Higher sales of seed crops, macadamia nuts, coffee and other diversified agricultural products more than offset a fall in pineapple and sugar cane sales in 2005, according to recently released figures.

With sales of $576 million last year, Hawai'i's farm sector remains relatively small compared with the $12.5 billion tourism trade. Yet agriculture remains important as a local food source, for providing economic opportunities in Hawai'i's rural areas and by keeping land free of urban development.

The 4.4 percent increase in overall farm sales was driven by healthy growth in diversified agriculture, which more than made up for losses in pineapple and sugar cane, according to the National Agricultural Statistics Service.

Growth in Hawai'i's agriculture industry comes amid intense competition from farmers in foreign countries who can produce similar goods at a lower price. That has hit Hawai'i's pineapple and sugar cane growers especially hard, as illustrated by the recent shutdown of Del Monte Fresh Produce's Hawai'i pineapple operations. Even before Del Monte's shutdown, sales of Hawai'i pineapple — the state's biggest single cash crop — were in decline, falling nearly 5 percent in 2005 to $79.3 million.

Faced with high land and labor costs, Hawai'i pineapple growers are losing market share to countries such as Costa Rica, Mexico and Ecuador. Sales of Hawai'i's other old-time crop, sugar cane, fell 4 percent to $58.8 million last year. Sugar cane was Hawai'i's third largest commodity behind seed crops.

Newer additions are beginning to outshine pineapple, which was once the king of Hawai'i crops. Del Monte's exit leaves just two pineapple growers in the state. That means Hawai'i's seed-crop industry, which includes research on genetically engineered crops, will likely become Hawai'i's biggest individual crop. The value of the seed-crop sector rose 12 percent to $70.4 million last year.

Many farmers have adapted to an increasingly global marketplace by growing higher-margin fruits, flowers and other produce rather than pineapple and sugar cane.

The value of Hawai'i's fourth largest commodity — macadamia nuts — rose 8 percent to $44.4 million in 2005. Rounding out the top-five crops in 2005 was coffee, which generated $37.3 million in sales. Coming in at No. 6 on the list was cattle, with $22.8 million in sales, followed by milk, with $18.4 million in sales. Algae ($14.6 million), which is used as a nutritional supplement, was No. 8 on the list, while papaya ($11.2 million) remained No. 9. Tomatoes were 10th, with $9.8 million in sales.

As a group, sales of flowers and nursery products rose 6 percent, generating $100.6 million in sales during 2005.

Reach Sean Hao at shao@honoluluadvertiser.com.