End of Del Monte's Hawaii pineapple operation comes early
End of Del Monte's Hawaii pineapple operation comes early
Citing a drop in production volume and depressed pricing, Del Monte Fresh Produce Inc., based in Coral Gables, FL, ended its century-old pineapple operations on the Hawaiian island of Oahu Nov. 17 -- two years earlier than planned.
In a statement released Nov. 17, Del Monte said, "The extreme drop in production volume, coupled with depressed pineapple pricing resulting from the increase of supply in the overall pineapple market, has had a negative financial impact on the company."
Earlier this year, Del Monte announced that it would continue its pineapple- growing operations on the island through 2008. But the company reported a loss of $83.6 million for the three-month period ending Sept. 29, attributed in part to more than $40 million of expenses it was taking to close the Hawaii operations.
"As a result, the company regrettably will not be able to sustain a financially viable operation in Hawaii as originally planned through 2008," Del Monte's statement read.
Maui Land & Pineapple Co., the largest pineapple grower in the state, said that it would explore starting an operation in Oahu to salvage Del Monte's remaining production, and would look toward new plantings in the future. The move will mean the loss of jobs for about 550 people in the region. Del Monte workers will be paid through Jan. 22.
In a statement released Nov. 17, Del Monte said, "The extreme drop in production volume, coupled with depressed pineapple pricing resulting from the increase of supply in the overall pineapple market, has had a negative financial impact on the company."
Earlier this year, Del Monte announced that it would continue its pineapple- growing operations on the island through 2008. But the company reported a loss of $83.6 million for the three-month period ending Sept. 29, attributed in part to more than $40 million of expenses it was taking to close the Hawaii operations.
"As a result, the company regrettably will not be able to sustain a financially viable operation in Hawaii as originally planned through 2008," Del Monte's statement read.
Maui Land & Pineapple Co., the largest pineapple grower in the state, said that it would explore starting an operation in Oahu to salvage Del Monte's remaining production, and would look toward new plantings in the future. The move will mean the loss of jobs for about 550 people in the region. Del Monte workers will be paid through Jan. 22.
