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Macadamia labeling bill deferred after mixed testimony on processing capacity and labeling standards
Summary
Lawmakers heard competing testimony for and against SB135 — growers and processors warned the state lacks processing capacity while supporters urged stronger Hawaii-grown labeling and a processing solution — and the committee indefinitely deferred the measure to allow further stakeholder work.
The joint Senate committees on Economic Development and Commerce heard testimony Feb. 11, 2025 on Senate Bill 135 (SB135), which would alter labeling rules for macadamia products. After mixed testimony from producers, processors and industry groups, the chair deferred the measure indefinitely to allow stakeholders to continue negotiations.
Hawaiian Host Group (represented by CEO Ed Schultz) and other industry supporters said the bill aims to bring the industry together around a processing solution that benefits growers of all sizes. Schultz said the amendment to the bill “will do that… to get all parties together, big and small growers, working on a solution for everyone,” and that an adjusted deferred date could be acceptable.
Opponents including Hamakua Mac Nut Company and several small-farm representatives warned current in-state processing capacity is insufficient. Jeff Clark, president of Hamakua Macadamia Nut Company, said existing “made in Hawaii” and processing laws already govern labeling and that “there's not enough processing in the state to process all the macadamia nuts that are grown in the state,” a constraint he attributed to the 2022 closure of a factory.
Committee members questioned timeline and infrastructure readiness. Witnesses acknowledged early-stage planning on a new facility and that state funding had been provided to begin design work; speakers said construction and ramp-up would likely take several years. After reviewing written and oral testimony and noting mixed positions, the chair announced an indefinite deferral so parties could continue working toward a compromise.
The committee’s deferral leaves the bill inactive for the session unless the author later requests a reconvening or amendment; members urged stakeholders to work together on infrastructure and labeling standards during the interim.
