It’s a Family Affair at Āhualoa Farms
By Barbara Garcia
Born and raised on a citrus ranch in Southern California, farming runs in Chad Cleveland’s blood. His father, grandfather, and great-grandfather were farmers and Chad has always loved having his hands in the dirt. He went to school at California State Polytechnic University, Pomona, obtaining a degree in agronomy in 2004, while living and working on the campus farm. After graduation, the school offered him a full-time job as farm manager. His father and Cal Poly taught him the “learn by doing” philosophy.
Chad always had a knack for business. What he didn’t learn in school, he self-taught instead. It came naturally because he wanted to do it on his own.
Eventually Chad leased 20 acres in Chino, California. He got a small beginning farmer loan from American Ag Credit and borrowed equipment from a farmer friend. He planted his first crop, alfalfa, for the dairy industry in Chino while still working his day job at Cal Poly. Any profit he made on the farm, he reinvested. Later Chad leased another 30 acres and hired his first employee. It grew to where he was leasing 2,000 acres and had 30 employees plus a fleet of trucks and tractors. Chad marvels, “Never in my wildest dreams did I think I’d own a John Deere tractor.” His farms continued to grow as he provided for the dairy industry: alfalfa, corn, wheat, oats, and hay.
As development encroached and the urban sprawl moved in from Los Angeles County, the farmland became houses. The land values in California were “insane” and all of Chadʻs leased farmland was destined for development, so he needed a new place to continue.
With his passion for farming and knowledge of business, Chad was always looking for new opportunities. His sister, Chelsea, suggested they look for a farm in Hawai‘i. Years earlier, she lived in Kona, and Chad recalls, “She had a crazy idea we might be able to farm here. In 2015, we started traveling out for exploratory trips, bringing our families, including the babies. We explored the island, learning about the different crops and regions, soil types, weather, and markets. We starting coming over a few times a year for several years, traveled all over the island and got to know people. I always said I didn’t want to get into mac nuts and coffee, I wanted something unique, but our real estate agent knew the owners of Āhualoa Farms…”
Fateful Accidents
Mike and Linda Watson started Āhualoa Farms by accident. They had a tiny farm, and would harvest their own mac nuts, roast them, and give them to friends. Linda was encouraged by her friends to sell them, so she started at a farmers’ market in Waimea. Someone from a resort tasted them and asked if she could provision them, which led to needing a commercial kitchen.
The Watsons were supposedly retired, but Mike was a contractor, so they purchased the former sugarcane fueling station (which had been a home in between) at the east side of Honoka‘a on Mamane Street, and he converted it to a commercial kitchen and gift shop. Their retirement business became more than full-time jobs, so after a while they decided to sell it.
Chad says, “We hadn’t considered the Honoka‘a area up to this point, but we met the Watsons and hit it off great, so we made a deal with them and the rest is history.” Chad’s cousin, Justin Padgett, who had never been to the island before, was the first to move. Chad’s sister, Chelsea, and her husband, Ryan Fontanilla, moved soon after, and Chad went back and forth. They quickly had to learn about business in Hawai‘i, the culture, and community. They all fell in love with it instantly.
When Chad and his family purchased Āhualoa Farms, they were essentially purchasing the business and building—the sale didn’t include the farm. The Watsons had already built a solid foundation and reputation for high quality products, and Chad wanted to expand upon that. “We had to build a farm around the business,” Chad reflects.
The Watsons had previously outgrown their own farm and had been buying mac nut kernel already cracked from local processors all over the island. Sourcing shouldn’t have been a problem, but a month after they purchased the business, a mac nut shortage occurred due to the demand outpacing the supply and they couldn’t get enough to fill their orders. It was a huge struggle. Chad decided that it was time to build their own processing plant, because buying raw nuts wasn’t a problem, processing them was.
The Factory
Justin happened to have seen the abandoned building at the bottom of Lehua Street, where the aged sign says is the oldest mac nut factory in Hawai‘i. It was in shambles and had been on the market for a long time. Chad instantly fell in love with the building and its history, and a deal was made.
Chad is still learning about the history of the factory and loves hearing stories. Evidently, Hawaiian Holiday Macadamia Nut Company was the first company to have their factory here, which was then purchased by the DeDomenico family (once owners of Ghirardelli Chocolate) who took it to the next level. At one point there was even a week-long Mac Nut Harvest Festival in Honoka‘a, including a parade. They found a program from 1979—it says it was the second annual and that Honoka‘a was the macadamia nut capital of the world. Āhualoa Family Farms hopes to bring this festival back to life.
For more than two years they slowly restored the charming building back to its former glory. Chad is mechanically-minded so he started designing the equipment and layout. He and his family and friends rebuilt the factory from scratch. In October 2020 they flipped the switch. It now has all the character of an old building with modern conveniences and equipment.
The front of the building still has the previous retail space with display windows where customers observed the nuts processing. They may open that again someday.
Upstairs offices have windows looking into the factory so the former bosses could watch the workers. The current management team occupies those same offices; however, with their stellar group of employees, watching them is not on their to-do list at all.
Upon taking a tour of this historical building, updated with all the bells and whistles of a modern factory, it gives a sense of awe. Chad explains how they received the nut processing equipment, “It came in pieces and we put it all together here, like puzzle pieces. It was a massive feat.”
From raw nuts to packaged and ready for sale, itʻs all happening between the factory and commercial kitchen. Other products they create from the nuts are macademia nut oil, salad dressings, nut spreads, chocolate covered mac nuts, eight flavors of mac nuts, mac nut flour, pancake mix, and granola. They also produce and sell 100% Hāmākua coffee and have plans to install coffee roasting equipment so they will be 100 percent vertically integrated.
The Farms
Chad purchased a coffee farm in Pa‘auhau, and began leasing land and share cropping in Kapulena (on the way to Waipio Valley). Nearby is where the first macademia nut tree on the island was planted. Many of these original orchards were abandoned, and now Āhualoa Family Farms is bringing them back to life.
Ryan runs the farming side of the operation. Chad says, “It is fun to watch Ryan in his element, you can tell that he really cares about and loves what he is doing—connecting with mother nature.”
‘Ohana
Kia, Chad’s wife, does the graphic design and creative content. The Āhualoa Family Farms team just completed a massive re-branding with a new logo, colors, and style to better fit the family farm. They’ve recently unveiled their new look with updated packaging and a tagline expressing their values: aloha, ‘āina, ‘ohana.
Chadʻs sister Chelsea, a “Jill of all trades,” manages miscellaneous tasks on the farm, including pulping coffee. Cousin Justin Padgett handles operations, quality control, shipping, and receiving with extreme accuracy. Ryan’s best friend, Matt Holmes, does the sales and marketing, traversing the island to give out samples to store owners.
Brendon Moran has lived in the neighborhood for years. He helped assemble the equipment and is now the factory manager. Lucena Lumbabao helps in the kitchen, is the best coffee picker around, and always smiles. Tina Stassens proudly handles deliveries and farmersʻ markets. Gary Alcosiba is the kitchen manager who makes the real magic happen, and there are a couple of other part-time employees. Chad smiles, “Margarita Laureta once worked in the original factory and now she’s so happy to be back helping us sort nuts with her sister, Lucena! It is moments like this that make me pinch myself, as we are truly living a dream with the most amazing people, land, and community.
“Dedication, respect and importance of aloha, ‘āina, and ‘ohana are our values. Everyone loves their jobs and are proud to be a part of the Āhualoa Family Farms team—and it shows. We believe in 100 percent quality, the best of everything, whether it’s attitude, ingredients, or heart. The best of everything goes into making these products.” ❖
For more information: ahualoafarms.com
