> [!todo] Section Purpose > Case study of a firm that aims to analyze and theorize their narrative, political and market strategies in the pre- mid- and post-COVID eras. How are they cultivating narratives, growing favor, and harvesting marketshare? What norms do they benefit from and what nuances do they elide? How has policy been a harrow in their efforts? >[!WARNING] See [[Cattle in Hawaii]] & [[Dutch Kuyper on Hawaii's Cattle Industry]] ## Introduction & Early Markets @philipp_1953 > The number of beef cattle in Hawaii increased by more than 50 percent during the past half century, from 96,000 in 1900 to 128,000 in 1920 and 147,000 in 1952. However, at no time during this period were Island ranchers able to supply all the beef and veal needed in Hawaii. (See Table PI.) In 1952 about 25.8 million pounds of fresh, chilled, or frozen beef and veal were sold by Island slaughterhouses and importers. Of this, 18.6 million pounds, or 72 percent of the total, were produced locally. The remainder, as well as all canned, pickled, and cured beef, was imported @calhoun_1960 >1952, when a drought in the islands caused some liquidation of local herds. During the next year (1953); island marketings dropped, and the supply from the mainland jumped from around 7 million to 13 million pounds > >This jump had greater significance than a mere increase in meat supplies. Practically all island cattle had been shipped directly from the ranges to the slaughter plants without supplemental feeding and fattening. ## Recent (pre-existing) Market Structure Paniolo Cattle Company - Parker Ranch @cox.bredhoff_2003 on The Hawaii Beef Industry: Situation and Outlook Update @smsresearch_2021 on [The Hawai‘i Livestock Market](https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-B-Appendices.pdf) ## General Description of Firm #### Firm & Ownership - Hawaii Meats LLC, MGR is RIVERBEND MANAGEMENT, INC. [BREG](https://hbe.ehawaii.gov/documents/business.html?fileNumber=220494C5) - HAWAII SUSTAINABLE BEEF, LLC - formed April 2020 as HAWAII FOOD ENTERPRISES, LLC, - renamed June 2020 as HAWAII SUSTAINABLE BEEF ENTERPRISES, LLC - FSIS https://www.fsis.usda.gov/inspection/fsis-inspected-establishments?f%5B0%5D=state%3AHI&page=0 Vandersloot's [Testimony in Support of Extension of Leases S-7000, S-7014, S-7015, and S-7106](https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf) outlines investment volumes and **Land related companies** Hawaii Ranches LLC ([breg](https://hbe.ehawaii.gov/documents/business.html?fileNumber=234971C5)) organized in 2020 and Kealia Land Company LLC ([breg](https://hbe.ehawaii.gov/documents/business.html?fileNumber=262499C5)) organized in 2021, and Kamaaina Ranches organized in 2023 ([breg](https://hbe.ehawaii.gov/documents/business.html?fileNumber=292835C5)) are all also managed by Riverbend Management. #### Development Timeline > [!llm] ### 📅 Timeline: Hawaii Meats & Frank VanderSloot in Hawaii’s Beef Industry (2010–2025) > > #### **2016: Kunoa Cattle Co. Acquires O‘ahu Slaughterhouse** > > * **Date:** November 17, 2016 > * **Buyer:** Kunoa Cattle Co. > * **Asset:** Leasehold interest in O‘ahu’s only USDA-certified slaughterhouse in Kapolei > * **Seller:** Hawaii Livestock Cooperative > * **Financial Details:** Undisclosed > * **Development Actions:** Kunoa aimed to expand processing of locally raised livestock and develop a new brand of fresh Hawaii beef. The facility was processing about 120 animals per week post-acquisition. > * **Impact:** This acquisition was part of a broader plan to increase the supply of locally produced beef in Hawaii. > * **Sources:** > > * [Honolulu Star-Advertiser](https://www.staradvertiser.com/2016/11/29/business/oahu-slaughterhouse-is-sold-to-kauai-firm/) > * [Hawaii News Now](https://www.hawaiinewsnow.com/2019/09/18/local-beef-production-grow-with-new-company-hawaii-meats/) > > #### **2019: Frank VanderSloot Acquires O‘ahu Slaughterhouse and Forms Hawaii Meats** > > * **Date:** September 2019 > * **Buyer:** Frank VanderSloot > * **Asset:** O‘ahu slaughterhouse operations from Kunoa Cattle Co. > * **Financial Details:** VanderSloot paid approximately \$1.5 million to settle Kunoa’s debts to ranchers and other creditors. > * **Development Actions:** Established Hawaii Meats, LLC, retaining about 50 employees and increasing processing capacity. > * **Impact:** VanderSloot's acquisition stabilized the facility, ensuring continued operations and support for local ranchers. > * **Sources:** > > * [East Idaho News](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/) > * [Hawaii News Now](https://www.hawaiinewsnow.com/2019/09/18/local-beef-production-grow-with-new-company-hawaii-meats/) > > #### **2020: VanderSloot Acquires Big Island Slaughterhouse** > > * **Date:** June 30, 2020 > * **Buyer:** Frank VanderSloot (via Hawaii Beef Lease, LLC) > * **Asset:** Lease for the state-owned slaughterhouse in Pā‘auilo, Hawai‘i Island > * **Seller:** Hawai‘i Beef Producers > * **Financial Details:** Not publicly disclosed > * **Development Actions:** VanderSloot assumed control of the facility, which had previously undergone a \$4.15 million state-funded upgrade in 2012. > * **Impact:** With this acquisition, VanderSloot controlled approximately 70% of Hawaii's meat processing capacity. > * **Sources:** > > * [Civil Beat](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/) > * [Hawaii Department of Agriculture](https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf) > > #### **2021: VanderSloot Purchases Land on Kaua‘i for Ranching** > > * **Date:** October 2021 > * **Buyer:** Kealia Land Co. LLC (affiliated with Frank VanderSloot) > * **Asset:** Over 2,000 acres of former sugar land on Kaua‘i’s northeast coast > * **Seller:** Peter Nolan’s company > * **Financial Details:** Approximately \$51 million > * **Development Actions:** Plans to graze 500 to 2,000 cattle for beef production, shifting the land use from a proposed housing development to agriculture. > * **Impact:** This move aimed to increase local beef supply and support Hawaii's food self-sufficiency. > * **Sources:** > > * [Kauai Now News](https://kauainownews.com/2021/11/17/idaho-billionaire-buys-1075-acres-on-kaua%CA%BBis-northeastern-coast/) > * [Beat of Hawaii](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/) > > #### **2022: Expansion of Processing Capacity and Introduction of Kama‘āina Brand** > > * **Date:** 2022 > * **Development Actions:** VanderSloot invested in modernizing the O‘ahu plant, increasing its throughput capacity by approximately 20%. Introduced the Kama‘āina brand of Hawaii-grown beef, including vacuum-sealed brick packs of ground beef. > * **Impact:** These developments aimed to provide affordable local beef options and reduce dependence on imported meat. > * **Sources:** > > * [Civil Beat](https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/) > > #### **2023: Parker Ranch Loses Safeway Contract to Hawaii Meats** > > * **Date:** July 5, 2023 > * **Event:** Safeway discontinued carrying Parker Ranch's Paniolo Cattle Company beef, replacing it with VanderSloot's Kama‘āina brand. > * **Impact:** This shift highlighted the growing influence of VanderSloot's operations in Hawaii's beef industry and raised concerns about market consolidation. > * **Sources:** > > * [Civil Beat](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/) > * [Hawaii News Now](https://www.hawaiinewsnow.com/2023/06/20/beef-over-beef-safeway-breaks-ties-with-iconic-ranch-local-meat-industry-struggles-grow/) > > --- > > This timeline provides a detailed overview of the significant events and developments involving Hawaii Meats and Frank VanderSloot in Hawaii's beef industry from 2010 onward. If you need further information or have specific questions about any of these events, feel free to ask! > [!llm] > ## 2012: State Upgrade of Big Island Slaughterhouse > > - **2012 – Pā‘auilo Plant Improvements:** The state of Hawaii invested **$4.15 million** to modernize the Big Island’s Pā‘auilo slaughterhouse (Hamakua Coast) then operated by Hawai‘i Beef Producers (a partnership led by David De Luz Sr.) ([5](https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-B-Appendices.pdf)). Upgrades to wastewater treatment, rendering, and refrigeration expanded capacity by ~40%, from 300–400 head per month to 600 head/month. This state-owned facility (leased to HBP) was one of two USDA-certified slaughterhouses on Hawai‘i Island, which raises over 75% of the state’s cattle. The improvements aimed to reduce backlogs and revitalize local beef processing. > > > ## 2016: Kunoa Cattle Co. Buys O‘ahu Slaughterhouse > > - **November 2016 – Kunoa Acquisition:** Kauaʻi-based Kunoa Cattle Company (co-founded by Bobby Farias) purchased the leasehold interest of O‘ahu’s only slaughterhouse—the state-owned facility at Kalaeloa, Kapolei—from the Hawaii Livestock Cooperative ([1](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/)). > > > ## 2019: VanderSloot Rescues Kunoa and Forms “Hawaii Meats” > > - **September 2019 – O‘ahu Plant Bailout:** Frank VanderSloot acquired Kunoa’s O‘ahu operations, including the Kapolei slaughterhouse, paying approximately $1.5 million to settle Kunoa’s debts to ranchers and other creditors ([4](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/)). VanderSloot established Hawaii Meats, LLC, with Farias staying on in management. VanderSloot already had around 500 head of Idaho-bred Angus cattle on Kauaʻi from his Riverbend Ranch to improve local genetics. > > - **Late 2019 – Herd Acquisition and Feedlot Lease:** Farias acquired ~2,500 head of cattle from a Kauaʻi operation that had supplied Kunoa ([4](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/)). An affiliate of Hawaii Meats secured a 35-year lease on 110 acres at the ʻEwa feedlot ([6](https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf)). > > > ## 2020: Expansion to Big Island—70% of Processing Under VanderSloot > > - **June 30, 2020 – Pā‘auilo Plant Deal:** VanderSloot acquired the Big Island slaughterhouse lease from Hawai‘i Beef Producers, consolidating approximately 70% of Hawaii’s meat processing capacity ([1](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/)). > > > ## 2021: Scrutiny of Consolidation and New Kauaʻi Ranchlands > > - **Feb 2021 – Legislative Pushback (SB 692):** Concerns over processor monopoly led to the introduction of SB 692 ([1](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/)). > > - **Fall 2021 – Kauaʻi Land Acquisition:** VanderSloot acquired ~1,075 acres for $38 million and additional parcels for a combined $51 million for cattle grazing ([7](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/)). > > > ## 2022: Capacity Building and New Local Beef Brands > > - **2022 – Expanded Operations and Kamaʻāina Beef:** Hawaii Meats introduced the Kamaʻāina brand and invested in modernizing facilities ([8](https://www.hawaiinewsnow.com/2023/06/21/their-dream-is-get-more-local-beef-your-table-making-that-reality-it-wont-be-easy/)). > > > ## 2023: Shifting Markets, Tensions with Parker Ranch, and Ongoing Impact > > - **July 2023 – Parker Ranch Loses Safeway Contract:** Safeway discontinued Paniolo brand beef, replaced by Kamaʻāina ([2](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/), [3](https://www.hawaiinewsnow.com/2023/06/20/beef-over-beef-safeway-breaks-ties-with-iconic-ranch-local-meat-industry-struggles-grow/)). > > - **2023 – Market Power:** By 2023, VanderSloot controlled about 70% of Hawaii’s beef processing capacity ([1](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/)). > > > --- > > **References:** > > 1. Civil Beat – [Beefing Over Control Of Hawaii’s Meat Processing Industry](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/) > 2. Civil Beat – [A Struggle For Control Of Hawaii’s Beef Industry](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/) > 3. Hawaii News Now – [Big beef: Safeway breaks ties with iconic ranch](https://www.hawaiinewsnow.com/2023/06/20/beef-over-beef-safeway-breaks-ties-with-iconic-ranch-local-meat-industry-struggles-grow/) > 4. East Idaho News – [VanderSloot rescues jobs, gives ranchers $1.5 million](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/) > 5. HDOA – [Livestock Harvesting Appendices](https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-B-Appendices.pdf) > 6. HDOA – [BOA Documents](https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf) > 7. Beat of Hawaii – [Move Over Zuckerberg](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/) > 8. Hawaii News Now – [Their Dream to Get More Local Beef](https://www.hawaiinewsnow.com/2023/06/21/their-dream-is-get-more-local-beef-your-table-making-that-reality-it-wont-be-easy/) > [!llm] via [chatgpt deep research chat](https://chatgpt.com/share/683f35fa-e974-8013-8552-ac1943e9442e) > ## Timeline of Hawaii Meats and Frank VanderSloot in Hawaii’s Beef Industry (2010–Present) > > ## 2012: State Upgrade of Big Island Slaughterhouse > > * **2012 – Pā‘auilo Plant Improvements:** The state of Hawaii invested **\$4.15 million** to modernize the Big Island’s Pā‘auilo slaughterhouse (Hamakua Coast) then operated by Hawai‘i Beef Producers (a partnership led by David De Luz Sr.). Upgrades to wastewater treatment, rendering, and refrigeration expanded capacity by \~40%, from processing 300–400 head per month toward **600 head/month**. This state-owned facility (leased to HBP) was one of two USDA-certified slaughterhouses on Hawai‘i Island, which raises over 75% of the state’s cattle. The improvements were aimed at reducing backlogs and revitalizing local beef processing, laying groundwork for future expansion. > > ## 2016: Kunoa Cattle Co. Buys O‘ahu Slaughterhouse > > * **November 2016 – Kunoa Acquisition:** Kauaʻi-based **Kunoa Cattle Company** (co-founded by Bobby Farias) purchased the leasehold interest of O‘ahu’s only slaughterhouse – the state-owned facility at **Kalaeloa, Kapolei** – from the Hawaii Livestock Cooperative. The deal closed in mid-November 2016 (terms undisclosed). The Kapolei plant had an estimated capacity of **up to 10,000 head per year**. Kunoa pledged to invest in facility upgrades, higher animal welfare and food safety standards to encourage local ranchers to process cattle in-state. This move aimed to stem the decades-long decline of Hawaii’s livestock industry (many ranchers had been shipping calves to the mainland) by expanding local slaughter capacity. > > ## 2019: VanderSloot Rescues Kunoa and Forms “Hawaii Meats” > > * **September 2019 – O‘ahu Plant Bailout:** Facing financial distress, Kunoa Cattle Co. struggled to pay ranchers and had hundreds of carcasses unsold. Idaho businessman **Frank VanderSloot** – founder of Melaleuca and an avid cattle rancher – stepped in and **acquired Kunoa’s O‘ahu operations**, including the Kapolei slaughterhouse, in 2019. VanderSloot **paid about \$1.5 million** to settle Kunoa’s debts to ranchers and other creditors, retaining roughly 50 employees (all received raises). The business was rebranded under a new company, **Hawaii Meats, LLC**, with Farias staying on in management. VanderSloot later said he initially invested in Kunoa’s plant “reluctantly” to keep it afloat, as it was “losing money hand over fist”. By 2019, VanderSloot had already been running about **500 head of his own Idaho-bred Angus cattle on Kauaʻi** (from his Riverbend Ranch) to improve local genetics – reflecting his confidence in Hawaii’s grass-fed beef potential. > > * **Late 2019 – Herd Acquisition and Feedlot Lease:** As part of the Hawaii Meats deal, Farias **acquired \~2,500 head of cattle from a Kauaʻi operation** that had supplied Kunoa. At the same time, an affiliate of Hawaii Meats (Hawai‘i Land & Livestock, run by Farias) secured a **35-year lease on 110 acres at the ʻEwa feedlot** adjacent to the Kapolei plant. In late 2019 the state Board of Agriculture approved this lease for use as a holding/feedlot area for cattle awaiting slaughter and as a water source for the facility. (The land had been transferred from DLNR to DOA by executive order to support local beef production.) These steps were meant to vertically integrate operations – allowing Hawaii Meats to finish more cattle locally instead of shipping them out. *(NB: In subsequent years, Hawaii Meats faced scrutiny for under-utilizing the ʻEwa feedlot parcel, which led to state oversight hearings in 2022–2023.)* > > ## 2020: Expansion to Big Island – 70% of Processing under VanderSloot > > * **June 30, 2020 – Pā‘auilo Plant Deal:** VanderSloot next moved to acquire the Big Island slaughterhouse. In mid-2020, the Hawaii Board of Agriculture **consented to assignment of the state lease for the Pā‘auilo facility (Big Island)** from Hawai‘i Beef Producers (De Luz’s group) to VanderSloot’s entity **Hawaii Beef Lease, LLC**. Effectively, VanderSloot **took over the Big Island abattoir** — whose owner was looking to retire — making him the operator of Hawaii’s two largest slaughterhouses. The Pā‘auilo plant (which had seen major upgrades in 2012) was, alongside the O‘ahu plant, a cornerstone of local processing. Through these acquisitions in \*\*2019–2020, VanderSloot assumed control of roughly **70% of the state’s total meat processing capacity**, a consolidation unprecedented in Hawaii’s beef industry. VanderSloot formed a parent company, **Hawaii Sustainable Beef**, to oversee both Hawaii Meats (O‘ahu) and Hawaii Beef Producers (Big Island) operations. > > * **2019–2021 – Facility Investments:** VanderSloot immediately began investing capital to modernize and expand both slaughterhouses. By late 2021, **O‘ahu’s Hawaii Meats (Kalaeloa) plant** had increased its throughput capacity by \~**20%** after improvements to refrigeration, waste processing, and line speed. Plans were announced to roughly **double** each plant’s pre-acquisition capacity once upgrades are fully completed. VanderSloot projected the two facilities could process about **30,000 head annually** – roughly **30–40%** of Hawaii’s total cattle – versus a few thousand per year previously. Work on the Big Island’s Pā‘auilo plant was underway by 2021–2022, with VanderSloot later reporting that, in total, **\$27 million** had been invested into improvements at the two plants. This infusion of capital aimed to increase local beef supply, reduce the need to ship calves to the Mainland, and enable smaller ranchers to bring cattle to market locally year-round. > > ## 2021: Scrutiny of Consolidation and New Kauaʻi Ranchlands > > * **Feb 2021 – Legislative Pushback (SB 692):** VanderSloot’s rapid consolidation of Hawaii’s processing capacity sparked concern from some industry players, notably the Big Island’s **Parker Ranch** (one of the state’s largest ranches). In early 2021, Hawaii lawmakers introduced **Senate Bill 692** to address what some called an emerging **processor monopoly**. The bill targeted any meat processor controlling over 50% of state capacity (in effect, VanderSloot), proposing to cap such a processor’s use of its facilities at 50% for its **own branded products**, reserving the other 50% for other ranchers’ brands. It also would have required annual reporting of business plans and efforts to involve stakeholders. Parker Ranch testified in favor, arguing one person owning \~70% of capacity could stifle competition and fair cattle pricing. Numerous local food and cattle industry groups supported the bill. **Opposition** came from many small ranchers (who by then had favorable deals with VanderSloot), VanderSloot’s company, and even the state Attorney General (who questioned the legality of retroactive lease restrictions). Ultimately, SB 692 **failed to pass** in 2021. In the aftermath, the Hawaii Cattlemen’s Council noted that the industry had “tempered its fears” and would be watching to ensure VanderSloot keeps his promises to expand capacity fairly and enhance food sustainability for the state. > > * **Fall 2021 – Kauaʻi Land Acquisition for Ranching:** Undeterred in his mission to boost local beef production, Frank VanderSloot made a high-profile land purchase on Kauaʻi. In **October 2021**, a VanderSloot-linked entity (Kealia Land Co. LLC) **acquired \~1,075 acres** of former sugar land on Kauaʻi’s northeast coast (Keālia) for about **\$38 million**, from developer Peter Nolan’s company. Soon after, he bought additional adjacent parcels – totaling over **2,000 acres** of ranchland – for a **combined \$51 million** (the transactions closed in late 2021). The land had previously been slated for an “agricultural subdivision” with luxury home sites, but VanderSloot announced plans to **instead use it for cattle grazing** (approximately **500 to 2,000 head** of cattle) to increase local beef supply. “Building housing out on this farm ground is not where I think you ought to be developing,” he said, emphasizing keeping the acreage in agriculture. Local officials on Kauaʻi noted that if VanderSloot’s ranching plan boosts Hawaii’s food self-sufficiency, it should be applauded. (VanderSloot by this time was already a part-time Kauaʻi resident, having earlier purchased the historic 102-acre Valley House estate in 2016 for \$14.3 million.) > > ## 2022: Capacity Building and New Local Beef Brands > > * **2022 – Expanded Operations and “Kamaʻāina” Beef:** With slaughterhouse upgrades progressing, Hawaii Meats began rolling out new product lines to capitalize on the increased capacity. VanderSloot’s team introduced the **“Kamaʻāina” brand** of Hawaii-grown beef, marketing it as an affordable local alternative to imported meat. Notably, a new processing and packaging line on O‘ahu now produces **vacuum-sealed brick packs of ground beef** under the Kamaʻāina label. This value-added product was one result of VanderSloot’s investment in modernizing the O‘ahu plant, enabling longer shelf life and wider distribution. The strategy contrasts with some incumbent ranchers’ premium, grass-fed branding; VanderSloot has signaled he believes local beef can also succeed as a **volume business competing on price** with mainland beef. By late 2022, VanderSloot reiterated an ambitious vision: with ample pasture and improved infrastructure, Hawaii could finish far more cattle locally – potentially **producing up to 40% of the state’s beef** within Hawaii, versus <10% a few years ago. This marked a dramatic potential shift toward local food security, contingent on continued rancher cooperation and market development. > > ## 2023: Shifting Markets, Tensions with Parker Ranch, and Ongoing Impact > > * **July 2023 – Parker Ranch Loses Safeway Contract:** Tensions between the new processor paradigm and established ranch brands came to a head in mid-2023. **Parker Ranch**, which had spent a decade building its **“Paniolo Cattle Company”** beef line as a premium, island-raised product, announced its flagship Paniolo brand would **no longer be carried in Safeway supermarkets after July 5, 2023**. Safeway had been Parker Ranch’s biggest retail customer statewide. The void on Safeway’s shelves was promptly filled by **VanderSloot’s Kamaʻāina-branded beef**, thanks to Hawaii Meats’ ability to supply volume at competitive prices. Parker Ranch’s CEO Dutch Kuyper acknowledged the change with mixed feelings – proud of Paniolo’s legacy, but noting, “If somebody else thinks they can do it better and that results in investment, that’s a good thing”. The episode underscored the industry’s new dynamics: with **VanderSloot as essentially the gatekeeper to large retail channels**, even Hawaii’s most iconic ranch has had to adjust strategy. (Parker Ranch has pivoted to other markets and opportunities, while continuing its advocacy for fair beef pricing). > > * **2023 – Market Power and Industry Response:** By 2023, Frank VanderSloot’s dual ownership of Hawaii’s major slaughterhouses had undeniably transformed the local beef industry. His enterprises now **control about 70% of Hawaii’s beef processing capacity** and have injected significant capital (an **estimated \$27 million** so far) into processing and distribution infrastructure. This has **positive impacts**: many small and mid-size ranchers, who previously lacked access to timely slaughter or were forced to ship cattle out-of-state, can now finish and process animals locally year-round. VanderSloot has kept slaughter fees low and even absorbed losses to encourage more local beef production, which earned him gratitude from some Hawaii ranchers. **At the same time, concerns remain** about one entity wielding so much influence. Ranchers have noted that the **prices paid for live cattle have remained relatively flat** over the past five years (2018–2023) despite surging mainland beef prices, raising suspicions that the dominant processor (VanderSloot) might be keeping producer prices down. Hawaii’s Attorney General and others have warned of potential anti-competitive effects if a single operator dictates market terms. For now, industry leaders are taking a “trust but verify” approach – acknowledging that **VanderSloot’s investments expanded local capacity and even saved the only O‘ahu plant from collapse**, but also watching to ensure that Hawaii Meats offers fair access and pricing to all ranchers. The Hawaii Cattlemen’s Council notes that most producers support any effort that keeps local beef viable, and they are “waiting and hoping” VanderSloot will fulfill his promises in the long run. The coming years will reveal whether this consolidation leads to a stable, self-sufficient **Hawaii beef industry** (with lower dependence on imports) or if further interventions are needed to maintain competitive balance. > > **Sources:** Key details have been drawn from state government records, Hawaii news outlets, and industry reports, including Honolulu Civil Beat, Hawaii News Now, the *Garden Island*, and official HDOA documents, as cited above. Each event entry notes public record information on dates, financial terms, previous owners, asset details, development actions, and industry impact to provide a comprehensive timeline of Hawaii Meats and Frank VanderSloot’s activities in Hawaii’s cattle and meat processing sector, among others. > > --- > ### 📚 Reference List > > 1. **Civil Beat – "Beefing Over Control Of Hawaii’s Meat Processing Industry" (Feb 17, 2021)** > An in-depth look at legislative concerns over VanderSloot's control of 70% of Hawaii's meat processing capacity and the introduction of Senate Bill 692 to address potential anti-competitive practices. > [https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/](https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/) > > 2. **Civil Beat – "A Struggle For Control Of Hawaii's Beef Industry Is Playing Out On Safeway Shelves" (June 2023)** > Details the shift in Safeway's beef suppliers from Parker Ranch's Paniolo Cattle Co. to VanderSloot's Kamaaina brand, highlighting industry tensions and pricing concerns. > [https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/) > > 3. **Hawaii News Now – "Big beef: Safeway breaks ties with iconic ranch as local meat industry struggles to grow" (June 20, 2023)** > Reports on Safeway discontinuing Parker Ranch's beef products in favor of VanderSloot's offerings, and the broader implications for Hawaii's meat industry. > [https://www.hawaiinewsnow.com/2023/06/20/beef-over-beef-safeway-breaks-ties-with-iconic-ranch-local-meat-industry-struggles-grow/](https://www.hawaiinewsnow.com/2023/06/20/beef-over-beef-safeway-breaks-ties-with-iconic-ranch-local-meat-industry-struggles-grow/) > > 4. **East Idaho News – "VanderSloot rescues jobs, gives ranchers \$1.5 million in 'game-changing' move to save Hawaii's cattle industry" (Oct 9, 2019)** > Covers VanderSloot's acquisition of Kunoa Cattle Co.'s Oahu operations, his \$1.5 million payout to ranchers, and the establishment of Hawaii Meats. > [https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/) > > 5. **Hawaii Department of Agriculture – "Livestock Harvesting Volume I Part B Appendices"** > Provides technical data and documentation on Hawaii's livestock industry, including processing capacities and infrastructure details. > [https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-B-Appendices.pdf](https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-B-Appendices.pdf) > > 6. **Hawaii Department of Agriculture – Board of Agriculture Meeting Documents (Oct 26, 2021)** > Includes communications from Frank VanderSloot regarding capital improvements and maintenance expenses related to Hawaii's meat processing facilities. > [https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf](https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf) > > 7. **Beat of Hawaii – "Move Over Zuckerberg | Controversy Surrounds New Billionaire Kauai Landowner" (May 24, 2022)** > Discusses VanderSloot's \$51 million purchase of over 2,000 acres on Kauai for cattle grazing and the local reactions to his land acquisitions. > [https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/) > > 8. **Hawaii News Now – "Their dream is to get more local beef to your table. Making that a reality? It won’t be easy." (June 21, 2023)** > Explores the challenges and opportunities in Hawaii's beef industry, including VanderSloot's investments and the goal of increasing local beef consumption. > [https://www.hawaiinewsnow.com/2023/06/21/their-dream-is-get-more-local-beef-your-table-making-that-reality-it-wont-be-easy/](https://www.hawaiinewsnow.com/2023/06/21/their-dream-is-get-more-local-beef-your-table-making-that-reality-it-wont-be-easy/) > > 9. **Meatingplace – "Hawaii bill takes aim at beef processing consolidation" (Feb 2021)** > Reports on legislative efforts to address concerns over consolidation in Hawaii's beef processing industry, specifically targeting VanderSloot's operations. > [https://www.meatingplace.com/Industry/News/Details/97435](https://www.meatingplace.com/Industry/News/Details/97435) > > 10. **Farms.com – "A Struggle For Control Of Hawaii’s Beef Industry Is Playing Out On Safeway Shelves" (July 3, 2023)** > Reiterates the shift in Safeway's beef suppliers and the broader industry implications, echoing reports from other sources. > [https://m.farms.com/news/a-struggle-for-control-of-hawaii-s-beef-industry-is-playing-out-on-safeway-shelves-196514.aspx](https://m.farms.com/news/a-struggle-for-control-of-hawaii-s-beef-industry-is-playing-out-on-safeway-shelves-196514.aspx) > [!llm] via [perplexity chat](https://www.perplexity.ai/search/explain-the-purchasing-and-dev-I7Cqy.PmSf23nt54lw3KYQ) > ## Timeline and Details of Frank VanderSloot/Hawaii Meats Acquisition and Development in Hawaii > > **Background and Initial Acquisition (2019-2020)** > > - In 2019, Idaho billionaire Frank VanderSloot, founder of Melaleuca, began his entry into Hawaii's beef industry by acquiring the assets of Kunoa Cattle Company, including its Oahu slaughterhouse. The company was rebranded as Hawaii Meats, with existing leadership retained and staff receiving pay increases[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/). > > - VanderSloot agreed to pay fair market value for the company and immediately infused capital, promising to invest "several million dollars" to expand and modernize the plant’s capacity[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/). > > - By mid-2020, VanderSloot followed up by acquiring the state’s largest meat processing plant, Hawaii Beef Producers, located on the Big Island[7](https://hawaiifood.com/wp-content/uploads/2021/08/6106-H_HRG_FALL_2020_FINAL-2.pdf). This gave him control over the two main slaughterhouses in Hawaii, both on Oahu and the Big Island[2](https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/)[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/). > > > **Expansion and Land Purchases (2021-2022)** > > - In October 2021, VanderSloot purchased over 2,000 acres on Kauai for $51 million, with plans to graze 500 to 2,000 cattle and further support local beef production[3](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/)6. > > - He also owns the historic 102-acre Valley House estate on Kauai, purchased in 2016 for $14.3 million, and has shipped premium cattle from Idaho to Hawaii to improve local genetics[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/)6. > > - VanderSloot’s stated goal is to make Hawaii more self-sufficient in beef, aiming for his operations to eventually handle 35-40% of the state’s meat processing needs6. > > > **Development and Industry Impact (2020-2024)** > - Post-acquisition, slaughter capacity on Oahu increased by 20%, with both plants expected to double their previous output, potentially processing up to 30,000 cattle annually—about 30% of the state’s herd[2](https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/). > - VanderSloot invested over $27 million into Hawaii’s slaughter operations, but the businesses have been operating at a loss (over $6 million in 2022), reflecting his willingness to subsidize the industry’s transition[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/). > - He has focused on expanding access: the number of ranches serviced by the slaughterhouses grew from 40 to 172, aiming to be more inclusive of smaller producers[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/). > - VanderSloot’s approach has been controversial. Larger ranches, notably Parker Ranch, have voiced concerns about market control and stagnant prices, leading to legislative attempts (unsuccessful) to limit his influence[2](https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/)[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/). > > > **Cattle Herds and Genetics** > - VanderSloot’s Riverbend Ranch in Idaho maintains a herd of 500 cows on Kauai and has shipped 25 premium bulls to Hawaii to upgrade local cattle genetics, which lag behind mainland standards by decades[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/). > - The focus is on grass-fed beef, maintaining Hawaii’s unique position in the U.S. beef market[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/). > > > ## Summary Table: Key Events > > |Year|Event/Development|Details| > |---|---|---| > |2019|Acquisition of Kunoa Cattle Company (Oahu plant)|Rebranded as Hawaii Meats, staff retained, pay increased[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/)| > |2020|Acquisition of Hawaii Beef Producers (Big Island)|Largest plant in state, expanded slaughter capacity[7](https://hawaiifood.com/wp-content/uploads/2021/08/6106-H_HRG_FALL_2020_FINAL-2.pdf)| > |2021|Purchase of 2,000+ acres on Kauai|$51 million, for cattle grazing and local production[3](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/)6| > |2022-2023|Expansion and modernization of processing facilities|$27 million invested, capacity doubled, 172 ranches serviced[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/)| > |2016-2022|Additional land and herd investments|102-acre estate, 500 cows, 25 premium bulls imported[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/)6| > > ## Conclusion > > Frank VanderSloot’s acquisition and development of Hawaii’s meat processing infrastructure and cattle herds began in 2019, with a rapid series of purchases and investments in slaughterhouses, land, and cattle genetics. His stated goal is to make Hawaii’s beef industry more self-sufficient, though his approach has generated both optimism and controversy among local ranchers and industry stakeholders[2](https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/)[4](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/)[5](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/). > > 1. [https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf](https://hdoa.hawaii.gov/wp-content/uploads/2021/10/T-Item-A-5-10.26.21-BOA-mtg-Set-3.pdf) > 2. [https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/](https://www.civilbeat.org/2022/01/hawaii-is-beefing-up-its-potential-to-produce-more-meat-locally/) > 3. [https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/](https://beatofhawaii.com/move-over-zuckerberg-controversy-surrounds-new-billionaire-kauai-landowner/) > 4. [https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/) > 5. [https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/](https://www.eastidahonews.com/2019/10/vandersloot-rescues-jobs-gives-ranches-1-5-million-in-game-changing-move-to-save-hawaiis-cattle-industry/) > 6. [https://www.youtube.com/watch?v=D35tae6JrGg](https://www.youtube.com/watch?v=D35tae6JrGg) > 7. [https://hawaiifood.com/wp-content/uploads/2021/08/6106-H_HRG_FALL_2020_FINAL-2.pdf](https://hawaiifood.com/wp-content/uploads/2021/08/6106-H_HRG_FALL_2020_FINAL-2.pdf) > 8. [https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-A-Main.pdf](https://hdoa.hawaii.gov/arm/files/2022/11/Livestock-Harvesting-Volume-I-Part-A-Main.pdf) > [!llm] Herd development > ### Riverbend Ranch: Mainland Operations > > * **Establishment and Growth**: Founded in 1992 by Frank and Belinda VanderSloot, Riverbend Ranch began as a cow-calf operation and has since evolved into one of the largest registered Angus seedstock operations in the U.S. ([capitalpress.com][1]) > > * **Herd Composition**: The ranch manages approximately 1,400 registered Angus cows, along with 3,500 to 5,000 commercial cows. They feed out about 11,000 head annually across eight ranches located in Idaho, Utah, Texas, Montana, and Hawaii. ([capitalpress.com][2]) > > * **Genetic Excellence**: Riverbend Ranch emphasizes superior genetics, utilizing genomically enhanced Expected Progeny Differences (EPDs) to select for traits like fertility, carcass merit, and adaptability. Their rigorous selection process has positioned them as a leading source for high-quality Angus genetics. ([capitalpress.com][1]) > > --- > > ### Expansion into Hawaii > > * **Initial Presence**: Riverbend Ranch extended its operations to Hawaii, integrating its advanced genetic programs to enhance local cattle herds. ([capitalpress.com][2]) > > * **Land Acquisition**: In 2021, VanderSloot acquired over 2,000 acres on Kaua‘i for approximately \$51 million, aiming to develop a self-sustaining cattle operation that leverages Riverbend's superior genetics to boost local beef production.&#x20; > > * **Impact on Local Industry**: By introducing high-quality genetics and investing in local infrastructure, Riverbend Ranch has contributed to revitalizing Hawaii's beef industry, offering ranchers access to improved breeding stock and processing facilities.&#x20; > > --- > > ### Commitment to Quality and Sustainability > > * **Animal Welfare**: Riverbend Ranch adheres to humane animal husbandry practices, ensuring cattle are raised with their mothers, roam freely, and are never administered growth hormones or antibiotics. ([riverbendranch.com][3]) > > * **Vertical Integration**: The ranch's operations encompass the entire beef production process, from breeding and raising cattle to processing and distribution, allowing for greater control over product quality and consistency. ([profoodworld.com][4]) > > --- > > Through strategic expansion and a steadfast commitment to excellence, Riverbend Ranch under Frank VanderSloot's leadership has significantly influenced cattle herd development, bringing advanced genetics and sustainable practices to both mainland and Hawaiian beef industries.([riverbendranch.com][3]) > > [1]: https://capitalpress.com/2012/03/01/ranch-maintains-familys-link-to-tradition/?utm_source=chatgpt.com "Ranch maintains family's link to tradition - Capital Press" > [2]: https://capitalpress.com/2021/12/09/riverbend-ranch-progressive-operation-develops-high-quality-cattle/?utm_source=chatgpt.com "Riverbend Ranch: Progressive operation develops high quality cattle" > [3]: https://riverbendranch.com/our-ranch/?utm_source=chatgpt.com "Our Ranch - Riverbend Ranch" > [4]: https://www.profoodworld.com/home/article/22911525/manufacturing-innovation-how-riverbend-ranch-made-the-cut?utm_source=chatgpt.com "Manufacturing Innovation: How Riverbend Ranch Made the Cut" > ## Scale Domains & Key Discontinuities #### Production Scale #### Economic Scale #### Social Scale ## Intents (Narrative analysis) #### Whats in a name? **Hawaii Sustainable Beef** Initially marketed as Kua 'Aina and Kua 'Aina Ranches, the firm came up against long running burger establishment Kua 'Aina Sandwich Shop which filed a lawsuit claiming trademark infringement and unfair competition. 2022-12-15 [Haleiwa burger company sues beef firm based in Idaho for alleged use of trademark](https://www.newspapers.com/article/honolulu-star-advertiser-haleiwa-burger/173750743/) per Honolulu Star-Advertiser Vandersloot stated So a contest was crafted to engage public participation http://namethebeef.com/ > ## Brand Considerations > The winning name will be chosen by the management of Hawaii Sustainable Beef after consultation with some of the leading ranchers who sell beef into the program. The new brand will represent beef that comes from over 140 local ranches on The Big Island, Oahu, Maui, and Kauai.  > > They are looking for a name that communicates an accurate, positive message about their beef, including that it's:  > > - From small local ranchers in Hawaii > - Grass fed and grass finished > - All natural > - Raised without hormones or antibiotics > > It needs to be a brand that is not already trademarked and not already in use.  https://www.yahoo.com/news/businessman-wants-hawaii-residents-help-170500775.html Businessman wants Hawaii residents to help name his beef Peter Boylan, The Honolulu Star-Advertiser Tue, December 20, 2022 https://www.staradvertiser.com/2023/01/17/breaking-news/community-contest-announced-to-resolve-name-beef/ selection, Kama'aina Ranches, clearly points towards a  > Hawaii Sustainable Beef management has selected “Kama ‘Aina Ranches” as the winning entry. ## Policy Influence - Policy influence (processing consolidation) https://hawaiiethics.my.site.com/public/s/account/0012K00001omcuaQAA/hawaii-sustainable-beef-enterprises **2021 Meat processing infrastructure consolidation** [SB692](https://www.capitol.hawaii.gov/session/archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=692&year=2022) AEN testimony - [Written](https://www.capitol.hawaii.gov/sessions/Session2021/Testimony/SB692_TESTIMONY_AEN_02-17-21_.PDF)See Vandersloot, Enright, and Dentons - [Oral](https://www.youtube.com/live/hukUSHZTJIU?t=3576s) [HB1206](https://www.capitol.hawaii.gov/session/archives/measure_indiv_Archives.aspx?billtype=HB&billnumber=1206&year=2021) AGR testimony - [Written](https://www.capitol.hawaii.gov/sessions/Session2021/Testimony/HB1206_TESTIMONY_AGR_02-05-21_.PDF) see Vandersloot, Enright - [Oral](https://www.youtube.com/live/R_IpUuCvwak?si=5ETdYqcsOgAbCJ01&t=3268) In 2021, Hawaii Sustainable Beef Enterprises hired former Chair of the Hawaii Department of Agriculture Scott Enright and longtime lobbyist Linda Rosehill to represent their interests during the 2021 State Legislative session (total spent $36,125.64) 2021-02-24 Bobby Farias, Scott Enright, and Schutte publish op-ed [Expansion benefits local beef ranchers](https://www.newspapers.com/article/honolulu-star-advertiser-expansion-benef/173750490/)in Honolulu Star-Advertiser. https://www.civilbeat.org/2021/02/beefing-over-control-of-hawaiis-meat-processing-industry/ **2023: State meat inspection** The same lobbyists were hired for the 2023 legislative session (total spent $9,162.30) - https://www.civilbeat.org/2023/04/a-meat-inspection-program-could-pay-dividends-for-hawaii/ 2023 bills - [HB609](https://www.capitol.hawaii.gov/session/archives/measure_indiv_Archives.aspx?billtype=HB&billnumber=609&year=2023) Relating to Meat Inspection - made it to conference committee - [SB1590](https://www.capitol.hawaii.gov/session/archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=1590&year=2023) was never heard - [SB99](https://www.capitol.hawaii.gov/session/archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=99&year=2023) died in first chamber at FIN >[!warning] include note HH role in meat inspection bill introduction >Worked, as lobbyist for HFUU, to have then House Ag Chair Rep Gates reintroduce HDOA Meat Inspection bills from 2020 ([HB2041](https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=2041&year=2020) / [SB2824](https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2824&year=2020)) ## Market Actions & Effects Price of processing increased, and price paid per pound dropped. Local consumer market price increased - Market concentration metrics? ## COVID-19 Impacts and Responses ## News Sources 2021-02-24 Bobby Farias, Scott Enright, and Schutte publish op-ed [Expansion benefits local beef ranchers](https://www.newspapers.com/article/honolulu-star-advertiser-expansion-benef/173750490/)in Honolulu Star-Advertiser. 2023-06-23 [A Struggle For Control Of Hawaii’s Beef Industry Is Playing Out On Safeway Shelves](https://www.civilbeat.org/2023/06/a-struggle-for-control-of-hawaiis-beef-industry-is-playing-out-on-safeway-shelves/) --- ## Vertical Integration [Idaho Billionaire Buys 1,075 Acres on Kauaʻi’s Northeastern Coast](https://kauainownews.com/2021/11/17/idaho-billionaire-buys-1075-acres-on-kaua%CA%BBis-northeastern-coast/) Hawaii Ranches LLC ([breg](https://hbe.ehawaii.gov/documents/business.html?fileNumber=234971C5)) organized in 2020 and Kealia Land Company LLC ([breg](https://hbe.ehawaii.gov/documents/business.html?fileNumber=262499C5)) organized in 2021, and Kamaaina Ranches organized in 2023 ([breg](https://hbe.ehawaii.gov/documents/business.html?fileNumber=292835C5)) are all also managed by Riverbend Management. > [!llm] # Vertical Integration > Looking at the vertical integration aspects of Hawaii Meats, based on the search results and the document you provided, I can identify several key points:Based on the search results and the document you provided, Hawaii Meats under Frank VanderSloot has pursued extensive **vertical integration** across the beef supply chain. Here's the detailed picture: > ## Upstream Integration (Cattle Production) > 1. **Ranch Ownership**: VanderSloot purchased more than 2,000 acres on Kauai's northeastern coast for $51.2 million in October 2021, planning to raise 500 to 2,000 cattle > 2. **Cattle Ownership**: Hawaii Ranches – owned by Frank VanderSloot – purchased more than 1,100 head of cattle from another rancher in 2020 for $920 per cow > 3. **Genetic Improvement**: VanderSloot has shipped 25 premium bulls from Idaho Falls to Hawaii with the intention of improving the genetic makeup of cattle on the islands > > > ## Midstream Control (Processing) > - **70% Processing Capacity**: Controls both Hawaii Meats (Oahu) and Hawaii Beef Processors (Big Island) > - VanderSloot acquired Kunoa Cattle Company in 2019, which became Hawaii Meats > > ## Downstream Integration (Retail) > - **Direct Retail Contracts**: VanderSloot struck a deal with Safeway for shelf space, replacing Parker Ranch's Paniolo Cattle Co. brand > - **Institutional Sales**: Meat from the plant will be used for Hawaii's farm-to-state program, meaning local beef will be served at schools, hospitals and prisons > > ## Key Vertical Integration Concerns > > The document from Philip H. Howard explains that concentration is increasingly occurring through vertical integration, as firms buy upstream suppliers or downstream retailers. This perfectly describes VanderSloot's strategy in Hawaii. > > The proposed SB 692 legislation specifically targeted this vertical integration, attempting to: > > - Allow VanderSloot to use only 50% of his capacity for meat marketed under his own brands > - Require VanderSloot to provide processing services without requiring ranchers to give up title to their animals > > ## Financial Commitment > > VanderSloot says he has invested $27 million in his Hawaii slaughter operations and VanderSloot's businesses lost more than $6 million last year, showing his willingness to subsidize the vertical integration strategy. > > This represents classic vertical integration where one entity controls multiple stages of production - from raising cattle on owned land, processing in owned facilities, to securing retail shelf space through direct contracts. This concentration of control across the supply chain is precisely what concerned legislators and competitors, as it gives VanderSloot significant power to influence prices and market access at every level. >