The annexation of Hawaii by the United States in 1898 marked a dramatic shift in the islands’ political, economic, and social landscape. One of the most significant transformations following this event was the growing dominance of agribusiness. With the fall of the Hawaiian monarchy and the integration of the islands into the U.S. economy, powerful agricultural corporations quickly seized control over vast swathes of land and labor. These corporations reshaped Hawaii’s economy around sugarcane and pineapple production, fundamentally altering the islands’ development, demographics, and sovereignty.
The Political Background of Annexation
Overthrow of the Hawaiian Monarchy
In 1893, Queen LiliÊ»uokalani was overthrown by a group of American and European businessmen, many of whom had strong ties to Hawaii’s agricultural sector. They were aided by U.S. military forces and sought annexation by the United States to secure their economic interests. The new provisional government eventually gave way to a republic, which lobbied for annexation.
Formal Annexation in 1898
The United States officially annexed Hawaii in July 1898 through the Newlands Resolution. The move was driven in part by the strategic importance of Hawaii during the Spanish-American War, but also heavily influenced by the interests of agribusiness elites who wanted to benefit from U.S. tariffs and trade networks.
The Rise of Agribusiness Control
Dominance of the Big Five
After annexation, Hawaii’s economy came to be dominated by five major agribusiness corporations often referred to as the Big Five. These companies were:
- Alexander & Baldwin
- Castle & Cooke
- C. Brewer & Co.
- American Factors (Amfac)
- Theo H. Davies & Co.
These firms had vast landholdings and political influence. They collaborated to control pricing, labor, shipping, and even political candidates, ensuring their dominance over Hawaii’s economy and governance.
Expansion of Sugar Plantations
One of the most immediate outcomes of annexation was the removal of tariffs on sugar exports to the U.S., making Hawaiian sugar significantly more profitable. The sugar industry expanded rapidly, and plantations spread across the islands, consuming valuable land and reshaping the natural environment.
Labor and Migration
Imported Labor Force
To meet the labor demands of large-scale plantations, agribusinesses imported thousands of workers from countries such as China, Japan, Korea, the Philippines, and Portugal. These laborers worked in difficult conditions for low wages and were often subjected to discriminatory practices.
Control Over Workers
Planters maintained strict control over their workers’ lives, both on and off the plantation. Workers were segregated by ethnicity and often lived in company housing. Strike efforts and labor organizing were suppressed to maintain productivity and avoid challenges to agribusiness dominance.
Economic Transformation of the Islands
Monoculture Economy
Following annexation, Hawaii’s economy became increasingly dependent on a narrow range of export crops, especially sugar and pineapple. This monoculture approach made the islands vulnerable to global market fluctuations and limited economic diversity.
Wealth Concentration
While agribusiness owners amassed significant wealth, much of the population, including native Hawaiians and immigrant laborers, remained economically marginalized. The benefits of industrial-scale agriculture were unevenly distributed, reinforcing systemic inequalities.
Political Influence of Agribusiness
Manipulating Territorial Governance
With Hawaii designated as a U.S. territory in 1900, its governance was largely influenced by the same economic elites who had orchestrated the annexation. Agribusiness interests dominated the territorial legislature and local politics, shaping laws that favored corporate control and suppressed dissent.
Opposition to Statehood
Ironically, some of the same business leaders who had supported annexation were resistant to Hawaii becoming a U.S. state. They feared that full statehood might empower local labor movements and indigenous voices that could threaten their grip on power.
Impact on Native Hawaiians
Loss of Land and Autonomy
Native Hawaiians were among the most adversely affected by the rise of agribusiness. Many lost their ancestral lands due to legal manipulations and debt. The cultural and spiritual significance of the land was often disregarded in favor of profit-driven agriculture.
Marginalization in the New Economy
As the economy shifted toward large-scale plantation agriculture, native Hawaiians found themselves excluded from decision-making and economic opportunities. Their traditional ways of life were eroded, and they became minorities in their own land due to waves of imported laborers.
Environmental Consequences
Deforestation and Water Diversion
The expansion of plantations required large amounts of land and water. Forests were cleared, and complex irrigation systems were built to redirect water from streams and rivers to plantation fields. These environmental changes disrupted ecosystems and traditional agricultural practices.
Soil Depletion and Chemical Use
Decades of monoculture farming led to soil degradation and a heavy reliance on chemical fertilizers and pesticides. This not only affected the land’s long-term fertility but also had consequences for the health of local communities and marine life due to runoff.
Legacy and Modern Implications
Decline of Plantations
By the late 20th century, the profitability of sugar and pineapple plantations declined due to global competition, rising labor costs, and shifts in market demand. Many plantations closed, and large areas of land were sold for development or conservation.
Ongoing Land Issues
Despite the decline of traditional agribusiness, land ownership in Hawaii remains highly concentrated. Former plantation lands are now controlled by real estate developers, large trusts, and investment groups, often sparking conflict over land use and native Hawaiian rights.
Cultural Revival
In recent decades, there has been a resurgence of native Hawaiian identity and activism. Movements to reclaim ancestral lands, revive traditional agriculture, and assert political rights are growing. These efforts challenge the lingering legacy of agribusiness control and seek to restore balance and justice.
A Lasting Impact
The annexation of Hawaii marked the beginning of a new era dominated by powerful agribusiness interests. While it brought economic integration with the United States, it also led to the concentration of land, suppression of labor rights, environmental degradation, and the displacement of native Hawaiians. The legacy of this control still influences Hawaii’s social, political, and economic landscape today. Understanding this history is crucial to grappling with contemporary debates around land, identity, and sovereignty in the islands.