Maui Land & Pineapple Co. Inc., the state's last producer of canned pineapple, said yesterday it will end its fruit canning operations June 30.

The company will instead focus on pineapple juice and fresh fruit, said Maui Land & Pineapple CEO David Cole, in a written statement. The move will eliminate 120 jobs, or 27 percent of the company's workforce, although affected workers will be offered jobs in other divisions of the company, Cole said.

The decision ends more than 100 years of pineapple canning in Hawai'i. Hawai'i's once-famous pineapple export industry — which brought waves of immigrant workers and contributed to the state's multicultural heritage — is a victim of cheaper overseas producers.

The planned job cuts follow the elimination of 551 O'ahu jobs last year when Del Monte Fresh Produce ceased its fresh pineapple operation after more than a century in Hawai'i.

The pineapple industry's decline comes amid intense competition from foreign farmers who can produce the fruit at a lower price. That has hit Hawai'i's pineapple and sugar cane growers especially hard. Even before Del Monte's shutdown, sales of Hawai'i pineapple — the state's biggest single cash crop — were declining.

Fresh pineapple production and sales last year were the lowest since the state began keeping records in 1950. The value of last year's fresh pineapple crop was about $75.5 million, a drop from the previous low — in 2005 — of $79.3 million.

The state's pineapple growers produced 188,000 tons of fresh pineapple in 2006. The state record for pineapple production was set in 1955 at 1.5 million tons, and the highest sales total was recorded in 1991 at $107.8 million.

Faced with high land and labor costs, Hawai'i pineapple growers are losing market share to countries such as Costa Rica, Mexico and Ecuador.

RITE OF PASSAGE

Not long ago, working in the canneries was a rite of passage for many Hawai'i teens. A generation of baby boomers worked at the canneries during summer vacation to help pay their college tuition. They'd work 40 hours a week at a minimum wage, which in the mid-1960s was $1.25 an hour. Many say today the experience taught them the value of a hard-earned dollar.

"I gained an appreciation for education because I knew I did not want to do this the rest of my life," said Eddie Inouye, 68, retired University of Hawai'i sports information director, who worked at the Dole Cannery for $1.01 an hour while attending UH. "It was hard to get summer jobs and it gave me tuition and spending money."

Maui Land & Pineapple CEO Cole said shutting the cannery "is necessary as we work to develop a profitable business model for our pineapple company."

"We are in a situation where we need to cut some jobs to save many others," he said. "Fortunately the bulk of our agricultural workforce is concentrated in our fresh fruit segment.

"By discontinuing operations that are no longer competitive, we are able to concentrate on the fresh fruit segment where we have the best chance for achieving and sustaining a niche market for Maui-grown pineapple," Cole said.

Some of the affected workers at the Kahului cannery may be transferred to fresh fruit packing operations, which will add another shift, or to juice processing, the company said. All affected employees will be encouraged to apply for openings in other divisions. Maui Pineapple Co. Ltd., a subsidiary of Maui Land & Pine, said it is working with the International Longshore and Warehouse Union to assist employees during the transition.

"At the local level, we are working diligently to ensure the affected employees are taken care of," said Willie Kennison, ILWU's Maui division director. "We are working with the company to look at all available avenues to assist these employees."

'DIFFICULT DECISION'

Maui Mayor Charmaine Tavares said Maui Land & Pineapple's decision was the result of market forces.

"I'm certain that this was a difficult decision for Maui Land and Pineapple to make. Generations of local families have worked in the pineapple cannery, my own included," she said.

"The company's continual growth in the fresh fruit business reflects a growing consumer demand for these products, and their move to provide an extended line of fresh fruit will signal a new chapter for the company.

"I'm saddened by the approaching layoffs and am hopeful that our very low unemployment rate will give the affected employees an opportunity for quick transition into new employment."

Reach Sean Hao at shao@honoluluadvertiser.com.