for Kane`ohe is valued at over $4 million, with 18-20% of sales predicted to be organic
fruits and vegetables. Since Kane`ohe represents 4% of O`ahu’s population, the overall organic
fruit and vegetable market size could be as large as $20 million.

Local industry leaders believe that organic agriculture is poised to expand. In a Hawai`i Business
Magazine special report on agriculture, various experts, including Mr. Alan Takemoto, Executive
Director of the Hawai`i Farm Bureau Federation, identified organic agriculture as having “great
potential in Hawai`i.”xxvii In support letters, Ms. Joan Namkoong of the Hawai`i Farm Bureau
Federation and Mr. David Cole of Maui Land and Pine clearly state that the market is wide-open.
Mr. Cole states that there is “great economic potential” especially given the “growing
consciousness of consumers.”

3. Local Competition
There are a number of small organic farms that operate on O`ahu. These farms generally sell
products wholesale to local health food stores because this ensures a steady price and quantity
demand, contrary to farmer’s market booths that pose increased risk and require investment in an
increased labor force. There have been two well-known local certified organic growers:

      Ko Farms sells fresh herbs, salads, and greens to all of Hawai`i’s natural foods stores, and
       to a number of supermarkets. They recently sold their Waimanalo farm, and the owner
       Daniel Ko now works for the State Department of Agriculture. Daniel’s wife still grows
       specialty herbs and sells to all the natural foods stores. The quality of their product is
       very high, but production capacity low; and
      Lone Palm Organic Farms on the Big Island of Hawai`i. Lone Palm is one of only a few
       neighbor island organic growers that regularly ship to O`ahu. They specialize in high
       quality sprouts and lettuces and work with three other growers to make salad mixes sold
       to natural foods stores, restaurants and supermarkets. Their product is very high quality
       and strongly supported by local consumers in health food outlets, and their production
       capacity is high.

Two other certified growers occasionally attend KCC Farmer’s Markets they are: (1) Ono
Organic Farms, a 30-acre Maui-based grower of exotic fruits, papaya and banana; and (2) Lotus
Farms, a 1-acre O`ahu based chicken farm. A scan of HOFA’s certified growers list shows that
the majority of local growers tend towards mono-cropping products such as macadamia nuts,
papaya, pineapple or coffee. Maui Land and Pine (MLP) is the largest grower in the State and
specializes in organic pineapples. They will certainly expand in the future, but as the support
letter indicates they are exited about collaborating to expand the overall organic market in
Hawai`i.

There are regularly thirty-five booths at the KCC Farmer’s Market, of which 15-20 are farmer-
operated fruit and vegetable sales booths.xxviii There are a number of conventional farmer’s that grow
the same vegetable varieties as MA`O, one of the most successful is Dean Okimoto. Mr. Okimoto
owns Nalo Farms, a 5-acre farm recognized as one of the most successful farms in Hawai`i today.

MA`O YOUTH ORGANIC FARM                                                                               12
Mr. Okimoto has been able to penetrate the high-end restaurant market and his signature “Nalo
Greens”, a delicate combination of mixed baby lettuces, is featured at over 100 of Hawai`i’s best
restaurants. It is often difficult for consumers to distinguish between organic and conventional
products, however, at MA`O’s sales booth our young Hawaiian sales representatives are large in
number and energetic, and their exuberance draws customers to our products. Signage at our booth
features liberal reference to “organic” which quickly informs customers of our status as organically-
certified.

4. Offshore Organic Competition
MA`O will directly compete with offshore farms at Kokua but our broader sales strategy is to sell
through farmer’s markets, where imported products are prohibited. The growth of local-only
farmer’s markets will help to insulate MA`O from offshore competition. Nevertheless, offshore
farms capture 90% of our market, so it is critical to understand who they are. Two of the largest
are:
      Earthbound Farms, is one of the largest certified organic producers in the U.S.,
       comprising 24,000 acres in California and Mexico. Earthbound grows a wide range of
       field crops but currently only the salad mixes are sold in Hawai`i through conventional
       supermarkets and large retailers (Costco, Safeway, Star Market, Foodland) and at natural
       foods stores (Down to Earth’s three O`ahu locations). Their products are excellent, but
       like other imported items, suffer from short shelf life.
      Cal-Organic Farms, is an organic division of Grimmway Enterprises, Inc., a grower of
       conventional product. They distribute carrots, chard, green onion, kale and many herbs to
       all of Hawai`i’s natural food stores and conventional supermarkets. Their product quality
       is average to high. Kokua has complained that their shelf life is less than MA`O grown
       produce, and Kokua has preferred to purchase MA`O produce over Cal-Organics, when
       available (this has included kale, chard, and green onions).

5. Farming in Hawai`i
If the market for organic fruits and vegetables has so much potential for growth, why aren’t more
conventional farmers shifting to organic production, and why are there so few new farmers
entering this sector? There are multiple factors, which converge to make entering organic
production very difficult. On O`ahu inflated land valuations make it extremely costly to secure
land for either organic or conventional farming. The average cost of an acre of undeveloped
farmland in Wai`anae is now over $80,000,xxix while the median sales price of a home on O`ahu is
over $500,000.xxx Concurrently, there is considerable pressure from urban development for more
land. The Kunia Plain, once O`ahu’s largest sugar growing area, is being encroached by housing
developments. Most new farmers enter the market via leased land, with the market rate being
$125 per acre per month. Leasing, however, can be problematic as landowners have preferred
short-term leases because of the potential to rezone land from agriculture to urban for housing
development. Even O`ahu’s largest growers, Jefts Farms and Aloun Farms, have large portions
of their land in short-term leases, some less than 5-years.xxxi

Best practice organic agriculture requires an investment in soil building/conditioning, which
means income-generation does not start until late in year one of an operation, at the earliest.
Also, there should be periods where fields are left fallow and cover crops are planted, as this

MA`O YOUTH ORGANIC FARM                                                                             13
improves soil quality. Again, this increases the time out of production. Most growth in the local
organic agriculture sector has occurred on the neighbor islands, especially the Big Island of
Hawai`i, where land is cheaper.

Other reasons why there are few local organic farms, as suggested in supporting letters from Ms.
Joan Namkoong and Mr. David Cole, include limited local technical expertise in organic
agriculture and a lack of coordinated support amongst agricultural sectors and agriculture
supporters. Hawai`i is transitioning out of plantation agriculture and there is limited
entrepreneurial capacity amongst new growers. David Cole, the current Maui Land and Pine
CEO, and former CEO of NaviSoft Inc., and former president of AOL's New Enterprises Group,
states in his support letter that:
         “The transition away from the plantation model has been difficult because the farm
         industry has been slow to adapt to the new environment, there have been few market
         makers to match local producers with consumers and there is a lack of capital available
         to pioneering entrepreneurs.”

In 1996, Mr. Cole acquired Sunnyside Farms, a 500-acre Virginia farm. He re-launched
Sunnyside as a certified organic supplier of gourmet quality fresh produce and meats. What
makes the MA`O venture especially unique is that it is on the cusp of being a “market maker”
and “pioneering entrepreneur” while being a non-profit social enterprise.

6. Customer Profile
In the initial phase of market development, five sales locations with uniquely different core
customers have been tested: (1) farmer’s markets at different business locations where MA`O
was the exclusive vender (including health clinics); (2) a low-medium end Wai`anae grocery
store; (3) a high-end farmer’s market; (4) a high-end health food cooperative grocery outlet; and
(5) a high-end gourmet restaurant in Honolulu. An overview of how these locations have
evolved into clear segments can be seen in the following table:




MA`O YOUTH ORGANIC FARM                                                                             14
 Customer         Buyer Behavior             Needs (perceived)               Alternatives                 Competitive Advantages
 Segments
High End         Looking for a             High quality                  Restaurants / cafés       Fresh and locally grown
(tourist          “native” and “local       Good looks and taste          Conventional              Organic
“foodies”)        experience”               Exotic, unique choices         vendors                   Youth and products (taro, mangos)
                 Want to try               Authentic, local, native      Grocery / health           “native” and “local” therefore
                  something new                                             food stores                authentic
High End         Looking for fresh,        Demands high quality          Health food stores        Fresh and locally grown
(local,           local grown, organic       product, freshness,           Other market              Organic
“foodies”)       Increasing social          appearance, and taste          vendors                   Diversity of offerings compared to
                  consciousness when         for repeat business           Restaurants, cafes         other market growers
                  buying                                                                              Youth and social mission of WCRC
Low-             Makes necessary           Bang for the buck             Local grocery store       Recognize youth growers
Moderate          food purchases, need      Food that tastes/looks        Prepared foods            Have been instructed to buy foods
(local/           to spread their food       good                          Fast food and              by health care providers
Hawaiian)         dollars                   Food they like                 restaurants               MA’O produce looks better, has
                                                                           Conventionally             different selection
                                                                            grown foods               Pricing comparable to local
                                                                                                       conventional retail items but with a
                                                                                                       marketable edge
Retailers        Products in high          Competitive price             Other local and           Local and organic often yields
                  demand and/or             Top quality and                non-local organic          superior quality
                  trendy                     appearance                     producers                 Product availability and cost to
                 Want to make a            Organic fills new niche       Conventional               ship/store imported product
                  mark-up on re-sale                                        producers
Restaurants      Products in high          Competitive price             Other local and           Local and organic often yields
                  demand and/or             Top quality and                non-local organic          superior quality
                  trendy                     appearance                     producers                 Product availability and cost to
                 Freshness and             Fresh, local, organic         Conventional               ship/store imported product
                  reliable source                                           producers                 Social mission


MA`O YOUTH ORGANIC FARM                                                                           15
MA`O YOUTH ORGANIC FARM   16
7. Distribution Mechanisms
MA`O will connect with the five aforementioned segments by selling product at the following
locations:




                                                                                               Restaurant
                                                                           moderate
                                                    High-end


                                                                High-end
                                                    (tourist)


                                                                 (local)




                                                                                      Retail
                                                                            Low-
                KCC Farmer’s Market, Honolulu                                                
                          Wai`anae Health Center                             
                         Kaiser Clinic, Nanakuli;                            
         Leeward Community College, Pearl City                               
        Aloha `Aina Café (farmer’s market booth)                            
                                Aloha `Aina Café                            
                      Town Restaurant, Honolulu                                               
                                  Wai`anae Store                                      
     Kokua Natural Foods Cooperative, Honolulu                                       
We have gained invaluable experiences thus far in the diversity of markets penetrated. Some
trends have developed which are worthwhile mentioning here: (1) At health clinics care-
providers and dietitians have staged cooking demonstrations to teach patients new recipes
using MA`O products, and doctors have purchased unsold product to support the social
mission (2) At Leeward Community College faculty and administrators regularly call the farm
to make large orders, this takes some of the guess work out of what to take to a farmer’s
market; and (3) The KCC Farmer’s Market has become an “attraction”, there are food
demonstrations and musicians, and people use the market as a convenient place to meet. All
segments are represented at KCC including small restaurants that shop for specialty items and
to investigate new product suppliers. Also Kokua Natural Foods is in close proximity to KCC
Farmer’s Market, unsold product, can be sold to Kokua if necessary.




MA`O YOUTH ORGANIC FARM                                                                                     17
D. MARKETING PLAN
1. Promotions and Outreach
The critical strategy for outreach involves customer education of the uniqueness and benefits
of organic foods, and the social mission of MA`O. Through multiple branches of media, and
with the assistance of WCRC’s partnerships, MA`O has enjoyed some high profile free
advertising, which has set the stage for current positioning. This has included:

                                 OUTREACH                                       SEGMENT
                                                                             CONNECTED TO:
           MA`O products were featured on a 30-minute cooking show          Both high-end
            called “Sam Choy Presents.” Well-known local chef Sam             (local), low-
            Choy was hired by Kaiser Permanente to stage a live               medium, and
            cooking show at a local clinic to feature low calorie and         restaurant
            vegetarian recipes.                                               segments.
           The Hawaiian Electric Company has a 30-minute cooking            Crossed both high-
            show called “The Electric Kitchen”, the Aloha `Aina Café          end (local), low-
            was a guest restaurant and prepared dishes using MA`O’s           medium, and
            herbs and baby greens.                                            restaurant
                                                                              segments.
           University of Hawai`i (UH), working with KITV, a local           All segments
            television station, featured MA`O as a program partner in a       except perhaps
            news segment called “Discover UH, You’ll Be Amazed.”              high end (tourist)
            Two segments appeared, including a 30-second commercial
            that ran for to-weeks between the local evening news.
           KITV has developed additional footage of MA`O, and added           Both high-end
            to other activities unique to Hawai`i to develop an in-flight
            commercial for Hawai`i that runs on flights coming to
            Hawai`i from Japan.
           Hawaiian Airlines in-flight magazine, Hana Hou, featured           Both high-end
            the farm in a 5-page center-spread with color photos,               segments.
            appeared in the December 2003 issue.xxxii
           The youth leadership training was featured as a center-            Low-moderate
            spread in the Office of Hawaiian Affairs monthly newspaper          segment.
            called “Ka Wai Ola o OHA.”xxxiii
           Farm activities were featured in a two-page spread in the          High-end (local)
            Honolulu Magazine, a monthly-published magazine. MA`O
            was included in the 2004 food edition.xxxiv
           Farm activities were featured in one-page spread in the            High-end (local)
            Honolulu Weekly, a free alternative newspaper featuring
            politics, entertainment and arts.xxxv

This publicity has occurred over 2-years and has increased MA`O recognition. In 2002, youth
developed a MA`O farm tee-shirt which on the front read “no panic, go organic.” Over 2,000


MA`O YOUTH ORGANIC FARM                                                                            18
tee shirts have been sold and the playfulness of the message has become iconic of the
grassroots social mission of MA`O.

2.   Specific Segment Strategies

    Customer                              Specific Outreach Strategies
    Segments
High End (tourist       No specific strategy except when segment attends KCC farmer’s
“foodies”)               market.
High End (local,        Connect to repeat customer at KCC and develop that customer to
“foodies”)               cross-market to Town Restaurant and Kokua
                        Continue to build e-mail database
                        Invite customers to attend monthly community work days.
Low-Moderate            Maintain high community profile through presence at markets,
(local/ Hawaiian)        occasionally story in the local community newspaper, and by posting
                         fliers and brochures at the Aloha `Aina Café
                        Connect to, and nurture, repeat customers at farmer’s markets.
                        Continue to build e-mail database
                        Invite customers to attend monthly community work days.
Retailers               Provide on-site marketing collateral such as laminated product
                         nametags for vegetables, fliers, and brochures.
                        Invite retailer to bring staff to the farm to increase education on
                         product and mission.
Restaurants             Encourage restaurant management to acknowledge MA`O on menus
                        Provide on-site marketing collateral such as fliers, and brochures.
                        Invite restaurant to bring staff to the farm to increase education on
                         product and mission.

The farmer’s market booth is arranged to stimulate customer senses, by:
    Fruits and vegetables are arranged to catch the eye through color and shape;
    Youth wear bright green or blue tee-shirts with “MA`O” on the rear and “no panic, go
       organic” on the front;
    Product is stacked in wicker baskets which conjures a nostalgic sense of old Hawai’i,
       this is how Mom and Pop stores displayed their products;
    Samples of product are always available, e.g. ripe bananas are given to all children that
       stop by the booth;
    Sales youth are lively and playful, chanting slogans such as “fresh organic greens” or
       simply “arugula”, and when time allows a youth might play ukulele;
    Prices are posted on old-style school blackboards and written in chalk; and
    Posters with photos of the farm and youth working are arranged where people cannot
       miss seeing them.




MA`O YOUTH ORGANIC FARM                                                                          19
3. MA`O Customer Service Philosophy
Excellent customer service skills are vital in agriculture businesses, especially enterprises
direct marketing to customers. Our goal is to attract and retain customers through high quality
product and service experience, therefore; all youth are trained in sales and customer service,
and they regularly debrief farmer’s market experiences to find ways to improve sales. We will
periodically “audit” our sales techniques and make necessary adjustments. Of key importance
is that youth are knowledgeable regarding products and convey our social mission. To
reinforce the importance of customer service we developed a simple sales philosophy, which
youth learn and apply, it is as follows:
      Make eye contact, greet all people, smile, show maximum aloha;
      Listen to customers, learn their names, learn how they cook our food, and ask how we
         can improve our products;
      Communicate with customers, tell them the MA`O story, talk about our products, the
         farm, and upcoming events;
      Show aloha to other venders, learn their names and something about their products,
         refer customers to them where possible; and
      Strive for excellence in customer service and product quality.

4. Promotional Materials and Labeling
To ensure customer education and information transfer, we developed the following
promotional materials, this includes:
    Brochures, fliers, posters which are distributed at all locations;
    MA`O information is added to stakeholder’s staff bulletins;
    E-mail distribution lists, sent twice monthly to an in-house list, and the lists of our
       stakeholders. This reaches approximately 2,000 people;
    Partner marketing, e.g. marketing is done by the Hawai`i Farm Bureau Federation via a
       web site and regular articles in local newspapers; and
    The café staff actively informs customers of the
       markets, and there is signage along a major town
       thoroughfare.

MA`O Youth Organic farm will sell produce simply under the
“MA`O” brand label. In mid-2003, a youth involved with the
project developed a label that will be used (see right). All
“MA`O” brand products will be sold with labeling to educate
the consumer that the product is certified organic, is grown by
youth and that 100% of their purchase will go to support youth leadership development
activities.

5. Pricing
Overall prices have been set based on competitor’s prices. Wholesale prices are based on the
equivalent wholesale price Kokua Market pays for the same imported product. Usually each
quarter Kokua’s produce buyer gives us a printout of what he is paying California food
brokers for product. If they are receiving a discounted price for an item we attempt to make
an adjustment. Once per month we monitor retail prices at three retail outlets. We sometimes
MA`O YOUTH ORGANIC FARM                                                                           20
do this as a class field trip for youth in the leadership training. Selling product at KCC
farmer’s market allows us to average our price upward to secure a higher margin. At KCC we
can also move large volumes of product given the number of market shoppers. The bottom
line is that if we are to compete against imported products then we need to offer prices
attractive to the local public. Direct marketing, through such mechanisms as farmer’s
markets, has become the best method to increase margin for smaller farmers.

6. Distribution
Through a U.S. Housing and Urban Development grant, WCRC purchased a 2004-model Ford
E-350 extended cargo van. The cargo van will be used to deliver produce to farmer’s markets.
Two personal vehicles owned by staff are currently used for the smaller markets. In 2005, we
will purchase two additional vehicles using ANA funds. We use reusable plastic vegetable
container totes to package produce for wholesale deliver. These are more hygienic than
cartons as they can be easily sanitized. Large coolers are used to transport vegetables to
farmer’s markets; space in the van is equivalent to 24 large 120-quart coolers.

7. Sales Management
Under the tutelage of Gary Maunakea-Forth, a youth co-manager, Ms. Kanoe Burgess,
manages weekly sales. Kanoe has been with WCRC for 2-years and has already demonstrated
sales acumen beyond her years. She is an excellent communicator, and is able to install a
sense of confidence and trust in our wholesale and retail clientele. She supervises and
motivates youth crews working at farmer’s markets. Development of the youth-to-customer
relationship has increased return clientele, especially at farmer’s markets; therefore it is fitting
to enlist a youth to manage the maturation of our sales strategies.

8. Competitive Advantage
Five-months prior to opening Town Restaurant Lesa Griffith, a food critic for the Honolulu
Weekly, wrote that Chef/Owner Ed Kenney would “open what could be Honolulu’s hottest
restaurant.” In the same article Kenney summarized MA`O’s relationship with Town, and in
effect our competitive advantage, by stating that:
        “MA`O takes it from the earth to the seed to growing the thing to picking kids out of
        the community who are in need of help, teaching them the Hawaiian culture, then
        (they) take it to their café and markets. That whole thing fires me up.”xxxvi

Town opened in March 2005, and in her culinary review, Nadine Kam of the Honolulu Star-
Bulletin stated that:
        Town raises the bar for Honolulu's restaurateurs. I hope that, like patrons who are
        flocking to the restaurant, other chefs eventually get it.

She added that:
       “Their philosophy is ‘local first, organic whenever possible, with aloha always,’ and
       it shows in MA'O Farms greens that do taste as if they were hand-picked from the field
       seconds before hitting the plate.”xxxvii

Over the past 2-years, WCRC’s activities, branded as MA`O, have received widespread media
attention. The convergence of social mission (youth development) and market demand
MA`O YOUTH ORGANIC FARM                                                                                21
(organic foods) has positioned MA`O on the verge of an incredible opportunity. Planning,
hard-work and skill development have built the foundation for a superior quality product
emblemized by “freshness”, “local” and now “organic.” With strategic educational materials,
a grassroots approach to promotions, and word-of-mouth support, our customer base will
expand and mature in quick-time.




MA`O YOUTH ORGANIC FARM                                                                       22
E. MANAGEMENT PLAN
1. Organization and Board
MA`O is a pilot program of the Wai`anae Community Re-Development Corporation
(WCRC), a non-profit 501(c)3 community development organization. WCRC’s mission is to
plan and implement community-based economic development projects which create
sustainable employment and business opportunities for Wai`anae residents, especially youth.
In 1999, our community came together to develop an application to the U.S. Department of
Housing and Urban Development for Empowerment Zone—Enterprise Community status.
While the application was unsuccessful, a group continued to meet to discuss five interest
areas: out-of-school youth, sustainable economic development, agriculture, health and
Hawaiian culture. The group decided to establish an organization with social enterprise
development as a key objective. WCRC was incorporated in 2001.

2. Governance
WCRC has an active and committed Board of Directors, with extensive experience and a
commitment to community service. The Board meets every month and they are responsible
for policy making, financial oversight, adoption of annual budget, and support of grassroots
fundraising efforts. All Board members are residents of the Wai`anae community and are of
Native Hawaiian ancestry. The Board includes:
     Kaimana Pine -- WCRC Board President and a founding member of WCRC. Mr. Pine
        is only 25-years old and has for the past 5-years owned and managed one of O`ahu’s
        last remaining locally owned and operated surf shops. In 2003, he developed a graphic
        design and internet marketing business that specializes in promotion of Hawai`i
        manufactured products.
     Malia Miles -- WCRC Board Vice President and current food manager at Pu`u Kahea
        Christian retreat center. Ms. Miles has many years experience in culinary arts and
        food service and is highly active in community affairs.
     Cris Akao -- WCRC Board Treasurer and Branch Manager of American Savings Bank,
        Wai`anae. Ms. Akao was born and raised in Wai`anae, graduated from both Wai`anae
        Intermediate and Wai`anae High School and has worked as Manager and Operations
        Director for ASB for over 12-years. She brings extensive experiences in community
        banking, financial oversight, small business financing, and accounting to WCRC, and
        is responsible for review of monthly financial statements.
     Kawika Naho`opi`i -- WCRC Board Secretary and the Center Manager for `Olelo
        Community Television in Wai`anae. Mr. Naho`opi`i is a video production trainer and
        coordinates community outreach, volunteer and staff management at the Wai`anae
        studio, and provides technical assistance and artistic direction to Wai`anae High
        School’s award winning Searider Productions multi-media program.
     Austin Miles -- WCRC Board Member and caretaker of Pu`u Kahea Christian retreat
        center. Mr. Miles is active in community organizing and until recently owned and
        operated a popular local eatery where he was head chef.




MA`O YOUTH ORGANIC FARM                                                                         23
3. MA`O’s Position in WCRC
MA`O will operate as a pilot project of WCRC. WCRC has secured initial funding to launch
MA`O. Starting in year 3, youth employees of MA`O will receive a bonus based on their
performance and MA`O’s profits. This will provide incentives for the youth to be full
partners in expanding production and sales.

4. Executive Management & Staffing Plan
Gary Maunakea-Forth is currently WCRC’s Agriculture Director, responsible for overseeing
agricultural production, expansion, and training of staff and volunteers. Mr. Maunakea-Forth
will devote 100% of his time to MA`O (resume attached). Other staff dedicated to the
development of MA`O are:

      J. Kukui Maunakea-Forth is currently WCRC Executive Director. Ms. Maunakea-
       Forth holds a BA in Pacific Island & Hawaiian Studies, and a BSc in Cultural
       Anthropology and has more than 10 years experience teaching and managing non-
       profits. Twenty percent of her overall time will be devoted to administrative and fiscal
       management for MA`O (resume attached).
      William Aila, Sr., is currently Farm Manager for WCRC and kupuna (elder and
       mentor) to youth in all of WCRC’s activities. He has over 35-years experience in
       ranching, farming, and composting as a business owner, and an extensive background
       in heavy equipment operations. Currently he is a part-time contract employee with
       WCRC and half of that time will be devoted to MA`O to provide land clearing and
       irrigation system development (resume attached).

Youth are central to MA`O. Three Native Hawaiian youth, recent graduates of WCRC
leadership training programs, have been employed. The youth are:
     Kanoe Burgess. Ms. Burgess, 21-years old, has already gained national attention,
       through her speech at the Kellogg Foundation’s “Food and Society” national
       conference, on indigenous youth perspectives of agriculture. She coordinates sales and
       marketing at MA`O.
     Ikaika Burgo. Mr. Burgo, 20-years old, is perhaps the most “natural” and gifted
       farmer among our youth. He has a genuine love for being outside and working on the
       land, and spends numerous hours fine-tuning nursery and orchard operations.
     Manny Miles. Mr. Miles, 20-years old, coordinates field crop production at MA`O.
       He has attended conferences and has become active in the BLAST Initiative of
       Boston’s The Food Project, an effort to network young people working in sustainable
       agriculture.

Youth from the youth leadership team provide an able labor force of 6 to 12 young people,
working 18-hours each week. They are paid as interns under the leadership-training program.
MA`O will hire two additional full-time youth coordinators in year 2.

5. Cooperating Experts
This enterprise is strongly supported by Jonathan Deenik, PhD. Dr. Deenik, has a doctoral
degree in Soil Science from the University of Hawai`i at Manoa, where he is currently

MA`O YOUTH ORGANIC FARM                                                                           24
employed as an extension specialist and lecturer. Dr. Deenik is able to provide regular
tutelage on technical issues and access to other university faculty experts. Other stakeholders
include:

          Partner                                 Description of Support
Peter Quigley,                   Provides additional training for youth including higher
Vice Chancellor                   education courses, and is developing a degree program in
Randy Francisco,                  Tropical Organic Agriculture.
Program Director
Leeward Community
College (LCC)
David Cole, CEO,                 Partners with MA`O to increase youth involvement in
Maui Land and Pine                organic agriculture
(former VP of AOL)                o Hosted MA`O youth in Maui to learn about MLP’s
                                      current research and development (composting, cover
                                      crops, organic pineapple)
                                  o Has reviewed MA`O’s business plan and provided
                                      commentary on business strategies
Joan Namkoong, Organizer         Provides connection to customers and information on local
KCC and Kailua farmer’s           food demand and availability
markets
Stephen Bradley, MD,             Operates a clinic farmer’s market, produces nutrition
Wai`anae Comprehensive            education literature, and promotes market to community.
Health Center
Lei Aken, Ag Program             Will establish an organic agriculture high school program ,
Teacher, Wai`anae High            develop community garden and support trainings.
School (WHS)                     Recruitment of future youth.
Hawaii Organic Farmers           Promote organic agriculture and provide organic
Association                       certification.
                                 Recruitment of future youth.




MA`O YOUTH ORGANIC FARM                                                                           25
F. OPERATIONS PLAN
1. Farm Plan
MA`O has a total of 5-acres of land in Lualualei Valley: 2.5 acres currently in production and
another 2.5-acres of cleared land available starting January 2005. The new land will be
developed similar to the current 2.5 acres in 50’ wide by 80’ long sections, providing 8 beds
per section for field crops. We will plant a row of citrus trees between each section. .
Mangos and avocados will be planted along the north fence line. Field crops are planted every
one to two weeks,
perennials every
three months and
orchard trees at
start-up.

2.   Research &
     Development
The most
technically
challenging facet of
this venture is the
organic production.
Farming
commenced in early
2002, and we have
now completed
three full years of
soil building, crop testing and experimentation with different organic methods. This has
provided invaluable information on organic fertilization; timing of crop planting cycles, and
organic seed varieties. The result is a system that has produced high yields with excellent
product quality (taste, shelf-life, appearance, weight), and minimal insect damage. We
augmented on-farm experimentation by visiting many other farms to research new and best
practices. Similarly local farmers and university extension agents have visited MA`O and
provided more technical information. There are numerous variables that must converge to
produce a healthy crop. Over the past three years we have kept daily input and yield records
so that we can better plan for future seasons. We have a strong working relationship with
Jonathan Deenik, a PhD soil scientist at the University of Hawai`i, who has assisted with our
organic production plan since the inception of farm activities.

3. Crop Growth
Given Wai`anae’s climate and optimal growing conditions, mixed salad greens (lettuces,
arugula, chard, beet tops, tat soi, mizuna, mustard cabbage, kale) take 25-28 days from seed to
first cutting. This is our biggest seller and we are able to harvest it 2-3 times per planting,
with re-growth occurring every 8-10 days. We also plant a longer rotation every two weeks of
fennel, green onion, beets, and carrots, which last approximately 100-days. In our perennial
rotation, which lasts 4-6 months, we plant basil, eggplant, parsley, kale, chard, and collards.
We plant this rotation every four months.
MA`O YOUTH ORGANIC FARM                                                                           26
4. Harvest and Quality Control
Market demand requires fresh, clean and attractively presented fruits and vegetables. For
organically grown fruits and vegetables consumers have even higher expectations for
appearance and cleanliness. Our crops are harvested three times each week. Youth managers
and workers are trained to cultivate, harvest and handle (wash, package, chill) in keeping with
these quality standards.

Washing vegetables tends to be the most labor-intensive facet of the operation, especially as
salad greens are delicate and are double washed. While our current packing facility is basic,
we have customized faucets so that each sink cleaning area has overhead washing faucets with
shower-flow heads. This frees hands to concentrate on cleaning the product. After each
product has been washed, it is placed in small quantities (about five pounds) on drying trays
and a youth manager or coordinator inspects the product. The inspector has the option to
return the tray to the cleaner for additional washing. If the tray is excellent quality then a
packaging crew handles the boxing or bagging of the product. This provides three points of
inspection. Before a product leaves the farm a final check is done by choosing a random item
from each product. One item from each harvested crop is also kept to monitor shelf life.

5. Inventory Management
Every Monday, we estimate yield quantities for the week. Staff log anticipated yield numbers
in a spreadsheet to manage distribution. This system helps us accommodate fluctuations in
weekly yield to ensure customer satisfaction. To maximize freshness, we harvest three times
per week and maintain little inventory. For all points of sale, except KCC farmer’s market,
we harvest and distribute the same day. For KCC we harvest, chill over night, and sell in the
morning. Our present cold storage is limited to a 108 cubic foot chiller, but in June 2005 we
will install a 760 cubic foot reefer, which will have an alarm system to monitor possible
power outages.

6. Organic Certification
In September 2004, MA`O Youth Organic Farm received organic certification from the
Hawai`i Organic Farmer’s Association (HOFA), under the auspices of the USDA. HOFA is
the only certifying body in the State of Hawai`i and the application process involved a 6-
month review and final inspection. MA`O will be inspected each year and is required to show
proof of organic methods. We are obliged to keep accurate records for soil inputs, seed
sources, and crop yields. We track the following data on a customized excel spreadsheet: (1)
type of product sold; (2) amount of product sold: (3) customer that received product; (4)
location on farm where product was grown; and (4) history of inputs and events for the area
where product was grown.

7. Farmer’s Markets
As aforementioned MA`O will sell primarily at markets already tested including:

       Wai`anae Comprehensive Health Center             Wednesdays 11:45am to 1:00 pm
       Kaiser Permanente, Nanakuli                      Wednesdays 11:45am to 1:00 pm

MA`O YOUTH ORGANIC FARM                                                                           27
       Leeward Community College, Pearl City             Wednesdays 11:45am to 1:00 pm
       Aloha `Aina Café, Wai`anae                        Saturdays 9:00 am to 11:00 am
       KCC Farmer’s Market, Honolulu                     Two Saturdays per month,
                                                         7:30 am to 11:00

MA`O uses the markets as training grounds for youth in our leadership development
programs. Our full-time staff provide supervision for each market while the part-time youth
ensure adequate staffing to cover multiple markets simultaneously.

8. Land, Equipment, Office Space, Tools, Resources
WCRC leases 5-acres of land located at 86-210 Puhawai Road in Lualualei Valley, which will
be used for the MA`O
venture. The landowner is      MA`O Youth Organic Farm, Lualualei Valley, Wai`anae, HI
the Community of Christ         ĞMap of Neighboring Land, Possible Sites for Expansion
Church and the 25-year
term began in 2001. The                Former chicken farm (4-acres), 8-acre farm parcel owner
                                            closed early 1990 ’s.     willing to lease or sell to
land has excellent potential                                                    MA`O
for expansion with three of
the neighboring properties        MA`O’s landlord.
vacant (see map at right).

MA`O will benefit from                                                  MA`O

equipment acquired with
WCRC grant funds. This
includes a 2001 model 55-                    Heliconia flower closed in      Undeveloped land.
hp John Deer tractor and a                          mid-1990’s
cargo van. ANA funds will
be used to purchase and additional delivery van and a one-ton dump truck. As mentioned cold
storage is limited at present but through the aforementioned HUD grant MA`O will be
constructing a new Organic Agriculture Center to include a 40’ x 40’ concrete floor
processing facility, additional cold storage, and offices.

9. Increasing Youth Capacity
In early 2004, WCRC started educational programs at two local schools, using edible organic
school gardens as an alternative teaching tool. Teachers have been trained to use organic
farming techniques as a vehicle to teach social studies and science classes. Fruits and
vegetables are harvested on a weekly basis, and sold by youth on campus. Youth participants
are prime candidates for future employment at MA`O, critical to our growth plans.




MA`O YOUTH ORGANIC FARM                                                                             28
G. FINANCIAL PLAN FOR MA`O VENTURE
1. Start-up
A grant of $456,000 has been secured from the DHHS-Administration for Native Americans
with $317,837 dedicated to this venture to be used in 2005 and 2006, to complete
development of MA`O. This money is listed as restricted grants on the balance sheet and as
ANA grant on the cash flow and income statements.

2. Accounting System & Business Controls.
We use Quickbooks as our primary accounting system. We track sales weekly through
spreadsheets and review them monthly so that we understand trends related to product and
point of sale. This will allow us to analyze the profitability of sales by specific crop.
WCRC’s Board of Directors will regularly monitor all these statements for accountability.
We have scheduled our first external audit (based on increased budget size) for 2005.

3. Long-term Sustainability
WCRC has maintained financial stability while growing rapidly in the past four years.
Significant steps have been taken to lay a foundation for long-term sustainability, including:

      Securing a total of $1,354,000 of federal funds the past 4-years to support MA`O, for
       our new café, and a variety of educational and community projects;
      Arranging for the purchase of 2.5 acres of land that we currently lease for farming,
       providing leverage to acquire more land in the future;
      Forging partnerships with industry and business (Maui Land and Pine, Hawai`i
       Organic Farmer’s Association, Kokua Natural Foods Cooperative), education
       (Leeward Community College, University of Hawai`i College of Tropical Agriculture
       & Human Resources, Kamehameha Schools), to ensure access to markets and
       technical assistance;
      Initiating contractual relationships with Kamehameha Schools/Bishop Estate and Alu
       Like, a $16 million Hawaiian job training program, to improve job training programs
       for youth.

4. Proforma Statements
We have included the following financial statements:
    Projection of weekly customer product orders. These estimates rely on data
      from the last three years of operations and are the basis for our sales figures for
      the next three years. Note that year 3 is a critical point for expansion as
      productive land and sales double.
    Annual income statements for years 1, 2, and 3.
    Monthly cash flow statements for years 1, 2 and 3.
    Annual balance sheets for years 1,2, and 3.
    Social Return on Investment (SROI).



MA`O YOUTH ORGANIC FARM                                                                          29
 PRO JECTIO N O F WEEKLY                                                                                 WHOLESALE




                                                                                                                                                                                       TOTAL WEEKLY
SALES BY CUSTO MER, 2005                     CUSTO MER UNITS                                                                         CUSTO MER SALES




                                                                                      Wholesale Needed
                                                                                       WEEKLY (lbs)




                                                                                                                                                                                        WHOLESALE
                                             ALOHA `AINA




                                                                                                                                    ALOHA `AINA
                                                                                                             Price/Unit
                                                                     KAMAKOU




                                                                                                                                                                   KAMAKOU




                                                                                                                                                                                          SALES -
                                                           W-STORE




                                                                                                                                                    W-STORE
                       YIELD (lbs)
                        WEEKLY



                                     KOKUA




                                                                                                                            KOKUA
                         TOTAL




                                                                               TOWN




                                                                                                                                                                               TOWN
                                                CAFÉ




                                                                                                                                       CAFÉ
1               Arugula   17.6        3        0            1        0          5       9                $     5.00       $ 15      $    -        $ 5         $        -     $ 25       $45
2      Bananas - Apple 142.0          0        12           0        0          0       12               $     1.00       $    -    $ 12          $    -      $        -     $     -    $12
3      Basil - green leaf 18.5        5        1            2        0          5       13               $     1.00       $ 5       $ 1           $ 2         $        -     $    5     $13
4                  Beets  31.5       10        0            0        0         10       20               $     1.50       $ 15      $    -        $    -      $        -     $ 15       $30
5                  Chard 56.0        20        0            2        0          0       22               $     2.00       $ 40      $    -        $ 4         $        -     $     -    $44
6                Cilantro 47.5       20        3            2        0         10       35               $     3.00       $ 60      $ 9           $ 6         $        -     $ 30       $105
7                  Citrus 46.6       15        10           0        0         15       40               $     1.50       $ 23      $ 15          $    -      $        -     $ 23       $60
8        Collard Greens   35.0       15        0            2        0          0       17               $     1.50       $ 23      $    -        $ 3         $        -     $     -    $26
9                 Daikon  36.0       20        0            4        0          0       24               $     1.00       $ 20      $    -        $ 4         $        -     $     -    $24
10             Eggplant   86.0       15        6            4        0         10       35               $     1.50       $ 23      $ 9           $ 6         $        -     $ 15       $53
11        Green Onions    41.8       15        3            2        0         10       30               $     3.00       $ 45      $ 9           $ 6         $        -     $ 30       $90
12    Kale - Blue Curled  25.0       10        0            2        0          0       12               $     1.50       $ 15      $    -        $ 3         $        -     $     -    $18
13       Kale - Lacinato  45.0       10        0            2        0         20       32               $     1.50       $ 15      $    -        $ 3         $        -     $ 30       $48
14      Kale - Red Rus. 25.0         10        0            2        0          0       12               $     1.50       $ 15      $    -        $ 3         $        -     $     -    $18
15    Lettuce, Romaine    52.0        0        12          8         0          0       20               $     1.75       $    -    $ 21          $ 14        $        -     $     -    $35
16     Mesclun, regular 95.0          0        24           6        30         0       40               $     5.00       $    -    $ 120         $ 30        $     150      $     -    $300
17     Mesclun, Sassy ! 53.5          0        0            0        0         24       24               $     5.00       $    -    $    -        $    -      $        -     $ 120      $120
18                Mizuno   1.6        0        0            0        0          0       0                $     4.00       $    -    $    -        $    -      $        -     $     -     $0
19      Mustard Greens     1.6        0        0            0        0          0       0                $     4.00       $    -    $    -        $    -      $        -     $     -     $0
20     Pak Choi - Baby    56.8       15        0            8        0          0       23               $     1.10       $ 17      $    -        $ 9         $        -     $     -    $25
21     Pak Choi - Large 56.8         15        0            8        0          0       23               $     1.10       $ 17      $    -        $ 9         $        -     $     -    $25
22          Parsley , Am. 19.3       10        1            0        0          5       16               $     1.00       $ 10      $ 1           $    -      $        -     $    5     $16
23            Taro - Leaf 38.5        0        4            0        0          0       4                $     2.00       $    -    $ 8           $    -      $        -     $     -     $8
24               Tat Soi   1.6        0        0            0        0          0       0                $     4.00       $    -    $    -        $    -      $        -     $     -     $0
              TO TAL      1030       208       76          55        30        114     463                                 $356      $205          $107           $150        $298     $1,115


MA`O YOUTH ORGANIC FARM                                                                                                                    30
SUMMARIZATIO N OF PRO JECTED ANNUAL YIELD & SALES

                                 YEAR O NE                 YEAR TWO                  YEAR THREE                  YEAR FO UR


                              Annual        Total     Annual      Total     Annual     Total    Annual     Total
                            Production     Annual   Production   Annual   Production  Annual  Production  Annual
                               (lbs)        Sales      (lbs)      Sales      (lbs)     Sales     (lbs)     Sales
 1     Arugula                 917       $ 5,928       963     $ 6,224      1,926    $ 12,449   1,965    $ 12,698
 2     Bananas - Apple        7,384      $ 8,944      7,753    $ 9,391      15,506   $ 18,782   15,817   $ 19,158
 3     Basil                   962       $ 2,964      1,010    $ 3,112      2,020    $ 6,224    2,061    $ 6,349
 4     Beets                  1,638      $ 3,276      1,720    $ 3,440      3,440    $ 6,880    3,509    $ 7,017
 5     Chard                  2,912      $ 5,096      3,058    $ 5,351      6,115    $ 10,702   6,238    $ 10,916
 6     Cilantro               2,470      $ 8,060      2,594    $ 8,463      5,187    $ 16,926   5,291    $ 17,265
 7     Citrus                 2,421      $ 6,656      2,542    $ 6,989      5,083    $ 13,978   5,185    $ 14,257
 8     Collard Greens         1,820      $ 2,782      1,911    $ 2,921      3,822    $ 5,842    3,898    $ 5,959
 9     Daikon                 1,872      $ 2,496      1,966    $ 2,621      3,931    $ 5,242    4,010    $ 5,346
 10    Eggplant – Italian     4,472      $ 5,772      4,696    $ 6,061      9,391    $ 12,121   9,579    $ 12,364
 11    Green Onions           2,171      $ 7,124      2,280    $ 7,480      4,559    $ 14,960   4,650    $ 15,260
 12    Kale - Blue Curled     1,300      $ 1,872      1,365    $ 1,966      2,730    $ 3,931    2,785    $ 4,010
 13    Kale - Lacinato        2,340      $ 3,432      2,457    $ 3,604      4,914    $ 7,207    5,012    $ 7,351
 14    Kale - Red Rus.        1,300      $ 1,872      1,365    $ 1,966      2,730    $ 3,931    2,785    $ 4,010
 15    Lettuce, Romaine       2,704      $ 5,148      2,839    $ 5,405      5,678    $ 10,811   5,792    $ 11,027
 16    Mesclun, regular       4,940      $ 34,060     5,187    $ 35,763     10,374   $ 71,526   10,581   $ 72,957
 17    Mesclun, Sassy!        2,782      $ 16,744     2,921    $ 17,581     5,842    $ 35,162   5,959    $ 35,866
 18    Mizuno                   83       $      520     87     $      546    175     $ 1,092     178     $ 1,114
 19    Mustard Greens           83       $      520     87     $      546    175     $ 1,092     178     $ 1,114
 20    Pak Choi - Baby        2,951      $ 4,436      3,099    $ 4,657      6,197    $ 9,315    6,321    $ 9,501
 21    Pak Choi - Large       2,951      $ 4,436      3,099    $ 4,657      6,197    $ 9,315    6,321    $ 9,501
 22    Parsley, Am.           1,001      $ 1,508      1,051    $ 1,583      2,102    $ 3,167    2,144    $ 3,230
 23    Taro - Leaf            2,002      $ 2,392      2,102    $ 2,512      4,204    $ 5,023    4,288    $ 5,124
 24    Tat Soi                  83       $      520     87     $      546    175     $ 1,092     178     $ 1,114
                TO TAL        53,476     $ 136,557    56,150   $ 143,385 112,300 $ 286,770 114,546 $ 292,506

PRO DUCE MATURING IN YEAR 4
     Mango                                                                                                     3,000      $    5,250
     Avocado                                                                                                   1,500      $    2,625
                                                                                                               4,500      $    7,875

                                                                                                 TO TAL       119,046     $ 300,381
NOTES ON PROJECTED GROWTH
In year 2 we project a very small increase in each market, resulting in 5% overall growth. This is partly because we will be devoting
considerable time to organizational development and capacity building.
In year 3 there is substantial growth in selected items through completion of land development, increased sales at farmer's
markets, and the maturation of banana and citrus trees. Specifically growth will occur as follows: mesclun salad, pak choi, taro,
banana and basil will treble in yield and sales (for banana this translates in the need to harvest 12-16 bunches per week); chard,
citrus, green onions, arugula, basil, cilantro, romaine, parsley will double in yield and sales.
Beyond year 3 there will also be maturation of fruit trees (mango, avocado) planted in year 1. This will result in additional sales
summariezed in the table above




      MA`O YOUTH ORGANIC FARM                                                                                                         31
STATEMENT OF CASH FLOWS YEAR 1

CASH IN FROM OPERATIONS              1        2        3        4        5        6        7        8        9       10       11       12      YEAR 1
Sales-v egetable operation        $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 10,080 $ 120,957
Sales-orchard operation           $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $               15,600
    Total Cash In from Operations $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 11,380 $ 136,557

Cash Out From Operations

Costs of Production
Packing Supplies                 $      (393)   $         -    $       -    $     (393)   $       -   $       -   $     (393)   $       -   $        -   $     (393)   $      -    $      -    $    (1,572)
Seeds, Soil and Amendments       $    (2,117)   $         -    $       -    $   (2,117)   $       -   $       -   $   (2,117)   $       -   $        -   $   (2,117)   $      -    $      -    $    (8,467)
Tools & Equipment                $    (3,000)   $         -    $       -    $        -    $       -   $       -   $        -    $       -   $        -   $        -    $      -    $      -    $    (3,000)
Utilities                        $      (603)   $      (603)   $    (603)   $     (603)   $   (603)   $   (603)   $     (603)   $   (603)   $    (603)   $     (603)   $   (603)   $   (603)   $    (7,238)

Other Operating Expenses
Administrativ e, Legal & Acct.   $      (284)   $      (284)   $    (284) $    (284) $    (284) $    (284) $    (284) $    (284) $    (284) $    (284) $    (284) $   (284) $   (3,414)
Adv ertising & Promotions        $      (300)   $          -   $       - $     (300) $        - $        - $    (300) $        - $        - $    (300) $        - $      - $    (1,200)
Freight, Mileage                 $      (100)   $      (100)   $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $   (100) $   (1,200)
Insurance                        $    (5,500)   $          -   $       - $        - $         - $        - $       - $         - $        - $       - $         - $      - $    (5,500)
Licenses & Fees                  $      (600)   $          -   $       - $        - $         - $        - $       - $         - $        - $       - $         - $      - $      (600)
Postage                          $       (50)   $       (50)   $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $    (50) $     (600)
Professional Serv ices           $    (1,100)   $    (1,100)   $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $           (13,200)
Profit Share - Youth Staff       $         -    $          -   $       - $        - $         - $        - $       - $         - $        - $       - $         - $      - $         -
Rent                             $    (1,800)   $          -   $       - $ (1,800) $          - $        - $ (1,800) $         - $        - $ (1,800) $         - $      - $    (7,200)
Supplies                         $      (100)   $      (100)   $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $    (100) $   (100) $   (1,200)
Tax es                           $         -    $          -   $       - $     (882) $        - $        - $    (882) $        - $        - $    (882) $        - $      - $    (2,646)
Training and Dev elopment        $         -    $      (300)   $       - $        - $     (300) $        - $       - $     (300) $        - $       - $     (300) $      - $    (1,200)
Trav el/Entertainment            $         -    $    (2,405)   $       - $        - $ (2,405) $          - $       - $ (2,405) $          - $       - $ (2,405) $        - $    (9,620)
Vehicles: Maintenance & Repair   $      (300)   $          -   $       - $     (300) $        - $        - $    (300) $        - $        - $    (300) $        - $      - $    (1,200)
Wages and Benefits               $   (11,150)   $   (11,150)   $ (11,150) $ (11,150) $ (11,150) $ (11,150) $ (11,150) $ (11,150) $ (11,150) $ (11,150) $ (11,150) $ (7,434) $ (130,087)
Total Cash Out from Operations   $   (27,398)   $   (16,093)   $ (13,388) $ (19,180) $ (16,093) $ (13,388) $ (19,180) $ (16,093) $ (13,388) $ (19,180) $ (16,093) $ (9,671) $ (199,144)

Cash Out from Investing
Capital Purchases                $ (33,413) $             - $          - $           - $         - $         - $           - $         - $           - $          - $         - $         - $      (33,413)
Total Cash Out from Investing    $ (33,413) $             - $          - $           - $         - $         - $           - $         - $           - $          - $         - $         -

Cash In from Financing
ANA grant disbursements          $ 44,563 $ 13,555 $ 11,150 $ 11,150 $ 13,555 $ 11,150 $ 11,150 $ 13,555 $ 11,150 $ 11,150 $ 13,555 $                                                  7,735 $     173,421
Total Cash In from Financing     $ 44,563 $ 13,555 $ 11,150 $ 11,150 $ 13,555 $ 11,150 $ 11,150 $ 13,555 $ 11,150 $ 11,150 $ 13,555 $                                                  7,735 $     173,421

Net Increase in Cash             $ (4,868) $ 8,842 $ 9,142 $                     3,350 $ 8,842 $ 9,142 $ 3,350 $ 8,842 $ 9,142 $ 3,350 $ 8,842 $ 9,443
Cash at Beginning of Month       $ 15,000 $ 10,132 $ 18,974 $                   28,116 $ 31,467 $ 40,309 $ 49,451 $ 52,801 $ 61,643 $ 70,785 $ 74,135 $ 82,977

Cash at End of Month             $ 10,132 $ 18,974 $               28,116 $ 31,467 $ 40,309 $ 49,451 $ 52,801 $ 61,643 $ 70,785 $ 74,135 $ 82,977 $ 92,421

   MA`O YOUTH ORGANIC FARM                                                                                                                      32
STATEMENT OF CASH FLOWS YEAR 2
CASH IN FROM OPERATIONS                       1             2            3            4             5            6            7             8            9           10            11           12      YEAR 2
Sales-v egetable operation               $   10,584 $      10,584 $     10,584 $     10,584 $      10,584 $     10,584 $     10,584 $      10,584 $     10,584 $     10,584 $      10,584 $     10,584 $ 127,005
Sales-orchard operation                  $    1,365 $       1,365 $      1,365 $      1,365 $       1,365 $      1,365 $      1,365 $       1,365 $      1,365 $      1,365 $       1,365 $      1,365 $ 16,380
           Total Cash In from Operations $   11,949 $      11,949 $     11,949 $     11,949 $      11,949 $     11,949 $     11,949 $      11,949 $     11,949 $     11,949 $      11,949 $     11,949 $ 143,385

Cash Out From Operations

Costs of Production
Packing Supplies                        $      (413)   $        -   $        -   $     (413)   $        -   $        -   $     (413)   $        -   $        -   $     (413)   $        -   $        -   $   (1,651)
Seeds, Soil and Amendments              $    (2,223)   $        -   $        -   $   (2,223)   $        -   $        -   $   (2,223)   $        -   $        -   $   (2,223)   $        -   $        -   $   (8,890)
Tools & Equipment                       $    (1,200)   $        -   $        -   $         -   $        -   $        -   $         -   $        -   $        -   $         -   $        -   $        -   $   (1,200)
Utilities                               $      (673)   $    (673)   $    (673)   $     (673)   $    (673)   $    (673)   $     (673)   $    (673)   $    (673)   $     (673)   $    (673)   $    (673)   $   (8,080)

Other Operating Expenses
Administrativ e, Legal & Acct.          $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $    (299) $ (3,585)
Adv ertising & Promotions               $    (450) $        - $        - $    (450) $        - $        - $    (450) $        - $        - $    (450) $        - $        - $ (1,800)
Freight, Mileage                        $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $    (167) $ (2,000)
Insurance                               $ (5,638) $         - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $ (5,638)
Licenses & Fees                         $    (600) $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $     (600)
Postage                                 $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (600)
Professional Serv ices                  $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (13,200)
Profit Share - Youth Staff              $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $         -
Rent                                    $ (1,800) $         - $        - $ (1,800) $         - $        - $ (1,800) $         - $        - $ (1,800) $         - $        - $ (7,200)
Supplies                                $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $    (117) $ (1,400)
Tax es                                  $    (882) $        - $        - $ (1,203) $         - $        - $ (1,203) $         - $        - $ (1,203) $         - $        - $ (3,609)
Training and Dev elopment               $        - $    (400) $        - $        - $    (400) $        - $        - $    (400) $        - $        - $    (400) $        - $ (1,600)
Trav el/Entertainment                   $        - $    (600) $        - $        - $    (600) $        - $        - $    (600) $        - $        - $    (600) $        - $ (2,400)
Vehicles: Maintenance & Repair          $    (375) $        - $        - $    (375) $        - $        - $    (375) $        - $        - $    (375) $        - $        - $ (1,500)
Wages and Benefits                      $ (19,091) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (15,374) $ (10,250) $ (183,085)
Total Cash Out from Operations          $ (35,076) $ (18,780) $ (17,780) $ (24,243) $ (18,780) $ (17,780) $ (24,243) $ (18,780) $ (17,780) $ (24,243) $ (18,780) $ (12,655) $ (248,038)

Cash Out from Investing
Capital Purchases                        $        - $          - $          - $           - $          - $          - $           - $          - $          - $           - $          - $          - $           -
Total Cash Out from Investing            $        - $          - $          - $           - $          - $          - $           - $          - $          - $           - $          - $          -

Cash In from Financing
ANA grant disbursements                 $    12,035 $      12,035 $     12,035 $     12,035 $      12,035 $     12,035 $     12,035 $      12,035 $     12,035 $     12,035 $      12,035 $     12,035 $ 144,416
Total Cash In from Financing            $    12,035 $      12,035 $     12,035 $     12,035 $      12,035 $     12,035 $     12,035 $      12,035 $     12,035 $     12,035 $      12,035 $     12,035 $ 144,416

Net Increase in Cash                    $ (11,093) $        5,204 $      6,204 $       (260) $      5,204 $      6,204 $    (260) $  5,204 $   6,204 $    (260) $  5,204 $ 11,328
Cash at Beginning of Month              $ 92,421 $         81,328 $     86,531 $     92,735 $      92,475 $     97,679 $ 103,882 $ 103,623 $ 108,826 $ 115,030 $ 114,770 $ 119,974

Cash at End of Month                    $    81,328 $      86,531 $     92,735 $     92,475 $      97,679 $ 103,882 $ 103,623 $ 108,826 $ 115,030 $ 114,770 $ 119,974 $ 131,302

      MA`O YOUTH ORGANIC FARM                                                                                                                       33
STATEMENT OF CASH FLOWS YEAR 3

CASH IN FROM OPERATIONS              1             2             3             4             5             6             7             8             9             10            11            12       YEAR 3
Sales-v egetable operation       $   21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $      21,168 $   254,010
Sales-orchard operation          $    2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $       2,730 $    32,760
   Total Cash In from Operations $   23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $      23,898 $   286,770

Cash Out From Operations

Costs of Production
Packing Supplies                 $     (826)   $        -    $        -    $     (826)   $        -    $        -    $     (826)   $        -    $        -    $     (826)   $        -    $        -    $     (3,302)
Seeds, Soil and Amendments       $   (4,445)   $        -    $        -    $   (4,445)   $        -    $        -    $   (4,445)   $        -    $        -    $   (4,445)   $        -    $        -    $    (17,781)
Tools & Equipment                $   (1,200)   $        -    $        -    $         -   $        -    $        -    $         -   $        -    $        -    $         -   $        -    $        -    $     (1,200)
Utilities                        $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $   (1,147)   $    (13,760)

Other Operating Expenses
Administrativ e, Legal & Acct.   $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $    (597) $                                         (7,169)
Adv ertising & Promotions        $    (450) $        - $        - $    (450) $        - $        - $    (450) $        - $        - $    (450) $        - $        - $                                         (1,800)
Freight, Mileage                 $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $    (200) $                                         (2,400)
Insurance                        $ (5,778) $         - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $                                         (5,778)
Licenses & Fees                  $    (600) $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $                                           (600)
Postage                          $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $     (50) $                                           (600)
Professional Serv ices           $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $ (1,100) $                                                    (13,200)
Profit Share - Youth Staff       $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $        - $ (20,000) $                                        (20,000)
Rent                             $ (1,800) $         - $        - $ (1,800) $         - $        - $ (1,800) $         - $        - $ (1,800) $         - $        - $                                         (7,200)
Supplies                         $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $    (133) $                                         (1,600)
Tax es                           $ (1,203) $         - $        - $ (2,400) $         - $        - $ (2,400) $         - $        - $ (2,400) $         - $        - $                                         (7,200)
Training and Dev elopment        $        - $    (500) $        - $        - $    (500) $        - $        - $    (500) $        - $        - $    (500) $        - $                                         (2,000)
Trav el/Entertainment            $        - $    (600) $        - $        - $    (600) $        - $        - $    (600) $        - $        - $    (600) $        - $                                         (2,400)
Vehicles: Maintenance & Repair   $    (600) $        - $        - $    (600) $        - $        - $    (600) $        - $        - $    (600) $        - $        - $                                         (2,400)
Wages and Benefits               $ (18,022) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (12,897) $ (8,598) $                                        (155,594)
Total Cash Out from Operations   $ (38,152) $ (17,225) $ (16,125) $ (26,646) $ (17,225) $ (16,125) $ (26,646) $ (17,225) $ (16,125) $ (26,646) $ (17,225) $ (31,826) $                                       (265,985)

Cash Out from Investing
Capital Purchases                $        - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $             -
Total Cash Out from Investing    $        - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           -

Cash In from Financing
ANA grant disbursements          $        - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $             -
Total Cash In from Financing     $        - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $           - $             -

Net Increase in Cash             $ (14,254) $  6,673 $   7,773 $ (2,748) $   6,673 $   7,773 $ (2,748) $   6,673 $   7,773 $ (2,748) $   6,673 $ (7,928)
Cash at Beginning of Month       $ 131,302 $ 117,048 $ 123,720 $ 131,493 $ 128,745 $ 135,418 $ 143,190 $ 140,442 $ 147,115 $ 154,887 $ 152,139 $ 158,812

Cash at End of Month             $ 117,048 $ 123,720 $ 131,493 $ 128,745 $ 135,418 $ 143,190 $ 140,442 $ 147,115 $ 154,887 $ 152,139 $ 158,812 $ 150,884


   MA`O YOUTH ORGANIC FARM                                                                                                                             34
MA`O YOUTH ORGANIC FARM
Balance Sheet
                                               % of                      % of                      % of                      % of
                                               total                     total                     total                     total
ASSETS                            STARTING    assets       YEAR 1       assets       YEAR 2       assets       YEAR 3       assets
Current Assets
     Cash                     $      15,000 33.8%            $94,421 29.9%   $135,302 43.7% $                    116,002 91.1%
     Accounts Receivable      $           - 0.0% $                 - 0.0% $         - 0.0% $                           - 0.0%
     Other                    $           - 0.0% $                 - 0.0% $         - 0.0% $                           - 0.0%
      Total Current Assets    $      15,000       $           94,421       $ 135,302        $                    116,002
Fixed Assets
     Restricted Grants                               $       173,421    54.9%    $    144,416     46.7%    $           -     0.0%
     Equipment                $       45,400 102.3% $         73,013    23.1%    $     63,872     20.6%    $      54,730    43.0%
     Acc. Depreciation        $      (16,000) -36.0% $       (25,141)   -8.0%    $    (34,283)    -11.1%   $     (43,424)   -34.1%
         Total Fixed Assets   $       29,400 66.2% $         221,293    70.1%    $    174,005     56.3%    $      11,307     8.9%


TOTAL ASSETS                  $      44,400 100.0% $         315,713 100.0% $         309,307 100.0% $           127,309 100.0%

LIABILITIES
Current Liabilities
     Accounts Payable         $           -   0.0%     $           -    0.0%     $          -     0.0%     $          -     0.0%
     Taxes Payable                                     $         882             $      1,203     0.4%     $      2,400     1.9%
     Wages Payable            $           -   0.0%     $       3,717    1.2%     $      5,125     1.7%     $      4,299     3.4%
     Other                    $           -   0.0%     $           -    0.0%     $          -     0.0%     $          -     0.0%
                              $           -            $       4,599             $      6,328              $      6,699

Long-Term Liabilties
    Notes Payable             $           -   0.0%     $            -   0.0%     $            -   0.0%     $            -   0.0%


TOTAL LIABILITIES             $           -   0.0%     $       4,599    1.5%     $      6,328     2.0%     $      6,699     5.3%

EQUITY                        $      44,400 100.0% $         311,114 98.5% $          302,979 98.0% $            120,610 94.7%


TOTAL LIABILITIES
& EQUITY                      $      44,400 100.0% $         315,713 100.0% $         309,307 100.0% $           127,309 100.0%




    MA`O YOUTH ORGANIC FARM                                                                                                          35
     Analysis of Social Return on Investment

SOCIAL RETURN ON INVESTMENT                          NPV         Year 1      Year 2      Year 3      Year 4      Year 5
Number of youth employeed per year                                 3           3           6           6           6
Number of acres farmed per year                                   2.5         2.5          5           5           5

BENEFITS
COMMUNITY WEALTH
income returned to the community in taxes                    $     3,456 $     3,456 $     6,912 $     6,912 $     6,912
public assistance not collected                              $     3,701 $     3,701 $     7,402 $     7,402 $     7,402

ENVIRONMENT
Savings in absence of government subsidies                   $    182 $    182 $    365 $    365 $    365
Reduced energy inputs                                        $    425 $    425 $    850 $    850 $    850
Training new organic farmers                                 $ 24,000 $ 24,000 $ 32,000 $ 32,000 $ 32,000

Social Benefits                                  $ 206,113   $ 31,764 $ 31,764 $ 47,528 $ 47,528 $ 47,528

COSTS
COMMUNITY WEALTH
additional staff time (farmer training programs)             $ 10,800 $ 10,800 $ 21,600 $ 21,600 $ 21,600
discount on sales of organic produce at targeted markets     $ 22,204 $ 22,204 $ 44,408 $ 44,408 $ 44,408

Social Costs                                     $ 167,614   $ 33,004 $ 33,004 $ 66,008 $ 66,008 $ 66,008

PV of Social Benefits                            $ 206,113
PV of Social Costs                               $ 167,614
Net social gain                                  $ 38,499


     SROI Narrative and Assumptions
     Community Wealth:
      Benefits
              Amount income returned to the community in taxes based on Hawaiian state income
               tax rate of 6.4% for 16,000-24,000 income bracket. Assumed youth salary:
               $18,000/year.
              Public assistance not collected based on 20% welfare assistance dependence in the
               target community multiplied by average annual payments of $6,168 (Honolulu Star
               Bulletin 1999).

      Costs
              Additional staff time for farmer training programs based on the estimate that the youth
               dedicate about 20% of their time to leading educational programs.
              Discounted sales figures were calculated based on establishing an average discount
               taken off the price of produce sold at markets that cater specifically to the low-income,
     MA`O YOUTH ORGANIC FARM                                                                                              36
       local community. The average discount calculated was 33%, and with this discount
       taken off, weekly revenue averaged $854.

Environment:
      A conventional farm receives subsidies at a rate of $72.93 per acre.
       (www.betterfarming.com)
      The cost of farming inputs in conventional agriculture is $340/acre (University of
       Florida, IFAS Extension). By farming organically, MA`O is using 50% less energy
       and resources to farm their land (Lori Drinkwater, Nature Magazine, Nov. ’98).
      The value of training organic farmers is based on average per person, per hour
       educational rates of HOFA (Hawaiian Organic Farmers Association.) We assumed
       that for each youth education hour, two individuals receive training, and that this hour
       is valued at $10 per trainee.




MA`O YOUTH ORGANIC FARM                                                                           37
RISK ASSESSMENT & CONTINGENCY PLAN
While farming has many inherent risks, in just three years of operations MA`O, has created an
innovative and successful model that others in Hawai`i wish to replicate. Moreover, the
model and systems have been developed with the co-management of youth. Risk assessments
have been mentioned throughout this business plan and the following table summarizes the
important challenges and our mitigation approaches.

        RISK                                 MITIGATING FACTORS
Organic production        Thoroughly tested organic methods and systems
fails through pests,      Expert technical assistance available
natural causes, and       To anticipate losses, yield assumptions are conservative
or other unforeseen       Ongoing research experiments to ensure new learning
circumstances.
Problems with             Consensus-building, open communication approach
youth, such as lack       Accountability built within profit-sharing model
of motivation.            Expert technical assistance available for youth, and diverse
                           opportunities for improving skills.
Low Sales                 Regular customer feedback
                          Diversified product mix
                          Proven demand for products
                          Diversity of markets
                          Options to reduce expenses, if necessary
High operating            Diversity of markets increase direct sales and improve margins
costs, low margins        Source lower cost local supplies, e.g., animal manure
Difficulty in             Grow youth from within the MA`O system and expose early to
attracting suitable        other benefits – trips to conferences, site visits
staff                     Seen at the moment as doing cutting edge work so we are in high
                           demand
                          Educational programs with local schools provide pipeline for new
                           staff
Operational               Thoroughly tested system
problems, poor            Access to high-end chef who will help to assess product quality
food quality,             Technical assistance available to investigate unforeseen crop
delivery time              failures
                          MA`O system reinforces importance of product quality, assessment
                           and feedback given to youth three days per week.
Marketing                 Diversity of end markets
problems,                 Certified organic status already achieved
regulatory barriers       Classes to teach safe food handling strategies
and costs                 Café is a certified kitchen and their staff provide guidance
Departure of key          Inherent to WCRC is the training, empowerment and employment
project employees          of youth, new leaders constantly being developed
                          WCRC Board will create a succession plan

MA`O YOUTH ORGANIC FARM                                                                         38
MA`O YOUTH ORGANIC FARM   39
H. ENDNOTES


i Dimitri, Carolyn and Green, Catherine. “Recent Growth Patterns in the U.S. Organic Food
  Markets.” ERS Agriculture Information Bulletin No. AIB777. 42 pp, September 2002
ii Information supplied by Kokua Natural Foods Cooperative.
iii
      See www.ota.com/organic/mt/business.html. “Industry Statistics and Projected Growth.”
iv
        See support letter from Mr. David Cole, CEO, Maui Land and Pine.
v
      Population statistics derived from www.census.gov
vi
       Demographic information obtained from the US Census 2000 web site
      www.census2000.gov
vii
       Information obtained via telephone interview with the State of Hawai`i Department of
      Labor
viii
        Food Security Task Force, A Report to the State Legislature. Office of Planning, State of
      Hawai’i, January 2003. See www.hawaii.gov/dbedt/op/html, pg. 5.
ix
       From “Nanakuli Area Community Profile.” “Wai`anae Area Community Profile.”
      Publications produced by the Center on the Family, College of Tropical Agriculture and
      Human Resources. 2003.
x
      Wai`anae Sustainable Communities Plan. City and County of Honolulu Community Planning
      Document. 1998.
xi
      Carson, Rachel. Silent Spring. 1962. Houghton Press, Boston. From
       www.rachelcarson.org it states that: “Disturbed by the profligate use of synthetic chemical
       pesticides after World War II, Carson reluctantly changed her focus in order to warn the
       public about the long term effects of misusing pesticides...she challenged the practices of
       agricultural scientists and the government, and called for a change in the way humankind
       viewed the natural world.”
xii Dimitri, Carolyn and Green, Catherine. “Recent Growth Patterns in the U.S. Organic
  Food Markets,” ERS Agriculture Information Bulletin No. AIB777. 42 pp, September
  2002
xiii Information supplied by Kokua Natural Foods Cooperative.
xiv
        See www.usda.gov.
xv
      See www.ota.com
xvi
      Horovitz, Bruce. “Get 'em while they're hot: Ballpark franks go organic; 2 stadiums
       respond to consumers' pleas.” USA TODAY. Dec 2, 2004. pg. A.1
xvii
         See www.ota.com.
xviii
        See www.ota.com/organic/mt/business.html. “Industry Statistics and Projected Growth.”
xix
        See www.state.hi.us/doh/about/press/99-35hept.html.
xx
        Statistics reported in Honolulu Weekly. December 8, 2004. pp 4.


MA`O YOUTH ORGANIC FARM                                                                              40
xxi
     The authors surveyed produce sections of 9 regular grocery outlets, across a 36-mile
   corridor of O`ahu from Wai`anae to Honolulu, on December 5, 2004. Three stores,
   Tamura’s Wai`anae, Time Waipahu and Sam’s Club Pearl City did not stock organic
   produce. Seven stores did stock organic produce, they were: Safeway Kapolei, Sack and
   Save Nanakuli, Foodland Waipio, Daiei Waipahu, Star Market Moiliiili, and Costco,
   Honolulu.
xxii
          See support letter from Mr. David Cole, CEO, Maui Land and Pine.
xxiii
       Earthbound Farms 1# package of mixed salad greens sells for $3.80 at Costco, while
    0.5# of a similar product retails for approximately $5.50 at local natural foods stores.
xxiv
         Namkoong, Joan. Honolulu Advertiser. Food section, August 22, 2001
xxv
          Verbal communication with Bari Green from HOFA on December 14, 2004.
xxvi
          Population statistics derived from www.census.gov
xxvii
           Hawai`i Business Magazine. March 2004.
xxviii
         A list of venders at the KCC market can be found at www.hfbf.org/farmersmarket.html).
xxix
      Information derived from WCRC. WCRC is purchasing 2.5 acres from the current
    landlord at the cost of $195,000.
xxx
         See www.hicentral.com
xxxi
      Information derived from public hearings held in 2001 regarding the use of diverted
    Waiahole Stream water for Leeward agriculture purposes conducted by the State’s Water
    Commission.
xxxii
         See www.hanahou.com/westsidestories.htm
xxxiii
         Ferrar, Derek. “Ka Wai Ola o OHA”, 2005 v.22 n.2 – February. Page 10.
xxxiv
          Nichols, Katherine. Honolulu Magazine. August 2004. Page 183.
xxxv
         Kiyabu, Sue. Honolulu Weekly. October 13-19, 2004. Volume 14, Number 41. Page 39.
xxxvi
          Griffth, Lesa. Article entitled “Town and Country.” Honolulu Weekly. October 13-19,
         2004. Volume 14, Number 41. Page 49.
xxxvii
          Kam, Nadine. “Food Lovers Find a Home in Town. Honolulu Star Bulletin. Sunday
         April 10th, 2005.




MA`O YOUTH ORGANIC FARM                                                                          41

								
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