Monthly Profit and Loss Report P&L May 2018 & YTD Comparison 061618
KCFA BOARD OF DIRECTORS MEETING—MONDAY, May 21,2018
CTAHR Conference Room, Kainaliu
The Kona Coffee Farmers Association’s mission is to promote and protect Kona farmers’ economic interests in 100% Kona coffee, to protect the Kona coffee heritage, and to seek greater legal protection of the Kona coffee name.
CALL TO ORDER— 3:00 pm
Jim Monk, presiding
Colehour Bondera x
Bruce Corker x
Kay Dixon x
Allan Frank x
Chet Gardiner x
Jim Monk x
Armando Rodrequiz x
Cecelia Smith x
Karen Zulkowski x
Consent Agenda – (5 min)
Approval of April Minutes
Approval of Membership Applications
Acceptance of Committee Reports
Kay made motion to accept minutes and Cea seconded
Treasurer’s Report – Jim (5 min)
Discussion of report. Chet made motion to approve, Kay second. Motion passed
FY 2017-18 Budget discussion – (30 minutes) - Jim Extensive discussion of budget. Jim will take all comments and put it together for review. This is a lengthy process and board recommends combining some item. For example, Art and coffee stroll, expo, slow foods and made in Hawaii under events and then broken out for budget.
Slow Foods prep – (15 minutes) – Colehour/Karen
Karen, Colehour and Kay will go to Denver to man the Slow foods booth. Discussion of last year thought and changes. This year multiple sizes of coffee for sale will be used (pound, half and quarter). We will again ask for donations of coffee but if KCFA receives the county grant we may be able to pay farmers for their coffee. We will also ask people if they want to volunteer to work at the booth and work on a list of farms that sell direct.
Assistance for Pahoa (5 minutes) - Discussion
Armando is coordinating efforts. He has taken food and will work on how KCFA can help those impacted by the volcano.
Made in Hawaii Show (5 Minutes) – Allan/Committee
Allen presented some idea on how the booth can work. The board felt that having individual farmers sign up to go sell their coffee was the easiest. Others that wish to send their coffee for sale may then pay a % to the booth staff to sell it. It was recommended that 1 KCFA person be there for the show to oversee the booth. Armando will help with booth planning.
HCA Green Coffee Auction Committee – (5 min) – Mark
5/25 Meeting with HDOA’s Scott Enright (10 minutes) – Suzanne/Bruce
HDOA PQ quarantine waiver Update: - (5 min) Suzanne
Coffee Thank you to Karen for May
Next month Cea
Two separate financial reports are a part of this report: a balance sheet for our Association as of 4/30/18, and a profit and loss statement for the month of April with a fiscal year-to-date for fiscal 2018, now beginning to draw to a close.
We continue to expect some payment from the County for the Slow Food Expo in Denver, but it has not come in yet. We are in the process of submitting our actual expenses so should see some payment sometime in 2018. We also expect to receive grant money for our recent Expo at some point in the future.
We received $290 in Membership dues in March and $5,070 year-to-date which is over our fiscal year goal of $5,000! Congratulations Chet! Our merchandise sales so far this year total about $9,500 –including about $1,000 of sales recorded in April at the Expo. Our budget for the year’s sales is $11,000.
Our expenses in April shot up dramatically to cover the cost of the Expo. April saw a loss of over $8,000. Our year to date income has slipped into the negative when we remember that the P&L on the fiscal year basis continues to overstate our income situation by $6,400. This situation should reverse when we receive the grant funds. But so far this fiscal year there has been no grant income received to offset expenses.
Our balance sheet looks reasonable with sufficient funds available to pay our bills and look to funding future events. In May we have had to move funds from savings to checking to cover current expenses. We now have two grant applications outstanding which have not paid anything to the KCFA. These concern me.
With all the bills in from our great Expo (I assume), our income was a bit over $2,100 while our expenses exceeded $10,000. With anticipated grants of about $5,000 we are looking at an overall loss of about $3,000. But that is why we have funds in the bank – to promote Kona Coffee.
On May 19th, KCFA sponsored a vertical pruning workshop at Bob Nelson's farm with Bob Smith assisting with the pruning. Thanks to both of them. There were 10 members, 7 visitors (five paid and two comp -- one from the USDA and Melanie Bondera, who was speaking about how to get reimbursements for CBB spraying) and 3 new members who attended the workshop. In addition Cea Smith, Chet Gardiner and I staffed the check in table, while Bob Smith wielded shears. All told 25 people were in attendance. We took in $50 from the visitors and $70 from new members.
Tech Committee Report
Sent General email to all members: Coffee Berry Borer Conference (2), May 2018 Independent Voice, Vertical/Shoot Selection Workshop, Coffee Quality Workshop, and Lost Person email. Posted same on Face Book.
Posted on website: The Independent Voice and Vertical/Shoot Selection Workshop.
Responded to offer from Gregory Clark regarding his donation of 150 high quality coffee posters. Waiting for his shipping quote before agreeing to accept or not.
Wrote up handouts for Saturday’s Shoot/Vertical Selection workshop and will print off on KCFA’s snazzy new printer.)
Legislative Committee Report
THE PETITION circulated by the Legislative Committee at the EXPO on April 6 has been mailed to Governor David Ige, with copies to West Hawaii Today, Honolulu Civil Beat and the Associated Press. The petition was signed by 139 supporters of Hawaii’s coffee farmers. It asks the Governor to publicly support now--and in the 2019 Legislative Session--measures to protect against damage to the economic interests of Hawaii coffee farmers and against damage to the reputation of Hawaii-grown coffee caused by deception and fraud in the labeling of coffee products using Hawaii-origin names. Specifically, the request is for support from the Governor for a 51% minimum for Hawaii coffee blends; label identification of the origin and percentage of foreign coffee in the blends; and disclosure the percentage of Hawaii-grown coffee in ready-to-drink (“RTD”) coffee products using Hawaii-origin names.
KONA HILLS ISSUES—HR197 and HCR227: These 2 identical resolutions were introduced by Rep. Richard Creagan and called for a coffee industry study group focusing on the plans of Kona Hills LLC to develop a 2,000,000-tree coffee farm in Kealakekua. Both resolutions were favorably passed out of the House Agriculture Committee on March 23 and sent to the House Finance Committee, chaired by Rep. Sylvia Luke of Oahu. The resolutions were killed in the backroom without debate or a vote when the chair refused to schedule hearings.
HAWAII COUNTY DEMOCRATIC CONVENTION RESOLUTIONS: At its April 28 convention the Hawaii County Democrats adopted three resolutions of interest to coffee farmers:
Resolution #2018-03 “Calling for Truthful Labeling of Hawaii-Grown Coffee”, asking the Legislature to enact 51% minimum and label identification of origin of foreign coffee in Hawaii-Coffee Blends.
Resolution #2018-04 “Calling for the Hawai’i State Legislative Committee Chairs of the Democratic Party of Hawai’i to be Held Accountable”, citing HB256 (Coffee Labeling Reform) as an example of the need for accountability.
Resolution #2018-02 “Urging the State Legislature to Implement a Video Conference System for Facilitating State Legislative Testimony from the Neighbor Islands, Including East and West Hawai’i Island” .
Active Voting Members 193 – down 5
Associate Members 23 – up 2
Supporting Business Members 19 – down 2
Total Membership: 235 – down 5
Mark Wessels – Domain Kona, Keakakekua - [email protected]
Anne Tek – Deniz Tek Farm – Added Farm Member
Christy Carrico – Honu Kula Coffee Farm - [email protected]
Jeffrey Smith - San Carlos, CA
Pete Rogers – Rogers Family
Anita Kelleher, Bruce Craven, Solomon Alani, John Klassen, Louise Winn, Deniz Tek, Wilfred Yamasawa
Reported as Expired:
Gwen Hicks, Robert Moeller, Patricia Wall, Ray Vater, Wayne Gray, Chuck Ponthier, Sharron Statham, Patricia Eames, Roger Hudlow, Emmerich Grosch, Bud Jenkins, Luis Kona, Raymond Suiter
Specialty Coffee Association
Suzanne Shriner spent three days at the SCA Expo over the weekend of April 19-21. The SCA show is divided up into different segments. Purchasing a “floor pass” gets you access to 3 days of lectures, hundreds of vendor booths, coffee cuppings, a dizzying array of activities and local roastery tours. For the truly committed, there are add-on trainings and the Re:Co symposium (Think TED Talks for coffee). It would benefit almost every farmer to go at least once.
I counted at least 10 green coffee brokers/buyers on the show floor, as well as all the major processing equipment vendors, roasters, and bag suppliers. Anything a coffee farm could possibly need was represented. And it showed, as there was a large number of growers from South America and Africa in attendance.
While there, I attended every lecture I could. Most days, there were 6-7 lectures offered at the same time, and at least 2 of those applied to growers. I took many notes and will try to spin out more newsletter articles on the lectures I attended.
Kona was represented at this show as a part of the 10'x10' Hawaii Coffee Association booth. HCA focuses on a balance of coffee from around the islands and does not specifically promote Kona in a way that directly benefits our growers. I believe KCFA has a place at such an event. Perhaps it’s time for us to consider carrying the flag again, and promoting our heritage crop to the world through SCA. The 2019 show will be in Boston, but 2020 will be back on the West Coast. HCA is considering taking on the "flagship" sponsorship of the 2020 show, and Hawaii as the Origin of focus. If this is the case, then KCFA should certainly be present with a booth. We could apply for grants to support the funding of the activity.