If you've bought macadamia nuts in Hawaii lately, you may have noticed something new on the label. Starting January 1, 2026, a groundbreaking state law is changing how macadamia nut products identify their origin and it's designed to protect both consumers and local farmers.
Act 199 establishes strict standards for labeling macadamia nuts as "Hawaii-grown." These regulations prevent misleading claims about product origin and ensure that when you buy Hawaii macadamia nuts, you're actually getting what you paid for.
At Ahualoa Family Farms, this law doesn't require us to change anything. We've been 100% Hawaii-grown and Hawaii-processed since day one. But we welcome the transparency this law brings to the industry.
Here's everything you need to know about Act 199, what it means for consumers, and how Ahualoa Family Farms meets these standards.
Understanding Hawaii Act 199
Hawaii Act 199, effective January 1, 2026, establishes strict standards for labeling macadamia nuts as "Hawaii-grown."¹ The law was designed to:
- Protect consumers from misleading origin claims
- Support local farmers who grow and process nuts in Hawaii
- Preserve the reputation and value of Hawaii-grown macadamia nuts
- Create clear distinction between Hawaii-grown and imported products
What the Law Requires
Under Act 199, macadamia nut packagers and suppliers in Hawaii must clearly label their products based on origin:²
If nuts are NOT grown in Hawaii:
- Packages must state: "This package contains macadamia nuts that were not grown in Hawaiʻi"
- This applies to any product containing macadamia nuts grown outside Hawaii, even if processed locally
If nuts ARE grown in Hawaii:
- Products can be labeled as "Hawaii-grown"
- Must meet verification and traceability requirements
- All growing, processing, and packaging must occur in Hawaii
Note: The law does NOT apply to macadamia nuts used as ingredients in processed foods like:
- Breads and baked goods
- Cookies and confections
- Energy bars
- Candies
- Milk and ice cream
- Other processed foods where macadamia is a flavoring or minor ingredient³
Why This Law Was Created
For years, consumers have been confused by macadamia nut products marketed as "Hawaiian" that actually contained mostly imported nuts. Some products labeled with Hawaii imagery or sold in Hawaii tourist shops contained nuts from Australia, South Africa, Kenya, or other growing regions.
This was an issue because Hawaii-grown macadamia nuts command a premium price because of their reputation for quality, buttery flavor, and strict agricultural standards. When imported nuts are blended in or substituted without clear labeling, it:
- Misleads consumers who want to support local farmers
- Undercuts Hawaii growers who follow sustainable practices
- Damages the Hawaii macadamia brand reputation
- Makes it impossible for consumers to make informed choices
Act 199 fixes this by requiring clear, honest labeling.
Ahualoa Family Farms' Commitment to Act 199 Compliance
We Were Already Compliant
When Act 199 took effect on January 1, 2026, Ahualoa Family Farms didn't need to change our labels, our sourcing, or our processes. We've always been 100% Hawaii-grown and Hawaii-processed.
Here's our commitment:
- All of our macadamia nuts are 100% grown in Hawaii
- We do not import macadamia nuts from outside Hawaii
- All processing, roasting and packaging takes place on the Big Island
What Makes Us Different
Many macadamia nut companies in Hawaii blend imported nuts with Hawaii-grown nuts or use 100% imported nuts while marketing themselves as "Hawaiian" through branding, imagery, and tourist shop placement.
We don't do that. Here's why:
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We buy from over 70 small growers across the Big Island Every nut we process comes from local Hawaii farms, ranging from backyard growers bringing 5 pounds to larger operations bringing 20,000 pounds.
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We process everything in our Honokaʻa factory Our historic facility (Hawaii's oldest macadamia nut factory) is where all husking, drying, cracking, sorting, and roasting happens.
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We store and crack fresh in-shell Unlike processors who crack everything at once and store kernels for months, we store nuts in their protective shells and crack fresh every few weeks.
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We roast in small batches in our certified commercial kitchen All flavoring and roasting happens in-town at our kitchen, using real ingredients like Maui onions, Big Island honey, and coffee liqueur extract.
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Fast turnover = maximum freshness Our nuts sit in inventory a maximum of one month but averages one to two weeks. Your order was most likely just roasted within the last few weeks.
Verification and Certification
How We Verify Hawaii-Grown Status
Our Hawaii-grown status is verified through local agricultural oversight and farm-level traceability practices. We work with regional agricultural partners and follow state-aligned verification processes to ensure compliance with Hawaii's authenticity standards.⁴
Our verification system includes:
Farm-level sourcing records
We track which grower supplied us with nuts, with documentation of farm location and receiving date
Internal quality assurance protocols
Our team verifies origin at intake and tracks each batch throughout the entire process including processing, packaging and delivery
Alignment with Hawaii Department of Agriculture guidelines
We follow all state agricultural requirements for labeling, traceability, and food safety
The Problem with Blended Products
Many macadamia nut products marketed as "Hawaiian" are blended with imported nuts or contain 100% imported nuts with Hawaii-themed branding.⁵ This creates several problems:
For consumers:
- You think you're buying local but you're not
- You can't verify quality or farming practices
- You may be paying Hawaii prices for imported products
For Hawaii farmers:
- Unfair competition from cheaper imported nuts
- Damage to Hawaii macadamia reputation
- Loss of market share to blended products
For Hawaii's economy:
- Money leaves the local economy
- Fewer jobs in farming and processing
- Loss of agricultural heritage and knowledge
What Act 199 Protects
Act 199 ensures that consumers can trust labeling claims. When you see "Hawaii-grown" on a macadamia nut package after January 1, 2026, you know:
- The nuts were grown in Hawaii
- The nuts were processed in Hawaii
- The company can verify and document the origin
- You're supporting local farmers and the Hawaii economy
How to Identify Authentic Hawaii Macadamia Nuts
When shopping, look for:
- Clear origin labeling "100% Hawaii-grown" or similar explicit statement
- Act 199 compliance badge Some companies (like us) display this prominently
- Processing location Should be in Hawaii, not just packaged there
- Company transparency Can they tell you which farms their nuts come from?
- Price reality check Hawaii-grown nuts cost more to produce. If the price seems too good to be true, it probably is.
Our Role in Hawaii's Macadamia Industry
Revitalizing a Historic Industry
We operate out of Hawaii's oldest macadamia nut factory in Honokaʻa. The industry started in our little town in the late 1800s, but this factory was abandoned in the 1990s and left to ruin.
We purchased it and have been restoring it ever since. We put new equipment back in several years ago and created a new market for mac nut growers in our area.
Supporting Small Growers
Our area is made up of small backyard growers which is why we work with so many. They're all small farmers and small growers, and now they have a place to bring their local nuts.
We're really the only processor on-island who specializes in supporting small growers. It's very cumbersome and inefficient to do it this way, but those are our core values. Community is very important to us, as well as the entire island and the industries we can support locally.
We resurrected the industry. We operate out of this cool, old, historic building. The very first macadamia trees in Hawaii were planted right down the street. We're really honored to be part of this rich history and heritage to preserve it, resurrect it, and keep it going with new life here.
What's Next for Hawaii Macadamia Nuts
Global Context
While Hawaii started the world macadamia industry in the late 1800s, we've fallen to around sixth place (or maybe even off the map) in global production. South Africa now leads, along with Australia, Kenya, China and other countries that are really expanding.⁶
But Hawaii-grown macadamia nuts are still known worldwide for their unbeatable buttery crunch thanks to our volcanic soils, ideal climate, and generations of farming knowledge.
Our Commitment Moving Forward
Act 199 is just the beginning. We're committed to:
- Maintaining 100% Hawaii-grown sourcing No imports, ever
- Supporting our 70+ small grower network Providing fair prices and reliable processing
- Investing in our historic factory Continuing restoration and modernization
- Educating consumers Helping people understand what "Hawaii-grown" really means
- Leading by example Setting the standard for transparency and quality
Act 199 is good for consumers, good for Hawaii farmers, and good for the future of macadamia nuts in our state. It ensures that when you buy Hawaii-grown macadamia nuts, you're actually getting what you paid for.
At Ahualoa Family Farms, we've been 100% Hawaii-grown, Hawaii-processed, and Hawaii-traceable since we reopened this historic factory.
Want to taste the difference that authentic Hawaii-grown macadamia nuts make? Shop our products online or visit us in Honokaʻa to see the process firsthand.
Footnotes
¹ KHON2. "New state laws for 2026 to impact local businesses."
² Maui Now. "Macadamia nut labeling law takes effect."
³ Hawaii News Now. "Hawaii's new macadamia nut label law highlights local pride."
⁴ Hawaii Department of Agriculture (PDF) – Act 199 guidelines and verification protocols
⁵ Hawaii News Now Facebook. "Love Hawaii macadamia nuts? Be sure to check the package."
⁶ Volcano Village Lodge. "History of Hawaii's Macadamia Nuts."
