Cattle

Overview

Cattle ranching is a cornerstone of Hawaiʻi Island’s agricultural economy and heritage. The island (Hawaiʻi County) is home to the majority of the state’s cattle herd, with roughly 100,000 cattle and calves inventoried in 2022. Production is predominantly cow-calf and stocker operations on extensive pasture ranges, including one of the United States’ largest ranches (Parker Ranch). Beef cattle are raised on grass year-round, reflecting Hawaiʻi’s tropical pastures and limited local grain resources. This sector supplies local beef to the community and feeder cattle to mainland markets, continuing the paniolo (Hawaiian cowboy) traditions dating back to the 19th century.

Production and Operations

Hawaiʻi Island’s cattle industry spans both large ranches and smaller family farms. Parker Ranch, near Waimea, manages approximately 135,000 acres and thousands of head, but there are also hundreds of smaller ranches (many with under 100 head) across the island. Together, these operations accounted for an inventory of about 100,946 cattle and calves in Hawaiʻi County as of the 2022 Agricultural Census – roughly 77% of all cattle in the state. Common beef breeds include Angus and Angus-crosses; notably, observers report seeing predominantly black Angus-type cattle on island ranches, with minimal Brahman influence evident. The absence of cattle ticks in Hawaiʻi and the mild climate allow British and European breeds to perform well. Breeding herds are pastured on year-round forages (e.g. kikuyu and pangola grass at higher elevations, buffelgrass and kiawe in drier leeward areas). Calves are typically weaned and either sent to mainland feedlots or grown out on island forage, depending on the operation’s strategy.

A longstanding practice has been to “ship the animals to the feed rather than the feed to the animals”. Many Hawaiʻi Island ranchers sell or ship weaned calves (~6 to 9 months old) to the U.S. West Coast for finishing, leveraging the mainland’s abundant feed grain. According to industry sources, roughly 80% of Hawaiʻi-born calves have historically left the state for finishing on the continent. However, a segment of producers keeps cattle on-island through longer grass-finishing programs to supply the local grass-fed beef market. These grass-finished cattle are typically slaughtered at local facilities when reaching market weight. The balance between these two pathways (export vs. local finish) depends on economics and forage conditions each year.

Market and Production Data

Beef production is one of the higher-value agricultural outputs for Hawaiʻi Island. In 2023, Hawaiʻi’s statewide cattle herd reached 148,000 head – a post-pandemic high – and ranchers saw improved returns due to strong cattle prices. Hawaiʻi Island, with its large share of the herd, benefited from these trends. Statewide gross income from cattle sales jumped 53% from 2022 to 2023, reaching about $82 million. Much of this income came from increased cattle “marketing” (sales of animals), which rose by 18% year-over-year. This suggests ranchers sold more animals in response to favorable prices. Local beef production (animals raised and harvested entirely in Hawaiʻi) remains a smaller portion of the industry. For example, on-farm harvest for local consumption was only ~200 head in 2023, as most cattle continue to be marketed off-island. Still, niche local beef brands have emerged – some ranches sell boxed beef directly to consumers or restaurants under labels highlighting “100% Hawaiʻi grass-fed beef.” These value-added efforts cater to local demand for island-grown food and allow ranchers to capture more of the retail value. The available data underscore the dual nature of Hawaiʻi Island’s cattle sector: it supports a significant volume of commodity calves for export while simultaneously developing a premium local beef segment.

Value-Added and Niche Production

In recent years, there’s been a growing movement on Hawaiʻi Island toward value-added beef products. Initiatives like the Parker Ranch-founded Paniolo Cattle Company market locally raised, grass-finished beef in grocery stores and farmers’ markets, aiming to keep more Hawaiʻi-raised beef in-state. Some ranches have invested in their own USDA-certified processing or partnered with local butchers to sell cuts directly. Others focus on breeding stock or specialty markets – for instance, offering locally adapted bulls and heifers to other tropical producers, or selling premium cuts to high-end restaurants emphasizing local sourcing. Agritourism is also present: several ranches host tours, rodeos, or horseback riding experiences that showcase Hawaiʻi’s ranching heritage and generate supplemental income.

Market Trends and Competitiveness

Recent Developments: According to the Hawaiʻi Cattlemen’s Council, roughly 84% of island ranchers express interest in increasing the amount of beef sold locally. This reflects a notable trend: producers are seeking ways to finish more cattle in Hawaiʻi and reduce dependence on mainland feedlots. The backdrop is a push for food security and a recognition that Hawaiʻi currently imports an estimated 90% of the beef consumed in-state. A major development was the acquisition and upgrade of the state’s two largest slaughterhouses by a private investor, Frank VanderSloot, in 2019–2020. He purchased the Hawaiʻi Beef Producers plant in Paʻauilo (Hawaiʻi Island) and a facility near Kapolei (Oahu), which together handle ~70% of Hawaiʻi’s meat processing. VanderSloot’s investments have already boosted Oahu’s slaughter capacity by ~20%, with plans to double combined throughput. At full utilization, the improved plants could process ~30,000 head per year – about 30% of the state’s current cattle herd. This expansion in local processing capacity is significant, as lack of harvest infrastructure has long been a bottleneck for keeping cattle in Hawaiʻi. Ranchers are “waiting and hoping” that these upgrades will translate into more viable local marketing options.

However, the slaughterhouse consolidation raised concerns about competition. In 2021, Parker Ranch and other industry players debated legislation to prevent potential monopolistic practices in meat processing. Although the bill ultimately failed, it highlighted tensions: large producers worried about pricing power, while smaller ranchers saw expanded capacity as an opportunity. Since then, stakeholders have struck a cautiously optimistic tone, emphasizing the need for trust and fair dealing in the new processing landscape.

Competitiveness Challenges

Hawaiʻi Island’s beef industry faces structural challenges in competing with mainland producers. A key issue is the high cost of feed and logistics. As reported by one industry analysis, it is essentially “impossible to profitably finish cattle in local feedlots” because Hawaiʻi cannot grow feed grains at scale. The state’s climate and land economics favor pasture-based ranching over row-crop feed production; thus grain must be imported at great expense. Shipping feed to Hawaiʻi roughly doubles its price, with estimates of $150–$200 per ton in freight costs alone. This means Hawaiʻi ranchers who attempt grain-finishing face far higher costs of gain than mainland feedlots. Even for grass-finishing operations, the competition is stiff: local grass-fed beef must compete with abundant imported beef (often grain-finished) that enters Hawaiʻi at lower wholesale prices. Notably, many local consumers have been accustomed to mainland beef, which tends to be grain-fed and heavily marbled. According to an Australian observer of Hawaiʻi’s industry, grass-fed beef – Hawaiʻi’s predominant local offering – “is generally not the favored product with local consumers” when compared to imported grain-fed beef available in supermarkets. Changing these consumer preferences and educating buyers on grass-fed qualities is an ongoing effort of local beef marketers.

Logistics and scale also impact competitiveness. With a total herd of ~130,000–150,000 head spread across islands, Hawaiʻi’s entire cattle sector is tiny relative to mainland states. This small scale makes it hard to achieve processing efficiency and drives reliance on exporting calves. Moreover, shipping regulations add complexity: the federal Jones Act requires interisland and Hawaiʻi-mainland shipments to use U.S.-flagged vessels, which means specialized livestock carriers cannot be used. Ranchers must ship cattle in modified containers or occasionally by air, both costly options. These factors contribute to Hawaiʻi calves costing more to deliver to market. As one local rancher summarized, “it’s cheaper to ship the animals to the feed than the feed to the animals” – a decades-old reality that still shapes industry decisions.

Opportunities and Adaptations

Despite challenges, Hawaiʻi Island’s cattle sector has opportunities to improve self-reliance and value capture. Grass-fed beef demand is rising in certain consumer segments, and Hawaiʻi’s year-round grazing conditions position it well to supply that niche with a local story. According to a 2022 analysis in Honolulu Civil Beat, over three-quarters of Hawaiʻi ranchers see better returns and community benefits in selling beef locally rather than exporting calves. This sentiment is driving innovations: some ranchers now retain ownership of their cattle through mainland finishing (via contracts or partnerships) to earn a share of finishing profits, while others collaborate to operate local finishing programs. The state and private investors are exploring feed solutions to lessen dependence on imports – for example, a University of Hawaiʻi project is testing the use of invasive gorse as a locally available feed component, which could “drive the price down” for livestock feed if successful. Additionally, improved pasture management and forage varieties (through CTAHR research) aim to boost weight gains on grass.

Economically, Hawaiʻi’s strong cattle prices in 2022–2023 have provided a short-term boost. As reported by the Hawaiʻi Department of Agriculture, ranchers’ gross incomes have surged due to global beef market conditions. If reinvested wisely, these gains can help modernize operations (e.g., water infrastructure for drought resilience, genetic improvements for better growth on forage). The industry is also tapping into its heritage branding – “Hawaiʻi Island grass-fed beef” carries cachet in farmers’ markets and agritourism, potentially commanding premium prices from tourists and health-conscious residents.

In summary, Hawaiʻi Island’s cattle sector stands at a crossroads of tradition and change. It remains the state’s livestock heavyweight, maintaining large ranching landscapes and exporting high-quality calves. Concurrently, through infrastructure upgrades and innovative practices, it is gradually edging toward a future with more local finishing and a stronger presence of island-raised beef on Hawaiʻi dinner plates. According to a Beef Central report, however, achieving competitiveness will require overcoming fundamental disadvantages in feed cost and scale. The coming years will reveal how effectively Hawaiʻi Island’s cattle industry can leverage its strengths – biosecurity (no ticks), year-round grazing, and strong local support – to address its perennial challenges.

• Sources:

  • USDA NASS Hawaiʻi County Profile (2022) – Cattle inventory

  • Hawaiʻi Dept. of Agriculture – Cattle and Calves Statistics, 2023

  • Honolulu Civil Beat – “Hawaiʻi Is Beefing Up Its Potential To Produce More Meat Locally” (Jan. 2022)

  • Beef Central (Australia) – “Hawaiʻi’s Unique Cattle Ranching Industry” (2020)

  • Hawaiʻi Island Now – “Feed Costs on the Hawaiʻi Island (Gorse as Feed Study)” (Nov. 2022)

  • Hawaiʻi Cattlemen’s Council – Producer survey report (2021)