grow fungi in hawaii

[luluhappygirl]

Thanks OpenD, we do registered an llc , but no detailed and clear idea about how to make it work. fungi i mean is both mushrooms and medicinal fungi as most asian people like it.

[luluhappygirl]

Thanks KauaiHiker

[hotzcatz]

Well, Luluhappygirl, you could start small by growing some mushrooms and selling them locally at the farmer's market. That won't take any more paperwork than you've already done by filing an LLC for your farm, would it? A sales tax license is covered by an LLC? Or give the tax office fifteen bucks and get a tax license in the name of your LLC.

Since you're not cooking the mushrooms, they should be sold just like any other fruit or vegetable. Stick it in a box or bag and hand it over to the buyer. You give them mushrooms, they give you money, you give some to the tax man, it should all work.

If you start small, you can get all sorts of market research done inexpensively. You'll find out which varieties sell and how folks prefer them packaged. Once you get some production going, then you can look for more places to sell your product. Kinda keep the production and sales outlets balanced. When there's more production, then look for more markets.

A lot of companies fail because they try to start too big. There is a lot of stuff about being in business that you learn while doing the business. If you start small, the mistakes won't cost much.

If you bring in mushroom logs to sell to other folks that want to grow them, that would be something that I'd be interested in. Just one for button mushrooms, nothing fancy.

[Mikala43]

I think I see the problem with the 51% value added. I never heard of this before so correct me I am wrong:


You buy coffee beans from China, super cheap ones

You roast them in Hawaii

You flavor them in Hawaii with Macadamia nut flavoring made in hawaii

You put them in cute little packages and tie them with raffia


Wa-la!!! 51% of the value was done in Hawaii so you get a Made in Hawaii sticker for cheap beans

Now the people who are actually growing coffee in Hawaii can't compete easily despite a superior coffee, but much more costly.

If the whole coffee analogy is incorrect fit in whatever product does.

The TERM "valued-added" seems to be problematic for some of the industries.

[OpenD]

Originally Posted by Mikala43

I think I see the problem with the 51% value added. I never heard of this before so correct me I am wrong:

You buy coffee beans from China, super cheap ones... etc.

I understand the theoretical, but is this an actual problem? I'm not a big fan of legislation in search of an issue.

[Mikala43]

Originally Posted by OpenD

I understand the theoretical, but is this an actual problem? I'm not a big fan of legislation in search of an issue.

I just wish it wasn't so common..... but no, I'm not a fan either.

I don't know if it is, or what the best way to solve it is. I've seen new legislation come through where the same thing could have been fixed by enforcing existing laws.

In this case.... I'm not convinced that my understanding of the problem is correct.

[KauaiHiker]

Originally Posted by Mikala43

I don't know if it is, or what the best way to solve it is. I've seen new legislation come through where the same thing could have been fixed by enforcing existing laws.

I think there are 2 different situations on here:

The actual case (my understanding of what happened a few years ago) of Kona coffee being diluted to 10% or less and still being labeled as Kona coffee. Or rather not being clearly labeled as only 10% Kona coffee.

The hypothetical case of Chinese coffee beans being imported, processed and packaged and being sold as Made in Hawaii.

What is common to both situations, is that the labeling is not clear where it matters: the origin of the beans. What happens is that there is some status quo (people growing and selling Kona coffee and getting a good reputation), and then the market changes (people selling cheap beans in ways that misleadingly make the consumer think they're getting those Kona beans with good reputation). I think we definitely need new laws when the market changes in ways to take advantage of consumers.

I think it is good for legislators to recognize that Kona Coffee has a reputation that should be protected, and the way to do that is to require coffee be labeled clearly (on the front and in large font) the origin and percentage of the beans. This is recognizing that the deceptive labeling was taking advantage of something that does bring money and recognition to the state. So such a new law would be good for consumers and good for the state.

Of course it is more complicated than that, because there are a lot of edge cases, but the point is: the market changes, the laws change to protect local interests.

[KaraBenNemsi]

Mikala, your understanding is spot on. The situation is not only being tied to coffee but applies to most other HI ag and craft products. Hawaii has a unique position as its names are highly valued. Tourists are a captive audience. And legislation is easily swayed by corporate and union lobbying (Try to sway California and you'll get a bloody nose).

But importers are not only to blame. Fluctuations in harvests are a given thing, and a supermarket only relying on Hawaiian growers may often look like a Russian store in the 1980's. So mixing some off island parts/goods into the Hawaiian products gives stability to the whole industry and guarantees that repeat customers can rely on their vendor and farmer.

The legislation can easily adapt to this scenario by taking a longterm view: Phase the use of anything blended with more than 49% off island stuff out over 5 or even 10 years. Take an inspection fee and random controls will be done by hired inspectors (paid from the fees). Random control is cost efficient and effective. Current government inspectors are always paid out of a general fund and therefore they'll get the axe when a crisis hit. Inspection fees are "slush' funds for travel expenses, iPads, business meals i.e. or go into the general fund as well. The cost-benefit formula of inspectors & fees is therefore hard to explain. Deliberately IMHO, so the governmental agency has more leeway.

Government can not take a passive role when the Hawaiian farmer produces at higher cost, than what the importers gets cheaper from overseas; but allowed to sell under the farmers (Hawaiian) name.