Kauai's sugar cane industry is undergoing a transformation.

After more than a century, Kauai's sugar cane industry is undergoing a transformation.

Former sugar producer "Gay and Robinson" is leasing its land to a renewable energy company.

Since 1889 gay and robinson has been growing sugar cane on Kauai.

However the crop will no longer be used to make sugar.

Senator Gary Hooser, of the Kauai-Niihau counties says,"It's a sad day you know times are changing and it's not a good sign for our economy for our state in general."

In a press release the company said the increasing cost of sugar operations resulted in the company incurring significant loses.

The high price of crude oil one of the main factors.

Representative Hermina Morita says,"Gay and Robinson's fertilizer costs has gone up tremendously in trying to operate and so all these outside factors has had a real dampening effect on our economy."

Gay and Robinson will lease its 7,500 acre sugarcane plantation to Pacific West Energy.

The crop will be used to make ethanol.

"We are now moving forward and intend to be at the forefront of a new era as a renewable energy producer," added the company's President and General Manager.

"They'll be able to lease their land and get some certainty into their income streams and then it's up to those private developers the private enterprise to make the ethanol thing happen," says Hooser.

In a statement Governor Lingle promised "...to assist during the transition, including expediting the permits and approvals necessary to transform the kamaaina company."

While Gay and Robinson says it plans to honor contractual obligations to its workforce, some employees may not make the transition to ethanol production.

"I've heard they'll be an immediate cut of thirty to forty jobs and then if for some reason ethanol is not able to kick into gear then there may be further job loses," says Hooser.

Currently all ethanol used in Hawaii comes from outside the state.

If Pacific West is successful sugarcane acreage on Kauai could actually expand.

Hooser says,"If it's successful it could open up a lot more land for sugar cane growing, a lot more agricultural jobs."

source:khon2