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Talk
about gentleman
farmers. Up
until they
formalized
their partnership
and incorporated
their farm
business in
1995, Clyde
Fukuyama and
Melvin Matsuda
were used
to doing business
with a handshake.
In fact they
still do some
business that
way today.
Both are third-generation family farmers who grew up as neighbors in the close knit North Shore enclave of Kahuku. Both had other options before coming back to work their respective families farms in the early 1980's. Fukuyama had been helping farmers as a junior extension agent with The University of Hawaii. Matsuda had been a karate instructor on the Mainland. In 1985, the two were offered the opportunity to grow watermelons in Australia. Because they had grown up together and knew each other well, it was their first handshake deal. Fukuyama says, "Mean while we were just farmers. None of this signing or binding contracts. It was quite an adventure." |
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Mel
Matsuda
& Clyde
Fukuyama
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While they
were successful
in growing
good melons,
the two soon
found that
the feasibility
of transporting
the fruits
to market
was not so
good. Matsuda
says of the
Australian
venture. This was the most significant reason they ended up partnering back in Hawaii, again on just a handshake. Matsuda says, "I think, after that, between Clyde and I was a gentlemen’s agreement. We farmed independently, however, we would share in the profit equally, instead of pursuing two separate businesses. He had his farm and I had mine." Fukuyama had been growing papaya, eggplant, watermelon and corn, and Matsuda grew watermelon, some corn, bananas, bell peppers and bitter melon. They decided to partner on certain crops. "After a period of time, because it was working out really well as far as doing these ventures together, we thought, why not |
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Sweet
Potatoes
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just merge the whole operation together? Again, it was this loose, handshake
kind of deal' says Fukuyama. However, they made it official in 1995. Going
to an attorney they knew in Haleiwa to draw up the papers and Kahuku Farmers
Inc. (in 'Waialua) and Matsuda-Fukuyama Farms Inc. were born. 'When the "Waialua sugar mill closed down in 1996, the partners embarked on an aggressive expansion. Today they lease lands from the Campbell Estate, Dole Foods Inc, the State of Hawaii and Kamehameha Schools. Their combined acreage has grown from about 80 acres to more than 300 acres. Fukuyama says, "When we were doing papaya back in Kahuku, when we were doing 10 acres, we thought that was kind of big, but now, for Dole, we were doing something like 100 acres, So, from a small operation to more of a plantation-style, I think that really transitioned us to grow on a bigger |
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Kylie
Matsuda
- 1980's |
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scale." The number of employees has also grown, from about eight
in 1995 to 40 today. Kahuku Farmers and Matsuda-Fukuyama Farms pay 100
percent of their employees medical insurance, started a 40I(k) and may
look into employee ownership down the road, Fukuyama says, "I think
because we grew up on a farm and because we actually did all the harvesting
and fertilizing and now we're becoming owners and managers of our own
operation, We can relate to our workers, So I think we have more compassion
and appreciate them more, because we know what it's like to be out there
in the hot sun harvesting the crop." Being a bigger operation has
not necessarily meant a bigger bottom line, Matsuda says, while sales
have more than doubled over 10 years, the partners biggest challenge is
to turn a profit. They decline to reveal their annual gross sales, because they think people have misconceptions about what the numbers mean, Says Matsuda: "Because we're an expanding business, |
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Kylie
Matsuda
- 1980's |
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it's very
expensive
to get to
where we are
trying to
go to, so
all our monies
are used for
equipment,
expansion,
more labor,
capital for
running the
business.
We run a really
lean thin
line right
now, but we're
expanding
every year." Their business has diversified somewhat too, besides owning and operating farms, the partners help to manage irrigation systems in the North Shore area, by maintaining the ditches and filters that carry water from lake Wilson in Wahiawa. They also have partnered with a third farmer in the ownership of a large expensive tractor. They share it for their farms and contract out for it's services. Once again this was a handshake deal. They are doing something right. Their business performance has earned Kahuku Farmers Inc. and Matsuda-Fukuyama Farms Inc. the distinction of being named the SBA family owned small business for the City and County of Honolulu in 2005. Matsuda's daughter Kylie is now the fourth generation farmer in the family, She works in accounting and developing new ventures. The partners say agri-tourism is the next step. Chances are good that some of that business will be done with a handshake. Says Fukuyama: "We come from the same background and we have the same values. We can work things out in a positive way and I think that really helped us move forward." |
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| Opening
SOON! 808-372-7522 Fax: 808-293-8263 |
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