The largest statewide local beef brand will stop selling at Hawaii Safeway locations and will be replaced by a brand owned by an Idaho billionaire who controls most of the meat processing capacity in the state, raising concerns about a monopoly in the state’s beef industry.

In a Thursday news release, Parker Ranch, located in Waimea on Hawaii island, announced that it will stop selling Paniolo Cattle Company beef at local Safeway locations as early as mid-July.

“The partnership between Safeway and Parker Ranch’s Paniolo Cattle Company has achieved significant milestones, and while this chapter may be closing, locally raised Parker Ranch beef will still be available at KTA Superstores, the four Commissary locations, Tamura’s Super Market, Waimea Butcher Shop, and various other retailers throughout Hawai‘i,” said Dutch Kuyper, president and CEO of Parker Ranch, in a statement. “Paniolo Cattle Company looks forward to continuing to nourish Hawai‘i’s communities with their exceptional beef, while exploring new avenues for growth and future collaboration.”

A spokesperson for Parker Ranch said it and Safeway were unable to agree on “volume and price” and that the decision to part ways was mutual.

The company, which was formed in 2014 in a partnership between the ranch and the Ulupono Initiative, was seen as a successful demonstration that there is a viable market for local beef in Hawaii.

Parker Ranch said the company’s success improved meatpacking capacity, which is a limiting factor for local ranchers, and played a role in ensuring that ranchers received reasonable prices for their cattle.

Paniolo Cattle Company beef will be replaced by a brand called Kamaaina Ranches, which is owned by Frank VanderSloot, an Idaho billionaire who operates the two largest meat processing plants in Hawaii.

The Hawaii Meats plant on Oahu and the Hawaii Beef Processors plant on Hawaii island are both state-owned, but VanderSloot bought out the operators through his Hawaii Sustainable Beef Enterprises, giving him control of about 75% of the meatpacking capacity in the state.

VanderSloot’s control of the limited meat processing capacity in Hawaii has been a concern for years because it gives him the ability to prioritize the processing of his own beef and push out local ranchers from Hawaii’s beef industry. The concern prompted the introduction of Senate Bill 692 in 2021, which would have prohibited VanderSloot from using more than 50% of his meat processing capacity for his own meat.

The bill never got traction, dying without even a hearing, but dozens of people wrote in to testify on the bill.

Supporters of SB 692 believed that it would have prevented a monopoly in Hawaii’s meat processing; opponents argued that VanderSloot is investing in the expansion of processing, and the bill would prevent him from doing so.

One of the primary supporters of the bill was Parker Ranch, which said in a written testimony that the meat processor ”effectively controls which rancher gets access to the local beef market,” as it is an important part of the process between rancher and customer.

The ranch predicted its own downfall, saying that its partnership with Safeway ended because of its inability to access meat processing facilities.

“The decision was mutual, as it was challenging to maintain price competitiveness in the retail channel due in large part to escalating processing fees charged to us by Hawaii Sustainable Beef,” Parker Ranch said in an email to the Honolulu Star-Advertiser.

VanderSloot said concerns of his control over meatpacking in Hawaii are unfounded and said that he has delivered on expanding meat processing capacity in the state. He reported that the Oahu plant’s capacity has grown by five times, and there are plans to double the capacity of the Hawaii island plant.

He said he was disappointed that Parker Ranch will no longer be a part of Safeway, but said the “silver lining” will be that 172 local ranchers will provide all of the beef sold under the Kamaaina Ranches brand.

“We have 172 other ranchers that had never had the chance to have their meat on the shelves of Safeway,” VanderSloot said. “It’s their brand, it’s the brand of 172 small ranches …”

VanderSloot said that selling at Safeway was not part of his vision until he was approached by the company.

Regarding a monopoly over Hawaii’s beef industry, he said it’s not possible because ranchers can just sell to out-of-state buyers, which is what many already do.

“To have control of the market, I don’t think it’s doable with a commodity like beef,” VanderSloot said. “If you don’t give the rancher enough, they’ll just send them to the mainland. What was happening is that they didn’t have any choice to do so (keep cattle in Hawaii). Our endeavor is to give them a choice to keep their cattle here.”

The replacement of Paniolo Cattle Company with Kamaaina Ranches would make the expansion of meat processing in Hawaii a “high priority” for the upcoming legislative session, said Sen. Herbert “Tim” Richards III (D, North Hilo-Waimea-North Kona), who is currently in Washington, D.C., discussing Hawaii’s agricultural needs with Congress.

“One of my top needs for our islands for agriculture is infrastructure. Infrastructure is transportation, it’s access to land and water, but it’s also access to processing, whether it’s flash- freezing for cucumbers or … slaughterhouses for livestock,” he said. “We need to have capacity because we don’t.”

Richards, himself a rancher from Hawaii island, said that a monopoly in meat processing will ultimately hurt local ranchers and discourage prospective ranchers from entering the industry.