Business Roundup for March 8

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Agriculture groups found new council

Agriculture groups found new council

In an effort to better market Hawaii commodities to foreign and domestic markets, three statewide agriculture associations have founded the non-profit Synergistic Hawaii Agriculture Council.

The three founding associations — the Hawaii Papaya Industry Association, the Hawaii Coffee Association and the Hawaii Floriculture and Nursery Association — represent 543 businesses stretching from Hilo to Hanalei. Combined, the three commodities earned $120 million in 2010.

“Through SHAC, multiple Hawaii commodity groups are unifying to utilize federal and state funding to market and export our made-in-Hawaii brand,” says Eric Tanouye, SHAC vice-president and president of the Hawaii Floriculture and Nursery Association.

Under SHAC, Hawaii commodities can apply for funds through the USDA’s Foreign Agricultural Service.

In 2012, $200 million was authorized by Congress under the Farm Bill to be channeled through grants to more than 70 participants. SHAC will mainly target grants through two funding opportunities: the Market Access Program and Technical Assistance for Specialty Crops.

Serving as an umbrella association, SHAC will enable Hawaii commodities to combine financial resources to provide the grants’ required amount of matching contributions and desired broadness of representation.

The idea is to consolidate association contributions with diminishing Hawaii Department of Agriculture grants to better leverage the federal funding.

Natural gas cars hitting market

DETROIT (AP) — More natural gas-powered vehicles will hit the market soon, as rising gasoline prices, booming natural gas production and proposed tax credits make them a more attractive option. But they’re a long way from being a common sight in U.S. driveways.

Starting in July, Chrysler will sell a Ram 2500 Heavy Duty pickup that runs on compressed natural gas.

The truck has both gasoline and natural gas storage tanks, and the engine shifts automatically between the two, without the driver needing to push a switch. The truck can run for 255 miles on natural gas and the range is extended to 367 miles using gasoline.

Once the CNG tanks are empty, the vehicle shifts to gasoline. The dashboard has gauges for both fuels.

Chrysler will have competition. Late this year, General Motors Co. will sell natural-gas versions of two pickups — the Chevrolet Silverado and GMC Sierra 2500 HD. The GM trucks will run on gasoline and natural gas for 650 miles.

Natural gas is appealing for a lot of reasons. It comes from domestic sources. It produces 30 percent fewer greenhouse gas emissions than traditional gasoline or diesel.

And it costs less than gasoline because of abundant production.